Exchange Traded Receipts Royal Canadian Mint Canadian Gold Reserves June 2012
This presentation may contain forward-looking information within the meaning of applicable securities laws in Canada ("forward-looking information"). All forward-looking information is given pursuant to the safe harbourprovisions of applicable Canadian securities legislation. The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The forward-looking information reflects management's current beliefs and is based on assumptions developed using information currently available to the Mint's management. Although the Mint believes that the forward-looking statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties. For additional information on risk factors that have the potential to affect the ETRs, the Canadian Gold Reserves program or the Mint, reference should be made to the Information Statement, which may be obtained at reserves.mint.ca. Except as required by law, the Mint undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof. 2
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Exchange Traded Receipt - Characteristics Passive investment Direct ownership of a commodity Redeemable for the asset Credit worthiness of the custodian Minimalist structure Minimal expenses 4
Canadian Gold Reserves Program Enthusiastically Accepted MNT & MNT.U began trading on the TSX November 29, 2011 Largest IPO in Canada for 2011 30 million ETRs were issued, raising $600 Million Top quartile for volume Top third for market capitalization 5
Canadian Gold Reserves Key Investment Highlights Secure Efficient Direct beneficial ownership of gold (no intermediaries) Royal Canadian Mint (the Mint ) is one of world s most respected brands, backed by the Government of Canada Each Gold ETR constitutes a direct unconditional obligation of Her Majesty in right of Canada Low total cost to the investor Entitlement to purest gold 99.99% Gold ETR holders receive institutional equivalent access Convenient Best-in-class redemption options Newly casted 1oz coins, kilobars, LGD bars and/or cash Exchange-Traded Receipts (ETRs) listed on the TSX in C$ and US$ 6
Royal Canadian Mint Vision "To be the Best Mint in the World" 7
Royal Canadian Mint Business Lines Canadian Circulation Foreign Business RCM Winnipeg 8
Royal Canadian Mint Business Lines Numismatics Bullion & Refinery RCM Ottawa 9
The largest commercial Mint in the world Over 100 years of custodial and refining experience Has provided services to over 80 national governments The Mint is a crown corporation Obligations of the Mint constitute a direct unconditional obligation of Her Majesty in right of Canada Canada is one of the few remaining countries with a AAA credit rating Secure Royal Canadian Mint 10
Secure Direct Beneficial Ownership Gold ETR structure gives investors direct interest in 99.99% gold without the presence of an intermediary Each Gold ETR constitutes a direct unconditional obligation of Her Majesty in right of Canada 100% of the gold is stored at the Mint in Ottawa Physical Gold Funds Investor Gold Futures Contract Investor Gold ETR Investor Asset Manager Counterparty Minimum 99.50% Pure Gold Minimum 99.99% Pure Gold 11
For most investors, purchasing, storing and selling gold is not easy and it can be costly Because of its custodial and refinery role, the Mint can deliver a cost effective Canadian Gold Reserves Program Significant capacity for further growth Low total cost to the investor Efficient Low Total Cost Annual service fee of 35bps (0.35% p.a.) to cover custody and all other on-going costs 12
Convenient Flexible Redemption and Liquidity Options Most investor friendly overall redemption rights Multiple monthly redemption options: 1) Newly casted 99.99% gold products Maple Leaf Coins (1 ounce) Kilobars (~32.15 ounces) London Good Delivery Bars (350-430 ounces) 2) Cash redemption Listed on the TSX in both C$ and US$ under the tickers MNT and MNT.U 13