<SEC-DOCUMENT>0000930413-11-002296.txt : 20110328
<SEC-HEADER>0000930413-11-002296.hdr.sgml : 20110328
<ACCEPTANCE-DATETIME>20110328171840
ACCESSION NUMBER:		0000930413-11-002296
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20101231
FILED AS OF DATE:		20110328
DATE AS OF CHANGE:		20110328

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ETFS PALLADIUM TRUST
		CENTRAL INDEX KEY:			0001459862
		STANDARD INDUSTRIAL CLASSIFICATION:	 [6221]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34589
		FILM NUMBER:		11716652

	BUSINESS ADDRESS:	
		STREET 1:		C/O ETF SECURITIES USA LLC
		STREET 2:		555 CALIFORNIA STREET, SUITE 2900
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94104
		BUSINESS PHONE:		415-404-6332

	MAIL ADDRESS:	
		STREET 1:		C/O ETF SECURITIES USA LLC
		STREET 2:		555 CALIFORNIA STREET, SUITE 2900
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94104
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>c64628_10k.htm
<TEXT>

<HTML>
<HEAD><TITLE></TITLE></HEAD>
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<P ALIGN=CENTER><FONT SIZE=4><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
</B><FONT SIZE=3><B>Washington, D.C. 20549</B></FONT></FONT></P>

<P ALIGN=CENTER><FONT SIZE=5><B>Form 10-K</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>(Mark One)</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3 FACE=WINGDINGS><B>x</B></FONT><FONT SIZE=3><B> ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>For
the fiscal year ended December 31, 2010</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>or</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3 FACE=WINGDINGS><B>o</B></FONT><FONT SIZE=3><B> TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><I>Commission file number: 001-34589</I></FONT></P>

<P ALIGN=CENTER><FONT SIZE=6><B>ETFS PALLADIUM TRUST</B></FONT><BR>
<FONT SIZE=2><I> (Exact name of registrant as
specified in its charter)</I></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="90%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="50%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="50%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><B>New
 York</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><B>26-4733157</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><I> (State or other jurisdiction of</I></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><I> (I.R.S. Employer</I></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><I>incorporation or organization)</I></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><I>Identification No.)</I></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><B>c/o ETF Securities USA LLC</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><B>48
 Wall Street, 11th Floor</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><B>New
 York, NY</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><B>10005</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><I> (Address of principal executive
 offices)</I></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><I> (Zip Code)</I></FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2><B>Registrant&#146;s
telephone number, including area code:<BR>
(212) 918-4954</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>Securities
registered pursuant to Section 12(b) of the Act:</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="21%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="16%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="16%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="6%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="25%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="16%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM nowrap>
 <P ALIGN=CENTER><FONT SIZE="2"><B>Title of each class</B> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM nowrap>
 <P ALIGN=CENTER><FONT SIZE="2"><B>Name of each exchange
on which registered</B> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=BOTTOM>
 <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ETFS Physical Palladium Shares</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2>NYSE Arca</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2><B>Securities
registered pursuant to Section 12(g) of the Act: None</B></FONT></P>

<P><FONT SIZE=2>Indicate by check mark if the registrant is a
well-known seasoned issuer, as defined in Rule 405 of the Securities Act.</FONT></P>

<P STYLE="margin-top:-32px" ALIGN="RIGHT"><FONT SIZE=2>Yes <FONT FACE=WINGDINGS>o</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No <FONT FACE=WINGDINGS>x</FONT></FONT></P>

<P><FONT SIZE=2>Indicate by check mark if the registrant is not
required to file reports pursuant to Section 13 or 15(d) of the Act.</FONT></P>

<P STYLE="margin-top:-32px" ALIGN="RIGHT"><FONT SIZE=2>Yes <FONT FACE=WINGDINGS>o</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No <FONT FACE=WINGDINGS>x</FONT></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the
past 90 days. </FONT></P>

<P STYLE="margin-top:-32px" ALIGN="RIGHT"><FONT SIZE=2>Yes <FONT FACE=WINGDINGS>x</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No <FONT FACE=WINGDINGS>o</FONT></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Indicate by check mark
whether the registrant has submitted electronically and posted on its corporate
Web site, if any, every Interactive Data File required to be submitted and
posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months. </FONT></P>

<P STYLE="margin-top:-32px" ALIGN="RIGHT"><FONT SIZE=2>Yes <FONT FACE=WINGDINGS>x</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No <FONT FACE=WINGDINGS>o</FONT></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Indicate by check mark if
disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not
contained herein, and will not be contained, to the best of registrant&#146;s
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K. <FONT FACE=WINGDINGS>x</FONT></FONT></P>

<P ALIGN="JUSTIFY"><FONT SIZE=2>Indicate by check mark whether the registrant is a
large accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company. See the definitions of &#147;large accelerated filer,&#148;
&#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the
Exchange Act.</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="25%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="40%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="10%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="25%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Large accelerated filer <FONT  FACE=WINGDINGS>o</FONT></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>Accelerated filer <FONT  FACE=WINGDINGS>o</FONT></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Non-accelerated filer <FONT  FACE=WINGDINGS>x</FONT></FONT></P>
 </TD>
 <TD VALIGN=TOP nowrap>
 <P><FONT SIZE=2>Smaller reporting company <FONT  FACE=WINGDINGS>o</FONT></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Indicate by check mark whether the registrant is a
shell company (as defined in Rule 12b-2 of the Act). </FONT></P>

<P STYLE="margin-top:-32px" ALIGN="RIGHT"><FONT SIZE=2>Yes <FONT FACE=WINGDINGS>o</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No <FONT FACE=WINGDINGS>x</FONT></FONT></P>

<P><FONT SIZE=2>Aggregate market value of
the registrant&#146;s shares outstanding based upon the closing price of a share on
June 30, 2010 as reported by the NYSE Arca, Inc. on that date: $349,101,437.</FONT></P>

<P><FONT SIZE=2>Number of the registrant&#146;s shares outstanding as of
March 8,
2011: 11,550,000</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>DOCUMENTS INCORPORATED BY REFERENCE:</B> None.</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>FORWARD LOOKING STATEMENTS</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>This Annual Report on Form
10-K contains various &#147;forward-looking statements&#148; within the meaning of
Section&nbsp;27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, and within the Private
Securities Litigation Reform Act of 1995, as amended. Forward-looking
statements usually include the verbs, &#147;anticipates,&#148; &#147;believes,&#148; &#147;estimates,&#148;
&#147;expects,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;projects,&#148; &#147;understands&#148; and other verbs
suggesting uncertainty. We remind readers that forward-looking statements are
merely predictions and therefore inherently subject to uncertainties and other
factors and involve known and unknown risks that could cause the actual
results, performance, levels of activity, or our achievements, or industry
results, to be materially different from any future results, performance,
levels of activity, or our achievements expressed or implied by such
forward-looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date hereof.
The Trust undertakes no obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Additional significant
uncertainties and other factors affecting forward-looking statements are
presented in the Risk Factors section herein. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>&nbsp;</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>TABLE
OF CONTENTS</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="2%" VALIGN=TOP>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="4%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>PART I</B></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a001_v1">Item 1. Business</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>1</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a002_v1">Trust Objective</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>1</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a003_v1">Secondary Market Trading</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>2</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a004_v1">Valuation of Palladium and Computation of Net Asset
 Value</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>2</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a005_v1">Trust Expenses</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>2</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a006_v1">Deposit of Palladium; Issuance of Shares</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>3</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a007_v1">Withdrawal of Palladium; Redemption of Shares</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>4</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a008_v1">Creation and Redemption Transaction Fee</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>4</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a009_v1">The Sponsor</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>4</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a010_v1">The Trustee</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>5</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a011_v1">The Custodian</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>5</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a012_v1">Description of the Shares</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>6</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a013_v1">Custody
    of the Trust&#146;s Palladium</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>7</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a014_v1">United States Federal Income Tax Consequences</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>8</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a015_v1">ERISA and Related Considerations</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>10</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a016_v1">Item 1A. Risk Factors</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>11</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a017_v1">Item 1B. Unresolved Staff Comments</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>17</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a018_v1">Item 2. Properties</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>17</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a019_v1">Item 3. Legal Proceedings</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>17</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a020_v1">Item 4. (Removed and Reserved)</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>17</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>PART II</B></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a021_v1">Item 5. Market for Registrant&#146;s Common Equity, Related
 Stockholder Matters and Issuer Purchases of Equity Securities</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>18</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a022_v1">Item 6. Selected Financial Data</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>19</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a023_v1">Item 7. Management&#146;s Discussion and Analysis of
 Financial Condition and Results of Operations</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>19</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a024_v1">Item 7A. Quantitative and Qualitative Disclosures about
 Market Risk</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>22</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a025_v1">Item 8. Financial Statements and Supplementary Data - <I>(Unaudited)</I></A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>22</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a026_v1">Item 9. Changes in and Disagreements with Accountants
 on Accounting and Financial Disclosure</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>23</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a027_v1">Item 9A. Controls and Procedures</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>23</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a028_v1">Item 9B. Other Information</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>23</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>PART III</B></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a029_v1">Item 10. Directors, Executive Officers and Corporate
 Governance</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>24</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a030_v1">Item 11. Executive Compensation</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>24</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a031_v1">Item 12. Security Ownership of Certain Beneficial
 Owners and Management and Related Stockholder Matters</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>24</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a032_v1">Item 13. Certain Relationships and Related
 Transactions, and Director Independence</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>24</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a033_v1">Item 14. Principal Accounting Fees and Services</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>24</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>PART IV</B></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><A  HREF="#c64628a034_v1">Item 15. Exhibits, Financial Statement Schedules</A></FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>24</FONT></P> </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><B>I<A NAME="c64628a001_v1"></A>tem 1.
Business</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The purpose of the ETFS
Palladium Trust (the &#147;Trust&#148;), is to own palladium transferred to the Trust in
exchange for shares issued by the Trust (&#147;Shares&#148;). Each Share represents a
fractional undivided beneficial interest in and ownership of the Trust. The assets
of the Trust are anticipated to consist solely of palladium bullion.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust was formed on
December 30, 2009 when an initial deposit of palladium was made in exchange for
the issuance of two Baskets (a &#147;Basket&#148; consists of 50,000 Shares). </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The sponsor of the Trust
is ETF Securities USA LLC (the &#147;Sponsor&#148;). The trustee of the Trust is The Bank
of New York Mellon (the &#147;Trustee&#148;) and the custodian is JP Morgan Chase Bank
N.A., London branch (the &#147;Custodian&#148;). </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust&#146;s Shares at
redeemable value grew from $3,930,000 at December 30, 2009 to $884,637,847 at
December 31, 2010, the Trust&#146;s fiscal year end. Outstanding Shares in the
Trust grew from 100,000 Shares at December 30, 2009 to 11,250,000 Shares
at December 31, 2010.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust is not managed
like a corporation or an active investment vehicle. The Trust has no directors,
officers or employees. It does not engage in any activities designed to obtain
a profit from or to improve the losses caused by changes in the price of palladium.
The palladium held by the Trust will only be delivered to pay the remuneration
    due to the Sponsor (the &#147;Sponsor&#146;s Fee&#148;), distributed to Authorized
Participants (defined below) in connection with the redemption of Baskets or
sold (1) on an as-needed basis to pay Trust expenses not assumed by the Sponsor,
(2) in the event the Trust terminates and liquidates its assets, or (3) as otherwise
required by law or regulation.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust is not
registered as an investment company under the Investment Company Act of 1940
and is not required to register under such act. The Trust does and will not
hold or trade in commodities futures contracts regulated by the Commodity
Exchange Act (the &#147;CEA&#148;), as administered by the Commodity Futures Trading
Commission (the &#147;CFTC&#148;). The Trust is not a commodity pool for purposes of the
CEA and neither the Sponsor nor the Trustee is subject to regulation as a
commodity pool operator or a commodity trading advisor in connection with the
Shares. The Trust has no fixed termination date.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>T<A NAME="c64628a002_v1"></A>rust
Objective</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The investment objective
of the Trust is for the Shares to reflect the performance of the price of
palladium bullion, less the expenses of the Trust&#146;s operations. The Shares
are intended to constitute a simple and cost-effective means of making an
investment similar to an investment in physical palladium. An investment in physical
palladium requires expensive and sometimes complicated arrangements in
connection with the assay, transportation, warehousing and insurance of the
metal. Traditionally, such expense and complications have resulted in
investments in physical palladium being efficient only in amounts beyond the
reach of many investors. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Shares are intended
to provide institutional and retail investors with a simple and cost-efficient
means, with minimal credit risk, of gaining investment benefits similar to
those of holding palladium bullion. The Shares offer an investment that:</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><I>Is Easily Accessible</I>. The Shares trade
 on the NYSE Arca and provide institutional and retail investors with indirect
 access to the palladium bullion market. The Shares are bought and sold on the
 NYSE Arca like any other exchange-listed securities. The close of the NYSE
 Arca trading session is 4:00 PM New York time.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><I>Is Relatively Cost Effective.</I> The
 Sponsor expects that, for many investors, costs associated with buying and
 selling the Shares in the secondary market and the payment of the Trust&#146;s
 ongoing expenses will be lower than the costs associated with buying and
 selling palladium bullion and storing and insuring palladium bullion in a
 traditional allocated palladium bullion account.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><I>Has Minimal Credit Risk</I>. The Shares
 represent an interest in physical bullion owned by the Trust (other than an
 amount held in unallocated form which is not sufficient to make up a whole
 plate or ingot or which is held temporarily to effect a creation or
 redemption of Shares). Physical bullion of the Trust in the Custodian&#146;s
 possession is not subject to borrowing arrangements with third parties. Other
 than the palladium temporarily being held in an unallocated palladium</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P ALIGN=JUSTIFY>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>account with the
 Custodian, the physical bullion of the Trust is not subject to counterparty
 or credit risks. See &#147;Risk Factors&#151;Palladium held in the Trust&#146;s unallocated
 palladium account and any Authorized Participant&#146;s unallocated palladium
 account is not segregated from the Custodian&#146;s assets....&#148; This contrasts
 with most other financial products that gain exposure to bullion through the
 use of derivatives that are subject to counterparty and credit risks.</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>Investing in the Shares
does not insulate the investor from certain risks, including price volatility.
See &#147;Risk Factors.&#148;</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>S<A NAME="c64628a003_v1"></A>econdary
Market Trading</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>While the Trust&#146;s
investment objective is for the Shares to reflect the performance of palladium
bullion, less the expenses of the Trust, the Shares may trade in the secondary
market on the NYSE Arca at prices that are lower or higher relative to their
net asset value, which is the value of the Trust&#146;s assets less its liabilities
(&#147;NAV&#148;), per Share. The amount of the discount or premium in the trading price
relative to the NAV per Share may be influenced by non-concurrent trading hours
between the NYSE Arca and the Commodity Exchange, Inc., a subsidiary of New
York Mercantile Exchange, Inc. (&#147;COMEX&#148;), and the London and Zurich
palladium bullion markets. While the Shares trade on the NYSE Arca until 4:00
PM New York time, liquidity in the global palladium market is reduced after the
close of the COMEX at 1:30 PM New York time. As a result, during this time, trading
spreads, and the resulting premium or discount, on the Shares may widen.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>V<A NAME="c64628a004_v1"></A>aluation
of Palladium and Computation of Net Asset Value</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>On each business day, as promptly as practicable
    after 4:00 p.m., New York time, on such day (the &#147;Evaluation Time&#148;),
    the Trustee will evaluates the palladium held by the Trust and determines
    the NAV of the Trust.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>At the Evaluation Time,
the Trustee will value the Trust&#146;s palladium on the basis of that day&#146;s &#147;London
PM Fix&#148; (the afternoon session of the twice daily fix of the price of an ounce
of palladium which starts at 2:00 PM London, England time and is performed in
London by the four London Platinum and Palladium Market &#147;LPPM&#148; members of the
London palladium fix) or, if no London PM Fix is made on such day or has not
been announced by the Evaluation Time, the next most recent London palladium
price fix (AM or PM) determined prior to the Evaluation Time will be used,
unless the Sponsor determines that such price is inappropriate as a basis for
evaluation. In the event the Sponsor determines that the London PM Fix or such
other publicly available price as the Sponsor may deem fairly represents the
commercial value of the Trust&#146;s palladium is not an appropriate basis for
evaluation of the Trust&#146;s palladium, it shall identify an alternative basis for
such evaluation to be employed by the Trustee. Neither the Trustee nor the
Sponsor shall be liable to any person for the determination that the London PM
Fix or such other publicly available price is not appropriate as a basis for
evaluation of the Trust&#146;s palladium or for any determination as to the
alternative basis for such evaluation provided that such determination is made
in good faith.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Once the value of the
palladium has been determined, the Trustee  subtracts all estimated accrued
but unpaid fees (other than the fees accruing for such day on which the
valuation takes place that are computed by reference to the value of the Trust
    or its assets), and other liabilities of the Trust from the total value of
    the palladium and all other assets of the Trust (other than any amounts credited
    to the Trust&#146;s reserve account, if established). The resulting figure
    is the adjusted net asset value (the &#147;ANAV&#148;) of the Trust. The
    ANAV of the Trust is used to compute the Sponsor&#146;s Fee.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>All fees accruing for the
day on which the valuation takes place that are computed by reference to the
    value of the Trust or its assets shall be calculated using the ANAV calculated
    for such day. The Trustee shall subtract
    from the ANAV the amount of accrued fees so computed for such day and the
    resulting figure is the NAV of the Trust. The Trustee  also determines
    the NAV per Share by dividing the NAV of the Trust by the number of the Shares
    outstanding as of the close of trading on the NYSE Arca (which includes the
    net number of any Shares created or redeemed on such evaluation day).</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trustee&#146;s estimation
of accrued but unpaid fees, expenses and liabilities is conclusive upon
all persons interested in the Trust and no revision or correction in any
computation made under the Trust Agreement will be required by reason of any
difference in amounts estimated from those actually paid.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>T<A NAME="c64628a005_v1"></A>rust
Expenses</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust&#146;s only ordinary
recurring expense is the Sponsor&#146;s Fee. In exchange for the Sponsor&#146;s Fee, the
Sponsor has agreed to assume the following administrative and marketing
expenses incurred by the Trust: the Trustee&#146;s monthly fee and out-of-pocket
expenses, the Custodian&#146;s fee and reimbursement of the Custodian&#146;s expenses under
</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>2</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>the Custody Agreements
(defined below), Exchange listing fees, SEC registration fees, printing and
mailing costs, audit fees and up to $100,000 per annum in legal expenses. The
Sponsor also paid the costs of the Trust&#146;s organization and the initial sale of
the Shares, including the applicable SEC registration fees. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Sponsor&#146;s Fee
accrues daily at an annualized rate equal to 0.60% of the ANAV of the Trust
    and will be payable monthly in arrears. The Sponsor&#146;s Fee is paid by
    delivery of palladium to an account maintained by the Custodian for the Sponsor
    on an unallocated basis.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trustee will, when
directed by the Sponsor, and, in the absence of such direction, may, in its
discretion, sell palladium in such quantity and at such times as may be necessary
to permit payment in cash of Trust expenses not assumed by the Sponsor. The
Trustee is authorized to sell palladium at such times and in the smallest
amounts required to permit such payments as they become due, it being the
intention to avoid or minimize the Trust&#146;s holdings of assets other than
palladium. Accordingly, the amount of palladium to be sold will vary from time
to time depending on the level of the Trust&#146;s expenses and the market price of
palladium. The Custodian is authorized to purchase from the Trust, at the
request of the Trustee, palladium needed to cover Trust expenses not assumed by
the Sponsor at the price used by the Trustee to determine the value of the
palladium held by the Trust on the date of the sale. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Sponsor earned
$2,350,928 for acting as the Sponsor during the period ended December 31, 2010. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>D<A NAME="c64628a006_v1"></A>eposit
of Palladium; Issuance of Shares</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust creates and
redeems Shares from time to time, but only in one or more Baskets of 50,000
shares. Only registered broker-dealers who have entered into written agreements
with the Sponsor and the Trustee (each an &#147;Authorized Participant&#148; can
deposit palladium and receive Baskets of Shares in exchange. The creation and
redemption of Baskets is only made in exchange for the delivery to the Trust
or the distribution by the Trust of the amount of palladium represented by the
Baskets being created or redeemed, the amount of which is based on the combined
NAV of the number of Shares included in the Baskets being created or redeemed
determined on the day the order to create or redeem Baskets is properly
received.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>All palladium bullion
deposited with the Custodian or for the Custodian by the Zurich Sub-Custodian
must be of at least a minimum fineness (or purity) of 999.5 parts per 1,000
(99.95%) and otherwise conform to the rules, regulations practices and customs
of the LPPM, including the specifications for a London Good Delivery plate or
ingot.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Creation and redemption
orders are accepted on &#147;business days&#148; the NYSE Arca is open for regular
trading. Settlements of such orders requiring receipt or delivery, or
confirmation of receipt or delivery, of palladium in the United Kingdom, Zurich
or another jurisdiction  occur on &#147;business days&#148; when (1) banks in the
United Kingdom, Zurich or such other jurisdiction and (2) the London or Zurich
palladium markets are regularly open for business. If such banks or the London
or Zurich palladium markets are not open for regular business for a full day,
such a day will only be a &#147;business day&#148; for settlement purposes if the
settlement procedures can be completed by the end of such day. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>On any business day, an
Authorized Participant may place an order with the Trustee to purchase one or
more Baskets. Purchase orders must be placed no later than 3:59:59 p.m. on each
business day the NYSE Arca is open for regular trading. A purchase order so
received is effective on the date it is received in satisfactory form by the
Trustee. By placing a purchase order, an Authorized Participant agrees to
deposit palladium with the Trust, as described below. Prior to the delivery of
Baskets for a purchase order, the Authorized Participant must also have wired
to the Trustee the non-refundable transaction fee due for the purchase order
(as explained under <I>Creation and Redemption Transaction Fee</I>
below).</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>An Authorized Participant
who places a purchase order is responsible for crediting its Authorized
Participant Unallocated Account, either loco London or loco Zurich, with the
required palladium deposit amount by the third business day in London or Zurich
following the purchase order date. Upon receipt of the palladium deposit
amount, the Custodian, after receiving appropriate instructions from the
Authorized Participant and the Trustee, will transfer on the third business day
following the purchase order date the palladium deposit amount from the
Authorized Participant Unallocated Account to the unallocated palladium account
of the Trust established with the Custodian under the Unallocated Account
Agreement between the Trustee and the Custodian (the &#147;Trust Unallocated
Account&#148;) and the Trustee will direct DTC to credit the number of Baskets
ordered to the Authorized Participant&#146;s </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>3</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>DTC account. Acting on
standing instructions given by the Trustee, the Custodian will transfer the
palladium deposit amount from the Trust Unallocated Account to the allocated
palladium account of the Trust established with the Custodian under the
Allocated Account Agreement between the Trustee and the Custodian (the &#147;Trust
Allocated Account&#148;), by transferring specific palladium plates or ingots from
its inventory or the inventory of the Zurich Sub-Custodian to the Trust
Allocated Account. The Trust&#146;s Unallocated Account Agreement and Allocated
Account Agreement are referred to collectively as the &#147;Custody Agreements.&#148;</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>W<A NAME="c64628a007_v1"></A>ithdrawal
of Palladium; Redemption of Shares</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The procedures by which
an Authorized Participant can redeem one or more Baskets mirror the procedures
for the creation of Baskets. On any business day, an Authorized Participant may
place an order with the Trustee to redeem one or more Baskets. Redemption
orders must be placed no later than 3:59:59 p.m. on each business day the NYSE
Arca is open for regular trading. A redemption order so received is effective
on the date it is received in satisfactory form by the Trustee. The redemption
procedures allow Authorized Participants to redeem Baskets and do not entitle
an individual owner of beneficial interests in the Shares (a &#147;Shareholder&#148;) to
redeem any Shares in an amount less than a Basket, or to redeem Baskets other
than through an Authorized Participant.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>By placing a redemption
order, an Authorized Participant agrees to deliver the Baskets to be redeemed
through DTC&#146;s book-entry system to the Trust not later than the third business
day following the effective date of the redemption order. Prior to the delivery
of the redemption distribution for a redemption order, the Authorized
Participant must also have wired to the Trustee the non-refundable transaction
fee due for the redemption order (as explained under <I>Creation and Redemption Transaction Fee</I>
below).</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The redemption
distribution from the Trust  consists of a credit to the redeeming
Authorized Participant&#146;s Authorized Participant Unallocated Account, either
loco London or loco Zurich, representing the amount of the Palladium held by
the Trust evidenced by the Shares being redeemed. Fractions of a fine ounce of
palladium included in the redemption distribution smaller than 0.001 of a fine
ounce are disregarded. Redemption distributions are subject to the deduction
of any applicable tax or other governmental charges which may be due.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>C<A NAME="c64628a008_v1"></A>reation
and Redemption Transaction Fee</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>To compensate the Trustee
for services in processing the creation and redemption of Baskets, an
Authorized Participant is required to pay a transaction fee to the Trustee of
$500 per order to create or redeem Baskets. An order may include multiple
Baskets. The transaction fee may be reduced, increased or otherwise changed by
the Trustee with the consent of the Sponsor. The Trustee shall notify DTC of
any agreement to change the transaction fee and will not implement any increase
in the fee for the redemption of Baskets until 30 days after the date of the
notice.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B><A NAME="c64628a009_v1"></A>The
Sponsor</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Sponsor is a Delaware
limited liability company. The Sponsor&#146;s office is located at Ordinance House,
31 Pier Road, St. Helier, Jersey JE48PW, Channel Islands. Under the Delaware
Limited Liability Company Act and the governing documents of the Sponsor, the
sole member of the Sponsor, ETF Securities Limited, is not responsible for the
debts, obligations and liabilities of the Sponsor solely by reason of being the
sole member of the Sponsor.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The Sponsor&#146;s Role</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Sponsor arranged for
the creation of the Trust, the registration of the Shares for their public
offering in the United States and the listing of the Shares on the NYSE Arca.
The Sponsor has agreed to assume the following administrative and marketing
expenses incurred by the Trust: the Trustee&#146;s monthly fee and out-of-pocket
expenses, the Custodian&#146;s fee and the reimbursement of the Custodian&#146;s expenses
under the Custody Agreements, Exchange listing fees, SEC registration fees,
printing and mailing costs, audit fees and up to $100,000 per annum in legal
expenses. The Sponsor also paid the costs of the Trust&#146;s organization and the
initial sale of the Shares, including the applicable SEC registration fees.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Sponsor does not
exercise day-to-day oversight over the Trustee or the Custodian. The Sponsor
may remove the Trustee and appoint a successor Trustee (i) if the Trustee ceases
to meet certain objective requirements (including </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>4</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>the requirement that it
have capital, surplus and undivided profits of at least $150 million), (ii) if,
having received written notice of a material breach of its obligations under
the Trust Agreement, the Trustee has not cured the breach within 30 days, or
(iii) if the Trustee refuses to consent to the implementation of an amendment
to the Trust&#146;s initial Internal Control Over Financial Reporting. The Sponsor
also has the right to replace the Trustee during the 90 days following any
merger, consolidation or conversion in which the Trustee is not the surviving
entity or, in its discretion, on the fifth anniversary of the creation of the
Trust or on any subsequent third anniversary thereafter. The Sponsor also has
the right to approve any new or additional custodian that the Trustee may wish
to appoint and any new or additional Zurich Sub-Custodian that the Custodian
may wish to appoint.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Sponsor or one of its
affiliates or agents (1) develops a marketing plan for the Trust on an ongoing
basis, (2) prepares marketing materials regarding the Shares, including the
content of the Trust&#146;s website and (3) executes the marketing plan for the
Trust.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>The
Trustee</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Bank of New York
Mellon, a banking corporation organized under the laws of the State of New York
with trust powers (&#147;BNYM&#148;), serves as the Trustee. BNYM has a trust office at 2
Hanson Place, Brooklyn, New York 11217. BNYM is subject to supervision by the
New York State Banking Department and the Board of Governors of the Federal
Reserve System. Information regarding creation and redemption Basket
composition, NAV of the Trust, transaction fees and the names of the parties
that have each executed an Authorized Participant Agreement may be obtained from
BNYM. A copy of the Trust Agreement is available for inspection at BNYM&#146;s trust
office identified above. Under the Trust Agreement, the Trustee is required to
maintain capital, surplus and undivided profits of $150 million.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>T<A NAME="c64628a010_v1"></A>he Trustee&#146;s Role</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trustee is generally
responsible for the day-to-day administration of the Trust, including keeping
the Trust&#146;s operational records. The Trustee&#146;s principal responsibilities
include (1) transferring the Trust&#146;s palladium as needed to pay the Sponsor&#146;s
Fee in palladium (palladium transfers are expected to occur approximately
monthly in the ordinary course), (2) valuing the Trust&#146;s palladium and
calculating the NAV of the Trust and the NAV per Share, (3) receiving and
processing orders from Authorized Participants to create and redeem Baskets and
coordinating the processing of such orders with the Custodian and DTC, (4)
selling the Trust&#146;s palladium as needed to pay any extraordinary Trust expenses
that are not assumed by the Sponsor, (5) when appropriate, making distributions
of cash or other property to Shareholders, and (6) receiving and reviewing
reports from or on the Custodian&#146;s custody of and transactions in the Trust&#146;s
palladium. The Trustee shall, with respect to directing the Custodian, act in
accordance with the instructions of the Sponsor. If the Custodian resigns, the
Trustee shall appoint an additional or replacement Custodian selected by the
Sponsor. Under the Custody Agreements, the Trustee, the Sponsor and the
Sponsor&#146;s auditors and inspectors may, only up to twice a year, visit the
premises of the Custodian or the Zurich Sub-Custodian for the purpose of
examining the Trust&#146;s palladium and certain related records maintained by the
Custodian. In addition, other than with respect to the Zurich Sub-Custodian,
the Trustee has no right to visit the premises of any subcustodian for the
purposes of examining the Trust&#146;s palladium or any records maintained by the
subcustodian, and no subcustodian is obligated to cooperate in any review the
Trustee may wish to conduct of the facilities, procedures, records or
creditworthiness of such subcustodian. The Trustee intends to regularly
communicate with the Sponsor to monitor the overall performance of the Trust.
The Trustee does not monitor the performance of the Custodian, the Zurich
Sub-Custodian or any other subcustodian other than to review the reports
provided by the Custodian pursuant to the Custody Agreements. The Trustee,
along with the Sponsor, will liaise with the Trust&#146;s legal, accounting and
other professional service providers as needed. The Trustee will assist and
support the Sponsor with the preparation of all periodic reports required to be
filed with the SEC on behalf of the Trust.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trustee&#146;s monthly
fees and out-of-pocket expenses are paid by the Sponsor.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Affiliates of the Trustee
may from time to time act as Authorized Participants or purchase or sell
palladium or Shares for their own account, as agent for their customers and for
accounts over which they exercise investment discretion.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>T<A NAME="c64628a011_v1"></A>he
Custodian</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>JPMorgan Chase Bank, N.A.
(&#147;JPMorgan&#148;) serves as the Custodian of the Trust&#146;s palladium. JPMorgan is a
national banking association organized under the laws of the United States of
America. JPMorgan is subject to supervision </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>5</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>by the Federal Reserve
Bank of New York and the Federal Deposit Insurance Corporation. JPMorgan&#146;s
custodian office is located at 125 London Wall, London, EC2Y 5A5, United
Kingdom. In addition to supervision and examination by the US federal banking
authorities, JPMorgan&#146;s London custodian operations are subject to supervision
by the Financial Services Authority, an independent non-governmental which
exercises statutory regulatory power under the United Kingdom Financial
Services and Markets Act 2000 and which regulates the major participating
members of the LBMA in the United Kingdom.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The Custodian&#146;s Role</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Custodian is responsible for safekeeping for the Trust palladium
deposited with it by Authorized Participants in connection with the creation of
Baskets. The Custodian is also responsible for selecting the Zurich
Sub-Custodian and its other direct subcustodians, if any. The Custodian
facilitates the transfer of palladium in and out of the Trust through the
unallocated palladium accounts it will maintain for each Authorized Participant
and the unallocated and allocated palladium accounts it will maintain for the
Trust. The Custodian holds at its London, England vault premises that portion
of the Trust&#146;s allocated palladium to be held in London. The Zurich
Sub-Custodian holds at its Zurich, Switzerland vault premises that portion of
the Trust&#146;s allocated palladium to be held in Zurich on behalf of the
Custodian. The Custodian is responsible for allocating specific plates or
ingots of physical palladium to the Trust&#146;s allocated palladium account. The
Custodian will provide the Trustee with regular reports detailing the palladium
transfers in and out of the Trust&#146;s unallocated and allocated palladium
accounts and identifying the palladium plates or ingots held in the Trust&#146;s
allocated palladium account.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Custodian&#146;s fees and expenses under the
Custody Agreements are paid by the Sponsor.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Custodian and its affiliates may from time to time act as Authorized
Participants or purchase or sell palladium or Shares for their own account, as
agent for their customers and for accounts over which they exercise investment
discretion.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>D<A NAME="c64628a012_v1"></A>escription
of the Shares</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>General</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trustee is authorized
under the Trust Agreement to create and issue an unlimited number of Shares.
The Trustee creates Shares only in Baskets (a Basket equals a block of 50,000
Shares) and only upon the order of an Authorized Participant. The Shares
represent units of fractional undivided beneficial interest in and ownership of
the Trust and have no par value. Any creation and issuance of Shares above the
amount registered on the Trust&#146;s then-current and effective registration
statement with the SEC will require the registration of such additional Shares.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Description of Limited Rights</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Shares do not
represent a traditional investment and you should not view them as similar to
&#147;shares&#148; of a corporation operating a business enterprise with management and a
board of directors. Shareholders do not have the statutory rights normally
associated with the ownership of shares of a corporation, including, for
example, the right to bring &#147;oppression&#148; or &#147;derivative&#148; actions. All Shares
are of the same class with equal rights and privileges. Each Share is
transferable, is fully paid and non-assessable and entitles the holder to vote
on the limited matters upon which Shareholders may vote under the Trust
Agreement. The Shares do not entitle their holders to any conversion or
pre-emptive rights, or, except as provided below, any redemption rights or
rights to distributions.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Distributions</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>If the Trust is
terminated and liquidated, the Trustee will distribute to the Shareholders any
amounts remaining after the satisfaction of all outstanding liabilities of the
Trust and the establishment of such reserves for applicable taxes, other
governmental charges and contingent or future liabilities as the Trustee shall
determine. Shareholders of record on the record date fixed by the Trustee for a
distribution will be entitled to receive their pro rata portion of any
distribution.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Voting and Approvals</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Under the Trust
Agreement, Shareholders have no voting rights, except in limited circumstances.
The Trustee may terminate the Trust upon the agreement of Shareholders owning
at least 75% of the outstanding Shares. In addition, certain amendments to the
Trust Agreement require advance notice to the Shareholders before the
effectiveness of such amendments, but no Shareholder vote or approval is
required for any amendment to the Trust Agreement.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>6</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2><I>Redemption of the Shares</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Shares may only be
redeemed by or through an Authorized Participant and only in Baskets. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Book-Entry Form</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Individual certificates
will not be issued for the Shares. Instead, one or more global certificates is
deposited by the Trustee with DTC and registered in the name of Cede &amp; Co.,
as nominee for DTC. The global certificates evidence all of the Shares
outstanding at any time. Under the Trust Agreement, Shareholders are limited to
(1) participants in DTC such as banks, brokers, dealers and trust companies
(DTC Participants), (2) those who maintain, either directly or indirectly, a
custodial relationship with a DTC Participant (Indirect Participants), and (3)
those banks, brokers, dealers, trust companies and others who hold interests in
the Shares through DTC Participants or Indirect Participants. The Shares are
only transferable through the book-entry system of DTC. Shareholders who are
not DTC Participants may transfer their Shares through DTC by instructing the
DTC Participant holding their Shares (or by instructing the Indirect
Participant or other entity through which their Shares are held) to transfer
the Shares. Transfers will be made in accordance with standard securities
industry practice.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>C<A NAME="c64628a013_v1"></A>ustody
of the Trust&#146;s Palladium </B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Custody of the physical palladium deposited with and held by the Trust
is provided by the Custodian at its London, England vaults and by the Zurich
Sub-Custodian selected by the Custodian in its Zurich vaults and by other
subcustodians on a temporary basis only in unallocated form. The Custodian is a
market maker, clearer and approved weigher under the rules of the LPPM.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Custodian is the custodian of the physical palladium credited to
Trust Allocated Account in accordance with the Custody Agreements. The
Custodian segregates the physical palladium credited to the Trust Allocated
Account from any other precious metal it holds or holds for others by entering
appropriate entries in its books and records, and requires the Zurich
Sub-Custodian to also segregate the physical palladium of the Trust from the
other palladium held by it for other customers of the Custodian and the Zurich
Sub-Custodian&#146;s other customers. The Custodian requires the Zurich
Sub-Custodian to identify in its books and records the Trust as having the
rights to the physical palladium credited to its Trust Allocated Account.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Custodian, as instructed by the Trustee, is authorized to accept, on
behalf of the Trust, deposits of palladium in unallocated form. Acting on
standing instructions specified in the Custody Agreements, the Custodian will
or will require the Zurich Sub-Custodian to allocate palladium deposited in
unallocated form with the Trust by selecting plates or ingots of physical
palladium for deposit to the Trust Allocated Account. All physical palladium
allocated to the Trust must conform to the rules, regulations, practices and
customs of the LPPM.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The process of withdrawing palladium from the Trust for a redemption of
a Basket will follow the same general procedure as for depositing palladium
with the Trust for a creation of a Basket, only in reverse. Each transfer of
palladium between the Trust Allocated Account and the Trust Unallocated Account
connected with a creation or redemption of a Basket may result in a small
amount of palladium being held in the Trust Unallocated Account after the
completion of the transfer. In making deposits and withdrawals between the
Trust Allocated Account and the Trust Unallocated Account, the Custodian will
use commercially reasonable efforts to minimize the amount of palladium held in
the Trust Unallocated Account as of the close of each business day. See
&#147;Creation and Redemption of Shares.&#148;</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>7</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>U<A NAME="c64628a014_v1"></A>nited
States Federal Income Tax Consequences</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The following discussion
of the material US federal income tax consequences that generally applies to
the purchase, ownership and disposition of Shares by a US Shareholder (as
defined below), and certain US federal income tax consequences that may apply
to an investment in Shares by a Non-US Shareholder (as defined below),
 is based on the
United States Internal Revenue Code of 1986, as amended (the &#147;Code&#148;), United
States Treasury Regulations (&#147;Treasury Regulations&#148;) promulgated under the Code
and judicial and administrative interpretations of the Code, all as in effect
on the date of this annual report and all of which are subject to change either
prospectively or retroactively. The tax treatment of Shareholders may vary
depending upon their own particular circumstances. Certain Shareholders
(including broker-dealers, traders, banks and other financial institutions,
insurance companies, real estate investment trusts, tax-exempt entities,
Shareholders whose functional currency is not the US dollar or other investors
with special circumstances) may be subject to special rules not discussed
below. In addition, the following discussion applies only to investors who hold
Shares as &#147;capital assets&#148; within the meaning of Code section 1221 and not as
part of a straddle, hedging transaction or a conversion or constructive sale
transaction. Moreover, the discussion below does not address the effect of any
state, local or foreign tax law or any transfer tax on an owner of Shares.
Purchasers of Shares are urged to consult their own tax advisors with respect
to all federal, state, local and foreign tax law or any transfer tax
considerations potentially applicable to their investment in Shares.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>For purposes of this
discussion, a &#147;US Shareholder&#148; is a Shareholder that is:</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>An individual who is
 treated as a citizen or resident of the United States for US federal income
 tax purposes;</FONT></P> </TD>
 </TR>

