pmg 2010 final - proposal only!

8/8/2019 PMG 2010 Final - PROPOSAL ONLY!

1/40

PRODUCT DISCLOSURE STATEMENT

ISSUER

GOLD CORPORATION

PERTH MINT GOLD

A STATUTORy AUThORITy O ThE GOvERNmENT

O wESTERN AUSTRALIA

1 JULy 2010

ABN 98 838 298 431


2/402

CONTENTS

Ter Seet 3

Additional inoration about Pert mint Gold 4

1 Inoration about Pert mint Gold 5

2. Inoration about Gold Corporation 12

3. Risks o inesting in Pert mint Gold 14

4. Tax Suar 18

5. Consents and Disclosures 20

6. Ters and Conditions 21

7. Interpretation 27

8. Priac Stateent 30

9. Additional Inoration 31

10. Director - Contact details 32

11. Exercise Procedure 33

12. Exercise Product & Price Scedule 37

Exercise Notice 39


3/403

Issuer Gold Corporation, a statutor autorit o te Goernent o western Australia.

ASX Code PmGOLD

Underling Parcel 1/100t o a tro ounce o ne gold.

Guarantees Eac PmG ill be ull coered b 1/100t o a tro ounce o ne gold oned bGold Corporation.Te liabilities o Gold Corporation, including its obligations under te PmG Tersand Conditions, are guaranteed under section 22 o te Gold Corporation Act1987, an Act o te western Australian Parliaent.

Issue Date 9 ma 2003

manageent ee 0.15% annuall (paid b annual redeption o PmGs or b pro rata as calculatedinto te price o te PmG in te or o a Trading ee).

Exercisable At an tie.

Settleent metod Psical (delierable) gold or cas.

Psca Sttmnt

Psical ors (a) London Good Delier Bar (approxiatel 400 tro ounces and iniupurit o 99.50%).

(b) Pert mint coin and bar products (subject to aailabilit).

Settleent Date (a) In te case o London Good Delier Bars, 20 Business Das ater Exercise

Date.(b) In te case o Pert mint coin or bar products, as deterined b Gold

Corporation and dependent on aailabilit.

Nuber o PmGs Required variable, depending on te Psical or selected b holder.

Psical Settleent ee variable, depending on te abrication Carges o te Psical or and costso delier etod selected b holder and an Taxes and Duties. Oter costs(a Non-Delier ee) a be incurred i holder ails to take delier o is/erPsical or.

Cas Sttmnt

Settleent Date 5 Business Das ater te Exercise Date.

Cas Settleent Reduction Aount $100

TERM ShEET

This Term Sheet is only a summary of the key features of the PMG. Investors should read this entire Product Disclosure

Statement (PDS) including the Terms, which replaces the Product Disclosure Statement for the Perth Mint Gold Quoted

Product dated 7 May 2003, before making an investment decision. All fees payable from time to time are set out in the

Exercise Product & Price Schedule in Part 12 of this PDS.

Nt: T s n appcatn m n ts PDS cas PMGs can nma pcasd nsts n

n t ASX.

Tis Ter Seet ors part o te Ters and Conditions o te PmG.


4/404

I ou ae an questions about te procedure or inestingin Pert mint Gold or o to coplete te Exercise Notice,

please contact Gold Corporation on 1300 651 465 or isit

te inestent section o Gold Corporations ebsite at

.pertint.co.au.

Gd Cpatn ma wa an a s paa

nd t Tms at Gd Cpatns dsctn, at

an tm.

DiSCloSureS

Pdct Dscs Statmnt: Tis Product Disclosure

Stateent (te PDS) replaces te Product Disclosure

Stateent or te Pert mint Gold Quoted Product

dated 7 ma 2003. Tis PDS as been prepared b Gold

Corporation ABN 98 838 298 431 (Gold Corporation), a

statutor autorit o te Goernent o western Australia

establised under te Gold Corporation Act 1987, and te

issuer o Pert mint Gold (PmG).

wile te Australian Securities and Inestents Coission

(ASIC) takes no responsibilit or te contents o tisPDS, neerteless a PDS In-use Notice as been lodged it

ASIC.

Gold Corporation is exept ro te Corporations Act

(except Capter 5) as it is an exept public autorit

as dened in section 9 o te Corporations Act. hoeer,

tis PDS as been prepared in accordance it Capter

7 o te Corporations Act. Gold Corporation is bound b

te proisions o te air Trading Act (wA) 1987 ic

proibits Gold Corporation ro engaging in conduct tat

is isleading or deceptie or likel to islead or deceie inrelation to tis PDS. Also, Gold Corporation ill be liable

or te contents o tis PDS in accordance it ordinar

coon la principles.

instmnt Dcsns: It is ipossible in a docuent o

tis tpe to take into account te inestent objecties,

nancial situation and particular needs o eac reader.

Accordingl, noting in tis PDS sould be construed as

a recoendation b Gold Corporation, or an associate

o Gold Corporation or an oter person concerning an

inestent in PmG. Readers sould not rel on tis PDSas te sole or principal basis o a decision to inest in

PmG and sould seek independent nancial and taxation

adice beore aking a decision eter to inest in PmG.No person is autorised b Gold Corporation to gie an

inoration or to ake an representation not contained in

tis PDS. An inoration or representation not contained in

tis PDS ust not be relied upon as aing been autorised

b or on beal o Gold Corporation. Noting in tis PDS is,

or a be relied upon as, a representation as to te uture

perorance o PmG.

Jsdctn and Sng rstctns: Tis PDS is not an

oer or initation in relation to PmG in an place in ic,

or to an person to o, it ould not be laul to aketat oer or initation. Te distribution o tis PDS outside

Australia a be restricted b te las o places ere it is

distributed and tereore persons into ose possession tis

docuent coes sould seek adice on and obsere tose

restrictions. ailure to copl it releant restrictions a

iolate tose las.

The TerMS

Tis PDS as been prepared b Gold Corporation

in accordance it te nancial product disclosure

requireents under te Corporations Act.

Te PmG product is entered into beteen te Inestor and

Gold Corporation on te ters set out in te Ters and

Conditions (te Ters) ic are contained in Part 6 o

tis PDS. It is iportant tat ou read te Ters (including

te Ter Seet) in ull as tese set out our rigts and

obligations in relation to PmG.

DiSClAiMer

Te gold arket is olatile. Inestents in gold inole a

ig degree o risk and are not suitable or all persons.

Losses a be incurred bot as a result o gold price

diinution and i an price gains do not exceed applicable

anageent, andling, delier and related ees. Gold

Corporation as not oered or gien and ill not proide

an inestent adice in connection it tis PDS or PmG.

I ou are in an doubt as to te suitabilit o precious

etals as an inestent ou sould contact our legal and

nancial adiser beore inesting in PmG.

Te eaning o an capitalised ter appearing in tis PDS is

explained in Part 7.

ADDITIONAL INORMATIONAbOUT PERTh MINT GOLD


5/405

WhAT iS PMG?

Pert mint Gold (PmG) is essentiall a rigt created on-

arket b Gold Corporation to enable ou to inest in gold

on te Australian Securities Excange (ASX).

PmG is structured as a call option in accordance it

te ASX market Rules. Eac PmG entitles ou to acquire

one undredt o a tro ounce o ne gold and a be

exercised b ou at an tie.

Te ASX price o PmG is intended to track closel te

international oer-te-counter arket spot price o goldand ill be based on te arket alue o te gold backing a

PmG at te tie o purcase.

PMG iS A WA GoverNMeNT GuArANTeeD ProDuCT

One o PmGs strengts is te status o its issuer. Gold

Corporation is a statutor autorit o te Goernent o

western Australia. At te date o tis PDS te Goernent

o western Australias doestic debt is rated AAA b te US

international credit rating agenc, Standard and Poors, its

igest rating categor.

Te liabilities o Gold Corporation, including its obligations

under te PmG Ters and Conditions, are guaranteed

under section 22 o te Gold Corporation Act 1987, an Act

o te western Australian Parliaent.

PMG iS ully CovereD by GolD

Te PmG ill be ull coered b gold oned b Gold

Corporation. Gold Corporation ill purcase one undredt

o a tro ounce o ne gold (ic is te aount o pure

psical gold) or eac PmG it sells to ou. Eer 100 PmGs

ou exercise ill entitle ou to take delier o 1 tro ounce

o ne gold. or exaple, i ou exercise 100 PmGs and ou

select a 1ozt bar o 99.99% purit, it ill contain 0.9999

tro ounces o ne gold (it is not possible to delier products

containing 100% pure gold).

you ill ae no interest in or onersip o te gold

backing eac PmG until or unless our PmGs are exercised

b lodging a alid Exercise Notice it Gold Corporation

electing psical settleent.

Where Will GolD CorPorATioN STore PMG GolD?

Altoug ou ae no interest in or onersip o te gold

underling our PmGs, ou a is to kno ere Gold

Corporation ill store tis underling gold.

Gold Corporation ill to store te ajorit o te PmG gold

purcased ater holders bu PmGs in its aults in Pert,

western Australia, in (a) te or o gold bars segregated

psicall ro an oter precious etal eld in Gold

Corporations aults and/or (b) in a psical unsegregated

or in Gold Corporations operations in Pert. An aount

sucient to proide liquidit or cas sales o PmGs ill also

be eld in Gold Corporations London etal accounts.

Gold Corporation as a legal obligation under te PmG

Ters to ensure our gold is aailable or collection itin

a specied period ro te date o receiing our Exercise

Notice. All PmG gold eld ill be in ors tat enable Gold

Corporation to ull its psical gold delier obligations

to ou.

WhAT Are The beNeiTS o iNveSTiNG iN PMG?

Te possible benets o inesting in PmG include:

acquiring a non-leeraged product tat tracks closel

te international oer-te counter arket spot price

o gold;

oning an inestent anaged b Gold Corporation,

a statutor autorit o te Goernent o

western Australia;

gaining a Goernent guaranteed rigt to acquire

psical gold ro Australias leading precious etals

int, ic as oer a centurs inoleent in te

nations gold industr;

oning an inestent tat can be traded on te ASX,

ic proides a transparent and regulated arket;

and

aoiding te risks and costs associated it personal

storage o gold bullion.

