GOLD TRUST FINANCIAL

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1 GOLD TRUST FINANCIAL RISKS AND DISCLOSURES WHEN INVESTING IN PRECIOUS METALS CERTAIN CONSIDERATIONS Gold Trust Financial, Inc. ( GTF ) facilitates investment in and collection of various types and grades of coins, currency, and precious metals. GTF also provides free information to investors and collectors. This information includes printed materials, as well as audio and video which is available at Among other things our website contains information on precious metal spot prices, charts, information on bullion and rare coin products, and current news and proprietary views on the precious metals markets. GTF professionals have many years of experience in the precious metals and financial services industry. We deliver personalized service, and our professionals are available to answer your questions six days a week. When acquiring products from GTF, clients have the option of taking physical delivery or storing their acquisitions with a third-party storage facility. Our products are fully guaranteed for authenticity and quality, and we provide a seven-day unconditional money back refund policy on your first transaction for certified rare coins and precious metals (excludes bullion purchases). GTF is rated A+ by the Better Business Bureau, and AAA by the Business Consumer Alliance, both the highest possible ratings. We invite you to check our credentials and our reputation. We are confident that when you do so, we will be your choice for precious metals and rare coins. If you are in the Santa Monica area, we encourage you to visit our offices. Please let us know at least one business day in advance so we may better serve you. ACCOUNT EXECUTIVES Account Executives are generally commissioned salespersons. Typically, commissions are greatest on rare coins and semi-numismatic coins, and less on bullion. Their experience and background may vary. GTF employees are not licensed as investment advisors and are not authorized to recommend the purchase or sale of any product or investment, including stocks, bonds, or related securities, other than the products specifically sold by GTF. Our Account Executives are not tax advisors, and neither they nor GTF provide advice regarding any tax issues associated with any products GTF sells. We encourage you to consult with your own accountant or tax advisor regarding tax implications related to buying or selling any GTF products. BULLION PURCHASES All bullion purchases, including ingots, bars, rounds, and coins, must be acquired via bank wire, cashier s check, or personal check. Prior to confirmation of your purchase, an Account Executive may discuss diversifying with other products which may carry a higher spread, such as certified gold coins, proofs, or Morgan and Peace silver dollars.

2 EXCHANGE TRANSACTIONS We do not recommend exchanging rare or semi-numismatic coins for others unless you fully understand the costs involved in such transactions. You should consider the spread in the buy and sell transactions because your final position must exceed both spreads before you are in profit. Since no one can predict whether one product is going to outperform another, you must independently decide whether an exchange transaction is right for you. PAYMENT OPTIONS AND CREDIT CARD PURCHASES GTF accepts payment in the form of personal checks, business checks, cashier s checks, and bank wires. Due to low margins, GTF does not currently accept credit cards. Please make all payments payable to Gold Trust Financial, Inc. Please do not send cash. STORAGE GTF does not store client holdings. We may refer clients to depositories, or they may choose their own if desired. GTF is not affiliated with and receives no fees for referrals to any depositories. RISK All investments involve risk. Precious metals in the form of coins and bullion are no exception. Precious metals and rare coin markets can be volatile, they are unregulated, and prices may rise or fall over time. We do not guarantee that any client will be able to sell for a profit in the future. Distinct from the rare coin market, the value of a bullion coin is largely determined by the current spot or market price. This price fluctuates throughout the trading day and is affected by international markets. The value of rare coins is determined by various factors which impact their market independent of bullion prices. These factors may include, but not be limited to, the actual or perceived scarcity of the coin, its quality, current demand, and other market factors. Bullion and rare coins can go down as well as up in value, and therefore may not be suitable for everyone. GTF does not determine the suitability of any specific products for its clients. Clients are encouraged to consult with their own independent financial advisors regarding suitability of particular products for particular goals or needs, and are also encouraged to gain a thorough understanding of the various products before acquiring them. Investment value of any purchase is in large part a function of the price paid. All products acquired for investment purposes should be evaluated in light of their current market value, potential for appreciation, and liquidity. GTF encourages you to consult independent sources to make these determinations. As with any investment, since rare coins and bullion may decline in value, they should be part of, but not all of, a well-diversified portfolio. Because we do not give investment advice, you should consult with your financial advisor to determine what your welldiversified portfolio should contain. GTF is not responsible for any changes in tax laws or other statutes which may affect any profit or salability of your coins or bullion.