 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>A corporation (or other
 entity treated as a corporation for US federal tax purposes) created or
 organized in or under the laws of the United States or any political
 subdivision thereof;</FONT></P> </TD>
 </TR>

 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>An estate, the income
 of which is includible in gross income for US federal income tax purposes
 regardless of its source; or</FONT></P> </TD>
 </TR>

 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>A trust, if a court
 within the United States is able to exercise primary supervision over the
 administration of the trust and one or more US persons have the authority to
 control all substantial decisions of the trust.</FONT></P> </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>A Shareholder that is not
a US Shareholder as defined above (other than a partnership, or an entity
treated as a partnership for US federal tax purposes) is generally considered a
&#147;Non-US Shareholder&#148; for purposes of this discussion. For US federal income tax
purposes, the treatment of any beneficial owner of an interest in a
partnership, including any entity treated as a partnership for US federal
income tax purposes, generally depends upon the status of the partner and upon
the activities of the partnership. Partnerships and partners in partnerships
should consult their tax advisors about the US federal income tax consequences
of purchasing, owning and disposing of Shares.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Taxation of the Trust</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust is classified
as a &#147;grantor trust&#148; for US federal income tax purposes. As a result,
the Trust itself is not subject to US federal income tax. Instead, the Trust&#146;s
income and expenses &#147;flow through&#148; to the Shareholders and the Trustee
reports the Trust&#146;s income, gains, losses and deductions to the Internal
Revenue Service (&#147;IRS&#148;) on that basis.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Taxation of US Shareholders</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Shareholders generally
will be treated, for US federal income tax purposes, as if they directly owned
a pro rata share of the underlying assets held in the Trust. Shareholders are
also treated as if they directly received their respective pro rata shares of
the Trust&#146;s income, if any, and as if they directly incurred their respective
pro rata shares of the Trust&#146;s expenses. In the case of a Shareholder that
purchases Shares for cash, its initial tax basis in its pro rata share of the
assets held in the Trust at the time it acquires its Shares is equal to its
cost of acquiring the Shares. In the case of a Shareholder that acquires its
Shares as part of a creation, the delivery of palladium to the Trust in
exchange for the underlying palladium represented by the Shares is not be a
taxable event to the Shareholder, and the Shareholder&#146;s tax basis and holding
period for the Shareholder&#146;s pro rata share of the palladium held in the Trust
are the same as its tax basis and holding period for the palladium delivered in
exchange therefore (except to the extent of any cash contributed for such
Shares). For purposes of this discussion, it is assumed that all of a
Shareholder&#146;s Shares are acquired on the same date and at the same price per
Share. Shareholders that hold multiple lots of Shares, or that are
contemplating acquiring multiple lots of Shares, should consult their tax
advisors as to the determination of the tax basis and holding period for the
underlying palladium related to such Shares.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>8</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>When the Trust sells
palladium, for example to pay expenses, a Shareholder generally will recognize
gain or loss in an amount equal to the difference between (1) the Shareholder&#146;s
pro rata share of the amount realized by the Trust upon the sale and (2) the
Shareholder&#146;s tax basis for its pro rata share of the palladium that was sold,
which gain or loss will generally be long-term or short-term capital gain or
loss, depending upon whether the Shareholder has a holding period in its Shares
of longer than one year. A Shareholder&#146;s tax basis for its share of any palladium
sold by the Trust generally will be determined by multiplying the Shareholder&#146;s
total basis for its share of all of the palladium held in the Trust immediately
prior to the sale, by a fraction the numerator of which is the amount of
palladium sold, and the denominator of which is the total amount of the
palladium held in the Trust immediately prior to the sale. After any such sale,
a Shareholder&#146;s tax basis for its pro rata share of the palladium remaining in
the Trust will be equal to its tax basis for its share of the total amount of
the palladium held in the Trust immediately prior to the sale, less the portion
of such basis allocable to its share of the palladium that was sold.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Upon a Shareholder&#146;s sale
of some or all of its Shares, the Shareholder will be treated as having sold
the portion of its pro rata share of the palladium held in the Trust at the
time of the sale that is attributable to the Shares sold. Accordingly, the
Shareholder generally will recognize gain or loss on the sale in an amount
equal to the difference between (1) the amount realized pursuant to the sale of
the Shares, and (2) the Shareholder&#146;s tax basis for the portion of its pro rata
share of the palladium held in the Trust at the time of sale that is
attributable to the Shares sold, as determined in the manner described in the
preceding paragraph.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>A redemption of some or
all of a Shareholder&#146;s Shares in exchange for the underlying palladium
represented by the Shares redeemed generally will not be a taxable event to the
Shareholder. The Shareholder&#146;s tax basis for the palladium received in the
redemption generally will be the same as the Shareholder&#146;s tax basis for the
portion of its pro rata share of the palladium held in the Trust immediately
prior to the redemption that is attributable to the Shares redeemed. The
Shareholder&#146;s holding period with respect to the palladium received should
include the period during which the Shareholder held the Shares redeemed. A
subsequent sale of the palladium received by the Shareholder will be a taxable
event.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>After any sale or
redemption of less than all of a Shareholder&#146;s Shares, the Shareholder&#146;s tax
basis for its pro rata share of the palladium held in the Trust immediately
after such sale or redemption generally will be equal to its tax basis for its
share of the total amount of the palladium held in the Trust immediately prior
to the sale or redemption, less the portion of such basis which is taken into
account in determining the amount of gain or loss recognized by the Shareholder
upon such sale or, in the case of a redemption, which is treated as the basis
of the palladium received by the Shareholder in the redemption.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>In addition, recent legislation effective
after December 31, 2012, if applicable to a Shareholder, would impose a new 3.8% Medicare contribution tax on net investment income.
Shareholders should consult their tax advisor regarding this tax.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>An Authorized Participant
and other investors may be able to re-invest, on a tax-deferred basis, in-kind
redemption proceeds received from exchange-traded products that are
substantially similar to the Trust in the Trust&#146;s Shares. Authorized
Participants and other investors should consult their tax advisors as to
whether and under what circumstances the reinvestment in the Shares of proceeds
from substantially similar exchange-traded products can be accomplished on a
tax-deferred basis.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Maximum 28% Long-Term Capital Gains
Tax Rate for US Shareholders Who Are Individuals</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Under current law, gains
recognized by individuals from the sale of &#147;collectibles,&#148; including palladium
bullion, held for more than one year are taxed at a maximum federal income tax
rate of 28%, rather than the 15% rate applicable to most other long-term
capital gains. For these purposes, gain recognized by an individual upon the
sale of an interest in a trust that holds collectibles is treated as gain
recognized on the sale of collectibles, to the extent that the gain is
attributable to unrealized appreciation in value of the collectibles held by
the trust. Therefore, any gain recognized by an individual US Shareholder
attributable to a sale of Shares held for more than one year, or attributable
to the Trust&#146;s sale of any palladium bullion which the Shareholder is treated
(through its ownership of Shares) as having held for more than one year,
generally will be taxed at a maximum rate of 28%. The tax rates for capital
gains recognized upon the sale of assets held by an individual US Shareholder
for one year or less or by a taxpayer other than an individual US taxpayer are
generally the same as those at which ordinary income is taxed.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Brokerage Fees and Trust Expenses</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Any brokerage or other
transaction fees incurred by a Shareholder in purchasing Shares is treated as
part of the Shareholder&#146;s tax basis in the underlying assets of the Trust.
Similarly, any brokerage fee incurred by a Shareholder in selling Shares
reduces the amount realized by the Shareholder with respect to the sale.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Shareholders are required
to recognize gain or loss upon a sale of palladium by the Trust (as discussed
above), even though some or all of the proceeds of such sale are used by the
Trustee to pay Trust expenses. Shareholders may </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>9</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>deduct their respective
pro rata shares of each expense incurred by the Trust to the same extent as if they
directly incurred the expense. Shareholders who are individuals, estates or
trusts, however, may be required to treat some or all of the expenses of the
Trust, to the extent that such expenses may be deducted, as miscellaneous
itemized deductions. Individuals may deduct certain miscellaneous itemized
deductions only to the extent they exceed 2% of adjusted gross income. In
addition, such deductions may be subject to further limitations under
applicable provisions of the Code, and may not be deductible at all for
alternative minimum tax purposes.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Investment by Regulated Investment
Companies</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Mutual funds and other
investment vehicles which are &#147;regulated investment companies&#148; within the
meaning of Code section 851 should consult with their tax advisors concerning
(1) the likelihood that an investment in Shares, although they are a &#147;security&#148;
within the meaning of the Investment Company Act of 1940, may be considered an
investment in the underlying palladium for purposes of Code section 851(b), and
(2) the extent to which an investment in Shares might nevertheless be
consistent with preservation of their qualification under Code section 851.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>United States Information Reporting
and Backup Withholding for US and Non-US Shareholders</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trustee or the
appropriate broker files certain information returns with the IRS, and provides
certain tax-related information to Shareholders, in accordance with applicable
Treasury Regulations. Each Shareholder will be provided with information
regarding its allocable portion of the Trust&#146;s annual income (if any) and
expenses.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>A US Shareholder may be
subject to US backup withholding tax in certain circumstances unless it
provides its taxpayer identification number and complies with certain
certification procedures. Non-US Shareholders may have to comply with
certification procedures to establish that they are not a US person in order to
avoid the information reporting and backup withholding tax requirements.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The amount of any backup
withholding is allowed as a credit against a Shareholder&#146;s US federal income
tax liability and may entitle such a Shareholder to a refund, provided that the
required information is furnished to the IRS.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Income Taxation of Non-US
Shareholders</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust does not expect
to generate taxable income except for gain (if any) upon the sale of palladium.
A Non-US Shareholder generally is not subject to US federal income tax with
respect to gain recognized upon the sale or other disposition of Shares, or
upon the sale of palladium by the Trust, unless (1) the Non-US Shareholder is
an individual and is present in the United States for 183 days or more during
the taxable year of the sale or other disposition, and the gain is treated as
being from United States sources; or (2) the gain is effectively connected with
the conduct by the Non-US Shareholder of a trade or business in the United
States.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Taxation in Jurisdictions other than
the United States</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Prospective purchasers of
Shares that are based in or acting out of a jurisdiction other than the United
States are advised to consult their own tax advisers as to the tax
consequences, under the laws of such jurisdiction (or any other jurisdiction
not being the United States to which they are subject), of their purchase,
holding, sale and redemption of or any other dealing in Shares and, in
particular, as to whether any value added tax, other consumption tax or
transfer tax is payable in relation to such purchase, holding, sale, redemption
or other dealing.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>E<A NAME="c64628a015_v1"></A>RISA
and Related Considerations</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Employee Retirement Income Security Act of
    1974, as amended (&ldquo;ERISA&rdquo;), and/or Code Section 4975 impose certain
    requirements on certain employee benefit plans and other plans and arrangements,
    including individual retirement accounts and annuities, Keogh plans, and
    certain commingled investment vehicles or insurance company general or separate
    accounts in which such plans or arrangements are invested (collectively, &ldquo;Plans&rdquo;),
    and on persons who are fiduciaries with respect to the investment of &ldquo;plan
    assets&rdquo; of a Plan. Government plans and some church plans are not subject
    to the fiduciary responsibility provisions of ERISA or the provisions of
    Section 4975 of the Code, but may be subject to substantially similar rules
under other federal law, or under state or local law (&ldquo;Other Law&rdquo;).</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>In contemplating an investment of a portion of
    Plan assets in Shares, the Plan fiduciary responsible for making such investment
    should carefully consider, taking into account the facts and circumstances
    of the Plan and the &ldquo;Risk Factors&rdquo; discussed above and whether
    such investment is consistent with its fiduciary responsibilities under ERISA
    or Other Law, including, but not limited to: (1) whether the investment is
    permitted under the plan&rsquo;s governing </FONT></P>
<P ALIGN=CENTER><FONT SIZE=2>10</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>documents, (2) whether the fiduciary has the authority
    to make the investment, (3) whether the investment is consistent with the
    plan&rsquo;s funding objectives, (4) the tax effects of the investment on
    the Plan, and (5) whether the investment is prudent considering the factors
    discussed in this report. In addition, ERISA and Code Section
    4975 prohibit a broad range of transactions involving assets of a plan and
    persons who are &ldquo;parties in interest&rdquo; under ERISA or &ldquo;disqualified
    persons&rdquo; under Section 4975 of the Code. A violation
    of these rules may result in the imposition of significant excise taxes and
other liabilities. Plans subject to Other Law may be subject to similar restrictions.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>It is anticipated that the Shares will constitute
&ldquo;publicly-held offered securities&rdquo; as defined in the Department of
Labor &ldquo;Plan Asset Regulations,&rdquo; &sect;2510.3-101(b)(2). Accordingly,
pursuant to the Plan Asset Regulations, Shares purchased by a Plan, and not an
interest in the underlying assets held in the Trust, should be treated as &ldquo;plan
assets&rdquo; of the Plan, for purposes of applying the &ldquo;fiduciary responsibility&rdquo;
and &ldquo;prohibited transaction&rdquo; rules of ERISA and the Code. Fiduciaries
of plans subject to Other Law should consult legal counsel to determine whether
there would be a similar result under the Other Law.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Investment by Certain Retirement
Plans</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Code section 408(m)
provides that the acquisition of a &#147;collectible&#148; by an individual retirement
account (IRA) or a participant-directed account maintained under any plan that
is tax-qualified under Code section 401(a) is treated as a taxable distribution
from the account to the owner of the IRA, or to the participant for whom the
plan account is maintained, of an amount equal to the cost to the account of
acquiring the collectible. The IRS has issued private letter rulings to the
effect that a purchase of shares in a trust holding precious metals by an IRA,
or by a participant-directed account under a Code section 401(a) plan, will not
be treated as resulting in a taxable distribution to the IRA owner or plan
participant under Code section 408(m). However, if any of the Shares so
purchased are distributed from the IRA or plan account to the IRA owner or plan
participant, or if any palladium received by such IRA or plan account upon the
redemption of any of the Shares purchased by it, the Shares or palladium so
distributed will be subject to federal income tax in the year of distribution,
to the extent provided under the applicable provisions of Code sections 408(d),
408(m) or 402.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>I<A NAME="c64628a016_v1"></A>tem 1A.
Risk Factors</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>You should consider
carefully the risks described below before making an investment decision. You
should also refer to the other information included in this report, including
the Trust&#146;s financial statements and the related notes.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The value of the Shares relates
directly to the value of the palladium held by the Trust and fluctuations in
the price of palladium could materially adversely affect an investment in the
Shares.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Shares are designed
to mirror as closely as possible the performance of the price of palladium
bullion, and the value of the Shares relates directly to the value of the
palladium held by the Trust, less the Trust&#146;s liabilities (including estimated
accrued but unpaid expenses). The price of palladium has fluctuated widely over
the past several years. Several factors may affect the price of palladium,
including:</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Global palladium supply
 and demand, which is influenced by such factors as forward selling by
 palladium producers, purchases made by palladium producers to unwind
 palladium hedge positions, central bank purchases and sales, and production
 and cost levels in major palladium-producing countries such as Russia and
 South Africa;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Investors&#146; expectations
 with respect to the rate of inflation;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Currency exchange
 rates;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Interest rates;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Investment and trading
 activities of hedge funds and commodity funds; and</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Global or regional
 political, economic or financial events and situations.</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>In addition, investors
should be aware that there is no assurance that palladium will maintain its
long-term value in terms of purchasing power in the future. In the event that
the price of palladium declines, the Sponsor expects the value of an investment
in the Shares to decline proportionately.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The Shares may trade at a price
which is at, above or below the NAV per Share and any discount or premium in
the trading price relative to the NAV per Share may widen as a result of
non-concurrent trading hours between the NYSE Arca and London, Zurich and
COMEX.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Shares may trade at,
above or below the NAV per Share. The NAV per Share fluctuates with changes in
the market value of the Trust&#146;s assets. The trading price of the Shares
fluctuates in accordance with changes in the NAV per Share as well as market
supply and demand. The amount of the discount or premium in the trading price
relative to the NAV per Share may be influenced by non-concurrent trading hours
between the NYSE Arca and the major palladium markets. While the Shares trade
on the NYSE Arca until 4:00 PM New York time, liquidity in the market </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>11</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>for palladium is reduced
after the close of the major world palladium markets, including London, Zurich
and the COMEX. As a result, during this time, trading spreads, and the
resulting premium or discount on the Shares, may widen.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>A possible &ldquo;short squeeze&rdquo;
due to a sudden increase in demand of Shares that largely exceeds supply may
lead to price volatility in the Shares.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Investors may purchase Shares to hedge existing
    palladium exposure or to speculate on the price of palladium. Speculation
    on the price of palladium may involve long and short exposures. To the extent
    aggregate short exposure exceeds the number of Shares available for purchase
    (for example, in the event that large redemption requests by Authorized Participants
    dramatically affect Share liquidity), investors with short exposure may have
    to pay a premium to repurchase Shares for delivery to Share lenders. Those
    repurchases may in turn, dramatically increase the price of the Shares until
    additional Shares are created through the creation process. This is often
    referred to as a &ldquo;short squeeze.&rdquo; A short squeeze could lead
    to volatile price movements in Shares that are not directly correlated to
    the price of palladium.</FONT></P>
<P ALIGN=JUSTIFY><FONT SIZE=2><I>Purchasing activity in the palladium market
      associated with Basket creations or selling activity following Basket redemptions
      may affect the price of palladium and Share trading prices. These price
      changes may adversely affect an investment in the Shares.</I></FONT></P>
<P ALIGN=JUSTIFY><FONT SIZE=2>Purchasing activity associated with acquiring the
    palladium required for deposit into the Trust in connection with the creation
    of Baskets may increase the market price of palladium, which will result
    in higher prices for the Shares. Increases in the market price of palladium
    may also occur as a result of the purchasing activity of other market participants.
    Other market participants may attempt to benefit from an increase in the
    market price of palladium that may result from increased purchasing activity
    of palladium connected with the issuance of Baskets. Consequently, the market
    price of palladium may decline immediately after Baskets are created. If
    the price of palladium declines, the trading price of the Shares will also
    decline.</FONT></P>
<P ALIGN=JUSTIFY><FONT SIZE=2>Selling activity associated with sales of palladium
    withdrawn from the Trust in connection with the redemption of Baskets may
    decrease the market price of palladium, which will result in lower prices
    for the Shares. Decreases in the market price of palladium may also occur
    as a result of the selling activity of other market participants. If the
    price of palladium declines, the trading price of the Shares will also decline.</FONT></P>
<P ALIGN=JUSTIFY><FONT SIZE=2>From the effectiveness of the Trust&rsquo;s initial
    public offering of its Shares on January 6, 2010 through March 8, 2011, the
    Trust engaged in Basket creations totaling approximately $804 million. Of
    this amount, approximately $173 million in Basket creations occurred over
    the eight trading days of the period from January 8, 2010 (the date the Shares
    began trading on the Exchange) to January 20, 2010. London PM Fix palladium
    per ounce prices were $422 on January 6, 2010 and $781 on March 8, 2011 and,
    during this period, reached a high of $858 on February 21, 2011 and a low
    of $395 on February 5, 2010. The Sponsor is unable to ascertain whether the
    palladium price movements during this period were attributable to the Trust&rsquo;s
    Basket creation and redemption process or independent metal market forces
    or both. Nevertheless, the Trust and the Sponsor cannot assure you that future
    Basket creations or redemptions will have no effect on the palladium metal
    prices and, consequently, Share trading prices.</FONT></P>
<P ALIGN=JUSTIFY><FONT SIZE=2><I>Since there is no limit on the amount of palladium
      that the Trust may acquire, the Trust, as it grows, may have an impact
      on the supply and demand of palladium that ultimately may affect the price
      of the Shares in a manner unrelated to other factors affecting the global
      market for palladium.</I></FONT></P>
<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust Agreement places no limit on the amount
    of palladium the Trust may hold. Moreover, the Trust may issue an unlimited
    number of Shares, subject to registration requirements, and thereby acquire
    an unlimited amount of palladium. The global market for palladium is characterized
    by supply and demand constraints that are generally not present in the markets
    for other precious metals such as gold and silver. From 1999 to 2009/10,
    world palladium supply averaged 8.12 million ounces. In 2009/10, supply measured
    8.43 million ounces. If the amount of palladium acquired by the Trust is
    large enough in relation to global palladium supply and demand, further in-kind
    creations and redemptions of Shares could have an impact on the supply and
    demand of palladium unrelated to other factors affecting the global market
    for palladium. Such an impact could affect the price for palladium that would
    directly affect the price at which Shares are traded on the Exchange or the
    price of future Baskets created or redeemed by the Trust.</FONT></P>
<P ALIGN=JUSTIFY><FONT SIZE=2>As of March 8, 2011, the Trust held approximately
    1,147,086 ounces of palladium that it acquired since it was formed on December
    30, 2009, representing approximately 14.1% of the 1999-2009/10114 average
    annual world palladium supply or approximately 13.6% of 2009/10 world palladium
    supply. Although the March 8, 2011 London PM Fix of $781 represents an increase
    from the London PM Fix of $422 when the Trust&rsquo;s initial Share offering
    became effective on January 6, 2010, the Sponsor is unable to conclude that
    a long-term metal market price impact is being caused by the Trust&rsquo;s
    holdings. Nevertheless, the Trust and the Sponsor cannot provide you any
    assurance that increased metal holdings by the Trust in the future will have
    no such long-term metal price impact thereby affecting Share trading prices.</FONT></P>
<P ALIGN=JUSTIFY><FONT SIZE=2><I>The Shares and their value could
decrease if unanticipated operational or trading problems arise.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>There may be
unanticipated problems or issues with respect to the mechanics of the Trust&#146;s
operations and the trading of the Shares that could have a material adverse
effect on an investment in the Shares. In addition, although the Trust is not
actively &#147;managed&#148; by traditional methods, to the extent that unanticipated operational
or trading problems or issues arise, the Sponsor&#146;s past experience and
qualifications may not be suitable for solving these problems or issues.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>If the process of creation and
redemption of Baskets encounters any unanticipated difficulties, the possibility
for arbitrage transactions intended to keep the price of the Shares closely
linked to the price of palladium may not exist and, as a result, the price of
the Shares may fall.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>If the processes of
creation and redemption of Shares (which depend on timely transfers of
palladium to and by the Custodian) encounter any unanticipated difficulties,
potential market participants who would otherwise be willing to purchase or
redeem Baskets to take advantage of any arbitrage opportunity arising from
discrepancies between the price of the Shares and the price of the underlying
palladium may not take the risk that, as a result of those difficulties, they
may not be able to realize the profit they expect. If this is the case, the
liquidity of Shares may decline and the price of the Shares may fluctuate
independently of the price of palladium and may fall.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The liquidity of the Shares may be
affected by the withdrawal from participation of one or more Authorized
Participants.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>In the event that one or
more Authorized Participants having substantial interests in Shares or
otherwise responsible for a significant portion of the Shares&#146; daily trading
volume on the Exchange withdraw from participation, the liquidity of the Shares
will likely decrease which could adversely affect the market price of the
Shares and result in your incurring a loss on your investment.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Shareholders do not have the
protections associated with ownership of shares in an investment company
registered under the Investment Company Act of 1940 or the protections afforded
by the Commodity Exchange Act (&#147;CEA&#148;).</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust is not
