The Royal Canadian Mint established the Canadian Silver Reserves Program in order to provide an exchange-traded investment vehicle that tracks the price of silver and makes investing directly in physical silver available to institutional and retail investors. Exchange-Traded Receipts ("ETRs") are listed on the Toronto Stock Exchange (the "TSX") and may be bought and sold on the TSX like any other exchange-listed securities.

The Mint is a commercial federal Crown Corporation producing circulation, numismatic and bullion coins for the domestic and international markets. Since 1908, the Royal Canadian Mint has earned a world-renowned reputation for quality, excellence and security. The Mint operates full-service gold and silver refineries with a range of services from refining to assaying and secure storage. Subject to the terms of the ETRs, each ETR will constitute a direct unconditional obligation of the Mint, an agent of His Majesty in right of Canada and as such will constitute a direct unconditional obligation of His Majesty in right of Canada. ETR holders will have no recourse to the Mint or the Government of Canada for any loss on their investment.


Each ETR represents an undivided beneficial interest in silver bullion to be held in custody by the Mint. The silver bullion is beneficially owned by the ETR Holders and not by the Mint. The amount of silver bullion purchased is equal to the proceeds of the offering, after deduction of the expenses of the offering, divided by the average price per ounce of the silver bullion paid to third party sellers at the date of the closing of the offering.


The Per ETR Entitlement to Silver was fixed on the Issue Date and is expressed as a fraction of one fine troy ounce of silver on the Issue Date, reduced daily by a management, storage and custodial fee charged by the Mint of 0.45% per annum.


The Mint charges a Service Fee in respect of its management, storage and custodial services. The Service Fee is calculated and accrued daily at an annual rate of 0.45% of the Per ETR Entitlement to Silver on each day on all outstanding ETRs and paid monthly in arrears on the 15th day of each month (or if not a business day, on the next succeeding business day). On such day each month, the Mint withdraws the amount of silver bullion necessary to satisfy the Service Fee in respect of the ETRs for the preceding month. Accordingly, the amount of silver bullion underlying each ETR decreases daily as the Service Fee is accrued. The Service Fee may be varied by the Mint on not less than 10 days' advance notice in the event of a decrease in the Service Fee and not less than 90 days' advance notice in respect of any other change to the Service Fee.


The Mint acts as custodian of the silver bullion on behalf of ETR Holders and holds the silver bullion in its facilities. Legal and beneficial ownership of the silver bullion at all times remains with ETR Holders. The silver bullion underlying the ETRs is stored by the Mint on an unallocated basis, such that the silver bullion owned by an ETR Holder is not held separately from the other unallocated silver bullion held at the Mint, including the unallocated silver bullion underlying other ETRs. The Mint at all times maintains in its facilities unallocated silver bullion in an amount that is equal to or exceeds the amount owned in aggregate by ETR Holders. The Mint has been providing precious metals storage services since its founding in 1908. 

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