INORMATION AbOUTPERTh MINT GOLD1


6/406

WhAT Are The riSkS o iNveSTiNG iN PMG?

wen reading tis PDS, ou also sould consider careull

te risks described in greater detail in Part 3 o te PDS.

Te risks include, itout liitation:

general arket risks;

risk o non-perorance b Gold Corporation;

risk o canges in te PmG manageent ee,

Psical Settleent Aount and Cas Settleent

Reduction Aount;

arket liquidit risk; and

olatilit risk in te international gold and

currenc arkets.

As wt an nstmnt, t s mptant tat

ndstand and appcat t ss nd n

nstng n PMG. lsss ma ncd as a st

gd pc dcns and ads cnc mmnts,

an pc gans d nt xcd Psca

Sttmnt Amnt Cas Sttmnt rdctn

Amnt (as appca) and t PMG

Managmnt .

hoW Do i obTAiN PMG?

you can bu a PmG onl on te ASX. you cannot subscribe

or a PmG directl ro Gold Corporation.

PMG quoTeD oN The ASX

Gold Corporation as ade an application, and as been

granted approal b ASX, or te adission o PmG to

quotation as an AQUA product on te ASX trading arket.

you are able to acquire PmGs troug our stockbroker.

Gold Corporation ill ake a priar issue to GoldCorp

Australia (see ho are PmGs created? belo).

AquA ruleS

On 15 Septeber 2008, te ASXs ne AQUA trading

plator coenced operations ic enable quotationo anaged unds, ETs and structured products. AQUA

consists o to plators (i) trading arket and (ii)quotation arket ic are establised under Capter 10A

and Capter 10B o te ASX market Rules respectiel.

Te AQUA trading arket proides a trading plator

or products quoted under te AQUA Rules troug te

Integrated Trading Sste (ITS). Te AQUA trading arket

operates te sae a tat arrants are traded on te

ASX arket.

Te ASX AQUA Rules in Section 10A o te market Rules

are based upon, and siilar to te ASX warrant Rules

in Section 10 o te market Rules. Te ke dierence in

principle beteen te ASX warrant Rules and te ASX Aqua

Rules, in respect o products suc as PmG, is tat te AQUA

Rules proide greater fexibilit in product structures and te

underling instruents. Te AQUA Rules are considered

to be ore appropriate tan te warrant Rules or PmGs

as te underling instruent is gold bullion rater tan

equities and te PmGs ae no aturit.

Unlike te warrant Rules, te AQUA Rules do not require

Gold Corporation to lodge a stateent o assets, liabilities

and equit or to ake a cop o its current annual report

aailable to holders. hoeer, Gold Corporation is required

to table its annual report to te Parliaent o western

Australia and akes it aailable at its ebsite.

Te warrant Rules include proisions dealing it paent

o te intrinsic alue o expir o unexercised arrants

and te liquidated daages paable or ailure to delier

exercised delierable arrants, neiter o tese are required

under te AQUA Rules and so ould not appl to PmGs

upon teir siting to AQUA. hoeer, under Clause 11

an ailure b Gold Corporation to delier te Underling

Parcel or te Cas Settleent Aount ill result in Gold

Corporation being required to delier or pa 110% o te

Underling Parcel.

Dd Sttmnt Pd

Tere ill be a period o deerred settleent trading or

te PmG around 31 Deceber o eac ear. Tis is to allo

or redeption o te nuber o PmGs corresponding to

te aount o te PmG manageent ee paable b te

holder (see clause 9 in Part 6 o tis PDS).wile ou a

transact (i.e. bu or sell PmGs) on te ASX, settleent o


7/407

tese transactions ill not occur until te tird da aterre-coenceent o trading on a noral T+3 basis.

Tis deerred settleent trading period is expected to

coence on te t trading da prior to 31 Deceber

o eac ear, it noral T+3 settleent recoencing

on te t trading da olloing 31 Deceber. Te exact

dates or deerred settleent trading (i an) ill be adised

b te Issuer aking an announceent ia ASX prior to

coenceent o deerred settleent trading.

or exaple, i ou sell on te rst da o deerred

settleent trading, ou ill reain registered as teholder o te PmGs on 31 Deceber. you ill not

receie te proceeds o our sale until 3 das ater te

recoenceent o trading on a T+3 basis.

During te deerred settleent trading period, te PmGs

ill trade on a post-reset basis. Tis eans tat trading

during tis period ill be treated as i trades occurred on a

noral T+3 basis.

AMeNDMeNTS MADe by ThiS PDS

Te aendents to te Product Disclosure Stateent dated

7 ma 2003 ic are disclosed in tis PDS dated 1Jul

2010 are as ollos:

Application as been ade or te PmGs to be listed

under te ASX AQUA Rules in Section 10A o te ASX

market Rules instead o being listed under te ASX

warrant Rules in Section 10 o te ASX market Rules.

Te PmGs are no described as an option rater tan

a arrant.

Te ASX code ill cange ro ZAUwBA to PmGOLD.

Psical Settleent is no longer subject to a iniu

o 100 PmGs.

Te Exercise Price as been reduced ro $0.50 per

ounce to zero.

Te 31 Deceber 2013 Expir Date o te PmGs as

been reoed.

Te restriction on Gold Corporation ro expiring

PmG i tere ere ore tan 10 illion PmGs eld

as been reoed. Gold Corporation ill no be

able to expire te PmGs at an tie it six ontsnotice.

Te PmG manageent ee as been reduced to

0.15% per annu.

Te requireent to expire te PmGs in te eent o

a orce majeure as been reoed. Instead, once a

orce majeure as occurred and is continuing, te

obligations o Gold Corporation under te PmGs ill

be suspended and deerred until te eent giing rise

to te orce majeure ceases to exist.

Under ASX market Rules, Gold Corporation is obliged

to eiter ake arkets b quoting bu and sell oers

or PmG or appoint market maker(s) to ensure tat

a reasonable bid and olue is aintained in te

arket or 90% o te tie tat te ASX trading

arket is open. or urter inoration, see section

market making in PmGs? on te olloing page.

Consequential canges to te PDS and te PmG Ters

ae been ade, and te canges ae been ade b a

resolution approed b 75% or ore o otes cast b PmGholders (disregarding te Issuer and its associates).

you Are bouND by The PMG TerMS AND

CoNDiTioNS WheN you buy A PMG

Pert mint Gold is issued b Gold Corporation on te

Ters set out in tis PDS and in particular in Part 6. you

sould ensure tat ou read and understand te Ters. B

purcasing a PmG on ASX ou ill becoe bound b

te Ters.

hoW Are PMGS CreATeD?

Gold Corporation as issued 321,500,000 units o PmGs as

treasur stock to GoldCorp Australia ABN 49 230 812 547

(GoldCorp), a bod corporate created under te Gold

Corporation Act 1987, representing te autorised aount

o PmGs tat can be sold to general inestors troug te

ASX under tis PDS (approxiatel 100 tonnes o gold).


8/408

MArkeT MAkiNG iN PMGS?

Under ASX market Rules, Gold Corporation is obliged eiter

to ake arkets b quoting bu and sell oers or PmG or

appoint market maker(s) to ensure tat a reasonable bid

and olue is aintained in te arket or 90% o te tie

tat te ASX trading arket is open. Tese requireents

cease to appl once te PmGs ae a spread o at least

1,000 holders and a alue in excess o $10,000,000. As

at te date o tis PDS tere are less tan 1,000 holders o

PmGs, accordingl, te arket aking requireents under

te ASX market Rules currentl appl. hoeer, it is GoldCorporations intention to continue to ensure a reasonable

bid, oer and olue are aintained ia its market maker(s)

een i tere are ore tan 1,000 holders or alue in excess

o $10,000,000.

B quoting PmG bu and sell oers, te market maker(s)

ill proide:

(a) Reerence Pricing

Te proision o continuous bu oers and sell oers

(ile PmG treasur stock is aailable) b te marketmaker(s) ill proide inestors it inoration about

te intra-da oer-te-counter spot gold price and

proide a link beteen te spot gold arket and PmG

trading on te ASX.

(b) Liquidit

Te market maker(s) ill act as buers or sellers o

last resort, enabling inestors to acquire or dispose o

PmG or cas settleent ia te ASX. Liquidit is also

aailable b exercising te PmGs at an tie.

hoeer, i te nuber o PmGs sold equals te total

issued PmG treasur stock, Gold Corporation ill

inor te arket iediatel ia ASXs CAP tat

tere are no ore PmGs aailable or oer ro Gold

Corporation. Te market maker(s) tereore ill cease

to quote sell oers or PmGs until Gold Corporation

noties te arket tat it as aailable PmG treasur

stock on ic te market maker(s) can resue

quoting sell oers. During tis tie, te market

maker(s) ill continue to aintain reasonable PmG

bid prices and olues to enable inestors to sell

teir PmGs.

hoW MuCh DoeS PMG CoST?

All ees tat ou ust pa or te PmG are set out in te

Exercise Product & Price Scedule in Part 12 o tis PDS.

Tis Scedule ill ar during te lie o te PmG because

soe o te costs (suc as anuacturing te gold bar

or coin ou coose or delier) ill cange ro tie to

tie beore te Expir Date. Gold Corporation ill proide

notication o an suc cange b updating its Exercise

Product & Price Scedule and aking it aailable ro te

inestent section o its ebsite at .pertint.co.au.

A suar o all te costs and ees paable is setout belo.

Pcas Pc

Te cost o PmG ill be equal to te price ou pa to bu a

PmG on te ASX, ic ill be te su o te underling

gold alue o a PmG as set b te market maker(s) plus te

PmG Trading ee (see belo).

bag s

you a incur brokerage ees on te purcase and sale o aPmG on te ASX.

hdng s

I ou old PmGs at te close o trading on 31 Deceber,

ou ill incur te PmG manageent ee.

PMG Managmnt

Te PmG manageent ee coers te olloing annual

costs incurred b Gold Corporation:

(a) an sipent, storage and insurance costs associated

it te anageent o te gold underling eac

PmG;

(b) te cost o aking tis product aailable to ou;

(c) registr and ChESS costs associated it trading in

PmG b its holders;

(d) an oter costs incurred b Gold Corporation at an

tie in te uture in te anageent o tis product.