registered as an investment company under the Investment Company Act of 1940
and is not required to register under such act. Consequently, Shareholders do
not have the regulatory protections provided to investors in investment
companies. The Trust does and will not hold or trade in commodity futures
contracts regulated by the CEA, as administered by the CFTC. Furthermore, the
Trust is not a commodity pool for purposes of the CEA, and neither the Sponsor
nor the Trustee is subject to regulation by the CFTC as a commodity pool
operator or a commodity trading advisor in connection with the Shares.
Consequently, Shareholders do not have the regulatory protections provided to
investors in CEA-regulated instruments or commodity pools.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The Trust may be required to
terminate and liquidate at a time that is disadvantageous to Shareholders.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>If the Trust is required
to terminate and liquidate, such termination and liquidation could occur at a time
which is disadvantageous to Shareholders, such as when palladium prices are
lower than the palladium prices at the time when Shareholders purchased their
Shares. In such a case, when the Trust&#146;s palladium is sold as part of the
Trust&#146;s liquidation, the resulting proceeds distributed to Shareholders will be
less than if palladium prices were higher at the time of sale.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The lack of an active trading market
for the Shares may result in losses on investment at the time of disposition of
the Shares. </I></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>12</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>Although Shares are
listed for trading on the NYSE Arca, it cannot be assumed that an active
trading market for the Shares will develop or be maintained. If an investor
needs to sell Shares at a time when no active market for Shares exists, such
lack of an active market will most likely adversely affect the price the
investor receives for the Shares (assuming the investor is able to sell them).</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Shareholders do not have the rights
enjoyed by investors in certain other vehicles.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>As interests in an
investment trust, the Shares have none of the statutory rights normally
associated with the ownership of shares of a corporation (including, for
example, the right to bring &#147;oppression&#148; or &#147;derivative&#148; actions). In addition,
the Shares have limited voting and distribution rights (for example,
Shareholders do not have the right to elect directors and do not receive
dividends).</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>An investment in the Shares may be
adversely affected by competition from other methods of investing in palladium.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust competes with
other financial vehicles, including traditional debt and equity securities
issued by companies in the palladium industry and other securities backed by or
linked to palladium, direct investments in palladium and investment vehicles
similar to the Trust. Market and financial conditions, and other conditions
beyond the Sponsor&#146;s control, may make it more attractive to invest in other
financial vehicles or to invest in palladium directly, which could limit the
market for the Shares and reduce the liquidity of the Shares.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The price of palladium may be
affected by the sale of ETVs tracking palladium markets.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>To the extent existing
exchange traded vehicles (&#147;ETVs&#148;) tracking palladium markets represent a
significant proportion of demand for physical palladium bullion; large redemptions
of the securities of these ETVs could negatively affect physical palladium
bullion prices and the price and NAV of the Shares.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Crises may motivate large-scale
sales of palladium which could decrease the price of palladium and adversely
affect an investment in the Shares.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The possibility of
large-scale distress sales of palladium in times of crisis may have a
short-term negative impact on the price of palladium and adversely affect an
investment in the Shares. For example, the 2008 financial credit crisis
resulted in significantly depressed prices of palladium largely due to forced
sales and deleveraging from institutional investors such as hedge funds and
pension funds. Crises in the future may impair palladium&#146;s price performance
which would, in turn, adversely affect an investment in the Shares.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Several factors may have the effect
of causing a decline in the prices of palladium and a corresponding decline in
the price of Shares. Among them:</I></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>A significant increase
 in palladium hedging activity by palladium producers. Should there be an
 increase in the level of hedge activity of palladium producing companies, it
 could cause a decline in world palladium prices, adversely affecting the
 price of the Shares.</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>A significant change in
 the attitude of speculators, investors and central banks towards palladium.
 Should the speculative community take a negative view towards palladium or
 central banking authorities determine to sell national palladium reserves,
 either event could cause a decline in world palladium prices, negatively
 impacting the price of the Shares.</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>A widening of interest
 rate differentials between the cost of money and the cost of palladium could
 negatively affect the price of palladium which, in turn, could negatively
 affect the price of the Shares.</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>A combination of rising
 money interest rates and a continuation of the current low cost of borrowing
 palladium could improve the economics of selling palladium forward. This
 could result in an increase in hedging by palladium mining companies and
 short selling by speculative interests, which would negatively affect the
 price of palladium. Under such circumstances, the price of the Shares would
 be similarly affected.</FONT></P> </TD>
 </TR>
 <TR>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><P><FONT SIZE=2>&#149;</FONT></P></TD>
   <TD VALIGN=TOP><P ALIGN=JUSTIFY><FONT SIZE=2>Autocatalysts, automobile components
         that use palladium, accounted for approximately 57% of the global demand
         in palladium in 2008. The global automotive industry is currently experiencing
         declining demand and, in certain cases, solvency concerns. Reduced automotive
         industry sales may result in a decline in autocatalyst demand. A continued
         decline in the global automotive industry may impact the price of palladium
         and affect the price of the Shares.</FONT></P></TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2><I>The Trust&#146;s palladium may be subject
to loss, damage, theft or restriction on access.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>There is a risk that part
or all of the Trust&#146;s palladium could be lost, damaged or stolen. Access to the
Trust&#146;s palladium could also be restricted by natural events (such as an
earthquake) or human actions (such as a terrorist attack). Any of these events
may adversely affect the operations of the Trust and, consequently, an
investment in the Shares.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The Trust&#146;s lack of insurance
protection and the Shareholders&#146; limited rights of legal recourse against the
Trust, the Trustee, the Sponsor, the Custodian, any Zurich Sub-Custodian and
any other sub-custodian exposes the Trust and its Shareholders to the risk of
loss of the Trust&#146;s palladium for which no person is liable.</I></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>13</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust does not insure
its palladium. The Custodian maintains insurance with regard to its business on
such terms and conditions as it considers appropriate in connection with its
custodial obligations and is responsible for all costs, fees and expenses
arising from the insurance policy or policies. The Trust is not a beneficiary of
any such insurance and does not have the ability to dictate the existence,
nature or amount of coverage. Therefore, Shareholders cannot be assured that
the Custodian maintains adequate insurance or any insurance with respect to the
palladium held by the Custodian on behalf of the Trust. In addition, the
Custodian and the Trustee do not require the Zurich Sub-Custodian or any other
direct or indirect sub-custodians to be insured or bonded with respect to their
custodial activities or in respect of the palladium held by them on behalf of
the Trust. Further, Shareholders&#146; recourse against the Trust, the Trustee and
the Sponsor, under New York law, the Custodian, the Zurich Sub-Custodian and
any other sub-custodian, under English law, and any sub-custodians under the
law governing their custody operations is limited. Consequently, a loss may be
suffered with respect to the Trust&#146;s palladium which is not covered by
insurance and for which no person is liable in damages.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The Custodian&#146;s limited liability
under the Custody Agreements and English law may impair the ability of the
Trust to recover losses concerning its palladium and any recovery may be
limited, even in the event of fraud, to the market value of the palladium at
the time the fraud is discovered.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The liability of the
Custodian is limited under the Custody Agreements. Under the Custody Agreements
between the Trustee and the Custodian which establish the Trust Unallocated
Account and the Trust Allocated Account, the Custodian is only liable for
losses that are the direct result of its own negligence, fraud or willful
default in the performance of its duties. Any such liability is further
limited, in the case of the Allocated Account Agreement, to the market value of
the palladium held in the Trust Allocated Account at the time such negligence,
fraud or willful default is discovered by the Custodian and, in the case of the
Unallocated Account Agreement, to the amount of palladium credited to the Trust
Unallocated Account at the time such negligence, fraud or willful default is
discovered by the Custodian. Under each Authorized Participant Unallocated
Bullion Account Agreement (between the Custodian or other palladium bullion
clearing bank and an Authorized Participant establishing an Authorized
Participant Unallocated Account), the Custodian is not contractually or
otherwise liable for any losses suffered by any Authorized Participant or
Shareholder that are not the direct result of its own gross negligence, fraud
or willful default in the performance of its duties under such agreement, and
in no event will its liability exceed the market value of the balance in the
Authorized Participant Unallocated Account at the time such gross negligence,
fraud or willful default is discovered by the Custodian. In addition, the
Custodian will not be liable for any delay in performance or any
non-performance of any of its obligations under the Allocated Account
Agreement, the Unallocated Account Agreement or the Authorized Participant
Unallocated Bullion Account Agreement by reason of any cause beyond its
reasonable control, including acts of God, war or terrorism. As a result, the
recourse of the Trustee or the investor, under English law, is limited.
Furthermore, under English common law, the Custodian, the Zurich Sub-Custodian
or any subcustodian will not be liable for any delay in the performance or any
non-performance of its custodial obligations by reason of any cause beyond its
reasonable control.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The obligations of the Custodian,
the Zurich Sub-Custodian and any other subcustodians are governed by English
law, which may frustrate the Trust in attempting to receive legal redress
against the Custodian, the Zurich Sub-Custodian or any subcustodian concerning
its palladium.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The obligations of the
Custodian under the Custody Agreements are, and the Authorized Participant
Unallocated Bullion Account Agreements may be, governed by English law. The
Custodian has entered into arrangements with the Zurich Sub-Custodian and may
enter into arrangements with any other subcustodians for all or a significant
portion of the Trust&#146;s palladium, which arrangements may also be governed by
English law. The Trust is a New York common law trust. Any United States, New
York or other court situated in the United States may have difficulty interpreting
English law (which, insofar as it relates to custody arrangements, is largely
derived from court rulings rather than statute), LPPM rules or the customs and
practices in the London custody market. It may be difficult or impossible for
the Trust to sue the Zurich Sub-Custodian or any other subcustodian in a United
States, New York or other court situated in the United States. In addition, it
may be difficult, time consuming and/or expensive for the Trust to enforce in a
foreign court a judgment rendered by a United States, New York or other court
situated in the United States.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Although the relationship between
the Custodian and the Zurich Sub-Custodian concerning the Trust&#146;s allocated
palladium is expressly governed by English law, a court hearing any legal
dispute concerning that arrangement may disregard that choice of law and apply
Swiss law, in which case the ability of the Trust to seek legal redress against
the Zurich Sub-Custodian may be frustrated.</I></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>14</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>The obligations of the
Zurich Sub-Custodian under its arrangement with the Custodian with respect to
the Trust&#146;s allocated palladium is expressly governed by English law.
Nevertheless, a court in the United States, England or Switzerland may
determine that English law should not apply and, instead, apply Swiss law to
that arrangement. Not only might it be difficult or impossible for a United
States or English court to apply Swiss law to the Zurich Sub-Custodian&#146;s
arrangement, but application of Swiss law may, among other things, alter the
relative rights and obligations of the Custodian and the Zurich Sub-Custodian
to an extent that a loss to the Trust&#146;s palladium may not have adequate or any
legal redress. Further, the ability of the Trust to seek legal redress against
the Zurich Sub-Custodian may be frustrated by application of Swiss law.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The Trust may not have adequate
sources of recovery if its palladium is lost, damaged, stolen or destroyed.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>If the Trust&#146;s palladium
is lost, damaged, stolen or destroyed under circumstances rendering a party
liable to the Trust, the responsible party may not have the financial resources
sufficient to satisfy the Trust&#146;s claim. For example, as to a particular event
of loss, the only source of recovery for the Trust might be limited to the
Custodian, the Zurich Sub-Custodian or any other subcustodians or, to the
extent identifiable, other responsible third parties (e.g., a thief or
terrorist), any of which may not have the financial resources (including
liability insurance coverage) to satisfy a valid claim of the Trust.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Shareholders and Authorized
Participants lack the right under the Custody Agreements to assert claims
directly against the Custodian, the Zurich Sub-Custodian and any subcustodian.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Neither the Shareholders
nor any Authorized Participant have a right under the Custody Agreements to
assert a claim of the Trustee against the Custodian, the Zurich Sub-Custodian
or any subcustodian. Claims under the Custody Agreements may only be asserted
by the Trustee on behalf of the Trust.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The Custodian is reliant on the Zurich
Sub-Custodian for the safekeeping of all or a substantial portion of the
Trust&#146;s palladium. Furthermore, the Custodian has limited obligations to
oversee or monitor the Zurich Sub-Custodian. As a result, failure by any Zurich
Sub-Custodian to exercise due care in the safekeeping of the Trust&#146;s palladium
could result in a loss to the Trust.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Palladium generally
trades on a loco London or loco Zurich basis whereby the physical palladium is
held in vaults located in London or Zurich or is transferred into accounts
established in London or Zurich. The Custodian does not have a vault in Zurich
and is reliant on the Zurich Sub-Custodian for the safekeeping of all or a
substantial portion of the Trust&#146;s allocated palladium. Other than obligations
to (1) use reasonable care in appointing the Zurich Sub-Custodian, (2) require
any Zurich Sub-Custodian to segregate the palladium held by it for the Trust
from any other palladium held by it for the Custodian and any other customers
of the Custodian by making appropriate entries in its books and records and (3)
ensure that the Zurich Sub-Custodian provide confirmation to the Trustee that
it has undertaken to segregate the palladium held by it for the Trust, the
Custodian is not liable for the acts or omissions of the Zurich Sub-Custodian.
Other than as described above, the Custodian does not undertake to monitor the
performance by the Zurich Sub-Custodian of its custody functions. The Trustee&#146;s
obligation to monitor the performance of the Custodian is limited to receiving
and reviewing the reports of the Custodian. The Trustee does not monitor the
performance of the Zurich Sub-Custodian or any other subcustodian. In addition,
the ability of the Trustee and the Sponsor to monitor the performance of the
Custodian may be limited because under the Custody Agreements, the Trustee and
the Sponsor have only limited rights to visit the premises of the Custodian or
the Zurich Sub-Custodian for the purpose of examining the Trust&#146;s palladium and
certain related records maintained by the Custodian or Zurich Sub-Custodian.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>As a result of the above,
any failure by any Zurich Sub-Custodian to exercise due care in the safekeeping
of the Trust&#146;s palladium may not be detectable or controllable by the Custodian
or the Trustee and could result in a loss to the Trust.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The Custodian relies on its Zurich
Sub-Custodian to hold the palladium allocated to the Trust Allocated Account
and used to settle redemptions. As a result, settlement of palladium in
connection with redemptions loco London may require more than three days.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Custodian is reliant
on its Zurich Sub-Custodian to hold the palladium allocated to the Trust
Allocated Account in order to effect redemption of Shares. As a result, in the
case for redemption orders electing palladium deliveries to be received loco
London, it may take longer than three business days for palladium to be
credited to the Authorized Participant Unallocated Account, which may result in
a delay of settlement of the redemption order that is settled loco London.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>15</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2><I>Because neither the Trustee nor the
Custodian oversees or monitors the activities of subcustodians who may hold the
Trust&#146;s palladium, failure by the subcustodians to exercise due care in the
safekeeping of the Trust&#146;s palladium could result in a loss to the Trust.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Under the Allocated
Account Agreement, the Custodian may appoint from time to time one or more
subcustodians to hold the Trust&#146;s palladium on a temporary basis pending
delivery to the Custodian. The subcustodians which the Custodian currently uses
are the Bank of England, Brink&#146;s Global Services Inc., Via Mat International
and LPPM clearing members that provide bullion vaulting and clearing services
to third parties. The Custodian has selected the Zurich Sub-Custodian, and the
Zurich Sub-Custodian maintains custody of all of the Trust&#146;s allocated
palladium for the Custodian. The Custodian is required under the Allocated
Account Agreement to use reasonable care in appointing the Zurich Sub-Custodian
and any other subcustodians, making the Custodian liable only for negligence or
bad faith in the selection of such subcustodians, and has an obligation to use
commercially reasonable efforts to obtain delivery of the Trust&#146;s palladium
from any subcustodians appointed by the Custodian. Otherwise, the Custodian is
not liable for the acts or omissions of its subcustodians. These subcustodians
may in turn appoint further subcustodians, but the Custodian is not responsible
for the appointment of these further subcustodians. The Custodian does not
undertake to monitor the performance by subcustodians of their custody
functions or their selection of further subcustodians. The Trustee does not
monitor the performance of the Custodian other than to review the reports
provided by the Custodian pursuant to the Custody Agreements and does not
undertake to monitor the performance of any subcustodian. Furthermore, except
for the Zurich Sub-Custodian, the Trustee may have no right to visit the
premises of any subcustodian for the purposes of examining the Trust&#146;s
palladium or any records maintained by the subcustodian, and no subcustodian
will be obligated to cooperate in any review the Trustee may wish to conduct of
the facilities, procedures, records or creditworthiness of such subcustodian.
In addition, the ability of the Trustee to monitor the performance of the
Custodian may be limited because under the Allocated Account Agreement and the
Unallocated Account Agreement the Trustee has only limited rights to visit the
premises of the Custodian and the Zurich Sub-Custodian for the purpose of
examining the Trust&#146;s palladium and certain related records maintained by the
Custodian and the Zurich Sub-Custodian.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The obligations of any subcustodian
of the Trust&#146;s palladium are not determined by contractual arrangements but by
LPPM rules and London bullion market customs and practices, which may prevent
the Trust&#146;s recovery of damages for losses on its palladium custodied with
subcustodians.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Except for the
Custodian&#146;s arrangement with the Zurich Sub-Custodian, there are expected to be
no written contractual arrangements between subcustodians that hold the Trust&#146;s
palladium and the Trustee or the Custodian because traditionally such
arrangements are based on the LPPM&#146;s rules and on the customs and practices of
the London bullion market. In the event of a legal dispute with respect to or
arising from such arrangements, it may be difficult to define such customs and
practices. The LPPM&#146;s rules may be subject to change outside the control of the
Trust. Under English law, neither the Trustee nor the Custodian would have a
supportable breach of contract claim against a subcustodian for losses relating
to the safekeeping of palladium. If the Trust&#146;s palladium is lost or damaged
while in the custody of a subcustodian, the Trust may not be able to recover
damages from the Custodian or the subcustodian. Whether a subcustodian will be
liable for the failure of subcustodians appointed by it to exercise due care in
the safekeeping of the Trust&#146;s palladium will depend on the facts and
circumstances of the particular situation. Shareholders cannot be assured that
the Trustee will be able to recover damages from subcustodians whether
appointed by the Custodian or by another subcustodian for any losses relating
to the safekeeping of palladium by such subcustodian.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Palladium bullion allocated to the
Trust in connection with the creation of a Basket may not meet the London Good
Delivery Standards and, if a Basket is issued against such palladium, the Trust
may suffer a loss.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Neither the Trustee nor
the Custodian independently confirms the fineness of the palladium allocated to
the Trust in connection with the creation of a Basket. The palladium bullion
allocated to the Trust by the Custodian may be different from the reported
fineness or weight required by the LPPM&#146;s standards for palladium plates or
ingots delivered in settlement of a palladium trade (London Good Delivery
Standards), the standards required by the Trust. If the Trustee nevertheless
issues a Basket against such palladium, and if the Custodian fails to satisfy
its obligation to credit the Trust the amount of any deficiency, the Trust may
suffer a loss.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Palladium held in the Trust&#146;s
unallocated palladium account and any Authorized Participant&#146;s unallocated
palladium account is not segregated from the Custodian&#146;s assets. If the
Custodian becomes insolvent, its assets may not be adequate to satisfy a claim
by the Trust or any Authorized Participant. In addition, in the event of the
Custodian&#146;s insolvency, there may be a delay and costs incurred in identifying
the bullion held in the Trust&#146;s allocated palladium account.</I></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>16</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>Palladium which is part
of a deposit for a purchase order or part of a redemption distribution is held
for a time in the Trust Unallocated Account and, previously or subsequently in,
the Authorized Participant Unallocated Account of the purchasing or redeeming
Authorized Participant. During those times, the Trust and the Authorized
Participant, as the case may be, have no proprietary rights to any specific
plates or ingots of palladium held by the Custodian and are each an unsecured
creditor of the Custodian with respect to the amount of palladium held in such
unallocated accounts. In addition, if the Custodian fails to allocate the
Trust&#146;s palladium in a timely manner, in the proper amounts or otherwise in
accordance with the terms of the Unallocated Account Agreement, or if a
subcustodian fails to so segregate palladium held by it on behalf of the Trust,
unallocated palladium will not be segregated from the Custodian&#146;s assets, and
the Trust will be an unsecured creditor of the Custodian with respect to the
amount so held in the event of the insolvency of the Custodian. In the event
the Custodian becomes insolvent, the Custodian&#146;s assets might not be adequate
to satisfy a claim by the Trust or the Authorized Participant for the amount of
palladium held in their respective unallocated palladium accounts.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>In the case of the
insolvency of the Custodian, a liquidator may seek to freeze access to the
palladium held in all of the accounts held by the Custodian, including the
Trust Allocated Account. Although the Trust would be able to claim ownership of
properly allocated palladium, the Trust could incur expenses in connection with
asserting such claims, and the assertion of such a claim by the liquidator
could delay creations and redemptions of Baskets.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>In issuing Baskets, the Trustee
relies on certain information received from the Custodian which is subject to
confirmation after the Trustee has relied on the information. If such
information turns out to be incorrect, Baskets may be issued in exchange for an
amount of palladium which is more or less than the amount of palladium which is
required to be deposited with the Trust.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Custodian&#146;s
definitive records are prepared after the close of its business day. However,
when issuing Baskets, the Trustee relies on information reporting the amount of
palladium credited to the Trust&#146;s accounts which it receives from the Custodian
during the business day and which is subject to correction during the preparation
of the Custodian&#146;s definitive records after the close of business. If the
information relied upon by the Trustee is incorrect, the amount of palladium
actually received by the Trust may be more or less than the amount required to
be deposited for the issuance of Baskets.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The sale of the Trust&#146;s palladium to
pay expenses not assumed by the Sponsor at a time of low palladium prices could
adversely affect the value of the Shares.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trustee sells
palladium held by the Trust to pay Trust expenses not assumed by the Sponsor on
an as-needed basis irrespective of then-current palladium prices. The Trust is
not actively managed and no attempt will be made to buy or sell palladium to
protect against or to take advantage of fluctuations in the price of palladium.
Consequently, the Trust&#146;s palladium may be sold at a time when the palladium
price is low, resulting in a negative effect on the value of the Shares.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>The value of the Shares will be
adversely affected if the Trust is required to indemnify the Sponsor or the
Trustee under the Trust Agreement.</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Under the Trust
Agreement, each of the Sponsor and the Trustee has a right to be indemnified
from the Trust for any liability or expense it incurs without gross negligence,
bad faith or willful misconduct on its part. That means the Sponsor or the
Trustee may require the assets of the Trust to be sold in order to cover losses
or liability suffered by it. Any sale of that kind would reduce the NAV of the
Trust and the value of the Shares.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>I<A NAME="c64628a017_v1"></A>tem 1B.
Unresolved Staff Comments</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>None.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>I<A NAME="c64628a018_v1"></A>tem 2.
Properties</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Not applicable.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>I<A NAME="c64628a019_v1"></A>tem 3.
Legal Proceedings</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>None.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>I<A NAME="c64628a020_v1"></A>tem 4.
(Removed and Reserved)</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>17</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>I<A NAME="c64628a021_v1"></A>tem 5. Market
for Registrant&#146;s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities. </B></FONT></P>