3 OUR PRICES GTF independently sets its own prices based upon a variety of factors. Our prices for coins are subject to change based on fluctuating market conditions, and our gross profit may be more or less than our spread based on various factors, which may include quantity purchasing, favorable or unfavorable acquisitions and purchases, and market conditions. GTF may act as principal or agent, and therefore may or may not own the coins and precious metals it buys and sells. A transaction cost is the difference between the selling ( ask ) price and the buyback ( bid ) price. This is also referred to as the spread. Spreads may vary depending upon market conditions and the type of coins or precious metals being transacted. Spreads for bullion are lower than spreads for semi-numismatic or rare numismatic coins, and may range from five percent to thirty-five percent. The spreads for various types of bullion are different. For example, spreads for ingots and bars will be less than for bullion coins. Spreads on seminumismatic coins and rare or numismatic coins may range up to thirty-five percent. Examples are, the $20 Saint Gaudens, PCGS certified First Strike coins, coins which have been slabbed or encapsulated by grading services such as PCGS or NGC, Morgan and Peace silver dollars in all grades, and Walking Liberty, Franklin, and Kennedy silver half dollars in all grades. As above, spreads may change based upon fluctuating market conditions. With the exception of the most common bullion coins, we charge clients our semi-numismatic or numismatic spread, which may range up to thirty five percent. To earn a profit on resale, your coins or bullion must appreciate enough to exceed this spread. REFUND POLICY GTF provides clients with the right to a refund on their first transaction for all coins without any reason whatsoever. However, this policy does not apply to bullion purchases, including bullion coins. To receive a refund, you must notify us of your intention to cancel the first transaction within seven (7) calendar days of the date your first transaction is confirmed with our confirmation department. Notice must be given in writing via U.S. Mail, facsimile or and sent within the above seven (7) calendar day period, as determined by the postmark if given via U.S. Mail, date of fax confirmation if faxed, or date of as set forth in the header. All other transactions are final upon taped confirmation by a GTF representative and are not subject to cancellation. Please note that your state may have additional refund and/or cancellation rules that supersede GTF s refund policy, above. In the event you do not pay for any order, in whole or in part, GTF reserves the right, in its sole discretion, to refuse to repurchase coins or bullion previously purchased from GTF. LIQUIDATION/BUY-BACK POLICY Should you decide to sell your coins or bullion, we appreciate the opportunity to purchase them at our current bid ( buy ) price. However, GTF is not obligated to provide a bid, or buyback offer, for any coins, and is in fact prohibited by law from making any buyback guarantees. GTF does not charge any fees or commissions above its bid price. Bullion and bullion coins tend to have a broader market and be more liquid than semi-numismatic coins, which in turn tend to have a broader market and be more liquid than rare or numismatic coins. Depending upon prevailing market conditions and your original purchase price, you may receive a buyback offer of less than what you paid. GTF will provide bid quotes upon request, and this information is