At te date o issue o tis PDS, Gold Corporation isnot aare o an suc costs.


9/409

Te PmG manageent ee ill ar oer te lie o tePmGs because storage, insurance, ChESS, registr and oter

anageent costs ill cange. Gold Corporation ill gie

holders tree onts ritten notication o an cange to

te PmG manageent ee.

or te period to 31 Deceber 2010, te PmG

manageent ee ill be xed at a rate o 1 PmG or eer

667 PmGs eld b a holder (equialent to 0.15% annuall).

Te iniu PmG manageent ee ill be 1 PmG.

Te PmG manageent ee ill be carged eac ear at te

close o trading on ASX on 31 Deceber. I ou becoe

a holder ater 31 Deceber, ten ou ill be carged te

PmG manageent ee on te olloing 31 Deceber. Cas

paent o tis ee ill not be required or accepted b Gold

Corporation. Instead, Gold Corporation ill deduct te

appropriate nuber o PmGs ro our olding at a rate o

1 PmG or eer 667 PmGs eld, according to te olloing

scedule:

i ou old less tan 1334 PmGs, 1 PmG ill

be deducted;

i ou old 1334 to 2000 PmGs, 2 PmGs ill

be deducted;

i ou old 2001 to 2667 PmGs, 3 PmGs ill

be deducted; and so on.

A reised holdings Stateent ill be sent to ou as soon as

possible ater suc deduction is ade soing te nuber

o PmGs redeeed b Gold Corporation to pa our PmG

manageent ee and te nuber o PmGs ou continue to

old.

PMG Tadng

Te tie alue o te PmG manageent ee ill be

included in te price o a PmG in te or o a PmG

Trading ee. Gold Corporation ill require te market

maker(s) to add tis PmG Trading ee to bot te

underling gold bid and ask prices o PmG as set b te

market maker(s). Tis ill be done to ensure long-ter

holders o PmG are not disadantaged copared to:

(a) sort-ter holders, o a bu and sell PmG itina ear; and

(b) holders o a attept to aoid te PmGmanageent ee b selling PmG iediatel beore

31 Deceber and buing back ater tat date.

Te addition o te PmG Trading ee to PmGs underling

gold ask price is, in eect, an upront paent b a holder

o te pro-rata aount o te PmG manageent ee.

Te PmG Trading ee ill decline oer a calendar ear. or

exaple, te PmG Trading ee included in PmGs ASX price

on 1 Januar ill be at te ull PmG manageent ee rate

(xed at 0.15% until 31 Deceber 2010), copared to te

PmG Trading ee included in PmGs ASX price on 1 Jul,ic ill be at al o te PmG manageent ee rate. A

istor o actual dail PmG Trading ees applied is aailable

ro Gold Corporation on request.

Te addition o te PmG Trading ee to PmGs underling

gold bid price is, in eect, a reund o tat pro rata aount

o te PmG Trading ee paid at te tie o purcase tat

reains unused at te tie o sale.

eXerCiSe eeS & reDuCTioNS

I ou exercise our PmG, ou also ill ae to pa te

olloing ees depending on ic or o settleent ou

coose:

Psca Sttmnt

(a) Psical Settleent ee (including abrication Carges

ic ill dier depending upon te tpe o psical

gold or ou coose); and

(b) i ou ail to take delier o te gold, an costs

incurred b Gold Corporation in selling our gold

(including te costs o returning te gold to Gold

Corporation, i required) and aking a cas paent

to ou.

Cas Sttmnt

(a) Cas Settleent Reduction Aount.

urter details on PmGs psical and cas settleent

options can be ound in Part 11 o tis PDS. Part 12 o tis

PDS is te Exercise Product & Price Scedule. Tis sets out

all te ees paable on exercise as at te date o tis PDS.

I an o tese ees cange ro tie to tie, an updated


10/4010

Exercise Product & Price Scedule ill be aailable ro teinestent section o Gold Corporations ebsite at .

pertint.co.au.

GolD CorPorATioN MAy WAive eeS

Gd Cpatn ma wa an a s paa

nd t Tms at Gd Cpatns dsctn, at

an tm.

Cmmssns, s and xpnss

Tere is no coission, establisent ee or additional

ongoing anageent ee carged to ou in respect o te

PmG oter tan te ees described aboe.

hw d i xt m PMG nstmnt?

Under te PmG Ters and Conditions ou ae te rigt

to eiter

(a) sell our PmGs on te ASX troug our broker; or

(b) conert our PmGs into psical gold b sending an

Exercise Notice electing Psical Settleent to Gold

Corporation; or

(c) receie a cas paent or our PmGs b sending

an Exercise Notice electing Cas Settleent to Gold

Corporation, at an tie.

hw d i xcs m PMG?

you can coose one o to exercise options: psical

(delierable) gold or cas.

In te case o PmG psical settleent, Gold can be

deliered to ou in a nuber o ors, including Te Pert

mints bars and Australian legal tender coins. Gold can be

collected directl ro Te Pert mint or deliered ia secure

carrier to ou. A Psical Settleent ee ill be paable,

ade up o te cost o abricating (or anuacturing)

te tpe o bar or coin ou ae cosen (te abrication

Carges) and te cost o te delier etod ou ae

cosen plus an applicable Taxes and Duties. Te abrication

Carges or eac tpe o bar and coin or are set out

in te Exercise Product & Price Scedule. Please contactGold Corporation or inoration regarding te cost o te

delier etod aailable to ou.

A list o all delierable products and teir corresponding

ees ill be detailed in an Exercise Product & Price Scedule

aailable ro Gold Corporation or its ebsite. An indicatie

Exercise Product & Price Scedule as at te date o tis PDS

can be ound in Part 12 o tis PDS. wile Gold Corporation

reseres te rigt to cange te products listed on tis

Scedule, PmG gold ill be delierable in te or o te

London Good Delier Bars at all ties.

I ou elect not to take psical delier, Gold Corporation

can pa ou te Cas Equialent Aount o our PmGs

less an Adinistration ee equal to $100 ic coers Gold

Corporations costs, as at te date o tis PDS, o selling

te gold and paing te cas to ou. hoeer, tese selling

and paent costs a cange ro tie to tie and

Gold Corporation ill noti ou o an suc canges on

te Exercise Product & Price Scedule aailable ro te

inestent section o its ebsite .pertint.co.au.

urter details on PmGs psical and cas settleent

options can be ound in Part 11.

Wn d PMGs xp?

Te PmGs expire:

(a) at te Settleent Date ater a alid Exercise Notice is

receied; or

(b) ou call or a liquidated daages aount to be paid,

as described in clause 11 o te Ters (in Part 6 o tis

PDS); or

(c) six onts ater te date o a CAP announceent bGold Corporation tat it is no longer oering te PmG

product, at Gold Corporations absolute discretion.

I ou ae not exercised te PmG beore te expire, Gold

Corporation a:

(a) sell te gold eld b Gold Corporation as coer or

our PmGs on te oer-te-counter arket and send

te sale proceeds to ou, less Gold Corporations

costs and expenses in selling te gold (no Psical

Settleent ee or Cas Settleent Reduction Aount

ill be paable in tis case, see clause 12.2 o te

Ters contained in Part 6 o tis PDS); or


11/4011

(b) gie ou te option o continuing to old our goldin a direct account it Gold Corporation. I so,

Gold Corporation ill send ou a Product Disclosure

Stateent describing te direct account acilit beore

te PmGs expire. you ust ae opened a direct

account it Gold Corporation beore te PmGs

expire, oterise tis option is not aailable to ou.

Can t PMG Tms cang?

yes. Te Ters (see Part 6 o tis PDS) a be aended

or aried i autorised b holders, or i necessar to

copl it te la or ASX requireents or to correct an

inconsistenc or error in te Ters in Part 6. you ill be

notied o an suc canges. you sould read clause 19 o

te Ters to ull understand our rigts and obligations i

tese Ters are aended.

Annncmnts t ASX

Te Issuer ill ake copan announceents to ASX

troug te CAP in relation to te PmGs i an eent(s)

occurs tat ill ae a aterial eect on te price o PmGs.

Te Issuer ill also release its nancial stateents troug

te CAP.

were te Issuer akes an announceent troug CAP, te

announceent ill be listed as ade b GCB (te ASX

code or te Issuer).

Dspts cncnng PMG

you a ake a coplaint relating to te PmG directl

to Gold Corporation ia telepone on 1300 651 465. I

te coplaint cannot be resoled in te rst instance,

te releant ocer ill orard te coplaint to senior

anageent to instigate an inestigation and seek a

resolution. you ill be inored o te outcoe. I ou are

not satised it te a in ic Gold Corporation deals

it our coplaint, ou a reer it to:

Te Parliamentar Commissioner or AdministratieInestigations

Leel 12

44 St Georges Terrace

Pert, Western Australia, 6000

Wesite: www.omudsman.wa.go.au


12/40


13/4013

Gd Cpatns opatns

Gold Corporation is te olding copan o to oll

oned subsidiaries, te western Australian mint and

GoldCorp Australia. Gold Corporation proides central

serices to te group, including treasur, bullion serices

and settleent, accounting, personnel anageent,

business deelopent, inoration sstes, public aairs,

goernent relations, securit and records anageent.

GoldCorp Australia as ored in 1986 to anage te

redeelopent o te western Australian mint and to

int and arket Australias rst legal tender precious

etal bullion coin progra internationall, under a unique

agreeent it te Coonealt o Australia. GoldCorp

Australia is a signicant participant in international arkets

or alue-added precious etal inestent and collectable

coin products, arketing a ide range o legal tender

bullion and collector coins, and precious and base etal

edallions.

Pert mint Depositor, a diision o Gold Corporation,

as deeloped an international reputation as a sae aen

precious etal depositor. Te Depositor oers precious

etal storage serices to doestic and international priate

clients, trusts, superannuation unds and corporations

seeking secure storage under goernent guarantee.

Gold Corporation also runs Australias onl London Bullion

market Association accredited gold rener, ic renes

ost o Australias gold production, gold ro surrounding

countries and also secondar gold, ainl ro Asia. It is

one o te igest trougput gold reneries in te orld

and also renes considerable quantities o siler.

Gold Corporations Annual Report is aailable at .

pertint.co.au. wit regard to te nancial position o

te Goernent o western Australia, a Quarterl inancial

Results Report is aailable at .dt.a.go.au.