<P><FONT SIZE=2>Note: The Trust was audited
for seed purposes on December 30, 2009 and had no operations for the remainder
of 2009. Therefore no full audit was required and the Trust did not submit a
10K for the year ended December 31, 2009. In the 10K for the year ended
December 31, 2010, the Statement of Financial Condition will be presented for
the period ended December 31, 2010 and the Statement of Operations will be
presented for the period December 30, 2009 through December 31, 2010. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
Trust&#146;s Shares have been listed on the NYSE Arca under the symbol PALL since
its initial public offering on January 8, 2010. The following tables set out
the range of high and low closing prices for the Shares as reported for NYSE
Arca transactions for each of the quarters during the fiscal period commencing
January 8, 2010 and ending December 31, 2010 (the &#147;Reporting Period&#148;): </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="74%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><B>Fiscal
 Year Ended December 31, 2010:<BR>
 Quarter Ended</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>High</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>Low</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>March 31, 2010 (commencing
 December 30, 2009)</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>47.86</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>40.09</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>June 30, 2010</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>56.59</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>41.86</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>September 30, 2010</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>56.71</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>43.08</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>December 31, 2010</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>79.86</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>55.90</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>The number of Shares of record of the Trust as of March 8, 2011
was approximately 11,550,000. </FONT></P>

<P><FONT SIZE=2><I>Monthly Share Price </I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
following table sets forth, for each of the most recent six months, the high
and low closing prices of the Shares, as reported for NYSE Arca transactions. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="74%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><B>Month</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>High</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>Low</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>

 <TR>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD COLSPAN=2 VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD COLSPAN=2 VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>September 2010</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>56.71</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>51.75</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>October 2010</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>64.48</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>55.90</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>November 2010</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>71.07</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>63.78</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>December 2010</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>79.86</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>72.41</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>January 2011</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>81.34</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>74.62</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>February 2011</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>84.54</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>77.00</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><I>Issuer Purchase of Equity Securities </I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
Trust issues and redeems Shares only with Authorized Participants in exchange
for palladium, only in aggregations of 50,000 or integral multiples thereof. A
list of current Authorized Participants is available from the Sponsor or the
Trustee. Although the Trust does not purchase Shares directly from its
shareholders in connection with the redemption of Baskets, the Trust redeemed
as follows during the Reporting Period: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="99%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="61%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="15%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="13%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><B>Period</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>Total Number of<BR>
 Shares Redeemed</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>Average Ounces<BR>
 of palladium Per<BR>
 Share</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>

 <TR>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD COLSPAN=2 VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD COLSPAN=2 VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>01/08/10 to 01/31/10</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>02/01/10 to 02/28/10</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>03/01/10 to 03/31/10</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>

  <TR>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=2>04/01/10 to 04/30/10</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=BOTTOM><P><FONT SIZE=2>05/01/10 to 05/31/10</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=2>150,000</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=2>0.0998</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=2>06/01/10 to 06/30/10</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P ALIGN=RIGHT><FONT SIZE=2>300,000</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P ALIGN=RIGHT><FONT SIZE=2>0.0997</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=BOTTOM><P><FONT SIZE=2>07/01/10 to 07/31/10</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=2>300,000</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=2>0.0997</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=2>08/01/10 to 08/31/10</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=BOTTOM><P><FONT SIZE=2>09/01/10 to 09/30/10</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=2>550,000</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=2>0.0996</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=2>10/01/10 to 10/31/10</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=BOTTOM><P><FONT SIZE=2>11/01/10 to 11/30/10</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=2>12/01/10 to 12/31/10</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P ALIGN=RIGHT><FONT SIZE=2>500,000</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P ALIGN=RIGHT><FONT SIZE=2>0.0994</FONT></P></TD>
    <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF"><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER></TD>
    <TD VALIGN=BOTTOM><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER></TD>
    <TD VALIGN=BOTTOM><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=BOTTOM><P><FONT SIZE=2>Total</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=2>1,800,000</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=2>0.0996</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>18</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>
<P><FONT SIZE=2><B>I<A NAME="c64628a022_v1"></A>tem 6. Selected Financial Data. </B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
following selected financial data for the Reporting Period should be read in
conjunction with the Trust&#146;s financial statements and related notes and
&#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations.&#148; </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="79%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="15%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2><B>December 31, 2010*</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Total assets</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>620,790,556</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Total gain on palladium</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>15,014,873</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Net gain from operations</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>12,663,945</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Weighted average number of
 Shares</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>7,032,877</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Net gain per Share</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>1.80</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Net cash provided by
 operating activities</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
</TABLE>



<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B><i>*</i></B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><i>For the period from
 December 30, 2009 to December 31, 2010. </i></FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>I<A NAME="c64628a023_v1"></A>tem 7. Management&#146;s Discussion
and Analysis of Financial Condition and Results of Operations. </B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>This information should be read in conjunction with the
financial statements and notes to the financial statements included with this
report. The discussion and analysis that follows may contain statements that
relate to future events or future performance. In some cases, such
forward-looking statements can be identified by terminology such as &#147;may,&#148;
&#147;should,&#148; &#147;expect,&#148; &#147;plan,&#148; &#147;anticipate,&#148; &#147;believe,&#148; &#147;estimate,&#148; &#147;predict,&#148;
&#147;potential&#148; or the negative of these terms or other comparable terminology.
Neither the Sponsor, nor any other person assumes responsibility for the
accuracy or completeness of forward-looking statements. Neither the Trust nor
the Sponsor is under a duty to update any of the forward-looking statements to
conform such statements to actual results or to a change in the Sponsor&#146;s
expectations or predictions. </I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Introduction</I>. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The ETFS Palladium Trust (the &ldquo;Trust&rdquo;)
    is a trust formed under the laws of the State of New York. The Trust does
    not have any officers, directors, or employees, and is administered by The
    Bank of New York Mellon (the &ldquo;Trustee&rdquo;) acting as trustee pursuant
    to the Depositary Trust Agreement (the &ldquo;Trust Agreement&rdquo;) between
    the Trustee and ETF Securities USA LLC, the sponsor of the Trust (the &ldquo;Sponsor&rdquo;).
    The Trust issues shares (&ldquo;Shares&rdquo;) representing fractional undivided
    beneficial interests in its net assets. The assets of the Trust consist of
    palladium bullion held by a custodian as an agent of the Trust and responsible
only to the Trustee.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust is a passive investment vehicle and the
    objective of the Trust is merely for the value of each Share to approximately
    reflect, at any given time, the price of the palladium bullion owned by the
    Trust, less the Trust&rsquo;s liabilities (anticipated to be principally
    for accrued operating expenses), divided by the number of outstanding Shares.
    The Trust does not engage in any activities designed to obtain a profit from,
    or ameliorate losses caused by, changes in the price of palladium.</FONT></P>
<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust issues and redeems Shares only in exchange
    for palladium, only in aggregations of 50,000 or integral multiples thereof
    (each, a &ldquo;Basket&rdquo;), and only in transactions with registered
    broker-dealers that have previously entered into an agreement with the Trust
    governing the terms and conditions of such issuance (such dealers, the &ldquo;Authorized
    Participants&rdquo;). A list of current Authorized Participants is available
    from the Sponsor or the Trustee.</FONT></P>
<P ALIGN=JUSTIFY><FONT SIZE=2>Shares of the Trust trade on the NYSE Arca under
    the symbol &ldquo;PALL.&rdquo;</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2>19</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>Investing in the Shares does not insulate the investor
    from certain risks, including price volatility. The following table illustrates
    the movement in the price of the Shares and NAV
    of the Shares against the corresponding palladium price (per 1/10 of an oz.
of palladium) since inception:</FONT></P>

<P><FONT SIZE=2><B>Closing Shares price v. 1/10<SUP>th</SUP> palladium price
from fund inception to December 31, 2010 </B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><img src="c64628001_v1.jpg" ALT="(LINE GRAPH)"></font></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
divergence of the price of the Shares and the NAV of the Shares from the
palladium price over time reflects the cumulative effect of the Trust expenses
that arise if an investment had been held since inception. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I><B>Critical Accounting Estimates </B></I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
financial statements and accompanying notes are prepared in accordance with
accounting principles generally accepted in the United States of America. The
preparation of these financial statements relies on estimates and assumption
that impact the Trust&#146;s financial position and results of operations. These
estimates and assumptions affect the Trust&#146;s application of accounting
policies. Below we describe the valuation of palladium bullion, a critical
accounting policy that we believe is important to the understanding of our
results of operations and financial position. In addition, please refer to Note
2 to the Financial Statements for further discussion of our accounting
policies. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Valuation of Palladium </I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Palladium
is held by the Custodian on behalf of the Trust and is valued, for financial
statement purposes, at the lower of cost or market. The cost of palladium is
determined according to the average cost method and the market value is based
on the London PM Fix used to determine the NAV of the
Trust. Realized gains and losses on transfers of palladium to pay the Sponsor&#146;s
Fee, or palladium distributed for the redemption of Shares, are calculated on a
trade date basis using average cost.</font></p>

<p style="text-align: justify"><font style="font-size: x-small">Once the value of the palladium has been determined the
NAV is computed by the Trustee by deducting all accrued fees and other liabilities, including the renumeration due to the
Sponsor (the &ldquo;Sponsor&rsquo;s Fee&rdquo;), from the fair value of the palladium and all other assets held by the
Trust.&nbsp;</FONT></P>



<P ALIGN=CENTER><FONT SIZE=2>20</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>The table below summarizes
the impact of unrealized gains on the Trust&#146;s palladium at December 31, 2010. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="78%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="16%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>December 31, 2010</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Investment in palladium &#150;
 average cost</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>597,199,695</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Unrealized gain on
 investment in palladium</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>264,284,781</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Investment in palladium &#150;
 market value</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>861,484,476</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><I>Liquidity </I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
Trust is not aware of any trends, demands, conditions, events or uncertainties
that are reasonably likely to result in material changes to its liquidity
needs. In exchange for the Sponsor&#146;s Fee, the Sponsor has agreed to assume most
of the expenses incurred by the Trust. As a result, the only expense of the
Trust during the period covered by this report was the Sponsor&#146;s Fee. The
Trust&#146;s only source of liquidity is its transfers and sales of palladium. </FONT></P>
<P ALIGN=JUSTIFY><FONT SIZE=2>The Trustee will, at the direction of the Sponsor
    or in its own discretion, sell the Trust&rsquo;s palladium as necessary to
    pay the Trust&rsquo;s expenses not otherwise assumed by the Sponsor. The
    Trustee will not sell palladium to pay the Sponsor&rsquo;s Fee but will pay
    the Sponsor&rsquo;s Fee through in-kind transfers of palladium to the Sponsor.
At December 31, 2010, the Trust did not have any cash balances.</FONT></P>
<P><FONT SIZE=2><B>Review of Financial Results </B></FONT></P>

