Central GoldTrust Provides Summary of Events - Seite 2

In connection with amendments relating to the Enhanced Cash Redemption Feature, the Trustees of GoldTrust also adopted proposed amendments to the Declaration of Trust protecting the 90% compulsory acquisition threshold provisions of the Declaration of Trust which Sprott is proposing to amend in connection with the Sprott Offer to reduce the compulsory acquisition threshold from 90% to 66 2/3%. The Trustees of GoldTrust determined that amendments to preserve the 90% compulsory acquisition threshold were in the best interest of GoldTrust and its Unitholders as Sprott's proposed amendments would allow Sprott to circumvent the protections afforded to Unitholders and do indirectly what it cannot do directly without the support of holders of 90% of the outstanding Units: force a compulsory acquisition of all Units of GoldTrust in one step.

The Trustees adopted both of the above amendments without Unitholder approval on the basis of the provisions in the Declaration of Trust permitting the Trustees to make amendments to the Declaration of Trust for the benefit and protection of Unitholders.

As a result of Sprott's self-serving legal challenge and the decision of the Ontario Superior Court of Justice described below, GoldTrust cannot implement the amendments to its Declaration of Trust concerning the Enhanced Cash Redemption Feature or the preservation of the 90% compulsory acquisition threshold without the approval of Unitholders until the Sprott Offer has expired or is withdrawn. The Trustees disagree with this decision, and strongly believe that all Unitholders should not be deprived of the significant benefits of the Enhanced Cash Redemption Feature solely due to a self-interested complaint from Sprott.

The Trustees have approved the proposed amendments and intend to implement the Enhanced Cash Redemption Feature if the Sprott Offer fails or is withdrawn or with the support of Unitholders at a meeting of Unitholders. Although the Trustees intend to implement the Enhanced Cash Redemption Feature, certain future events, including a change in the composition of the majority of the Board of Trustees, the failure to obtain the support of Unitholders, a change in the economic circumstances of GoldTrust or a change in the gold bullion market, could result in the Enhanced Cash Redemption Feature not being adopted. The Trustees do not currently intend to implement the amendment protecting the 90% compulsory acquisition threshold provisions of the Declaration of Trust.