Cpat Gnanc

Te Board o Directors is te goerning bod o Gold

Corporation. Te Gold Corporation Act 1987 epoers

te Board to deterine policies or te Corporation and its

subsidiaries, and requires te Board to:

(a) deelop and expand te Corporations business or te

benet and to te greatest adantage o te people

o Australia;

(b) operate in accordance it prudent coercial

principles; and

(c) strie to earn a coercial rate o return on its

capital.

Te Boards autorit is liited b te proisions in te

Gold Corporation Act 1987 and b ministerial direction.

Te Board is coitted to sound corporate goernance

principles, ig standards o legislatie copliance, and

nancial and etical beaiour. Te Board regards directorial

and anagerial conduct seriousl and as an integral part o

sound goernance practices. In accordance it tat, te

Board as establised and coitted itsel to a Stateent

o Business Principles and a Corporate Goernance

Carter. Te Board acknoledges its accountabilit to te

Corporations onl sareolder, te Goernent o

western Australia.


14/4014

Inesting in PmGs inoles a degree o risk. Tis section is ageneral suar o soe o tese risks.

Tis section does not purport to be a copreensie

suar o all o te risks associated it an inestent

in a PmG but describes te signicant risks associated it

an inestent in a PmG. urter, b its nature, tis section

cannot identi all o te releant considerations tat a

be a risk or indiidual potential inestors, and is not a

substitute or independent adice.

PmG is considered b Gold Corporation to be suitable onl

or inestors o understand ull and accept all o te

olloing risks inoled in inesting in tis gold ASX quoted

product. Tis PDS does not take into account a potential

inestors on nancial needs, inestent goals or nancial

circustances. Gold Corporation recoends tat ou

obtain independent nancial adice beore buing a PmG.

TrADiNG ANAlySiS

wile te PmGs are aditted to Trading Status on te ASX

arkets, te Issuer ust copl it its arket aking

obligation under te ASX market Rules. Subject to tese

rules, te Issuer as appointed te market maker(s) to

ensure tat tere are alas bu and sell oers or PmG

quoted on te ASX and tat tese oers track te AUD

price o gold aailable in te orldide olesale oer-te-

counter arket. Belo is a grap o te olue eigted

aerage price o PmG copared to te Pert mints AUD

spot price or psical gold ro Januar 2005 to marc2010 as ell as te olue o PmGs traded.

In addition, te arket price o PmGs ill be a unction o

suppl and deand aongst inestors ising to bu and

sell PmGs and te bid-oer spread tat te market maker(s)

quotes. At an tie te price o PmG trading on te ASX

a not refect accuratel te AUD price o gold.

RISkS O INvESTING IN PERThMINT GOLD3

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

Jan05

Mar05

May05

Jul05

Sep05

Nov05

Jan06

Mar06

May06

Jul06

Sep06

Nov06

Jan07

Mar07

May07

Jul07

Sep07

Nov07

Jan08

Mar08

May08

Jul08

Sep08

Nov08

Jan09

Mar09

May09

Jul09

Sep09

Nov09

Jan10

Mar10

AUDGoldPriceperounce

300,000

600,000

900,000

1,200,000

1,500,000

1,800,000

2,100,000

2,400,000

2,700,000

3,000,000

3,300,000

PMG Volume Weighted Average Price

Perth Mint Physical Spot Gold Average Price

Number of PMGs Traded

Te grap deonstrates tat te price o PmG tracks te Pert mints Australian gold price, ic is used in an

ining contracts as te AUD gold reerence price and is te price at ic psical gold can be transacted it

te Pert mint.


15/4015

GeNerAl MArkeT riSkS

Te general econoic and political cliate, general

oeents in local and international stock arkets,

preailing and uture econoic conditions, inestor

sentient, interest rates, and oter eents and actors

outside te control o Gold Corporation could all aect te

alue o our PmG.

Altoug te holder a exercise teir PmGs at an tie,

a PmG is a nancial instruent it no aturit. It a all

in price at or beore it is exercised or oterise expires. Te

arket alue o our PmGs ill be deterined b arket

conditions, including:

(a) te olatilit o te oer-te-counter gold and oreign

excange arkets; and

(b) te liquidit o te oer-te-counter gold and oreign

excange arkets.

Canging arket conditions a cause a cange in te

PmGs price on te ASX.

Gd Pc and excang rat vatt rss

Gold generall is traded internationall in US dollars (USD).

As PmG ill be traded on te ASX in Australian dollars

(AUD), our PmG inestent ill be aected b oeents

bot in te AUD/USD excange rate and te USD gold price.

Increases in te AUD gold price a arise ro increases

in te USD gold price and/or decreases in te AUD/USD

excange rate.

Te graps on te olloing page a assist ou to decide

eter ou is to inest in PmG. Te so Te Pertmints aerage dail AUD gold price and London Am USD

x gold price since 1975 and te wm/Reuters Australian

Dollar 4p Reerence Rate (orerl te hedge Settleent

Rate) since 1992. hoeer te graps belo do not take

into account an ees associated it an inestent in

PmG. Te are istorical trends onl and are not necessaril

indicatie o te uture perorance o te USD gold price,

AUD/USD excange rate, AUD gold price or an inestent

in PmG.

Wd ents

world eents suc as terroris, ar, political and econoic

trends, can all ae an ipact on te arket price o gold

and te AUD/USD excange rate and ence te arket

alue o PmG.

Te USD gold price can fuctuate signicantl in response to

inestor sentient, industrial deand, ine suppl, central

bank policies, and oter actors outside te control o Gold

Corporation.

Te AUD/USD excange rate is also olatile. It can fuctuatein response to canges in Australias econoic enironent,

political cliate, stock arket perorance, interest rates,

and oter eents and actors outside te control o Gold

Corporation.

Inestors interested in urter inoration on te aboe data

sould isit te inestent section o Gold Corporations

ebsite at .pertint.co.au ere Te Pert mints

extensie istorical records o precious etal spot prices,

excange rates, London ix prices and interest rates a be

accessed ree o carge.


16/4016

Te alue o inestents can go up and don. Past perorance is not necessaril indicatie o uture perorance.


17/4017

rs Nn-pmanc Gd Cpatn

wile Gold Corporation ill ull coer eac PmG it

psical gold oned b Gold Corporation, holders o a

PmG ae no proprietar rigts or benecial interest in an

suc psical gold. Te PmG is an unsecured obligation o

Gold Corporation ranking equall it all oter unsecured

obligations o Gold Corporation. hoeer, as te liabilities

o Gold Corporation, including its obligations under te

PmG Ters, are guaranteed b te Goernent o western

Australia under te Gold Corporation Act 1987, an suc

ailure b Gold Corporation to ull coer eac PmG eans

tat ou ultiatel ae an exposure to te Goernent o

western Australia.

Te States AAA credit rating as at te date o tis PDS

a cange ro tie to tie in response to canges

in its econoic perorance. An suc cange in te

States credit rating a aect te perceied strengt o

Goernent Guarantee entioned aboe.

rs Cangs n t PMG Managmnt

Te PmG manageent ee ill ar oer te lie o tePmGs because storage, insurance, ChESS, registr and

oter anageent costs ill cange. wile te PmG

manageent ee ill be xed until 31 Deceber 2010,

Gold Corporation a increase te PmG manageent

ee in subsequent periods i te costs associated it

te operation o PmG increase or Gold Corporation as

underestiated tese costs. Gold Corporation ill gie

holders tree onts ritten notication o an cange in

te PmG manageent ee.

excs dsctn Gd Cpatn

Te PmG Ters coner discretions on Gold Corporation

regarding PmG Exercise. Te exercise or non-exercise

o tese discretions could aect adersel te alue o

te PmG. you do not ae te poer to direct Gold

Corporation concerning te exercise o an discretion.

Tese discretions include, but are not liited to, tose set

out in clauses 7.3, 9.1, 12.1(c), 13.2 and 19.1 in te Ters

contained in Part 6 o tis PDS.

Sspnsn tadng ASX

ASX as te operator o te AQUA trading plator as te

discretion to alt or suspend trading o an AQUA Product

in accordance it te proisions o te ASX market Rules.

Nw AquA tadng mat

Te AQUA trading arket is a ne acilit and potential

aults in te ASX AQUA Rules and AQUA trading plator

a result in teporar disruptions, unorseen eents or

canges to te AQUA trading arket.


18/4018

TAx SUMMARy4

SuMMAry o TAX iMPliCATioNS

Taxatn fnanca aangmnts

Diision 230 o te Incoe Tax Assessent Act 1997

contains te nal stages o te taxation o nancial

arrangeent (TOA) reors.

Diision 230 applies to nancial arrangeents tat a

taxpaer starts to ae on or ater 1 Jul 2010 (altoug

taxpaers a ae elected in earl or te incoe ear

coencing on or ater 1 Jul 2009). various exclusions

exist under te proisions. or exaple, nancial

arrangeents eld b indiiduals, superannuation entities

and anaged inestent scees ere te assets eld are

less tan $100 illion and Australian depositor institutions

it an aggregated turnoer o less tan $20 illion are

excluded proided te nancial arrangeents eld are not

qualiing securities or are qualiing securities tat ill end

not ore tan 12 onts ater te tie o acquisition.

In tis regard, it is considered tat a PmG sould not be

regarded as a qualiing securit.

As te taxation prole o eac holder is dierent, eac

holder sould seek teir on independent taxation adice.

Caactsatn PMG ncm tax ppss

Diision 16E o Part I II o te 1936 Tax Act applies to tax te

older o qualiing securities on an accruals basis. It is

considered tat a PmG is not a securit as dened or te

purposes o Diision 16E. Consequentl, Diision 16E does

not appl to a PmG.

Sections 26BB and 70B o te 1936 Tax Act treat (broadl)

an gains or losses on te redeption or disposal o a

traditional securit as ordinar incoe or losses. As a PmG

is an option to acquire gold bullion, it is not a securit as

dened and so sections 26BB and 70B ill not appl on te

disposal or redeption o a PmG.

iNTroDuCTioN

Te olloing suar o Australian tax iplications as

been prepared b Baker & mcKenzie or inclusion in tis

Product Disclosure Stateent issued b Gold Corporation

in relation to te proposed oer o Pert mint Gold

(PmG). A ore detailed discussion on te Australian tax

iplications is aailable ro Gold Corporation and appears

on te inestent section o Gold Corporations ebsite

.pertint.co.au.