<P><FONT SIZE=2><I>Financial Highlights </I></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="78%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="16%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>December 31, 2010*</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Total gain on palladium</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>15,014,873</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Net gain from operations</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>12,663,945</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Net cash provided by
 operating activities</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="100%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=LEFT>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><I>*Period
 from December 30, 2009 through December 31, 2010. </I></FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>The
net asset value (&#147;NAV&#148;) of the Trust is obtained by subtracting the Trust&#146;s
expenses and liabilities on any day from the value of the palladium owned by
the Trust on that day. The NAV per Share is obtained by dividing the NAV of the
Trust on a given day by the number of Shares outstanding on that day. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><I>Period ended December 31, 2010 </I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
Trust was formed as a legal entity on December 30, 2009 with an initial deposit
of palladium. The NAV at December 30, 2009 was $3,930,000.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
Trust&#146;s Shares commenced trading on the NYSE Arca under the symbol PALL
on January 8, 2010. The Trust began accruing expenses and calculating NAV from
this date. The Trust&#146;s NAV increased from $3,930,000 at December 30, 2009
to $4,260,000 at the start of business on January 8, 2010 due to the increase
in the price per ounce of palladium from $393 to $426.<BR>
<BR>
The Trust&#146;s NAV grew from $4,260,000 at the start of business on January
8, 2010 to $884,637,847 at December 31, 2010, a 20,666.15% increase for the period.
The Trust&#146;s NAV per Share increased 84.58% from $42.60 at January 8, 2010
to $78.63 at December 31, 2010. The increase in the Trust&#146;s NAV resulted
primarily from an increase in the price per ounce of palladium which rose 85.68%
from $426 at the start of business on January 8, 2010 to $791 on December
31, 2010 and an increase in outstanding Shares, which rose from 100,000 at January
8, 2010 to 11,250,000 Shares at December 31, 2010, a consequence of 12,950,000
Shares (259 Baskets) being created and 1,800,000 Shares (36 Baskets) being redeemed
during the period. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
Trust&#146;s NAV per Share rose slightly less than the price per ounce of palladium
on a percentage basis due to the Sponsor&#146;s Fee, which was $2,350,928 for
the period, or 0.60% of the Trust&#146;s assets on an annualized basis. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
NAV per Share of $79.23 on December 30, 2010 was the highest during the period
compared with a low of $39.48 on February 5, 2010. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Net
gain for the period ended December 31, 2010 was $12,663,945 resulting from a
net gain of $190,840 on the transfer of palladium to pay the Sponsor&#146;s Fee and
a net gain of $14,824,033 on palladium distributed for the </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>21</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=JUSTIFY><FONT SIZE=2>redemption of Baskets, which was offset by the Sponsor&#146;s Fee of $2,350,928. Other than the
Sponsor&#146;s Fee, the Trust had no expenses during the period ended December 31, 2010. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2><B>I<A NAME="c64628a024_v1"></A>tem 7A. Quantitative and Qualitative Disclosures about Market Risk. </B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
Trust  Agreement does not authorize the Trustee to borrow for payment of the
Trust&#146;s ordinary expenses. The Trust does not engage in transactions in foreign
currencies which could expose the Trust or holders of Shares to any foreign
currency related market risk. The Trust invests in no derivative financial
instruments and has no foreign operations or long-term debt instruments. </FONT></P>

<P><FONT SIZE=2><B>I<A NAME="c64628a025_v1"></A>tem 8. Financial Statements and Supplementary Data - <I>(Unaudited)</I>.</B></FONT></P>

<P><FONT SIZE=2><U><b>Period Ended December 31, 2010</b></U></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="34%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="9%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="8%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=11 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 ROWSPAN=4 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>For the<BR>
 Period<BR>
 Ended<BR>
 December<BR>
 31*</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P ALIGN=CENTER><FONT SIZE=2>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=11 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=11 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>Three months ended</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>March 31*</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>June 30</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>September<BR>
 30</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>December<BR>
 31</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><B>Revenues</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Value of palladium
     transferred to pay expenses</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
  <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>135,477</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>473,037</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>550,980</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>749,181</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>1,908,675</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Cost of palladium
     transferred to pay expenses</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(138,319</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(435,720</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(544,830</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(598,966</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(1,717,835</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 </TR>
 <TR>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>(Loss) / gain
     on palladium transferred to pay expenses</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(2,842</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>37,317</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>6,150</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>150,215</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>190,840</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Gain on palladium
     distributed for the redemption of Shares</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>1,144,602</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>3,534,206</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>10,145,225</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>14,824,033</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Unrealized (loss)
     / gain on investment in palladium</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(14,802,112</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>14,802,112</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Total (loss)
     / gain on transfers and distributions of palladium</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(2,842</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(13,620,193</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>18,342,468</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>10,295,440</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>15,014,873</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><B>Expenses</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Sponsor&#146;s Fee</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>257,463</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>533,291</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>564,314</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>995,860</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>2,350,928</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
   </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Total expenses</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>257,463</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>533,291</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>564,314</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>995,860</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>2,350,928</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Net (loss) / gain from operations</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(260,305</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(14,153,484</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>17,778,154</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>9,299,580</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>12,633,945</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
   <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>   </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Net (loss) / gain per Shares</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(0.07</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(1.96</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>2.35</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>0.99</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>1.80</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Weighted average number of Shares</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>3,875,556</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>7,266,923</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>7,567,935</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>9,397,283</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>7,032,877</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="100%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=LEFT>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><I>*Period
 commenced December 30, 2009.</I></FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>22</FONT></P>



<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><B>I<A NAME="c64628a026_v1"></A>tem 9. Changes in and
Disagreements with Accountants on Accounting and Financial Disclosure. </B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Deloitte
&amp; Touche LLP was appointed independent accountants to the Trust from the
Date of Inception. There have been no disagreements with accountants during the
period ended December 31, 2010. </FONT></P>

<P><FONT SIZE=2><B>I<A NAME="c64628a027_v1"></A>tem 9A. Controls and Procedures.
</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The
authorized officers of the Sponsor performing functions equivalent to those
that a principal executive officer and principal financial officer of the Trust
would perform if the Trust had any officers, and with the participation of the
Trustee, have evaluated the effectiveness of the Trust&#146;s disclosure controls
and procedures, and have concluded that the disclosure controls and procedures
of the Trust were effective as of December 31, 2010. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>There
have been changes in the Trust&#146;s or Sponsor&#146;s internal control over
financial reporting that occurred during the Trust&#146;s recently completed
fiscal quarter ended December 31, 2010 that have materially affected, or are
reasonably likely to materially affect, the Trust&#146;s or Sponsor&#146;s internal
control over financial reporting. These changes have occurred as a result of
the Sponsor&#146;s review of
the control processes. The changes include strengthening the review procedures
over the financial statements and the creation of an audit committee to act in
respect of the Trust on behalf of the Sponsor&#146;s audit committee. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>This
Annual Report does not include a report of management&#146;s assessment regarding
internal control over financial reporting or an attestation report of the
Trust&#146;s registered public accounting firm due to a transition period
established by rules of the SEC for newly public companies. </FONT></P>

<P><FONT SIZE=2><B>I<A NAME="c64628a028_v1"></A>tem 9B. Other Information. </B></FONT></P>

<P><FONT SIZE=2>Not applicable. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>23</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P align="center"><FONT SIZE=2><B>PART III</B></FONT></P>
<P><FONT SIZE=2><B>I<A NAME="c64628a029_v1"></A>tem 10. Directors, Executive Officers and Corporate Governance. </B></FONT></P>
<P><FONT SIZE=2>Not applicable. </FONT></P>

<P><FONT SIZE=2><B>I<A NAME="c64628a030_v1"></A>tem 11. Executive Compensation. </B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trust has no directors or executive officers.
    The only ordinary expense paid by the Trust is the Sponsor&#146;s Fee. </FONT></P>

<P><FONT SIZE=2><B>I<A NAME="c64628a031_v1"></A>tem 12. Security Ownership of
Certain Beneficial Owners and Management and Related Stockholder Matters. </B></FONT></P>

<P><FONT SIZE=2><I>Security Ownership of Certain Beneficial Owners</I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Sponsor has no knowledge of any person being the beneficial owner of more than
5% of the outstanding Shares of the Trust.</FONT></P>

<P><FONT SIZE=2><I>Security Ownership of Management </I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>The Trustee does not beneficially own any of the Trust Shares. </FONT></P>

<P><FONT SIZE=2><I>Change in Control </I></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Neither the Sponsor nor the Trustee knows of any arrangements which may subsequently
result in a change in control of the Trust. </FONT></P>

<P><FONT SIZE=2><B>I<A NAME="c64628a032_v1"></A>tem 13. Certain Relationships
and Related Transactions, and Director Independence. </B></FONT></P>

<P><FONT SIZE=2>The Trust has no directors or executive officers. </FONT></P>

<P><FONT SIZE=2><B>I<A NAME="c64628a033_v1"></A>tem 14. Principal Accounting Fees and Services. </B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Fees for services performed by Deloitte &amp; Touche LLP for the period ended
December 31, 2010 were as follows: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="80%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="14%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>December 31, 2010</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Audit fees</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>90,000
 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Audit-related fees</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>90,000
 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>

</TABLE>

<P ALIGN="JUSTIFY"><FONT SIZE=2><B>Pre-Approved Policies and Procedures</B></FONT><BR><FONT SIZE=2>As referenced in Item 10
above, the Trust has no board of directors, and as a result, has no
pre-approval policies or procedures with respect to fees paid to Deloitte &amp;
Touche LLP. Such determinations are made by the Sponsor.<BR><BR>None of the hours
expended by Deloitte &amp; Touche LLP to audit the Trust&#146;s financial statements
for the fiscal period ended December 31, 2010 were attributable to work
performed by persons other than the principal accountant&#146;s full-time, permanent
employees. </FONT></P>

<P><FONT SIZE=2><B>I<A NAME="c64628a034_v1"></A>tem 15. Exhibits, Financial
Statement Schedules </B></FONT></P>

<P><FONT SIZE=2><B>1. Financial Statements </B></FONT><BR><FONT SIZE=2>See Index to Financial
Statements on Page F-1 for a list of the financial statements being filed herein. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>24</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>2. Financial Statement Schedules </B></FONT><BR><FONT SIZE=2>Schedules have been omitted
since they are either not required, not applicable, or the information has
otherwise been included. </FONT></P>

<P><FONT SIZE=2><B>3. Exhibits </B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="11%" VALIGN=TOP>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=TOP>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="85%" VALIGN=TOP>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>Exhibit
 No.</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>Description</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 </TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%; text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>4.1</FONT></P>
       </TD>
    <TD STYLE="width: 3%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 85%; text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>Depositary
          Trust Agreement, incorporated by reference to Exhibit 4.1 filed with
          Registration Statement No. 333-158380 on December 31, 2009</FONT></P>
       </TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>4.2</FONT></P>
       </TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>Form of Authorized
          Participant Agreement</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>4.3</FONT></P></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>Global Certificate,
          incorporated by reference to Exhibit 4.3 filed with Registration Statement
          No. 333-158380 on December 31, 2009</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>10.1</FONT></P></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>Allocated Account
          Agreement, incorporated by reference to Exhibit 10.1 filed with Registration
          Statement No. 333-158380 on December 31, 2009</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>10.2</FONT></P></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>Unallocated Account
          Agreement, incorporated by reference to Exhibit 10.2 filed with Registration
          Statement No. 333-158380 on December 31, 2009</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>10.3</FONT></P></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>Depository Agreement,
          incorporated by reference to Exhibit 10.3 filed with Registration Statement
          No. 333-158380 on December 31, 2009</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>10.4</FONT></P></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>Marketing Agent
          Agreement, incorporated by reference to Exhibit 10.4 filed with Registration
          Statement No. 333-158380 on December 31, 2009</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>31.1</FONT></P></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>Chief Executive
          Officer&rsquo;s Certificate, pursuant to Section 302 of the Sarbanes-Oxley
          Act of 2002</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>31.2</FONT></P></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>Chief Financial
          Officer&rsquo;s Certificate, pursuant to Section 302 of the Sarbanes-Oxley
          Act of 2002</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>32.1</FONT></P></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>Chief Executive
          Officer&rsquo;s Certificate, pursuant to 18 U.S.C. Section 1350, as
          adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>32.2</FONT></P></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><P ALIGN=JUSTIFY><FONT SIZE=2>Chief Financial
          Officer&rsquo;s Certificate, pursuant to 18 U.S.C. Section 1350, as
          adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</FONT></P></TD>
  </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>25</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P ALIGN=CENTER><FONT SIZE=2><B>ETFS PALLADIUM TRUST<BR>
FINANCIAL STATEMENTS AS OF DECEMBER 31, 2010</B> <BR>
<B>INDEX</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="5%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1><B>Page</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A HREF="#c64628b001_v1">Report
 of Independent Registered Public Accounting Firm</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>F-2</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A HREF="#c64628b002_v1">Statement
 of Financial Condition at December 31, 2010</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>F-3</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A HREF="#c64628b003_v1">Statement
 of Operations for the period December 30, 2009 through December 31, 2010</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>F-4</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A HREF="#c64628b004_v1">Statement
 of Cash Flows for the period December 30, 2009 through December 31, 2010</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>F-5</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A HREF="#c64628b005_v1">Statement
 of Changes in Shareholders&#146; Deficit for the period December 30, 2009 through
 December 31, 2010</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>F-6</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A HREF="#c64628b006_v1">Notes
 to the Financial Statements</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>F-7</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>F-1</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>R<A NAME="c64628b001_v1"></A>EPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM</B></FONT></P>

<P><FONT SIZE=2>To the Sponsor, Trustee and
the Shareholders of the ETFS Palladium Trust: </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>We
have audited the accompanying statement of financial condition of ETFS
Palladium Trust (the &#147;Trust&#148;) as of December 31, 2010, and the related
statements of operations, changes in shareholders&#146; deficit, and cash flows
for the period December 30, 2009 to December 31, 2010. These financial statements
are the responsibility of the Trust&#146;s management. Our responsibility is
to express an opinion on these financial statements based on our audit. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>We
conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. The Trust is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Trust&#146;s internal control over financial
reporting. Accordingly, we express no such opinion<I>.</I> An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>In
our opinion, such financial statements present fairly, in all material respects,
the financial position of ETFS Palladium Trust at December 31, 2010, and the
results of its operations and its cash flows for the period  December 30, 2009 to December 31,
2010, in conformity with accounting principles generally accepted in the United
States of America. </FONT></P>

<P><FONT SIZE=2>DELOITTE &amp; TOUCHE LLP </FONT></P>

<P><FONT SIZE=2>New York, New York <BR>
March 28, 2011 </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>F-2</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>ETFS PALLADIUM TRUST</B></FONT></P>

<P><FONT SIZE=4>S<A NAME="c64628b002_v1"></A>tatement
of Financial Condition</FONT></P>

<P><FONT SIZE=3><B>At December 31, 2010</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="84%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="10%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>December 31,<BR>
 2010</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><B>ASSETS</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=2>Investment in palladium
 (1)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P ALIGN=RIGHT><FONT SIZE=2>597,199,695
 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Palladium receivable</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>23,590,861
 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

  <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=2>Total assets</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P ALIGN=RIGHT><FONT SIZE=2>620,790,556
 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><B>LIABILITIES</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=2>Accounts payable to
 Sponsor</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P ALIGN=RIGHT><FONT SIZE=2>437,490
 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Total liabilities</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>437,490
 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=2>Redeemable Shares:</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Shares at redemption value
 to investors (2)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>884,637,847
 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=2>Shareholders&#146; deficit</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P ALIGN=RIGHT><FONT SIZE=2>(264,284,781</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM >
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Total liabilities,
 redeemable Shares &amp; shareholders&#146; deficit</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>620,790,556
 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

  <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(1)</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>The market value of
 investment in palladium at December 31, 2010 is $861,484,476.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(2)</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Authorized Share capital
 is unlimited and no par value per Share. Shares issued and outstanding at
 December 31, 2010 were 11,250,000.</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2><I>See Notes to the Financial Statements.</I></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>F-3</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>ETFS PALLADIUM TRUST</B></FONT></P>

<P><FONT SIZE=4>S<A NAME="c64628b003_v1"></A>tatement of Operations</FONT></P>

<P><FONT SIZE=3><B>For the period December 30, 2009* through December 31, 2010</B></FONT></P>

<TABLE WIDTH="100%" BORDER=0 CELLPADDING=0 CELLSPACING=0>
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="72%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="10%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="16%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>Period <BR>
 December 30, 2009*<BR>
 through <BR>
 December 31, 2010</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><B>REVENUES</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR bgcolor="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Value of palladium transferred to pay
 expenses</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>1,908,675</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Cost of palladium transferred to pay
 expenses</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(1,717,835</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR bgcolor="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Gain on palladium transferred to pay
 expenses</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>190,840</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Gain on palladium distributed for the
 redemption of Shares</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>14,824,033</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>


 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Unrealized gain
    on investment in palladium</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Total gain on palladium</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>15,014,873</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><B>EXPENSES</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Sponsor&#146;s Fee</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>2,350,928</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Total expenses</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>2,350,928</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Net gain from operations</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>12,663,945</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><I>Net gain per Share</I></FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>1.80</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>

 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2><I>Weighted average number of Shares</I></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>7,032,877</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
</TABLE>

<br>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
  <TR STYLE="FONT-SIZE:1PX">
    <TD WIDTH="100%" VALIGN=TOP><P>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=LEFT>
    </TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P><FONT SIZE=2><I>* Date of Inception</I></FONT></P></TD>
  </TR>
</TABLE>
<P>&nbsp;</P>

<P ALIGN=CENTER><FONT SIZE=2><I>See Notes to the Financial Statements.</I></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>F-4</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>ETFS PALLADIUM TRUST</B></FONT></P>

<P><FONT SIZE=4>S<A NAME="c64628b004_v1"></A>tatement of Cash Flows</FONT></P>

<P><FONT SIZE=3><B>For the period December 30, 2009* through December 31, 2010</B></FONT></P>

<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER><BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="81%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="14%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>Period <BR>
 December 30, 2009*<BR>
 through<BR>
 December 31, 2010</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><B>INCREASE
 / (DECREASE) IN CASH FROM OPERATIONS:</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Cash proceeds received
 from transfer of palladium</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Cash expenses paid</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

  <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

  <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Increase in cash resulting
 from operations</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Cash and cash equivalents
 at beginning of period</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

  <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Cash and cash equivalents
 at end of period</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
   <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=BOTTOM><P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P></TD>
   <TD VALIGN=BOTTOM><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>

 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><B>SUPPLEMENTAL
 DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><I>Value of
 palladium received for creation of Shares - net of palladium receivable</I></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>686,119,618
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR BGCOLOR="#E5FFFF">
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><I>Value of
 palladium distributed for redemption of Shares - at average cost</I></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>87,202,088
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="81%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="14%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>Period <BR>
 December 30, 2009*<BR>
 through <BR>
 December 31, 2010</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2><B>RECONCILIATION
 OF NET GAIN/(LOSS) TO NET CASH PROVIDED
 BY OPERATING ACTIVITIES:</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Net gain from operations</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>12,663,945
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Adjustments to reconcile
 net loss to net cash provided by (used in) operating activities:</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Increase in palladium assets</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(597,199,695</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Increase in palladium receivable</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>(23,590,861</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>)</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Increase in unrealized gain on palladium receivable</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Decrease in palladium payable</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Increase in accounts payable to Sponsor</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>437,490
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Increase/(decrease) in redeemable Shares:</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Creations</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>709,715,700
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Redemptions</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>(102,026,579</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>)</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Net cash provided by
 operating activities</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>

 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Supplemental
 disclosure of non-cash item:</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Value of palladium transferred to pay expenses</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>1,908,675
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2><I>See Notes to the Unaudited Condensed
Financial Statements.</I></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="100%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=LEFT>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><I>* Date
 of Inception</I></FONT></P>
 </TD>
 </TR>
</TABLE>

<P ALIGN="CENTER"><FONT SIZE=2>F-5</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>ETFS PALLADIUM TRUST</B></FONT></P>

<P><FONT SIZE=4>S<A NAME="c64628b005_v1"></A>tatement
of Changes in Shareholders&#146; Deficit</FONT></P>

<P><FONT SIZE=3><B>For the
period December 30, 2009* through December 31, 2010</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="81%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="14%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>Period <BR>
 December 30, 2009*<BR>
 through <BR>
 December 31, 2010</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Shareholders&#146; deficit -
 opening balance</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Net gain for the period</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>12,663,945
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Adjustment of redeemable
 Shares to redemption value</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>(276,948,726</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>)</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Shareholders&#146; deficit &#150;
 closing balance</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(264,284,781</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="100%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=LEFT>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><I>* Date of Inception</I></FONT></P>
 </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>F-6</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>ETFS PALLADIUM TRUST</B></FONT></P>

<P><FONT SIZE="4"><B>N<A NAME="c64628b006_v1"></A>otes to the Financial Statements</B> </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P ALIGN=JUSTIFY>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>1.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Organization</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The ETFS Palladium Trust (the &#147;Trust&#148;)
     is an investment trust formed on December 30, 2009, under New York law pursuant
     to a depositary trust agreement (the &#147;Trust Agreement&#148;) executed
     by ETF Securities USA LLC (the
 &#147;Sponsor&#148;) and the Bank of New York Mellon (the &#147;Trustee&#148;)
 at the time of the Trust&#146;s organization. The Trust holds palladium bullion
 and issues ETFS Physical Palladium Shares (the &#147;Shares&#148;)  (in minimum
 blocks of 50,000 Shares, referred to as &#147;Baskets&#148;) in exchange for
 deposits of palladium and distributes palladium in connection with redemption
 of Baskets. Shares represent units of fractional undivided beneficial interest
 in and ownership of the Trust which are issued by the Trust. The Sponsor is
 a Delaware limited liability company that is a wholly-owned subsidiary of ETF
 Securities Limited, a Jersey, Channel Islands&#146; based company. The Trust
 is governed by the Trust Agreement.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The investment objective of the Trust is for the
     Shares to reflect the performance of the price of palladium, less the Trust&#146;s
     expenses and liabilities. The Trust is designed to provide an individual
     owner of beneficial interests in the Shares (a &#147;Shareholder&#148;)
     an opportunity to participate in the palladium market through an investment
     in securities.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Significant Accounting Policies</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The preparation of financial statements in accordance with accounting
 principles generally accepted in the United States of America requires those
 responsible for preparing financial statements to make estimates and
 assumptions that affect the reported amounts and disclosures. Actual results
 could differ from those estimates. The following is a summary of significant
 accounting policies followed by the Trust.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.1.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><I><B>Valuation
 of Palladium</B></I></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Palladium is held by JP Morgan Chase Bank, N.A. (the &#147;Custodian&#148;), on
 behalf of the Trust, at the Zurich, Switzerland vaulting premises of UBS A.G.
 (the &#147;Zurich Sub-Custodian&#148;) and is valued, for financial statement purposes,
 at the lower of cost or market. The cost of palladium is determined according
 to the average cost method and the market value is based on the London PM Fix
 used to determine the net asset value (&#147;NAV&#148;) of the Trust. Realized gains
 and losses on transfers of palladium to pay the Sponsor&#146;s Fee, or palladium
 distributed for the redemption of Shares s, are calculated on a trade date
 basis using average cost. The price for an ounce of palladium is set by four
 market making members of the LPPM at approximately 3:00 PM London Time.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Once the value of palladium has been determined, the NAV is computed
 by the Trustee by deducting all accrued fees and other liabilities of the
 Trust, including the remuneration due to the Sponsor (the &#147;Sponsor&#146;s Fee&#148;),
 from the fair value of the palladium and all other assets held by the Trust.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The table below summarizes the unrealized gains or losses on the
 Trust&#146;s palladium holdings as of December 31, 2010: </FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="81%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="14%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 </TR>