4 available through any of our Account Executives. DIVERSIFICATION AND HOLDING PERIOD GTF recommends that numismatic and semi-numismatic coins and bullion be part of a welldiversified investment portfolio. You should consult your independent financial advisor before investing, to determine the appropriate allocation of investments across different asset classes, including precious metals. Though up to each individual and his/her independent financial advisor, we recommend purchases of coins and bullion be for long-term investment purposes rather than speculation. To be considered a long-term investment, we believe the holding period should be for at least three to five years, or longer, to maximize the potential for gains. The foregoing should be used as a guideline, as any specific holding period may be affected by current market conditions which may require a longer or shorter holding period. IRA ACCOUNTS GTF offers to refer clients to companies that provide trustee and custodian services for Individual Retirement Accounts ( IRA ). GTF is not affiliated with any of these IRA companies and does not receive any compensation from them. Clients are responsible for independently selecting their own IRA custodian and trustee, and GTF does not share in or assume responsibility, in whole or in part, for any loss or other damage resulting from clients relationships with the IRA custodians or trustees. Clients are encouraged to consult with their investment or tax advisors to determine their suitability for precious metals IRAs. Only certain types of coins may be held in precious metals IRAs. These include U.S. proof coins or sets, which carry numismatic or rare coin spreads. GRADING GTF uses the numerical Mint State ( MS ) grading system which rates uncirculated rare coins and currency from MS-60 to MS-70. Higher numbers generally reflect that a coin is worth more. This system takes into account various factors, including a coin s marks, scratches, shine, strike, and comprehensive appeal. Though performed by numismatic experts, grading is still somewhat subjective. As a result, grading can vary amongst coins, grading organizations, and individual experts. Grading differences may result in significant valuation differentials for the very same coin or currency. GTF is independent of, and has no financial interest in, any of the grading services it uses, which include Professional Coin Grading Service ( PCGS ), Numismatic Guaranty Corporation ( NGC ), Currency Grading & Certification ( CGC ), and Paper Money Guaranty ( PMG ). We guarantee that all of the products we sell are genuine. We rely on the expertise of these grading services and do not independently evaluate a coin in a sealed, graded slab. We may, however, remove a coin from its sealed slab and submit it to a grading service, but once re-graded, as above, we will not independently evaluate the coin. GTF expressly disclaims any other warranties with regard to any of its products, whether express or implied, including the implied warranty of merchantability and fitness for a particular purpose.

5 MARKET FORECASTS GTF Account Executives do not make market forecasts, predictions, or projections, and we will not independently opine on future performance of precious metals and currencies. However, Account Executives may advise clients about forecasts, predictions, or projections made by authorities independent of GTF, in which GTF has no financial interest, cite available statistics, or refer clients to news articles, publically available videos, or any other form of media in which the views of industry or economic authorities are communicated. To the extent communicated, this information is provided in a balanced manner to assist clients in making educated decisions, particularly as they relate to doing their own independent due diligence with their professionals and advisors. Past performance of precious metals is not necessarily indicative of future results. COMMUNICATION Telephone calls may be monitored and/or recorded for quality control and compliance. Should at any time you not wish to be contacted by an Account Executive, simply notify us by telephone, , or U.S. Mail. Should you have any questions related to the disclosures and information set forth in this booklet, please call our Managing Director at (800) and make certain your questions have been answered to your satisfaction prior to proceeding with any transactions. SHIPPING AND DELIVERY All precious metals shipments are insured. In most cases, purchases will be delivered within 21 days, or less, of cleared funds, and historically within two to four days. All orders must be paid in full prior to shipment. If a shipment is lost or damaged, GTF will, in its discretion, replace the lost or damaged items or refund your purchase price. If the entirety of a client order is not available, GTF may ship in more than one package as the remaining portion(s) become available. If certain items become unavailable from GTF suppliers, we will immediately refund client funds relating to the unfulfilled portion. All shipped items are photocopied and recorded at GTF to ensure that they match their delivery invoices before the shipment boxes are sealed. Clients should inspect their shipments upon receipt to ensure enclosed items match their delivery invoice as previously photocopied and recorded at GTF. Any discrepancies must be reported to the GTF Managing Director within five (5) calendar days of receipt of the shipment, and all original packing materials must be intact. Because of the value of shipments, client signatures are required upon delivery. Please promptly notify GTF in writing if you desire to change your delivery address or authorized signatory via notarized letter along with a copy of your valid driver s license or passport. All precious metals, coins, and currency sent to GTF must be via U.S. Postal Service, registered, insured, and return receipt requested, to: Gold Trust Financial, Inc., 3201 Wilshire Blvd., Suite 301, Santa Monica, CA Check with your Account Executive for special Attention To address requirements.

6 IN CONCLUSION We encourage you to gain a thorough understanding of precious metals, coins, and their markets prior to making your first purchase. Your due diligence should include consultation with your investment advisor and/or tax advisor, with due consideration of your personal needs for liquidity, growth, and safety, and your ability to hold your acquisitions for at least three to five years. Periodic updates to RISKS AND DISCLOSURES WHEN INVESTING IN PRECIOUS METALS can be found by reviewing the document Risks and Disclosures on our website at GTF reserves the right to make any amendments or changes it deems appropriate without prior notice.