Tis discussion is a general guide to te ke Australian tax

iplications arising or an Australian resident indiidual

taxpaer o acquires PmGs and olds te on capital

account. Tis suar is not releant or holders o old

a PmG on reenue account or as trading stock. Accordingl,

tis discussion does not appl to holders o acquire a

PmG in carring on a business o trading or dealing in

securities or gold.

Tis discussion is necessaril general in nature and does

not take into account te specic taxation circustances

o eac indiidual holder. Potential holders sould not rel

on tis suar and sould seek teir on independent

adice on te taxation iplications releant to teir on

circustances beore aking an inestent decision.

Te aendents ade to te Product Disclosure Stateent

dated 7 ma 2003 do not ae a aterial ipact on te tax

discussion originall proided.

Eac holder sould be aare tat te ultiate

interpretation o te taxation la rests it te Courts and

tat te la, and te a te Coissioner o Taxation

adinisters te la, a cange at an tie.

In tis discussion, te 1936 Tax Act eans te Incoe

Tax Assessent Act 1936 and CGT reers to te capital

gains tax proisions contained in te Incoe Tax Assessent

Act 1997 (1997 Tax Act). Capitalised ters used in tis

suar tat are not dened in tis suar ae te

sae eaning as in te Product Disclosure Stateent.


19/4019

unt Tsts

Broadl speaking, Diision 6C o Part III o te 1936 Tax Act

taxes public trading trusts as i te ere copanies. I a

holder is a unit trust tat is not a public trading trust beore

inesting in te PmG, ten te inestent in te PmG ill

not o itsel cause te holder to becoe a public trading

trust.

Unit trusts o coplete an Exercise Notice and take

delier o te gold ill be olding psical gold bullion

and not a nancial instruent. Te olding o psical

gold bullion is not an eligible inestent business or te

purposes o Diision 6C o Part III o te 1936 Tax Act.

ext mcansm Capta gans tax mpact

Sale o PmG on ASX Disposal o PmG is a taxable CGT eent. Discount a be aailable i PmG eld or

ore tan 12 onts.

Psical Settleent No CGT eent. Costs o acquisition and exercise o PmG becoe part o cost base ote gold.

Cas Settleent Cancellation o PmG on te Cas Settleent is a taxable CGT eent, it te CasSettleent Aount being te capital proceeds or CGT purposes.

/rdctn Capta gans tax mpact

PmG manageent ee Not deductible in te ear in ic it is incurred.

ors part o te cost base o te PmG. Can be utilised to reduce an capital gain onte disposal or cancellation o te PmG.

Does not or part o te reduced costs base o te PmG and so cannot increase an

capital loss on disposal or cancellation o a PmG.

Not a cost o acquiring or exercising te PmG. will not becoe part o te cost base oan psical gold a holder acquires troug exercising te PmG.

PmG Trading ee Te PmG Trading ee paid b a holder en purcasing a PmG on te ASX is added tote holders cost base in te PmG.

Te PmG Trading ee ic is receied en a holder sells a PmG on te ASX increaseste capital proceeds or CGT purposes receied b a holder on a disposal o te PmG.

Cas Settleent Is not a separate ee carged b Gold Corporation. It reduces te capital ReductionAount proceeds or CGT purposes receied b a holder on a Cas Settleent.

CGT impcatns

or CGT purposes, a PmG is a CGT asset. Te CGT asset is te option itsel and not te Underling Parcel (tat is, gold).

Please reer to te Capital gains tax section in te detailed discussion aailable ro Gold Corporation or ore detail o

te CGT consequences suarised belo.


20/4020

CoNSeNTS

Baker & mcKenzie, solicitors, as gien its ritten consent

to being naed as aing acted as solicitors to Gold

Corporation in connection it Pert mint Gold pursuant

to tis PDS. Baker & mcKenzie as gien its ritten consent

to being naed as aing acted as tax adisers to Gold

Corporation in connection it Pert mint Gold pursuant

to tis PDS and to te inclusion o te taxation suar in

tis PDS in te or and context in ic it appears. Baker

& mcKenzie take no responsibilit or an part o tis PDS

oter tan te tax suar. Baker & mcKenzie does notake an stateent in tis PDS nor does an stateent

erein purport to be based on a stateent ade b Baker &

mcKenzie. Baker & mcKenzie as not autorised or caused

te issue o tis PDS.

intsts expts and Adss

No expert and no r in ic an expert is a partner, as at

te date o tis PDS an aterial interest in connection it

te oration or prootion o eiter Gold Corporation or

te PmG. Baker & mcKenzie ill receie legal ees or teir

proessional serices in connection it tis PDS as solicitors

to Gold Corporation.

Dct and ratd entt intsts

Neiter Gold Corporation nor its related bodies corporate,

nor an director or proposed director o Gold Corporation,

nor an r in ic a director or proposed director o

Gold Corporation is a partner, as, at te date o tis PDS,

an aterial interest in connection it te oration or

prootion o eiter Gold Corporation or te PmG.

CONSENTS AND DISCLOSURES5


21/4021

PerTh MiNT GolD (PMG)

Ters o te PmGs: Te PmGs are issued b Gold

Corporation (te Issuer) to GoldCorp Australia

(GoldCorp) as subscriber. Gold Corporation as issued te

PmGs to GoldCorp under te olloing Ters:

1. Tt and tans PMG

1.1 Te Issuer ill grant te releant PmGs to te

subscriber in return or te subscriber paing

consideration to te Issuer.

1.2 Te PmGs ill be ChESS Approed Securities.

Certicates ill not be issued to holders.

1.3 PmGs are transerable in accordance it te ASX

market Rules and ASTC Settleent Rules.

1.4 Title to a PmG ill pass to a holder upon registration

o a transer o te PmGs in te Register. No PmG

transaction a take place on te ASX ater te close

o business on te Expir Date.

2. rgst PMGs

2.1 Te Issuer ust aintain a Register o PmGs, in

accordance it te ASX market Rules and te ASTC

Settleent Rules.

2.2 Te propert in te PmG, being te rigts conerred

on te holder under clause 4, is situated at te place

ere te Register is located.

2.3 Except as oterise proided in tese Ters, te

Issuer ust recognise te registered holder ro tie

to tie as te absolute oner o te PmG and all

persons ust act accordingl.

3. Stats PMGs

3.1 Te PmGs are unsecured obligations o te Issuer.

hoeer, te Issuer is a statutor autorit o te

Goernent o western Australia establised under

te Gold Corporation Act 1987. Under section

22 o te Gold Corporation Act 1987, te cas

equialent o gold due, paable and delierable b

Gold Corporation or GoldCorp is guaranteed b te

Treasurer, in te nae and on beal o te Cron in

rigt o te State.

3.2 Te Issuer ill ull coer eac PmG at all tiesuntil te Expir Date or until te holder gies a alid

Exercise Notice b buing and olding te releant

aount o gold in:

(a) te or o gold bars segregated psicall

ro an oter precious etal eld in Gold

Corporations aults; and/or

(b) in a psical unsegregated or in Gold

Corporations operations in Pert; and/or

(c) Gold Corporations London etal accounts.

4. Nat PMGs

4.1 Eac PmG:

(a) coners on te holder te rigt, but not te

obligation, to acquire te Underling Parcel ro

te Issuer, on giing te Issuer a alid Exercise

Notice electing Psical Settleent o te PmG;

and

(b) does not coner on te holder an rigt to orinterest in an Underling Parcel unless and

until te rigt in sub-clause (a) aboe is alidl

exercised; or

(c) coners on te holder te rigt, but not te

obligation, to obtain te Cas Settleent Aount

ro te Issuer, on giing te Issuer a alid Exercise

Notice electing Cas Settleent o te PmG.

5. excs PMGs

5.1 PmGs a be exercised at an tie beore te Expir

Date (see clause 12).

5.2 Te holder a exercise te PmG at an tie beore

5.00p Pert tie on te Expir Date b giing to te

Issuer a alid Exercise Notice.

5.3 were an Exercise Notice as been issued to exercise

a PmG under tis clause 5 and it is receied beore

5.00p Pert tie on a Business Da, te PmG is

deeed to be exercised on tat Business Da. were

te Exercise Notice is receied ater 5.00p Pert tieon a Business Da or a non-Business Da, te PmG is

TERMS AND CONDITIONS6


22/4022

deeed to be exercised on te next Business Da tatollos iediatel ater.

excs Ntc ica

5.5 An Exercise Notice gien to te Issuer cannot be

reoked.

vadt excs Ntc

5.6 An Exercise Notice is alid i and onl i:

(a) it is gien b te holder, or a person o clais to

be entitled to be registered as te holder, to te

Issuer; and

(b) te PmGs to be exercised ae not expired; and

(c) te holder elects eiter Cas Settleent or

Psical Settleent on its Exercise Notice; and

(d) ere te holder elects Psical Settleent on its

Exercise Notice:

(i) te holder as noinated an approed

Psical or or delier o te UnderlingParcel on its Exercise Notice; and

(ii) te holder elects a Psical Settleent etod

in accordance it clause 7; and

(iii) te holder as autorized te Issuer to redee

te nuber o PmGs necessar to pa or

te Psical Settleent ee beore deliering

te Underling Parcel. Te nuber o PmGs

to be redeeed ill be tat nuber tat

corresponds to te aount o te Psical

Settleent ee, calculated pursuant to te

London ix on te Exercise Date (or te earliest

London ix tereater i tere is no London

ix on te Exercise Date) diided b te wm/

Reuters Australian Dollar 4p Reerence Rate

on te Exercise Date (or te earliest wm/


tereater i tere is no wm/Reuters Australian

Dollar 4p Reerence Rate on te Exercise

Date) (te Redeeing PmGs);

5.7 I te nuber o PmGs included in te Exercise Notice

exceeds te nuber o PmGs eld b te holder,

te Exercise Notice is alid onl to te extent o tenuber o PmGs eld b te holder.