 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>December 31,<BR>
 2010</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Investment in palladium - average cost</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>597,199,695 </FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Unrealized gain on investment in palladium</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>264,284,781 </FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Investment in palladium - market value</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>861,484,476 </FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>F-7</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>ETFS PALLADIUM TRUST</B></FONT></P>

<P><FONT SIZE="4"><B>Notes to the Financial Statements</B> </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P ALIGN=JUSTIFY>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Significant Accounting Policies (continued)</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.1.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><I><B>Valuation
 of Palladium (continued)</B></I></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The Trust recognizes the diminution in value of the investment in
 palladium which arises from market declines on an interim basis. Increases in
 the value of the investment in palladium through market price recoveries in
 later interim periods of the same fiscal year are recognized in the later
 interim period. Increases in value recognized on an interim basis may not
 exceed the previously recognized diminution in value.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The per Share amount of palladium exchanged for
     a purchase or redemption is calculated daily by the Trustee, using the London
     PM Fix to calculate the palladium amount in respect of any liabilities for
     which covering palladium sales have not yet been made, and represents the
 per Share amount of palladium held by the Trust, after giving effect to its
 liabilities, to cover expenses and liabilities and any losses that may have
 occurred.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.2</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><I><B>Palladium
 Receivable or Payable</B></I></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Palladium receivable or payable represents the quantity of palladium
 covered by contractually binding orders for the creation or redemption of
 Shares respectively, where the palladium has not yet been transferred to or
 from the Trust&#146;s account. Generally, ownership of the palladium is
 transferred within three days of trade date.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>At December 31, 2010 there was $23,590,861 of palladium receivable.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.3.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><I><B>Creations
 and Redemptions of Shares</B></I></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The Trust expects to create and redeem Shares from time to time, but
 only in one or more Baskets (a Basket equals a block of 50,000&nbsp;Shares).
 The Trust issues Shares in Baskets to Authorized Participants on an ongoing
 basis. Individual investors cannot purchase or redeem Shares in direct
 transactions with the Trust. An Authorized Participant is a person who (1) is
 a registered broker-dealer or other securities market participant such as a
 bank or other financial institution which is not required to register as a
 broker-dealer to engage in securities transactions, (2) is a participant in
 The Depository Trust Company, (3) has entered into an Authorized Participant
 Agreement with the Trustee and the Sponsor, and (4) has established an
 Authorized Participant Unallocated Account with the Trust&#146;s Custodian or
 other palladium bullion clearing bank. An Authorized Participant Agreement is
 an agreement entered into by each Authorized Participant, the Sponsor and the
 Trustee which provides the procedures for the creation and redemption of
 Baskets and for the delivery of the palladium and any cash required for such
 creations and redemptions. An Authorized Participant Unallocated Account is
 an unallocated palladium account, either loco London or loco Zurich, established
 with the Custodian or a palladium bullion clearing bank by an Authorized
 Participant.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The creation and redemption of Baskets is only made in exchange for
 the delivery to the Trust or the distribution by the Trust of the amount of
 palladium represented by the Baskets being created or redeemed, the amount of
 which is based on the combined NAV of the number of Shares included in the
 Baskets being created or redeemed determined on the day the order to create
 or redeem Baskets is properly received. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Authorized Participants may, on any business day, place an order with
 the Trustee to create or redeem one or more Baskets. The typical settlement
 period for Shares is three business days. In the event of a trade date at
 period end, where a settlement is pending, a respective account receivable
 and/or payable will be recorded. When palladium is exchanged in settlement of
 redemption, it is considered a sale of palladium for financial statement
 purposes.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The Shares of the Trust are classified as &#147;Redeemable Capital Shares&#148;
 for financial statement purposes, since they are subject to redemption at the
 option of Authorized Participants. Outstanding Shares are reflected at
 redemption value, which represents the maximum obligation (based on NAV per
 Share), with the difference from historical cost recorded as an offsetting
 amount to retained earnings. Changes in the Shares for the period from
 December 30, 2009 (the &#147;Date of Inception&#148;) through December 31, 2010 are as
 follows:</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>F-8</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>ETFS PALLADIUM TRUST</B></FONT></P>

<P><FONT SIZE="4"><B>Notes to the Financial Statements</B> </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P ALIGN=JUSTIFY>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Significant Accounting Policies (continued)</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.3.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><I><B>Creations
 and Redemptions of Shares (continued)</B></I></FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="96%" STYLE="MARGIN-LEFT:4%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="81%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 <TD WIDTH="16%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P> </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>For the period <BR>
 December 30, 2009*<BR>
 through <BR>
 December 31, 2010</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>&nbsp;</TD>
 <TD VALIGN=TOP>&nbsp;</TD>
 <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>

 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2><U><B>Number of
 Redeemable Shares:</B></U></FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Opening balance</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Creations</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>13,050,000
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Redemptions</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(1,800,000</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Closing balance</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>11,250,000
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 </TD>
 <TD VALIGN=TOP>

  </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>For the period <BR>
 December 30, 2009*<BR>
 through <BR>
 December 31, 2010</B></FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2><U><B>Redeemable
 Shares:</B></U></FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Opening balance</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Creations</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>709,715,700
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Redemptions</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(102,026,579</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Adjustment to redemption
 value</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>276,948,726
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Closing balance</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>884,637,847
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

<P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Redemption
 value per Share at period end</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>$</FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>78.63
 </FONT></P> </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P> </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=LEFT>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
</TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>* <I>Date
 of Inception.</I></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.4.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Revenue Recognition Policy</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The primary expense of the Trust is the Sponsor&#146;s Fee, which is paid
 by the Trust through in-kind transfers of palladium to the Sponsor. With
 respect to expenses not otherwise assumed by the Sponsor, the Trustee will,
 at the direction of the Sponsor or in its own discretion, sell the Trust&#146;s
 palladium as necessary to pay these expenses. When selling palladium to pay
 expenses, the Trustee will endeavor to sell the smallest amounts of palladium
 needed to pay these expenses in order to minimize the Trust&#146;s holdings of
 assets other than palladium. Only if the sale transaction is made at the
 London PM Fix used by the Trustee to value the Trust&#146;s palladium. Unless
 otherwise directed by the Sponsor, when selling palladium the Trustee will
 endeavor to sell at the price established by the London PM Fix. The Trustee
 will place orders with dealers (which may include the Custodian) through
 which the Trustee expects to receive the most favorable price and execution
 of orders. The Custodian may be the purchaser of such palladium.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>A gain or loss is recognized based on the difference between the
 selling price and the average cost of the palladium sold. Neither the Trustee
 nor the Sponsor is liable for depreciation or loss incurred by reason of any
 sale.</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>F-9</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>ETFS PALLADIUM TRUST</B></FONT></P>

<P><FONT SIZE="4"><B>Notes to the Financial Statements</B> </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P ALIGN=JUSTIFY>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Significant Accounting Policies (continued)</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.5.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Income Taxes</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The Trust is classified as a &#147;grantor trust&#148; for
     U.S. federal income tax purposes. As a result, the Trust itself will not
     be subject to U.S. federal income tax. Instead, the Trust&#146;s income
     and expenses will &#147;flow
 through&#148; to the Shareholders, and the Trustee will report the Trust&#146;s
 proceeds, income, deductions, gains, and losses to the Internal Revenue
 Service on that basis. The Trust has adopted Financial Accounting Standards
 Board (&#147;FASB&#148;) Accounting Standards Codification (&#147;ASC&#148;)
 740-10, Income Taxes (formerly FASB Interpretation Number 48, Accounting for
 Uncertainty in Income Taxes). FASB ASC 740-10 prescribes a recognition threshold
 and a measurement attribute for the financial statement recognition and measurement
 of a tax position taken or expected to be taken in a tax return. FASB ASC 740-10
 also provides guidance on the related derecognition, classification, interest
 and penalties, accounting for interim periods, disclosure and transition of
 uncertain tax positions. The Sponsor has evaluated the effects of FASB ASC
 740-10 and has determined that it does not have a significant effect on the
 financial position or results of operations of the Trust.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.6.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Investment in Palladium</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The following represents the changes in ounces of palladium and the
 respective values for the period from the Date of Inception through December
 31, 2010:</FONT></P>
 </TD>
 </TR>
</TABLE>
<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="96%" STYLE="MARGIN-LEFT:4%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="79%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="16%" VALIGN=BOTTOM>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=2><B>For the period <BR>
 from <BR>
 December 30, 2009*<BR>
 through <BR>
 December 31, 2010</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2><B>Ounces of Palladium:</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Opening
 balance</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Creations <I>(excluding palladium
 receivable at December 31,2010 - 29,824.1)</I></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>1,272,055.2 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Redemptions</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(179,276.9</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Transfers of
 palladium</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>(3,670.2</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Closing
 balance</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>1,089,108.1 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

<P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2><B>Investment in Palladium (lower of cost or market):</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Opening
 balance</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Creations <I>(excluding palladium
 receivable at December 31,2010 - $23,590,861)</I></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>686,119,618 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Redemptions</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>(87,202,088</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>Transfers of
 palladium</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P ALIGN=RIGHT><FONT SIZE=2>(1,717,835</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
 <P><FONT SIZE=2>)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Closing
 balance</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>597,199,695 </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=3 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
  <TR STYLE="FONT-SIZE:1PX">
    <TD WIDTH="100%" VALIGN=TOP><P>&nbsp;</P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=LEFT>
    </TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P><FONT SIZE=2><I>* Date of Inception</I></FONT></P></TD>
  </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>F-10</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B> ETFS PALLADIUM TRUST</B></FONT></P>

<P><FONT SIZE="4"><B>Notes to the Financial Statements</B> </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P ALIGN=JUSTIFY>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Significant Accounting Policies (continued)</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.7.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Expenses</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The Trust will transfer palladium to the Sponsor to pay the Sponsor&#146;s
 Fee that will accrue daily at an annualized rate equal to 0.60% of the
 adjusted daily NAV of the Trust, paid monthly in arrears.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The Sponsor has agreed to assume administrative and marketing
 expenses incurred by the Trust, including the Trustee&#146;s monthly fee and out
 of pocket expenses, the Custodian&#146;s fee and the reimbursement of the
 Custodian&#146;s expenses, exchange listing fees, United States Securities and
 Exchange Commission (the &#147;SEC&#148;) registration fees, printing and mailing
 costs, audit fees and certain legal expenses. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>2.8.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Subsequent Events</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>In accordance with the provisions set forth in FASB ASC 855-10, <I>Subsequent
 Events</I>, the Trust&#146;s management has evaluated the possibility of
 subsequent events existing in the Trust&#146;s financial statements through the
 issuance date. Management has determined that there are no material events
 that would require adjustment to or disclosure in the Trust&#146;s financial
 statements through this date.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>3.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Related Parties</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The Sponsor and the Trustee are considered to be related parties to
 the Trust. The Trustee&#146;s fee is paid by the Sponsor and is not a separate
 expense of the Trust. The Trustee and the Custodian and their affiliates may
 from time to time act as Authorized Participants or purchase or sell
 palladium or Shares for their own account, as agent for their customers and
 for accounts over which they exercise investment discretion.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>For the period December 30, 2009 through December 31, 2010, the
 Sponsor&#146;s Fee was $2,350,928.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>At December 31, 2010 $437,490 was payable to the Sponsor.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>4.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Concentration of Risk</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The Trust&#146;s sole business activity is the investment in palladium,
 and substantially all the Trust&#146;s assets are holdings of palladium which
 creates a concentration risk associated with fluctuations in the price of
 palladium. Several factors could affect the price of palladium, including:
 (i)&nbsp;global palladium supply and demand, which is influenced by factors
 such as forward selling by palladium producers, purchases made by palladium
 producers to unwind palladium hedge positions, central bank purchases and
 sales, and production and cost levels in major palladium-producing countries;
 (ii)&nbsp;investors&#146; expectations with respect to the rate of inflation;
 (iii)&nbsp;currency exchange rates; (iv)&nbsp;interest rates;
 (v)&nbsp;investment and trading activities of hedge funds and commodity
 funds; and (vi)&nbsp;global or regional political, economic or financial
 events and situations. In addition, there is no assurance that palladium will
 maintain its long-term value in terms of purchasing power in the future. In
 the event that the price of palladium declines, the Sponsor expects the value
 of an investment in the Shares to decline proportionately. Each of these
 events could have a material effect on the Trust&#146;s financial position and
 results of operations.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B>5.</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2><B>Indemnification</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Under the Trust&#146;s organizational documents, each of the Trustee (and
 its directors, employees and agents) and the Sponsor (and its members,
 managers, directors, officers, employees, and affiliates) is indemnified by
 the Trust against any liability, cost or expense it incurs without gross
 negligence, bad faith or willful misconduct on its part and without reckless
 disregard on its part of its obligations and duties under the Trust&#146;s
 organizational documents.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>The Trust&#146;s maximum exposure under these arrangements is unknown as
 this would involve future claims that may be made against the Trust that have
 not yet occurred.</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>F-11</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>SIGNATURES</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned in the capacities* indicated thereunto duly authorized.</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="49%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETF
 SECURITIES USA LLC</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Sponsor of
 the ETFS Palladium Trust</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(Registrant)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2> </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>/s/ Graham
 Tuckwell</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="50%" NOSHADE COLOR=BLACK ALIGN=LEFT>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Graham
 Tuckwell</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>President
 and Chief Executive Officer </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(Principal
 Executive Officer)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Date: March 28,
 2011</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>/s/ Thomas
 Quigley</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="50%" NOSHADE COLOR=BLACK ALIGN=LEFT>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Thomas
 Quigley</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Chief
 Financial Officer and Treasurer</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(Principal
 Financial Officer and Principal Accounting Officer)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Date: March 28,
 2011</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>* The
Registrant is a trust and the persons are signing in their capacities as officers
of ETF Securities USA LLC, the Sponsor of the Registrant.</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.2
<SEQUENCE>2
<FILENAME>c64628_ex4-2.htm
<TEXT>
<HTML>
<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P ALIGN=RIGHT><FONT SIZE=2><B>Exhibit 4.2</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>AUTHORIZED
PARTICIPANT AGREEMENT</B></FONT></P>

<P><FONT SIZE=1>&nbsp;</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AUTHORIZED
PARTICIPANT AGREEMENT (this &#147;Agreement&#148;) dated as of [DATE] among (i)
[AUTHORIZED PARTICIPANT], a [company] organized under the laws of [JURISDICTION
OF AP] (the &#147;<B>Authorized Participant</B>&#148;), (ii) The Bank of New York Mellon, a
New York Banking corporation acting in its capacity as trustee (in such
capacity, the &#147;<B>Trustee</B>&#148;) of the Trust(s) listed on the attached Schedule A,
which is a part of this Agreement (each a &#147;<B>Trust</B>&#148; and collectively, the &#147;<B>Trusts</B>&#148;),
each Trust created under New York law pursuant to its respective Depositary
Trust Agreement identified on the attached Schedule A (each a &#147;<B>Trust
Agreement</B>&#148; and collectively, the &#147;<B>Trust Agreements</B>&#148;), and (iii)
ETF Securities USA LLC, in its capacity as sponsor of each Trust (in such
capacity, the &#147;<B>Sponsor</B>&#148;).</FONT></P>

<P ALIGN=CENTER><FONT SIZE="2">RECITALS </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant
to the provisions of the applicable Trust Agreements, each Trust may from time
to time issue or redeem equity securities representing an interest in the assets
of such Trust (&#147;<B>Shares</B>&#148;), in each case only in aggregate amounts as set out in
Schedule A (such aggregate amount, a &#147;<B>Basket</B>&#148;), and integral multiples thereof,
and only in transactions with a party who, at the time of the transaction,
shall have signed and in effect an Authorized Participant Agreement with such
Trust.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.
[AUTHORIZED PARTICIPANT] has requested to become an &#147;Authorized Participant&#148;
with respect to each Trust (as such term is defined in the applicable Trust
Agreement), and the Sponsor and the Trustee have agreed to such request.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the foregoing premises, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
parties, hereto, intending to be legally bound, agree as follows: </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <U>Procedures</U>.
The Authorized Participant will purchase or redeem Baskets of Shares of the
relevant Trust in compliance with the relevant Trust Agreement as supplemented
by the Creation and Redemption Procedures attached to this Agreement as
Schedule 1 (such procedures, as the same may be amended or modified from time
to time in compliance with the provisions hereof and thereof, the &#147;<B>Procedures</B>&#148;),
using either (i) the form attached thereto as Annex I (a &#147;<B>Purchase</B> <B>Order</B>&#148;, in the case of an
order to purchase one or more Baskets of Shares issued by a specified Trust and
a &#147;<B>Redemption
Order</B>&#148;, in case of an order to redeem one or more Baskets of Shares
issued by a specified Trust) or (ii) through the Trustee&#146;s electronic order entry
system, as such may be made available and constituted from time to time, the
use of which shall be subject to the terms and conditions attached thereto as
Annex II. All Purchase Orders and Redemption Orders (collectively, &#147;<B>Orders</B>&#148;)
shall be placed and executed in accordance with the relevant Trust Agreement as
supplemented by the Procedures. Capitalized terms used in this Agreement and
not otherwise defined herein have the meaning ascribed to them in the
Procedures. </FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2. <U>Incorporation
of Standard Terms</U>. The Standard Terms attached hereto as Schedule 2 are
hereby incorporated by reference into, and made a part of, this Agreement.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3. <U>Conflicts
Rules</U>. In case of any inconsistency between the provisions of this
Agreement and an applicable Trust Agreement, the provisions of such Trust
Agreement shall control. In case of inconsistency between the provisions
incorporated by reference into this Agreement pursuant to Section 2 above and
any other provision of this Agreement, the latter will control.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4. <U>Authorized
Representatives</U>. Pursuant to Section 2.01 of the Standard Terms, attached
hereto as Schedule 3-A is a certificate listing the Authorized Representatives
of the Authorized Participant.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5. <U>Additional
Covenants</U>. The Authorized Participant covenants and agrees: </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To use
its best efforts to ensure that any Delivery of applicable Bullion to the
Custodian, or any withdrawal of applicable Bullion from the appropriate Trust,
in connection with a Purchase Order or Redemption Order placed by the
Authorized Participant will take place only through one or more members of the
London Bullion Market Association and/or the London Platinum and Palladium
Market as appropriate under the terms of the applicable Trust Agreement.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Promptly upon written demand therefore (accompanied by such reasonable evidence
as the Authorized Participant may request), to reimburse the relevant Trust or
the Custodian the amount of any taxes (including value added taxes) that may be
imposed on the relevant Trust or the Custodian in connection with any Delivery
of Bullion by or on behalf of the Authorized Participant to the Custodian (in
the case of a Purchase Order placed by the Authorized Participant), or any
Delivery of Bullion to or for the account of the Authorized Participant (in the
case of a Redemption Order placed by the Authorized Participant).</FONT></P>

<P ALIGN="JUSTIFY"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
6. <U>Notices</U>. Except as otherwise specifically provided in the Procedures,
all notices required or permitted to be given pursuant hereto shall be given in
writing and delivered by personal delivery or by postage prepaid registered or
certified United States first class mail, return receipt requested, or by telex
or facsimile (with a confirming copy by mail) addressed as follows: </FONT></P>



<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
<TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>

<TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(i) If to
 the Trustee: </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><BR>The Bank of
 New York Mellon </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>2 Hanson
 Place &#151; Floor 9th </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Brooklyn, NY
 11217 </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Attn: Jarvis
 Joseph </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Telephone:
 (718) 315-7500 </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Facsimile:
 (732) 667-9478</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>E-Mail: jarvis.joseph@bnymellon.com </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(ii) If to
 the Sponsor:</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETF Securities USA LLC </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>c/o ETF
 Securities Limited </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Ordnance
 House</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>2</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>31 Pier Road</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Jersey</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>JE4 8PW</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Channel
 Islands</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Attn: Legal
 and Compliance </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Telephone:
 +44 1543 825 200</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Facsimile:
 [to be provided]</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>E-Mail:
 legal.compliance@etfsl.com </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><BR>(iii) If to
 the Authorized Participant: </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>[AUTHORIZED
 PARTICIPANT]</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Attn:</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>[AP&#146;S
 ADDRESS]</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Telephone:</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Facsimile:</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Telex:</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>or such other
address as any of the parties hereto shall have communicated in writing to the
remaining parties in compliance with the provisions hereof.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7. <U>Effectiveness,
Termination and Amendment</U>. This Agreement shall become effective upon
execution and delivery by each of the parties hereto. This Agreement may be
terminated at any time by any party upon sixty days prior written notice to the
other parties and may be terminated earlier by the Trustee or the Sponsor at
any time on the event of a breach by the Authorized Participant of any provision
of this Agreement (including the Standard Terms incorporated by Section 2
hereof) or the Procedures. This Agreement, along with any other agreement or
instrument delivered pursuant to this Agreement, supersedes any prior agreement
between or among the parties concerning the matters governed hereby. This
Agreement may be amended by the Trustee and the Sponsor from time to time
without the consent of the Authorized Participant or any Beneficial Owner by
the following procedure: the Trustee or the Sponsor will mail a copy of the
amendment to the Authorized Participant in compliance with the notice
provisions of this Agreement; if the Authorized Participant does not object in
writing to the amendment within fifteen (15) Business Days after receipt of the
proposed amendment, the amendment will become part of this Agreement in
accordance with its terms. Titles and section headings in this Agreement (and
in the Standard Terms incorporated by Section 2 hereof and the Procedures) are
included solely for convenient reference and are not a part of this Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8. <U>Governing
Law</U>. This Agreement and all the transactions hereunder shall be governed by
and interpreted in accordance with the laws of the State of New York
(regardless of the laws that might otherwise govern under applicable New York
conflict law principles) as to all matters including matters of validity,
construction, effect, performance and remedies. The parties irrevocably submit
to the non-exclusive jurisdiction of any New York State or United States
Federal court sitting in New York City over any suit, action or proceeding
arising out of, or relating to, this Agreement.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9. <U>Assignment</U>.
No party to this Agreement shall assign any rights, or delegate the performance
of any obligations, arising hereunder without the prior written consent of the
other parties</FONT></P>

<P ALIGN=JUSTIFY></P>

<P ALIGN=CENTER><FONT SIZE=2>3</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>hereto, which shall not be unreasonably withheld; provided, that any
entity into which a party hereto may be merged or converted, or with which it
may be consolidated, or any entity resulting from any merger, consolidation or
conversion to which a party hereunder shall be a party, shall be the successor
of such party hereto. The party resulting from any such merger, conversion,
consolidation or succession shall promptly notify the other parties hereto of
the change. Any purported assignment or delegation in violation of these
provisions shall be null and void. Notwithstanding the foregoing, any successor
Trustee appointed in compliance with the applicable Trust Agreement shall
automatically become a party hereto and shall assume all the obligations, and
be entitled to all the rights and remedies of the Trustee hereunder with
respect to the applicable Trust.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.
<U>No Strict Construction</U>. The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rule of strict construction will be applied against any party.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.
<U>Counterparts</U>. This Agreement may be executed in several counterparts,
each of which shall be an original and all of which shall constitute but one
and the same instrument.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>[<I>Signatures
Follow on Next Page</I>]</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>4</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>,
the parties hereto have executed this Authorized Participant Agreement as of the
date set forth above.</FONT></P>



<P><FONT SIZE=2><B>THE BANK OF NEW YORK
MELLON</B>, in its capacity as <BR>
Trustee of the Trusts listed on Schedule A hereto</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX" >
 <TD WIDTH="2%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="43%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=2>By:</FONT></P>
 </TD>
 <TD COLSPAN=3 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=2>Name: </FONT></P>
 </TD>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=2>Title: </FONT></P>
 </TD>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=2>Date: </FONT></P>
 </TD>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>ETF SECURITIES USA
LLC</B>, in its capacity as <BR>
Sponsor of the Trusts listed on Schedule A hereto</FONT></P>


<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="2%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="43%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=2>By:</FONT></P>
 </TD>
 <TD COLSPAN=3 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=2>Name: </FONT></P>
 </TD>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=2>Title: </FONT></P>
 </TD>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=2>Date: </FONT></P>
 </TD>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B> [AUTHORIZED
PARTICIPANT] </B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX" >
 <TD WIDTH="2%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="43%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=2>By:</FONT></P>
 </TD>
 <TD COLSPAN=3 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=2>Name: </FONT></P>
 </TD>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=2>Title: </FONT></P>
 </TD>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR HEIGHT=15 STYLE='HEIGHT:11.25PT'>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=2>Date: </FONT></P>
 </TD>
 <TD COLSPAN=2 HEIGHT=15 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>


