The Fund does not expect to pay distributions. Consequently, the Fund does not expect to issue T3 slips in most years, except in the instance of a distribution of the Fund’s taxable income in the form of additional units to ensure the Fund is not taxed. The Fund also may allocate income to a redeeming unitholder which has been realized in respect of the disposition of precious metals in connection with the redemption. Any amount so designated as income will be considered to have been paid out of the redemption price paid to the redeeming unitholders.

Warrants

If a warrant is sold prior to expiry, warrant holders will be subject to tax on any capital gains realized on the disposition. If a warrant is exercised, this will not constitute a disposition, no tax is incurred until the disposition of the units, at which point unitholders will be subject to tax on any capital gains realized on the disposition. Unexercised warrants will result in a capital loss equal to the adjusted cost base of the warrant to the unitholder.

For units acquired pursuant to the initial public offering, a reasonable allocation of the $12.00 purchase price between the unit and the warrant must be made for tax purposes. The Fund has allocated $0.60 of the purchase price of each warrant though the Canada Revenue Agency may not agree with such allocation.

2010 Tax Allocation

Precious Metals Bullion Trust is pleased to provide the following information to assist its unitholders in the preparation of their Income Tax Returns. This information is applicable to holders who, for the purposes of the Income Tax Act (Canada), are resident in Canada and hold trust units as capital property. If this is not the case, a tax advisor should be consulted.

Holders of trust units outside of a RRSP, DPSP, RRIF, RESP or TFSA should expect to receive a T3 slip from their investment dealer. T3 supplementary slips will indicate Investment Income in Box 26, Foreign Non-Business Income in Box 25, Capital Gains in Box 21 and Dividend Income in Box 23 and Box 49. Dividend income is subject to the standard gross up and federal dividend tax credit rules.

The return of capital component is a non-taxable amount that serves to reduce the adjusted cost base of the Fund units and is reported in Box 42.

Please select year to display the amount of income per unit which was paid concurrently with a quarterly redemption payment in 2010 2011

(1), (2) The distributions with record dates of April 29, 2010 and October 29, 2010 were only paid to unitholders who redeemed their units as of that date.

(3) Special cash distribution which approximates the income taxes payable (by taxable holders of the Fund) on the total special cash distribution and unit distribution based on the highest marginal Ontario tax rate.

(4) Unit distribution. The unit distribution was automatically reinvested in units which were then consolidated such that the units outstanding did not change. This unit distribution should be added to the adjusted cost base of the unitholders' positions.