5.8 I ore tan one Exercise Notice is gien in respect o

a PmG, te alid Exercise Notice ill be te Exercise

Notice ic te Issuer knos or reasonabl beliees

as gien b te last o tose persons o becae

entitled to be te holder o tose PmGs beore 5.00

p Pert tie on te Exercise Date.

5.9 Te Issuers registrar ill certi to te Issuer tat a

person purporting to exercise PmGs is te holder o

te nuber o PmGs being exercised.

5.10 Te Issuer a deterine eter an Exercise Notice

is alid. An inalid Exercise Notice ill be oid. Te

Issuer ill proptl noti te holder tat an Exercise

Notice is inalid.

6. ect vad excs Ntc

6.1 I te holder coplies it clause 5:

(a) te Issuer ill undertake all acts necessar to

eect te settleent, on te Settleent Date, or

te nuber o PmGs exercised; and

(b) te PmGs tat are exercised ill expire.

7. Psca Sttmnt

7.1 On its Exercise Notice, te holder ust elect one onl

o te olloing to etods o Psical Settleent:

(a) in person i te holder elects to collect

te Psical or o te Underling Parcel

corresponding to te PmGs exercised in person,

te holder ust proide identication docuents

sucient to eet te requireents o te

legislations adinistered b AUSTRAC to proe

tat it is te holder o te PmGs; or

(b) te Issuers agent i te holder elects tis

option, te Issuer ill arrange sipent o te

holders Psical or o te Underling Parcel

to te holders registered address. Te holder

ust proide te Issuer and te Issuers agent

it identication docuents sucient to eet

te requireents o te legislations adinistered


23/4023

b AUSTRAC. Te holder a request, and teIssuer ill use its best endeaours to delier, at an

appropriate delier tie. Te holder agrees to

pa all sipent and insurance costs as part o te

Psical Settleent ee.

7.2 Te holder acknoledges tat:

(a) under clause 7.1(a), te Issuer is deeed to ae

deliered or caused to be deliered to te holder

te Psical or o te Underling Parcel, or te

purpose o clause 11.1, en te Issuer akes te

Psical or o te Underling Parcel aailable or

collection;

(b) under clause 7.1(b), te Issuer is deeed to ae

deliered or caused to be deliered to te holder

te Psical or o te Underling Parcel, or te

purpose o clause 11.1, en te Psical or o

te Underling Parcel is released b te Issuer ro

Te Pert mint;

(c) te purit o te Psical or o te Underling

Parcel deliered to te holder ill be no less tan99.50%;

(d) te Issuer is not obliged to oer sipent o

te Psical or o te Underling Parcel under

clause 7.1(b).

7.3 I te holder ails to take delier o its Psical

or o Underling Parcels itin 20 Business

Das o te Settleent Date, ten te Issuer, in its

absolute discretion, a sell te Psical or o te

Underling Parcels and pa to te holder te sale

proceeds ater deducting te Psical Settleent ee

(i tis as not alread been paid) and te Issuers costs

in selling te Psical or o te Underling Parcels

(including te costs o returning te Psical or to

te Issuer, i an) and aking a cas paent. Te

holder acknoledges tat tese costs (te Non-

Delier ee) a cange ro tie to tie. Te

Issuer agrees to noti te holder o te Non-Delier

ee in te Exercise Product & Price Scedule ro tie

to tie. Te holder agrees and acknoledges tat te

Psical Settleent ee ill not be reunded.

8. Cas Sttmnt

8.1 I te holder elects Cas Settleent on its Exercise

Notice, te Issuer ill pa te holder, in cleared unds,

te Cas Settleent Aount b bank transer to an

account in te holders nae as it appears on te

Register or ceque dran to te holders nae as

it appears on te Register and sent to te holders

address as recorded on te Register.

8.2 Te holder acknoledges tat under clause 8.1, te

Issuer is deeed to ae paid te Cas Settleent

Aount, or te purpose o clause 11.1, on te date

te bank transer is ade or ceque is sent or posted

to te holders address as recorded on te Register.

9. s

9.1 Notitstanding an o te ees described in tis

clause 9, te Issuer a aie an or all o tese ees

at te Issuers absolute discretion.

Psca Sttmnt

9.2 A holder ust pa te Psical Settleent ee i

te holder elects Psical Settleent on te Exercise

Notice. Te Issuer ill deterine te nuber o

PmGs tat correspond to te aount o te Psical

Settleent ee (te Redeeing PmGs).

9.3 Te Psical Settleent ee includes:

(a) abrication Carges, i applicable; plus

(b) sipent and reigt insurance costs, i applicable;

plus

(c) an applicable Taxes and Duties.

9.4 Te Issuer ill noti te holder te aount o

te Psical Settleent ee and te corresponding

nuber o Redeeing PmGs as soon as practicable

ater receipt o te holders Exercise Notice. At te

close o trading on te Exercise Date, te Issuer ill

redee te Redeeing PmGs. Te paent due

to te holder b te Issuer ater redeption o te

Redeeing PmGs ill be set o b te Issuer against

te outstanding Psical Settleent ee.


24/4024

PMG Managmnt

9.5 A holder ust pa te annual PmG manageent ee,

ic ill be deterined b te Issuer in accordance

it clause 9.6. Te Issuer ill gie te holder

tree onts ritten notice o an cange in te

PmG manageent ee. Te PmG manageent ee

becoes due and paable on 31 Deceber o eac

ear.

9.6 Te Issuer ill deterine annuall te nuber o

PmGs tat correspond to te aount o te PmG

manageent ee (te Redeeing PmGs). At te

close o trading on ASX on 31 Deceber o eac

ear, te Issuer ill redee te Redeeing PmGs.

Te paent due to te holder b te Issuer ater

redeption o te Redeeing PmGs ill be set o b

te Issuer against te outstanding PmG manageent

ee and ill constitute paent b te holder o

te PmG manageent ee. Te iniu PmG

manageent ee ill be 1 PmG.

9.7 As soon as possible ater te redeption o te

Redeeing PmGs, te Issuer ill gie te holder a

ritten notice setting out te aount o te PmG

manageent ee and te nuber o PmGs tat ae

been redeeed.

PMG Tadng

9.8 A holder acknoledges tat te market maker(s)

ill add a PmG Trading ee eac da to bot te

underling gold bid and ask prices o PmG as set

b te market maker(s) to preent a holder ro

attepting to aoid te PmG manageent ee bselling PmG iediatel beore 31 Deceber and

buing back ater tat date.

10. Tmnatn D Cntact

10.1 Te delier contracts arising under clause 7

terinate autoaticall at te close o business on

te Settleent Date unless te person o gae te

Issuer an Exercise Notice is registered as te holder o

te PmGs being exercised.

11. a t Pm

a iss t Pm

11.1 I te Issuer does not b te Settleent Date, or eac

miniu Exercise Set exercised, delier or cause to

be deliered to te holder, an Underling Parcel or

pa te Cas Settleent Aount, te Issuer ust, i

required in riting b te holder, eiter:

(a) delier to te holder 110% o te Underling

Parcel due on te Settleent Date; or

(b) pa to te holder te cas equialent o 110%

o te Underling Parcel calculated pursuant

to te London ix on te Exercise Date (or te

earliest London ix tereater i tere is no London

ix on te Exercise Date) diided b te wm/


on te Exercise Date (or te earliest wm/Reuters

Australian Dollar 4p Reerence Rate tereater

i tere is no wm/Reuters Australian Dollar 4p

Reerence Rate on te Exercise Date).

Acnwdgmnt

11.2 Te holder and te Issuer acknoledge to eac oter

tat te aount o daages calculated in accordance

it clause 11.1 is a genuine pre-estiate o te

daage tat te holder ould suer ro te ailure

o te Issuer to peror its obligations under clauses

6, 7 and 8 (iceer is applicable) and tat on te

receipt o a notice under clause 11.1 (in accordance

it Rule 10.12) o te market Rules, te Issuer is

relieed o its obligations under clauses 6, 7 and 8 and

its onl obligation is to ake te paents required

b clause 11.1

12. exp PMGs

12.1 A PmG expires under an o te olloing

circustances:

(a) en te Underling Parcel is transerred or te

Cas Settleent Aount is paid ater a alid

Exercise Notice as been gien to te Issuer; or

(b) en te holder gies te Issuer notice under

clause 11.1; or


25/4025

(c) six onts ater te date o a CAP announceentb te Issuer tat it is no longer oering te PmG

product, at te Issuers absolute discretion; or

(d) i te Issuer as bougt back all outstanding PmGs

so tat tere are no longer an holders recorded

and te Issuer noties te ASX tat te PmGs

ae expired.

12.2 I a PmG expires under clauses 12.1(c) and it as an

intrinsic alue, te Issuer ill pa to te holder te

intrinsic alue o te PmG, being te London ix on

te Business Da ater te Expir Date (or te earliest

London ix tereater i tere is no London ix on te

Business Da ater te Expir Date) diided b te

wm/Reuters Australian Dollar 4p Reerence Rate on

te Business Da ater te Expir Date (or te earliest

wm/Reuters Australian Dollar 4p Reerence Rate

tereater i tere is no wm/Reuters Australian Dollar

4p Reerence Rate on te Business Da ater te

Expir Date) less te Issuers costs and expenses in

storing and selling te gold.

ect PMG exp

12.4 wen a PmG expires, it is autoaticall and

peranentl cancelled and all rigts and obligations

created b or in respect o it are terinated except:

(a) in respect o an paent required under clauses

11.1 or 12.2; and

(b) or an oter rigts te holder a ae arising

out o a breac o te Ters b te Issuer.

13. Dang n PMGs iss

13.1 Te Issuer a at an tie deal in PmGs at an price

in te open-arket on its on account or troug its

market maker(s).

13.2 An PmGs purcased b te Issuer ill not be

cancelled autoaticall and a be resold, oeer,

te a be cancelled at te discretion o te Issuer.

14. t isss PMGs

14.1 Te Issuer a, it consent o te ASX, issue urter

PmGs aing te sae Ters as tese PmGs so as to

or a single series it tese PmGs.

15. Taxatn PMGs

15.1 Te Issuer is not liable or an Taxes and Duties arising

ro te onersip, transer or exercise o a PmG.

15.2 holders ust pa all Taxes and Duties in connection

it te onersip, transer and exercise o teir

PmGs.