<P ALIGN=CENTER><FONT SIZE=2>5</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>SCHEDULE A &#150; APPLICABLE TRUSTS</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="95%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS Silver
 Trust, a trust created under New York law pursuant to that certain Depositary
 Trust Agreement between the Trustee and the Sponsor, as may be amended from
 time to time. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS Gold
 Trust, a trust created under New York law pursuant to that certain Depositary
 Trust Agreement between the Trustee and the Sponsor, as may be amended from
 time to time. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS
 Platinum Trust, a trust created under New York law pursuant to that certain
 Depositary Trust Agreement between the Trustee and the Sponsor, as may be
 amended from time to time. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS
 Palladium Trust, a trust created under New York law pursuant to that certain
 Depositary Trust Agreement between the Trustee and the Sponsor, as may be
 amended from time to time. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS
 Precious Metals Basket Trust, a trust created under New York law pursuant to
 that certain Depositary Trust Agreement between the Trustee and the Sponsor,
 as may be amended from time to time. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS White
 Metals Basket Trust, a trust created under New York law pursuant to that
 certain Depositary Trust Agreement between the Trustee and the Sponsor, as
 may be amended from time to time. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS Asian
 Gold Trust, a trust created under New York law pursuant to that certain
 Depositary Trust Agreement between the Trustee and the Sponsor, as may be
 amended from time to time. </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2><I> [Delivery Locations, Basket Sizes and Bullion
Ounces per Share on Next Page]</I></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>6</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>DELIVERY LOCATIONS, BASKET SIZES <BR>
AND BULLION OUNCES PER SHARE</B></FONT></P>

<P><FONT SIZE=2>Description of
Delivery and Basket Sizes: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="96%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="36%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="24%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="14%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="20%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Delivery of Bullion</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P align=center><FONT SIZE=2>Shares Per Basket</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P align=center><FONT SIZE=2>Oz. per Share at Inception</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS Physical Silver
 Shares</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Loco-London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>100,000</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>1.0
 (Silver)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS Physical Swiss Gold
 Shares</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Loco-Zurich/London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>50,000</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>0.1
 (Gold)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS Physical Platinum
 Shares</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Loco-Zurich/London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>50,000</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>0.1
 (Platinum)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS Physical Palladium
 Shares</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Loco-Zurich/London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>50,000</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>0.1
 (Palladium)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>0.03
 (Gold) &amp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS Physical PM Basket
 Shares</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Loco-London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>50,000</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>1.1
 (Silver);</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Loco-Zurich/London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>0.004
 (Platinum) &amp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>0.006(Palladium)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS Physical WM Basket Shares</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Loco-London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>50,000</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>1.0
 (Silver);</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Loco-Zurich/London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>0.01
 (Platinum) &amp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>0.008
 (Palladium)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>ETFS Physical Asian Gold
 Shares</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Loco-London/Singapore</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>50,000</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>0.1
 (Gold)</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>7</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>SCHEDULE 1- CREATION AND REDEMPTION
PROCEDURES</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>8</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>TABLE OF CONTENTS - SCHEDULE 1</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="13%" VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
 </TD>
 <TD WIDTH="78%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>Page</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>ARTICLE I
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Section 1.01</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Definitions</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>2</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Section 1.02</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Interpretation</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>6</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>ARTICLE II
 CREATION PROCEDURES</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Section 2.01</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Initial
 Creation of Shares</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>7</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Section 2.02</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Subsequent
 Creation of Shares</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>7</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>ARTICLE III
 REDEMPTION PROCEDURES</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Section 3.01</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Redemption
 of Shares</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>9</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>ANNEX I TO
 CREATION AND REDEMPTION PROCEDURES</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Creation/Redemption Order Form</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>14</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>ANNEX II TO
 CREATION AND REDEMPTION PROCEDURES</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Order Entry System Terms and Conditions</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>16</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT; TEXT-INDENT:-8.65PT'><FONT SIZE=2>S1-1</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>SECOND AMENDED AND RESTATED <BR>
CREATION AND REDEMPTION PROCEDURES</B></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adopted by
the Sponsor and Trustee (each as defined below) as of September 27, 2010 </FONT></P>

<P ALIGN=center><FONT SIZE=2>ARTICLE I</FONT></P>

<P ALIGN=center><FONT SIZE=2>DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.01.<u> Definitions</u>. For purposes of these Procedures, and the Standard Terms
incorporated by reference into the Authorized Participant Agreement to which
these Procedures are attached, unless the context otherwise requires, the
following terms will have the following meanings: </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>1933 Act</B> &#148;means the
U.S. Securities Act of 1933, as amended. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Affiliate</B>&#148;shall
have the meaning given to it by Rule 501(b) under the 1933 Act. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>AP Indemnified Party</B>&#148;
shall have the meaning ascribed to such term in Section 6.01.a of the Standard
Terms. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Authorized Participant</B>&#148;shall
have the meaning ascribed to the term in the introductory paragraph of the
Authorized Participant Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Authorized Participant Agreement</B>&#148;
shall mean each Authorized Participant Agreement among the Authorized
Participant, the Trustee and the Sponsor into which these Creation and
Redemption Procedures are attached as Schedule 1 and the Standard Terms and
Conditions attached as Schedule 2 shall have been incorporated by reference. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Authorized Participant Client</B>&#148;
means any party on whose behalf the Authorized Participant acts in connection
with an Order (whether a customer or otherwise). </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Authorized Representative</B>&#148;
shall mean, with respect to an Authorized Participant, each individual who,
pursuant to the provisions of the Authorized Participant Agreement between such
Authorized Participant, the Sponsor, and the Trustee, has the power and
authority to act on behalf of the Authorized Participant in connection with the
placement of Purchase Orders or Redemption Orders and is in possession of the
personal identification number (PIN) assigned by the Trustee for use in any
communications regarding Purchase or Redemption Orders on behalf of such
Authorized Participant. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Basket</B>&#148; shall have
the meaning ascribed to the term in Section 1.1 of the relevant Trust
Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Basket Amount</B>&#148;
shall mean the specific basket amount term defined in Section 1.1 of the
relevant Trust Agreement (e.g., the &#147;Basket Silver Amount&#148; in the case of the
ETFS Silver Trust; </FONT></P>

<P ALIGN=center><FONT SIZE=2>S1-2</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>the &#147;Basket Gold Amount&#148; in the case of the ETFS Gold Trust and the ETFS
Asian Gold Trust; the &#147;Basket Platinum Amount&#148; in the case of the ETFS Platinum
Trust; the &#147;Basket Palladium Amount&#148; in the case of the ETFS Palladium Trust;
and the &#147;Basket Bullion Amount&#148; in the case of the ETFS Precious Metals Basket
Trust and the ETFS White Metals Basket Trust). </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Benchmark Price</B>&#148;
shall have the meaning ascribed to the term in Section 1.1 of the relevant
Trust Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Beneficial Owner</B>&#148;
shall have the meaning given to it by Rule 16a-1(a)(2) of the Securities
Exchange Act of 1934. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Bullion</B>&#148; shall mean
Silver, Gold, Platinum and/or Palladium as appropriate. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Business Day</B>&#148; shall
mean, if and as applicable, (i) each day the exchange on which the relevant
Shares trade is open for regular trading, and/or (ii) a London Business Day, and/or
(iii) a Zurich Business Day, and/or (iv) a Singapore Business Day. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Creation</B>&#148; means the
process that begins when an Authorized Participant first indicates to the
Trustee its intention to purchase one or more Baskets of a specified Trust
pursuant to these Procedures and concludes with the issuance by the Trustee and
Delivery to such Authorized Participant of the corresponding number of that
Trust&#146;s Shares. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Creation and Redemption Line</B>&#148;
shall mean a telephone number designated as such by the Trustee and specified
in Annex I of the Procedures or otherwise communicated to each Authorized
Participant in compliance with the notice provisions of the respective
Authorized Participant Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Custodial Allocated Account&#148; </B>shall
mean the allocated bullion account established by the Trustee with the
Custodian pursuant to the relevant Custodian Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Custodial Unallocated Account</B>&#148;
shall mean the unallocated bullion account established by the Trustee with the
Custodian pursuant to the relevant Custodian Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Custodian</B>&#148; shall
mean, with respect to the ETFS Silver Trust, HSBC Bank USA National
Association, London Branch and, with respect to the ETFS Gold Trust, the ETFS
Platinum Trust, the ETFS Palladium Trust, the ETFS Precious Metals Basket Trust,
the ETFS White Metals Basket Trust and the ETFS Asian Gold Trust, JPMorgan
Chase Bank, N.A., each in their capacity as custodian under the Custodian
Agreements and any successor thereto or additional or other custodian appointed
in compliance with the provisions of the relevant Trust Agreements and relevant
Custodian Agreement(s). </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Custodian Agreement</B>&#148;
or <B>&#147;Custodian Agreements</B>&#148; shall
mean the applicable Custodian Agreement by and between the Trustee and the
Custodian with respect to the applicable Trust. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Delivery</B>&#148; shall
mean a delivery of Bullion or Shares, as applicable, in each case effected
according to the definition of &#147;Deliver&#148; in Section 1.1 of the relevant Trust
Agreement. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-3</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2><B> &#147;Depositor&#148;</B> shall
mean any Authorized Participant that deposits Bullion into the relevant Trust,
either for its own account or on behalf of another Person that is the owner or
beneficial owner of that Bullion. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Deposit Property</B>&#148;
means property which, in compliance with the provisions of the relevant Trust
Agreement, must be transferred by the Authorized Participant to the relevant
Trust in exchange for that Trust&#146;s Shares. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>DTC</B>&#148; shall mean The
Depository Trust Company, its nominees and their respective successors. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>FINRA</B>&#148; means the
Financial Industry Regulatory Authority. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Gold</B>&#148; shall have
the meaning ascribed to the term in Section 1.1 of the Trust Agreements of the
ETFS Gold Trust, the ETFS Precious Metals Basket Trust and the ETFS Asian Gold
Trust, as applicable, relating to gold. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Initial Creation</B>&#148;
shall mean the initial creation of Shares pursuant to the provisions of Section
2.01 hereof. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>LBMA</B>&#148; shall mean
the London Bullion Market Association. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>London Business Day</B>&#148;
shall mean a day (other than a Saturday, Sunday or a public holiday in England)
on which commercial banks generally and the over-the-counter markets in silver,
with respect to ETFS Silver Trust, the ETFS Precious Metals Basket Trust and
the ETFS White Metals Basket Trust, and gold, with respect to the ETFS Gold
Trust, the ETFS Precious Metals Basket Trust and the ETFS Asian Gold Trust,
each as coordinated by the LBMA, and in platinum, with respect to the ETFS
Platinum Trust, the ETFS Precious Metals Basket Trust and the ETFS White Metals
Basket Trust, and palladium, with respect to the ETFS Palladium Trust, the ETFS
Precious Metals Basket Trust and the ETFS White Metals Basket Trust, each as
coordinated by the LPPM, are open for the transaction of business in London. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>LPPM</B>&#148; shall mean
the London Platinum and Palladium Market. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Order</B>&#148; shall have
the meaning ascribed to it in Section 1 of the Authorized Participant
Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Order Cutoff Time</B>&#148;
shall have the meaning ascribed to the term in Section 1.1 of the relevant
Trust Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Order Date</B>&#148; shall
have, (i) with respect to a Purchase Order, the meaning ascribed to the term in
Section 2.3(a) of the relevant Trust Agreement; and (ii) with respect to a
Redemption Order, the meaning ascribed to the term in Section 2.6(a) of the
relevant Trust Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &#147;<B>Ounce</B>&#148; shall have
the meaning ascribed to the term in Section 1.1 of the relevant Trust
Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>S1-4</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Palladium</B>&#148; shall have the
meaning ascribed to the term in Section 1.1 of the Trust Agreements of the ETFS
Palladium Trust, the ETFS Precious Metals Basket Trust and the ETFS White
Metals Trust, as applicable, relating to palladium. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Person</B>&#148; shall mean any
natural person or any limited liability company, corporation, partnership,
joint venture, association, joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Platinum</B>&#148; shall have the
meaning ascribed to the term in Section 1.1 of the Trust Agreements of the ETFS
Platinum Trust, the ETFS Precious Metals Basket Trust and the ETFS White Metals
Trust, as applicable, relating to platinum. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Procedures</B>&#148; shall have
the meaning ascribed to it in Section 1 of the Authorized Participant
Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Prospectus</B>&#148; or &#147;<B>Prospectuses</B>&#148; means the current prospectus
of the relevant Trust included in its effective registration statement, as
supplemented or amended from time to time. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Purchase Order</B>&#148; shall
have the meaning ascribed to it in Section 1 of the Authorized Participant
Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Redemption Order</B>&#148; shall
have the meaning ascribed to it in Section 1 of the Authorized Participant
Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Shares</B>&#148; means Shares
issued by the relevant Trust pursuant to the provisions of the relevant Trust
Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Silver</B>&#148; shall have the
meaning ascribed to the term in Section 1.1 of the Trust Agreements of the ETFS
Silver Trust, the ETFS Precious Metals Basket Trust and the ETFS White Metals
Trust, as applicable, relating to silver. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Singapore Business Day</B>&#148;
shall mean a day (other than a Saturday, Sunday or a public holiday in
Singapore) on which commercial banks generally and the over-the-counter markets
in gold, with respect to the ETFS Asian Gold Trust, are open for the
transaction of business in Singapore.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Sponsor</B>&#148; shall mean ETF
Securities USA LLC, a Delaware limited liability company. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Sponsor Indemnified Party</B>&#148;
shall have the meaning ascribed to such term in Section 6.01.b of the Standard
Terms. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Trustee</B>&#148; shall mean The
Bank of New York Mellon, a New York banking corporation, in its capacity as
Trustee under each Trust Agreement, and any successor thereto in compliance
with the provisions thereof. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-5</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Trust</B>&#148; or &#147;<B>Trusts</B>&#148; shall have the meanings ascribed to
them in the introductory paragraph of the Authorized Participant Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Trust Agreement</B>&#148; or &#147;<B>Trust Agreements</B>&#148; shall have the meanings
ascribed to them in the introductory paragraph of the Authorized Participant
Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Unallocated Basis</B>&#148; shall
have the meaning ascribed to the term in Section 1.1 of the relevant Trust
Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>VAT</B>&#148; shall mean (a) any
tax imposed pursuant to or in compliance with the Sixth Directive of the
Council of the European Economic Communities (77/388/EEC) including, in
relation to the United Kingdom, value added tax imposed by the Value Added Tax
Act 1994 and legislation and regulations supplemental thereto; and (b) any
other tax of a similar nature, whether imposed in a member state of the
European Union or elsewhere, in substitution for, or levied in addition to,
such tax referred to in &#147;(a)&#148;. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&#147;<B>Zurich Business Day</B>&#148;
shall mean a day (other than a Saturday, Sunday or a public holiday in
Switzerland) on which commercial banks generally and the over-the-counter
markets in gold, with respect to the ETFS Gold Trust, platinum, with respect to
the ETFS Platinum Trust, the ETFS Precious Metals Basket Trust and the ETFS
White Metals Basket Trust, and palladium, with respect to the ETFS Palladium
Trust, the ETFS Precious Metals Basket Trust and the ETFS White Metals Basket
Trust, are open for the transaction of business in Zurich.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.02. <U>Interpretation</U>. In these Procedures: </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise indicated, all references to Sections, clauses, paragraphs, schedules
or exhibits, are to Sections, clauses, paragraphs, schedules or exhibits in or
to these Procedures. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the
extent that term(s) defined in Section 1.01 apply to a Trust that has not
commenced operations as of any relevant date and such Trust is listed or to be
listed on Schedule A of the Authorized Participant Agreement, such term(s)
shall not be operative and any provisions relating to such a Trust and its
Shares contained in the Authorized Participant Agreement shall have no effect until
such Trust commences operations and its Trust Agreement and applicable
Custodian Agreement have been executed and delivered whereupon such terms and
provisions shall become automatically operative and effective without any
further action by the parties to the Authorized Participant Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The words
&#147;hereof&#148;, &#147;herein&#148;, &#147;hereunder&#148; and words of similar import shall refer to
these Procedures as a whole, and not to any individual provision in which such
words may appear. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
reference to any statute, law, decree, rule, regulation or other applicable
norm shall be construed as a reference to such statute, law, decree, rule,
regulation or other applicable norm as re-enacted, re-designated or amended
from time to time. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-6</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
reference to any agreement, instrument or document shall be construed as a
reference to such agreement, instrument or document as the same may have been
amended from time to time in compliance with the provisions thereof. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>ARTICLE II</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>CREATION PROCEDURES</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.01. <U>Initial Creation of Shares</U>. The initial creation of Shares of a
Trust will take place in compliance with such procedures as the Trustee, the
Sponsor and the initial Depositor may agree. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.02. <U>Subsequent Creation of Shares</U>. After the Initial Creation, the
issuance and Delivery of Shares of a specified Trust shall take place only in
integral numbers of Baskets in compliance with the following rules: </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.
Authorized Participants wishing to acquire from the Trustee one or more Baskets
shall place a Purchase Order with the Trustee no later than 3:59:59 p.m. (New
York time) on any Business Day. Purchase Orders received by the Trustee on or
after the Order Cutoff Time on a Business Day shall be considered received at
the opening of business on the next Business Day and shall have as their Order
Date such next Business Day.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For
purposes of Section 2.02a. above, a Purchase Order shall be deemed &#147;received&#148;
by the Trustee only when either of the following has occurred no later than
3:59:59 p.m. (New York time): </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
 Telephone/fax Order &#150; An Authorized Representative shall have placed a
 telephone call to the Trustee&#146;s Creation and Redemption Line and has received
 an Order Number from the Trustee for insertion in the Purchase Order, or </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
Web-based Order &#150; An Authorized Representative shall have accessed the
 Trustee&#146;s online services (www.etfservices.bankofny.com) </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>in either case informing the Trustee that the Authorized Participant
wishes to place a Purchase Order for a specified number of Baskets and, in the
case of a telephone order, within 15 minutes following such telephone call the
Trustee shall have received a properly completed, irrevocable Purchase Order in
the form set out in Annex I to these Procedures executed by an Authorized
Representative of such Authorized Participant, via facsimile at the number
specified in such Annex I. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The Trustee shall provide a written summary to
the Sponsor and the Custodian of all accepted Purchase Orders for such Order
Date no later than 5:30 p.m. (New York time). </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. As soon as reasonably practicable following
receipt of a properly completed Purchase Order but not later than 5:30 p.m.
(New York time) on the Order Date for such Purchase Order, the Trustee shall
send to the Authorized Participant (with copy to the </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-7</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>Custodian), via facsimile or electronic mail message, a copy of the
corresponding Purchase Order endorsed &#147;Accepted&#148; by the Trustee and indicating
the Basket Amount that the Authorized Participant shall Deliver to the
Custodian in respect of each Basket. Prior to the transmission of the Trustee&#146;s
acceptance as specified above, a Purchase Order will only represent the
Authorized Participant&#146;s unilateral offer to deposit Bullion in exchange for
Baskets of Shares and will have no binding effect upon the Trust or any other
party. Following the transmission of the Trustee&#146;s acceptance as specified
above, a Purchase Order will be a binding agreement among the Trust and the
Authorized Participant for the creation and purchase of Baskets of Shares and
the deposit of Bullion pursuant to the terms of the Purchase Order and these
Procedures. If a Purchase Order is rejected, the Trustee shall send to the Authorized
Participant (with copy to the Custodian), via facsimile or electronic mail
message, as soon as reasonably practicable, but not later than 5:30 p.m. (New
York time) on the Order Date for such Purchase Order, a copy of the
corresponding Purchase Order endorsed &#147;Declined&#148; by the Trustee and indicating
the reason. The preceding sentence notwithstanding, Purchase Orders not
accepted by 5:30 p.m. (New York time) on the Order Date shall be deemed
cancelled. A Purchase Order which is not properly completed will be deemed
invalid and rejected by the Trustee; the Authorized Participant may submit a
corrected Purchase Order within the time period specified in Section 1.09 of
the Standard Terms. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Each Purchase Order shall settle on the third
Business Day following the Order Date. The Basket Amount corresponding to each
Basket must be deposited in the Custodial Unallocated Account in unallocated
Bullion (i) loco London with respect to Silver for the ETFS Silver Trust, the
ETFS Precious Metals Basket Trust and the ETFS White Metals Basket Trust, (ii)
loco London with respect to Gold for the ETFS Precious Metals Basket Trust,
(iii) loco Zurich or loco London with respect to Gold for the ETFS Gold Trust,
(iv) loco Zurich or loco London with respect to Platinum and Palladium for the
ETFS Platinum Trust, the ETFS Palladium Trust, the ETFS Precious Metals Basket
Trust and the ETFS White Metals Basket Trust, and (v) loco Singapore or loco
London with respect to Gold for the ETFS Asian Gold Trust, , no later than
11:00 a.m. (London time) on the third Business Day following the Order Date.
With respect to Gold for the ETFS Gold Trust and the ETFS Asian Gold Trust and
where the Authorized Participant elects loco London, the Authorized Participant
must first agree to the cost of the loco swap with the Custodian and reimburse
the Custodian for any amount owed under such swap. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The Custodian shall advise the Trustee in
writing of the deposits made to the Custodial Allocated Account in connection
with each Purchase Order. Upon receipt of such advice, the Trustee shall
determine whether a deposit of Bullion required to be made pursuant to Section
2.02e. has not been noted as deposited in the Trustee&#146;s Custodial Unallocated
Account. In such event, the Trustee shall, by the Trustee&#146;s close of business
on the second Business Day following the Order Date, (i) send to the Custodian,
via electronic mail message, a request that the Custodian confirm that the
Custodian did not receive the anticipated deposit of Bullion, and (ii) send to
the Authorized Participant whose deposit was not received, via facsimile at the
facsimile number specified by the Authorized Participant in the Purchase Order,
a concurrent copy of such request. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. On the third Business Day following the Order
Date corresponding to a Purchase Order, or on such earlier date and time as the
Trustee in its absolute discretion may agree with </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-8</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>the Authorized Participant, the Trustee shall issue the aggregate
number of Shares corresponding to the Baskets ordered by the Authorized
Participant and Deliver them, by credit to the account at DTC which the
Authorized Participant shall have identified for such purpose in its Purchase
Order, provided that, by 9:00 a.m. (New York time) on the date such issuance
and Delivery is to take place: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Custodian shall have reported in writing to the Trustee that the
 corresponding required amount of Bullion has been deposited in the Trustee&#146;s
 Custodial Unallocated Account in compliance with the provisions of Section
 2.02e. above and </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Authorized Participant shall have paid or agreed to pay the Trustee a per
 order transaction fee in the amount of US$500, if applicable. </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. In all other cases, the Trustee shall issue
the aggregate number of Shares corresponding to the Baskets ordered by the
Authorized Participant and Deliver them by credit to the account at DTC which
the Authorized Participant shall have identified for such purpose in its
Purchase Order on the Business Day following the date on which all of the
conditions set forth in clauses (i) and (ii) of Section 2.02g. above shall have
been met. In the event that, by 11:00 a.m. (New York time) on the third
Business Day following the Order Date of a Purchase Order, the Trustee&#146;s
Custodial Unallocated Account shall not have been credited with the required
amount of Bullion in compliance with the provisions of section 2.02e. above,
the Trustee shall send to the Authorized Participant and the Custodian via fax
or electronic mail message notice of such fact and the Authorized Participant
shall have two (2) Business Days following receipt of such notice to correct
such failure. If such failure is not cured within such two (2) Business Day
period, the Trustee shall, unless the Sponsor shall otherwise direct, cancel
such Purchase Order and will send via fax or electronic mail message notice of
such cancellation to the Authorized Participant and the Custodian, and the
Authorized Participant will be solely responsible for all costs incurred by the
Trust, the Trustee or the Custodian related to the cancelled Order.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The foregoing provisions notwithstanding,
neither the Trustee nor the Custodian shall be liable for any failure or delay
in making Delivery of Shares in respect of a Purchase Order arising from
nuclear fission or fusion, radioactivity, war, terrorist event, invasion,
insurrection, civil commotion, riot, strike, act of government, public
authority, public service or utility problems, power outages resulting in
telephone, telecopy and computer failures, act of God such as fires, floods,
extreme weather conditions, market conditions or activities causing trading
halts, systems failures involving computer or other information systems
affecting a Trust, the Trustee, the Custodian or sub-custodian, metal clearing
bank delays and similar extraordinary events beyond the Trustee&#146;s control. In
the event of any such delay, the time to complete Delivery in respect of a
Purchase Order will be extended for a period equal to that during which the
inability to perform continues. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Except as provided in Sections 2.02d., 2.02f.
and 2.02h., none of the Trustee, the Sponsor, the Custodian, nor any
sub-custodian are under any duty, to give notification of any defects or
irregularities in any Purchase Order or the delivery of the Basket Amount, and
shall not incur any liability for the failure to give any such notification. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-9</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Purchase
Orders may be rejected under the circumstances specified in the applicable
Prospectus. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>ARTICLE III</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>REDEMPTION PROCEDURES</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.01. <U>Redemption of Shares</U>. Redemption of Shares of a specified Trust
shall take place only in integral numbers of Baskets in compliance with the
following rules: </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Authorized Participants wishing to redeem one
or more Baskets shall place a Redemption Order with the Trustee no later than
3:59:59 p.m. (New York time) on any Business Day. Redemption Orders received by
the Trustee on or after the Order Cutoff Time on any Business Day shall be
considered received at the opening of business on the next Business Day and
shall have as their Order Date such next Business Day. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For purposes of Section 3.01a. above, a
Redemption Order shall be deemed &#147;received&#148; by the Trustee only when either of
the following has occurred no later than 3:59:59 p.m. (New York time): </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
 Telephone/fax Order &#150; An Authorized Representative shall have placed a
 telephone call to the Trustee&#146;s Creation and Redemption Line and has received
 an Order Number from the Trustee for insertion in the Redemption Order, or </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
 Web-based Order &#150; An Authorized Representative shall have accessed the
 Trustee&#146;s online services (www.etfservices.bankofny.com) </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>in either case informing the Trustee that the Authorized Participant
wishes to place a Redemption Order for a specified number of Baskets and, in
the case of a telephone order, within 15 minutes following such telephone call
the Trustee shall have received a duly completed, irrevocable Redemption Order
in the form set out in Annex I to these Procedures executed by an Authorized
Representative of such Authorized Participant, via facsimile at the number
specified in such Annex I. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Upon receipt of a properly completed
Redemption Order, the Trustee shall send to the Authorized Participant (with
copy to the Custodian), via facsimile or electronic mail message, as soon as
reasonably practicable, but not later than 5:30 p.m. (New York time) on the
Order Date for such Redemption Order a copy of the corresponding Redemption
Order endorsed &#147;Accepted&#148; by the Trustee and indicating the Basket Amount that
the Custodian shall Deliver to the Authorized Participant in respect of each
Basket being redeemed. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The Trustee shall, by the Trustee&#146;s close of
business on the second Business Day following the Order Date of a Redemption
Order, confirm in writing to the Custodian whether each of the following has
occurred: </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-10</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Authorized Participant has Delivered to the Trustee&#146;s account at DTC the
 total number of Shares to be redeemed by such Authorized Participant pursuant
 to such Redemption Order; and </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Authorized Participant has paid or agreed to pay the Trustee a per order
 transaction fee of US$500, if applicable. </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>Provided that the Custodian has received written confirmation from the
Trustee that the conditions set forth in clauses (i) and (ii) of Section 3.01d.
above have been satisfied, the Custodian shall: </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) on the
next following Business Day, Deliver: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P ALIGN=JUSTIFY>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P align=center><FONT SIZE=2> &#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>unallocated Silver loco London;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
<P align=center><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
<P align=center><FONT SIZE=2> &#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>unallocated Gold loco London (for the ETFS Precious Metals Basket
 Trust only);</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P align=center><FONT SIZE=2> &#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>unallocated Gold loco Zurich (for the ETFS Gold Trust only);</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
<P align=center><FONT SIZE=2> &#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>unallocated Gold loco Singapore (for the ETFS Asian Gold Trust only);</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P align=center><FONT SIZE=2> &#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>unallocated Platinum loco Zurich;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P align=center><FONT SIZE=2> &#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>unallocated Platinum loco London;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
<P align=center><FONT SIZE=2> &#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>unallocated Palladium loco Zurich; and/or</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
<P align=center><FONT SIZE=2> &#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>unallocated Palladium loco London</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(as
applicable to the specific Redemption Order); and </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) within
the next following three Business Days, Deliver: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="92%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P align=center><FONT SIZE=2>&#149;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>unallocated Gold loco London (for the ETFS Gold Trust and ETFS Asian
 Gold Trust only) </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(as
applicable to the specific Redemption Order) </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>in the amounts specified
in the communication sent in compliance with Section 3.01c. above, to the
account indicated by the redeeming Authorized Participant in its Redemption
Order (which shall be an appropriate bullion account with an LBMA member
or LPPM member, as applicable for the type of Bullion involved). With respect
to Gold from the ETFS Gold Trust and ETFS Asian Gold Trust and where the
Authorized Participant elects loco London delivery, the Authorized Participant
must first agree to the cost of the loco swap with the Custodian and reimburse
the Custodian for any amount owed under such swap. Having made such Delivery,
the Custodian shall send written confirmation thereof to the Trustee who shall
then cancel the Shares so redeemed. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. In all other cases, Delivery must be completed
by the Custodian as soon as, in the reasonable judgment of the Custodian, it is
practicable following receipt of written confirmation from the Trustee that the
conditions set forth in clauses (i) and (ii) of Section 3.01d. above have been
satisfied. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-11</FONT></P>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The foregoing provisions notwithstanding,
neither the Trustee nor the Custodian shall be liable for any failure or delay
in making Delivery of Bullion in respect of a Redemption Order arising from
nuclear fission or fusion, radioactivity, war, terrorist event, invasion,
insurrection, civil commotion, riot, strike, act of government, public
authority, public service or utility problems, power outages resulting in
telephone, telecopy and computer failures, act of God such as fires, floods,
extreme weather conditions, market conditions or activities causing trading
halts, systems failures involving computer or other information systems
affecting a Trust, the Trustee, the Custodian or sub-custodian, metal clearing
bank delays and similar extraordinary events beyond the Trustee&#146;s control. In
the event of any such delay, the time to complete Delivery in respect of a
Redemption Order will be extended for a period equal to that during which the inability
to perform continues. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. In the event that, by 4:00 p.m. (New York
time) on the second Business Day following the Order Date of a Redemption
Order, Trustee&#146;s account at DTC shall not have been credited with the total
number of Shares corresponding to the total number of Baskets to be redeemed
pursuant to such Redemption Order, the Trustee shall send to the Authorized
Participant and the Custodian via fax or electronic mail message notice of such
fact and the Authorized Participant shall have two (2) Business Days following
receipt of such notice to correct such failure. If such failure is not cured
within such two (2) Business Day period, the Trustee (in consultation with the
Sponsor) will cancel such Redemption Order and will send via fax or electronic
mail message notice of such cancellation to the Authorized Participant and the
Custodian, and the Authorized Participant will be solely responsible for all
costs incurred by the Trust, the Trustee or the Custodian related to the
cancelled Order. The Trustee is authorized to Deliver the Basket Amount for a
Redemption Order notwithstanding that the Basket(s) to be redeemed are not
credited to the Trustee&#146;s DTC account by 9:00 a.m. (New York time) on the third
Business Day following the Order Date of a Redemption Order if the Authorized
Participant has collateralized its obligation to deliver the Baskets through
DTC&#146;s book entry system on such terms as the Sponsor and the Trustee may from
time to time agree upon. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. The redemption of Shares may be suspended or
rejected under the circumstances specified in the applicable Prospectus. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>[<I>Signatures
Follow on Next Page</I>]</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-12</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF</B>, the Sponsor and the Trustee have
executed these First Amended and Restated Creation and Redemption Procedures as
of the date set forth above. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="3%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="47%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>THE BANK OF
 NEW YORK MELLON, in its capacity as Trustee</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>By:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>ETF
 SECURITIES USA LLC, in its capacity as Sponsor</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>By:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2><I> [Second Amended and Restated Creation and
Redemption Procedures Signature Page]</I></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-13</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2>ANNEX I TO CREATION AND REDEMPTION PROCEDURES</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>THE
BANK OF NEW YORK MELLON, TRUSTEE<BR>
CREATION/REDEMPTION ORDER FORM<BR>
<U>UNALLOCATED ORDERS ONLY</U></B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="40%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="25%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="15%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>CONTACT
 INFORMATION FOR ORDER EXECUTION:</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Telephone
 order number:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(718)
 315-7500</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Fax order
 number:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(732)
 667-9478</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Participant
must complete all items in Part 1. The Trustee in its discretion may reject any
order not submitted in proper form.</FONT></P>