16. c Maj

16.1 I a orce majeure as occurred and is continuing,

ten, subject to ASX consent, te obligations o te

Issuer under te PmGs ill be suspended and deerred

until te eent giing rise to te orce majeure ceases

to exist.

17. law Gnng PMGs

17.1 Te PmGs are goerned b te la o Ne Sout

wales.

18. Sspnsn PMG Tadng

18.1 Te ASX a, under te ASX market Rules, suspend

te PmGs ro trading.

19. Amndmnt Tms

19.1 Te Issuer a aend tese Ters ere:

(a) te aendent is autorised b a resolution o

holders; or

(b) subject to ASXs consent, te aendent isdesirable in te Issuers reasonable opinion to

copl it te la or rules or a requireent

o te ASX or oter goernental or regulator

bod; or

(c) te aendent is desirable to correct an

inconsistenc or error in tese Ters (but onl i

suc aendent does not, in te opinion o te

Issuer, prejudice te interest o te holders and te

ASX does not object to te aendent); or

(d) subject to ASXs consent, te Ters, in te

Issuers reasonable opinion, becoe ipossible or


26/4026

unorkable to copl it (or exaple, i teLondon Bullion market Associations Gold ixing,

or te oer-te-counter spot gold arket, ceases

to operate or exist); or

(e) tere are no longer an holders (except an

aendent to te Expir Date).

19.2 Te Issuer ust noti all holders in riting o a

proposed aendent togeter it a ballot paper.

19.3 holders a return ballot papers to te Issuer b

no later tan 20 Business Das ater te date o tenotice. Eac holder is entitled to one ote or eac

PmG eld.

19.4 A resolution is dul passed i 75% or ore o te

otes cast are in aour o te aendent. Te

registrar sall deterine te alidit o all ballot papers

and add togeter all o te otes cast on alid ballot

papers during te oting period.

19.5 I tere are no holders o te PmG oter tan

te Issuer, te Issuer ill proceed it te

aendent ater inoring te ASX and aking an

announceent oer te CAP.

19.6 Te Issuer or its associates ust not ote unless te

are oting as trustee or noinee or a person o is

not an associate.

19.7 An aendent ust be notied to te ASX.

20. Mat rs

20.1 All proisions o tese Ters are subject to an

contrar requireent ro tie to tie o te

ASX market Rules or, en applicable, te ASTC

Settleent Rules unless te ASX or, i appropriate, te

ASTC gies or as gien a aier or consent in respect

o te PmGs o an o tose rules.

21. St

21.1 All onetar obligations iposed on a holder under

tese Ters are:

(a) absolute; and

(b) ree o an rigt to counterclai or set o; and

(c) a onl be satised once te paent ascleared.

21.2 Te Issuer a:

(a) set o an aount paable to te Issuer or an

o teir agents b a holder against an aount

paable b te Issuer to te holder; and

(b) itold an aount paable b te Issuer or

an o teir agents to a holder in satisaction o

an aount paable to te Issuer or an o teir

agents b te holder.

22. Sc Dcmnts

22.1 A notice a be gien b te Issuer to an holder

eiter personall, b acsiile or electronicall to te

releant acsiile nuber or electronic address o te

holder as son on te Register or proided b te

holder, b sending it b post addressed to te holder

at its address as son in te Register or oterise b

an etod (including b adertiseent) as te Issuer

a deterine.

22.2 In te case o a holder ose registered address is

outside Australia, a notice sent b post ill be sent b

airail.

22.3 A notice a be gien b te Issuer to te joint

holders o a PmG b giing te notice to te joint

holder ose nae appears rst in te Register and

tat notice ill be sucient notice to all te joint

holders.

22.4 An notice b adertiseent ill be deeed toae been sered on te da o publication o te

nespaper containing te adertiseent.

22.5 An notice sent b post ill be deeed to ae been

sered on te da olloing te da on ic te

notice is posted unless sent b airail to an address

outside te countr in ic it as posted, in ic

case it ill be deeed to ae been sered on te

t da olloing te da on ic it is posted.

22.6. A notice sent b acsiile or oter electronic eans

ill be deeed to ae been sered on te sae da

tat it is sent.


27/4027

In tis PDS, unless te context requires oterise requires:

AquA rs eans te rules and raeork enabling

te quotation o structured products and anaged unds

on te AQUA arket operated b te ASX and contained in

Section 10A and 10B o te ASX market Rules;

ASTC eans te ASX Settleent and Transer

Corporation Pt Liited (ACN 008 504 532);

ASTC Sttmnt rs eans te operating rules o

ASTC or ChESS as aended ro tie to tie;

ASiC eans Australian Securities & Inestent

Coission;

ASX eans Australian Securities Excange Liited (ACN

008 624 691);

AuSTrAC eans Australian Transaction Reports &

Analsis Centre, te goernent agenc responsible or

ipleenting te legislatie requireents o te inancial

Transaction Reports Act (1988) (Ct) and te Anti-mone

Laundering and Counter-Terroris inancing Act

(2006) (Ct);

bsnss Da eans a da on ic banks are open or

business in Pert, Sdne and melbourne;

CAP Annncmnt eans an announceent ade on

ASXs Copan Announceent Plator;

Cas eant Amnt eans te cas equialent o

te Underling Parcel corresponding to te PmGs exercised

calculated pursuant to te London ix on te Exercise Date

(or te earliest London ix tereater i tere is no London

ix on te Exercise Date) diided b te wm/Reuters

Australian Dollar 4p Reerence Rate on te Exercise Date

(or te earliest wm/Reuters Australian Dollar 4p Reerence

Rate tereater i tere is no wm/Reuters Australian Dollar

4p Reerence Rate on te Exercise Date);

Cas Sttmnt eans en te holder elects to

receie te Cas Settleent Aount in accordance it

clause 8;

Cas Sttmnt Amnt eans te Cas Equialent

Aount less te Cas Settleent Reduction Aount;

Cas Sttmnt rdctn Amnt eans an

aount o $100, or suc oter aount deterined bGold Corporation ro tie to tie, deducted ro te

Cas Equialent Aount to calculate te Cas Settleent

Aount;

CheSS eans te Clearing house Electronic Subregister

Sste operated b te ASX;

Cpatns Act eans te Corporations Act

(Ct) 2001;

excs Dat eans an tie beore te Expir Date

and specicall, te date on ic te holder deliers aalid Exercise Notice to te Issuer;

excs Ntc eans a notice in te or set out at te

end o te PDS eaded Exercise Notice;

excs Pdct & Pc Scd eans te exercise

product and price scedule aailable ro te Issuer or

te Issuers ebsite. An indicatie Exercise Product & Price

Scedule as at te date o tis PDS is set out in Part 12 o

tis PDS;

exp Dat eans te earlier o:

(a) te Settleent Date; or

(b) six onts ater te date o a CAP announceent b

Gold Corporation tat it is no longer oering te PmG

product;

acatn Cags eans te abrication carges per

gold bar or coin, oring part o te Psical Settleent

ee, as indicated in te Exercise Product & Price Scedule;

n Gd eans te aount o pure gold in a product;

c Maj eans an act o God, act o state

(oter tan te State o western Australia), ar,

sabotage, riot, insurrection, ciil cootion, national

eergenc (eter in act or la) strikes, lock-outs or

oter industrial disturbance, accidents, uncontrollable

delas in transportation, inabilit to obtain an necessar

equipent, acilities or qualied eploees or te eect

o an applicable las orders, rules or regulations (oter

tan tose o te State o western Australia) and an oter

atters beond te reasonable control o te Issuer andic preents te Issuer ro (a) ullling its obligations

INTERPRETATION7


28/4028

under tese Ters or (b) acquiring, storing or disposing ote gold coering te PmGs;

Gd Cpatn Act 1987 eans te Act o Parliaent

o te State o western Australia, being an Act to constitute

te Gold Corporation and proide or its unctions and te

conduct o its business;

GdCp eans GoldCorp Australia (ABN 49 230 812

547) a bod corporate created under te Gold Corporation

Act 1987;

hd eans a person ose nae appears in teRegister o PmGs ro tie to tie;

iss eans Gold Corporation (ABN 98 838 298 431);

lndn x eans te last USD London gold x per

tro ounce on a da (i an) as set b te ebers o te

London Bullion market Associations Gold ixing;

lndn Gd D ba is a gold bar tat conors

to te good delier specications o te London Bullion

market Association;

Mat Ma eans suc one or ore person(s) o

te Issuer appoints or te purpose o aking a arket in

te PmG;

Mat rs eans te market Rules o te ASX as

aended ro tie to tie;

Nn-D as te eaning gien to it under

clause 7.4;

PDS eans Product Disclosure Stateent or Pert mint

Gold Quoted Product dated 1 Jul 2010 tat replaces teProduct Disclosure Stateent or Pert mint Gold Quoted

Product dated 7 ma 2003;

Psca m eans eiter London Good Delier Bar or

an oter gold coin or bar product(s) ade aailable b te

Issuer or delier o te Underling Parcel upon exercise

o PmGs;

Psca Sttmnt eans en te holder elects

to take psical delier o te gold corresponding to te

holders PmGs in accordance it clause 7;

Psca Sttmnt Amnt eans te aount o

Psical or deliered under clause 7;

Psca Sttmnt eans te ee paable b te

holder on deliering to te Issuer an Exercise Notice electing

Psical Settleent in accordance it clause 9;

PMG eans te Pert mint Gold product being issued

under te PDS;

PMG Managmnt eans a ee carged eac

ear at te close o trading on ASX on 31 Deceber ic

coers te annual costs incurred b te Issuer in relation to

te PmG in accordance it clause 9;

PMG Tadng eans a ee carged b te market

maker(s) eac da to bot te underling gold bid and

ask prices o PmG to refect te tie alue o te PmG

manageent ee. Tereore, te PmG Trading ee

calculated into te price o PmG on 1 Januar ill be iger

tan te PmG Trading ee calculated into te price o PmG

on 30 Deceber;

rdmng PMG as te eaning gien to it under

clause 5.6(d)(iii), in respect o te Psical Settleent ee

and under clause 9.6, in respect o te PmG

manageent ee;

rgst eans a register o PmGs to be aintained in

accordance it clause 2;

Sttmnt Dat eans:

(a) or London Good Delier Bar, te 20t Business Da

ater te Exercise Date;

(b) or oter Psical ors, te date notied to te

holder b te Issuer; and

(c) or Cas Settleent, 5 Business Das ater te Exercise

Date;

Taxs and Dts eans an tax, dut, or oter carge

including GST arising ro onersip, transer or exercise o

a PmG;

Tms eans te Ters and Conditions ic are

contained in Part 6;

Tm St eans te Ter Seet distributed b te

Issuer and attaced to tis PDS;


29/4029

T Pt Mnt eans 310 ha Street, East Pert,western Australia 6004, or suc oter location as specied

b te Issuer;

undng Pac eans one undredt o a tro ounce

o ine Gold;

Waant rs eans te rules and raeork relating

to te quotation o arrants on te ASX and contained

Section 10 o te ASX market Rules; and

WM/rts Astaan Da 4pm rnc rat

eans te Australian oreign Excange CoitteesAustralian dollar reerence rate tat, as at te date o tis

PDS, is sourced ro page AUDIX on Toson Reuters.

Ters dened in te ASX market Rules or in te ASTC

Settleent Rules ae te sae eaning in tis docuent

unless te are specicall dened in tis docuent or te

context oterise requires.


30/4030

Gold Corporation ill onl collect personal inorationnecessar or te products or serices ou request. Te

inoration e obtain ro ou or oter people during te

course o anaging te PmG is required to anage our

inestent and copl it releant las.

we a use tis inoration to send ou details about Gold

Corporations oter precious etal and inestent products.

I at an tie ou are receiing inoration ro us about

our products and do not is to do so, please let us kno.

Gold Corporation a also disclose inoration about ou

to tird part serice proiders o assist Gold Corporationin its business operations and serice proision.

urter inoration about Gold Corporations priac

practices can be ound at .pertint.co.au.

I ou ae an queries, please contact Gold Corporation on

1300 651 465 or b ail to GPO Box m924, Pert, western

Australia 6843.

PRIvACy STATEMENT8


31/4031

ASX wa

Gold Corporation as applied or a aier ro ASX

market Rule 10A.2.2 ic ould oterise require tat

te guarantee proided b te Goernent o western

Australia in respect o te Gold Corporations obligations

under te PmGs Ters ust be unconditional and

irreocable and explicitl in aour o te PmG holders. In

act te guarantee is created b statute under section 22

o te Gold Corporation Act 1987, an Act o te western

Australian Parliaent, so it is not specicall expressed to be

unconditional, irreocable or in aour o te PmG holders.

Te ASX as granted te aier on te basis tat:

(a) te Statutor Guarantee is unconditional because it

does not place an qualications on te circustances

in ic te Treasurer o western Australia ill

guarantee te Issuers obligations;

(b) te Statutor Guarantee is in aour o a class o

persons ic includes, but is not liited to, te

AQUA Product holders (i.e., te PmG holders); and

(c) under coon la, te Statutor Guarantee cannot

be reoked in respect o an pre-existing obligations

o te Issuer tat ae accrued up to te date tat

suc reocation is purported to be ade.

or urter inoration on te wA Goernents guarantee,

see eading PmG is a wA Goernent Guaranteed

Product in part 1.

ADDITIONAL INORMATION9


32/4032

PMG iss

Pert mint Buildings

310 ha Street

East Pert,western Australia 6004

Postal Address:

GPO Box m924, Pert

western Australia 6843

Telepone: 1300 651 465

acsiile: (08) 9221 7074

website: .pertint.co.au

PMG rgsta

Coputersare Inestor Serices Pt Liited

Leel 2, 45 St Georges Terrace

Pert,western Australia 6000

Postal Address:

GPO Box D182, Pert

western Australia 6840

Telepone: (08) 9323 2000 or 1300 55 70 10 (itin

Australia)

acsiile: (08) 9323 2033

website: .coputersare.co

bans

westpac Banking Corporation

Mnst

honourable Colin Barnett mEc mLA

Preier o western Australia; Treasurer; minister or State

Deelopent

STATuTe

Gold Corporation as establised under te Gold

Corporation Act 1987.

DIRECTORy - CONTACTDETAILS0


33/4033

y gd t t excs Ntc

you can coose one o to exercise options: psical

(delierable) gold or cas.

oPTioN 1: PhySiCAl SeTTleMeNT

I ou is to take delier o te gold represented b our

PmGs (Psical Settleent), ou ust:

(a) send te Exercise Notice to Gold Corporation:

(i) noinating te psical or, nael te quantitand tpe o coin or bar product(s) in ic ou

is to take delier o te gold represented b

our PmGs;

(ii) autorising Gold Corporation to redee te

nuber o PmGs necessar to pa or te Psical

Settleent ee;

(iii) noinating te collection etod or psical

delier o te gold; and

(b) old a sucient nuber o PmGs to coer:

(i) te nuber o PmGs required or te coin or bar

product(s) ou ae cosen; and

(ii) te Psical Settleent ee.

Subject to our copliance it (a) and (b) aboe, Gold

Corporation ill ake te gold represented b our PmGs

aailable or collection at Te Pert mint b te Settleent

Date.

excs Pdct & Pc Scd

PmG gold is delierable in a nuber o ors. One o te

ors in ic gold is traded internationall and in ic

PmG gold can be deliered to ou is London Good Delier

Bars. London Good Delier Bars eig approxiatel 400

tro ounces and ae a purit o at least 99.50%.Te purit

and eigt a ar sligtl beteen te bars.

Gold Corporation also abricates gold into oter

internationall acceptable bar and Australian legal tender

coin ors in arious saller sizes. Gold Corporation ill

ake tese products aailable as delierable ors or PmG

under te Ters o tis PDS. I ou is to ae one o

tese ors deliered to ou, an additional aount ill bepaable because o te iger abrication cost o conerting

London Good Delier Bars into tese ors.

or te purposes o illustration, assue ou are a holder

o 100 PmGs and ou coose to exercise tese 100 PmGs

b electing psical settleent and noinating a 1ozt bar

99.99% as te psical or to be deliered to ou. In tis

case, Gold Corporation ill treat te 0.9999 tro ounces

o ne gold as rounded up to 1 tro ounce o ne gold or

te purpose o our exercised PmGs and ill abricate and

delier te gold to ou in tis or. A list o all delierableproducts (including te London Good Delier Bar) and

teir corresponding abrication Carges ill be detailed in

an Exercise Product & Price Scedule aailable ro Gold

Corporation or its ebsite. An indicatie Exercise Product

& Price Scedule as at te date o tis PDS can be ound

in Part 12 o tis PDS. Gold Corporation reseres te rigt

to cange te products listed on tis Scedule, and te

abrication Carges or eac product, ro tie to tie.

Psca Sttmnt

I ou elect psical settleent o our PmGs, ou ill incur

a Psical Settleent ee to coer te cost o deliering

psical gold to ou, ic ill include:

(a) abrication Carges, i applicable;

(b) sipent and reigt insurance costs, i applicable;

and

(c) an applicable Taxes and Duties.

Te Psical Settleent ee cannot be specied in tis

Product Disclosure Stateent in adance because it is

deterined b te psical or and collection etod ou

noinate in our Exercise Notice. or exaple, i ou is

to collect our psical gold ro Te Pert mint and select

a London Good Delier Bar, ten te Psical Settleent

ee (at te date o tis PDS) is $240.00. I ou select a 1oz

Australian Nugget legal tender gold coin, ten te Psical

Settleent ee (as at te date o tis PDS) ould be 5% o

te total ne gold o te coin (tat is, 5 PmGs).

you ill pa te Psical Settleent ee b autorising Gold

Corporation to redee tat nuber o PmGs corresponding

to te aount o te Psical Settleent ee.

ExERCISE PROCEDURE1


34/4034

Cctn Mtd Psca Gd

Te PmG represents loco Pert gold, ic eans tat

our gold ill be ade aailable or collection ro te

Registered Oce o Gold Corporation, located at Te Pert

mint, 310 ha Street, East Pert, western Australia b te

Settleent Date. Gold Corporation ill also oer te option

o aing our gold deliered to ou, but is not obliged to

do so.

On te Exercise Notice ou ust select one o te to

collection options described belo:

(a) In Person i ou coose tis option, our gold ill

be aailable or collection ro te Registered Oce

o Gold Corporation.

(b) via Gold Corporations Agent i ou coose

tis option Gold Corporation ill arrange delier

o our gold ia secure carrier to te address on

te records o PmGs Registr. Te sipent and

insurance cost ill be at our expense and ill be

added to te Psical Settleent ee. Please note

tat restrictions appl to te addresses secure carriersill delier to, details o ic ill be specied in te

Exercise Product & Price Scedule. or te purposes

o deterining perorance o Gold Corporations

delier obligations under te PmG Ters, delier ill

be deeed to ae been ade b Gold Corporation

at te tie our gold is released b Gold Corporation

ro Te Pert mint.

In bot cases, ou ill need to proide copies o sucient

identication required under te legislations adinistered

b AUSTRAC to establis our identit as te holder ote PmGs ou intend to exercise to Gold Corporation in

adance o delier. At te tie o collection, ou ust

so te originals o te preiousl supplied identication

docuents to Gold Corporation or its Agent beore our

gold ill be released.

I ou ail to take delier o our gold itin 20 Business

Das o te Settleent Date, ten Gold Corporation

reseres te rigt to liquidate our gold or its ine Gold

content (te Psical Settleent ee ill not be reunded)

and reit te cas to our noinated bank account lessan costs incurred b Gold Corporation in selling our

gold (including te costs o returning te gold to Gold

Corporation, i required) and aking a cas paent to ou(te Non-Delier ee). Tis Non-Delier ee ill be set

out in te Exercise Product & Price Scedule ro tie

to tie.

Sttmnt Dat

Gold Corporation ill ake te gold represented b our

PmGs aailable or collection at Te Pert mint b te

Settleent Date.

I, or exaple, ou noinate a London Good Delier

Bar as our psical or or delier, ten te Settleent

Date ill be 20 Business Das ater te Exercise Date. I

ou noinate an oter psical or, Gold Corporation

ill inor ou o te Settleent Date, ic ill depend

on Gold Corporations product

pmg 2010 final - proposal only!

Documents