<P><FONT SIZE=2><B>I. TO BE COMPLETED BY
PARTICIPANT: </B></FONT></P>

<P><FONT SIZE=2>Name of Trust:
____________________________________________ </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="35%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="60%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Date:
 ________________________________</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Time:
 ___________________________________________________________</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Broker Name:
 _________________________</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Authorized
 Participant Firm Name: ___________________________________</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>DTC
 Participant Number: _______________</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Fax Number:
 _____________________________________________________</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Telephone
 Number: ____________________</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Symbol:
 _________________________________________________________</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Type of order
(Check Creation or Redemption please) </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="35%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="60%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Creation:
 _____________________________</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Redemption:
 _____________________________________________________</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2># of
 Baskets: __________________________</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Number of
 Baskets written out: ______________________________________</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Order #
 ______________________________</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Please
indicate Bullion clearing agent: </FONT></P>

<P><FONT SIZE=2><I>For Silver involving the ETFS Silver Trust
only</I></FONT></P>

<P><FONT SIZE=2>HSBC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE=WINGDINGS>o</FONT></FONT></P>

<P><FONT SIZE=2><I>For Silver involving the ETFS Precious Metals
Basket Trust or the ETFS White Metals Basket Trust and for Gold, Palladium and
Platinum </I></FONT></P>

<P><FONT SIZE=2>JP
Morgan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE=WINGDINGS>o</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
(please specify clearing agent): ____________________</FONT></P>

<P><FONT SIZE=2>Account number
for Bullion delivery:
_______________________________________________________________</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="61%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="12%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="10%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="12%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(With
 respect to Silver only):</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>loco London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2 FACE=WINGDINGS>o</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(With
 respect to Gold involving the ETFS Precious Metals Basket Trust only):</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>loco London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2 FACE=WINGDINGS>o</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(With
 respect to Gold involving the ETFS Gold Trust only):</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>loco London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2 FACE=WINGDINGS>o</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>loco Zurich</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2 FACE=WINGDINGS>o</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(With
 respect to Gold involving the ETFS Asian Gold Trust only):</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>loco London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2 FACE=WINGDINGS>o</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>loco
 Singapore</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2 FACE=WINGDINGS>o</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(With
 respect to Platinum only):</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>loco London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2 FACE=WINGDINGS>o</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>loco Zurich</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2 FACE=WINGDINGS>o</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(With
 respect to Palladium only):</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>loco London</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2 FACE=WINGDINGS>o</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>loco Zurich</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2 FACE=WINGDINGS>o</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>This Purchase or Redemption Order is subject to the terms and
conditions of the Trust Agreement of the Shares of the Trust as currently in
effect and the Authorized Participant Agreement between the Authorized
Participant, the Trustee and the Sponsor named therein. All representations and
warranties of the Authorized Participant set forth in such Trust Agreement
(including, if this is a </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-14</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN="JUSTIFY"><FONT SIZE=2>Purchase Order, the representations in Section 3.2 of the Trust Agreement)
and in the Authorized Participant Agreement are incorporated herein by
reference and are true and accurate as of the date hereof.</FONT></P>

<P ALIGN="JUSTIFY"><FONT SIZE=2>The
undersigned does hereby certify as of the date set forth below that he/she is
an Authorized Representative under the Authorized Participant Agreement and
that he/she is authorized to deliver this Purchase or Redemption Order to the
Trustee on behalf of the Authorized Participant. The Authorized Participant
acknowledges and agrees that (1) once accepted by the Trustee, this Purchase or
Redemption Order will become a legally binding contract for the delivery by the
Authorized Participant of the Basket Amount per Basket for a Purchase Order, or
the number of Baskets for a Redemption Order, indicated above, and that the final
Basket Amount will be announced at the conclusion of the trading day and, (2)
any taxes (including Value Added Taxes) incurred in connection with this
transaction will be the responsibility of, and will be reimbursed upon demand
from the Custodian or the Trust by, the Authorized Participant if required
pursuant to the Authorized Participant Agreement.</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="16%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="7%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="41%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="7%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="13%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="13%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Authorized
 Representative&#146;s Signature</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>Date</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>S1-15</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P><FONT SIZE=2><B>II. TO BE COMPLETED
BY TRUSTEE: </B></FONT></P>

<P><FONT SIZE=2>This certifies
that the above order has been: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="28%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="13%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="57%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>Accepted by
 the Trustee </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Declined-Reason:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Final # of
Ounces: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(Gold)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(Silver)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(Platinum)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>(Palladium)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="6%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="94%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP nowrap>
 <P><FONT SIZE=2>Final # of
 Shares:&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <P><FONT SIZE=1>&nbsp;</FONT></P>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="20%" NOSHADE COLOR=BLACK ALIGN=LEFT>

 </TD>
 </TR>

</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="6%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="94%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP nowrap>
 <P><FONT SIZE=2>Final Cash
 Due to BNYM&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="30%" NOSHADE COLOR=BLACK ALIGN=LEFT>

 </TD>
 </TR>

</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="13%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="7%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="11%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="8%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="59%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Date</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Time</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Authorized
 Signature of Trustee</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>S1-16</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2>ANNEX II TO CREATION AND REDEMPTION
PROCEDURES</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>ORDER ENTRY SYSTEM TERMS AND CONDITIONS</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Annex
II shall govern use by Authorized Participant of the electronic order entry
system for placing Purchase Orders and Redemption Orders for Shares (the &#147;<B>System</B>&#148;). Capitalized terms used but not
otherwise defined herein shall have the meanings ascribed to such terms in
Schedule 1 of the Authorized Participant Agreement. In the event of any
conflict between the terms of this Annex II and the main body of the Authorized
Participant Agreement with respect to the placing of Purchase Orders and
Redemption Orders, the terms of this Annex II shall control. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>1. (a) Authorized
Participant shall provide to The Bank of New York Mellon a duly executed
authorization letter, in a form satisfactory to The Bank of New York Mellon,
identifying those authorized persons who will access the System (the &#147;<B>Authorized Persons</B>&#148;). Authorized
Participant shall notify The Bank of New York Mellon in writing in the event
that any person&#146;s status as an Authorized Person is revoked or terminated as
soon as possible, in order to give The Bank of New York Mellon a reasonable
opportunity to terminate such Authorized Person&#146;s access to the System. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It is
understood and agreed that each Authorized Person shall be designated as an
authorized user of Authorized Participant for the purpose of the Authorized
Participant Agreement. Upon termination of the Authorized Participant
Agreement, the Authorized Participant&#146;s and each Authorized Person&#146;s access
rights with respect to System shall be immediately revoked. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>2. The Bank of New York Mellon grants to Authorized Participant a
personal, nontransferable and nonexclusive license to use the System solely for
the purpose of transmitting Purchase Orders and Redemption Orders and otherwise
communicating with The Bank of New York Mellon in connection with the same.
Authorized Participant shall use the System solely for its own internal and
proper business purposes. Except as set forth herein, no license or right of
any kind is granted to Authorized Participant with respect to the System.
Authorized Participant acknowledges that The Bank of New York Mellon and its
suppliers retain and have title and exclusive proprietary rights to the System.
Authorized Participant further acknowledges that all or a part of the System
may be copyrighted or trademarked (or a registration or claim made therefor) by
The Bank of New York Mellon or its suppliers. Authorized Participant shall not
take any action with respect to the System inconsistent with the foregoing
acknowledgments. Authorized Participant may not copy, distribute, sell, lease
or provide, directly or indirectly, the System or any portion thereof to any
other person or entity without The Bank of New York Mellon&#146;s prior written
consent. Authorized Participant may not remove any statutory copyright notice
or other notice included in the System. Authorized Participant shall reproduce
any such notice on any reproduction of any portion of the System and shall add
any statutory copyright notice or other notice upon The Bank of New York
Mellon&#146;s request. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>2. (a) Authorized Participant acknowledges that any user manuals or
other documentation (whether in hard copy or electronic form) (collectively,
the &#147;<B>Material</B>&#148;), which is
delivered or made available to Authorized Participant regarding the System is
the exclusive and confidential property of The Bank of New York Mellon.
Authorized Participant shall keep the Material confidential by using the same
care and discretion that Authorized Participant uses with respect to its own
confidential property and trade secrets, but in no event less than reasonable
care. Authorized Participant may make such copies of the Material as is
reasonably necessary for Authorized Participant to use the System and shall
reproduce The Bank of New York Mellon&#146;s proprietary markings on any such copy.
The foregoing shall not in any way be deemed to affect the copyright status of
any of the Material which may be copyrighted and shall apply to all Material
whether or not copyrighted. THE BANK OF NEW YORK MELLON AND ITS SUPPLIERS MAKE
NO WARRANTIES, EXPRESS OR IMPLIED, CONCERNING THE MATERIAL OR ANY PRODUCT OR
SERVICE, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-17</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>(b) Upon termination of the Authorized Participant Agreement for any
reason, Authorized Participant shall return to The Bank of New York Mellon all
copies of the Material which is in Authorized Participant&#146;s possession or under
its control. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>3. Authorized Participant agrees that it shall have sole responsibility
for maintaining adequate security and control of the user IDs, passwords and
codes for access to the System, which shall not be disclosed to any third party
without the prior written consent of The Bank of New York Mellon. The Bank of
New York Mellon shall be entitled to rely on the information received by it
from the Authorized Participant and The Bank of New York Mellon may assume that
all such information was transmitted by or on behalf of an Authorized Person
regardless of by whom it was actually transmitted. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>4. The Bank of New York Mellon shall have no liability in connection
with the use of the System, the access granted to the Authorized Participant
and its Authorized Persons hereunder, or any transaction effected or attempted
to be effected by the Authorized Participant hereunder, except for damages
incurred by the Authorized Participant as a direct result of The Bank of New
York Mellon&#146;s gross negligence or willful misconduct. WITHOUT LIMITING THE
GENERALITY OF THE FOREGOING, IT IS HEREBY AGREED THAT IN NO EVENT SHALL THE
BANK OF NEW YORK MELLON OR ANY MANUFACTURER OR SUPPLIER OF EQUIPMENT, SOFTWARE
OR SERVICES BE RESPONSIBLE OR LIABLE FOR ANY SPECIAL, INDIRECT, OR
CONSEQUENTIAL DAMAGES WHICH THE AUTHORIZED PARTICIPANT MAY INCUR OR EXPERIENCE
BY REASON OF ITS HAVING ENTERED INTO OR RELIED ON THIS AGREEMENT, OR IN
CONNECTION WITH THE ACCESS GRANTED TO AUTHORIZED PARTICIPANT HEREUNDER, OR ANY
TRANSACTION EFFECTED OR ATTEMPTED TO BE EFFECTED BY AUTHORIZED PARTICIPANT
HEREUNDER, EVEN IF THE BANK OF NEW YORK MELLON OR SUCH MANUFACTURER OR SUPPLIER
HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, NOR SHALL THE BANK OF NEW
YORK MELLON OR ANY SUCH MANUFACTURER OR SUPPLIER BE LIABLE FOR ACTS OF GOD,
MACHINE OR COMPUTER BREAKDOWN OR MALFUNCTION, INTERRUPTION OR MALFUNCTION OF
COMMUNICATION FACILITIES, LABOR DIFFICULTIES OR ANY OTHER SIMILAR OR DISSIMILAR
CAUSE BEYOND SUCH PERSON&#146;S REASONABLE CONTROL. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>5. The Bank of New York Mellon reserves the right to revoke Authorized
Participant&#146;s access to the System immediately and without notice upon any
breach by the Authorized Participant of the terms and conditions of this Annex
II. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>6. The Bank of New York Mellon shall acknowledge through the System its
receipt of each Purchase Order or Redemption Order communicated through the
System, and in the absence of such acknowledgment The Bank of New York Mellon
shall not be liable for any failure to act in accordance with such orders and
Authorized Participant may not claim that such Purchase Order or Redemption
Order was received by The Bank of New York Mellon. The Bank of New York Mellon
may in its discretion decline to act upon any instructions or communications
that are insufficient or incomplete or are not received by The Bank of New York
Mellon in sufficient time for The Bank of New York Mellon to act upon, or in
accordance with such instructions or communications. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.
Authorized Participant agrees to use reasonable efforts to prevent the
transmission through the System of any software or file which contains any
viruses, worms, harmful component or corrupted data and agrees not to use any
device, software, or routine to interfere or attempt to interfere with the
proper working of the Systems. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.
Authorized Participant acknowledges and agrees that encryption may not be
available for every communication through the System, or for all data.
Authorized Participant agrees that The Bank of New York Mellon may deactivate
any encryption features at any time, without notice or liability to Authorized
Participant, for the purpose of maintaining, repairing or troubleshooting its
systems. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S1-18</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>SCHEDULE 2- STANDARD TERMS</B></FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="5%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="10%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="80%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="2%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2><B>TABLE OF CONTENTS - SCHEDULE 2</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>Page</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN=2 VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>ARTICLE I
 ORDERS FOR PURCHASE AND REDEMPTION</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 1.01.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Authorization
 to Purchase and Redeem Baskets</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>1</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 1.02.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Procedures
 for Orders</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>1</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 1.03.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Consent to
 Recording</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>1</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 1.04.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Irrevocability</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>1</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 1.05.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Costs and
 Expenses</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>2</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 1.06.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Delivery of
 Property to the Trust</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>2</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 1.07.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Title to
 Deposit Property and Shares Surrendered for Redemption </FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>2</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 1.08.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Certain
 Payments or Distributions</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>3</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 1.09.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Ambiguous
 Instructions</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>3</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>ARTICLE II
 AUTHORIZED REPRESENTATIVES</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 2.01.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Certification</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>4</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 2.02.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>PIN Numbers</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>4</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 2.03.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Termination
 of Authority</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>4</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 2.04.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Verification</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>5</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>ARTICLE III
 STATUS OF THE AUTHORIZED PARTICIPANT</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 3.01.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Clearing
 Status</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>5</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 3.02.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Broker-Dealer
 Status</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>5</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 3.03.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Foreign
 Status</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>5</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 3.04.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Compliance
 with Certain Laws</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>6</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 3.05.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Authorized
 Participant Status</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>6</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>ARTICLE IV
 ROLE OF AUTHORIZED PARTICIPANT</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 4.01.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>No Agency</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>6</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 4.02.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Rights and
 Obligations of DTC Participant</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>6</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 4.03.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Beneficial
 Owner Communications</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>6</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 4.04.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Authorized
 Participant Customer Information</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>7</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>ARTICLE V
 MARKETING MATERIALS AND REPRESENTATIONS AND WARRANTIES</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 5.01.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Authorized
 Participant&#146;s Representation</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>7</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 5.02.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Prospectus</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>7</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>ARTICLE VI
 INDEMNIFICATION; LIMITATION OF LIABILITY</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 6.01.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Indemnification</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>8</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>ARTICLE VII
 MISCELLANEOUS</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Section
 7.01.</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Commencement
 of Trading</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>10</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2 COLOR=BLACK>i</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST
AMENDED AND RESTATED STANDARD TERMS FOR AUTHORIZED PARTICIPANT AGREEMENTS</B>
(the &#147;<B>Standard Terms</B>&#148;) agreed to
as of September 27, 2010 by and between The Bank of New York Mellon, a New York
banking corporation (the &#147;<B>Trustee</B>&#148;),
and ETF Securities USA LLC, a Delaware limited liability company (the &#147;<B>Sponsor</B>&#148;). </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>ARTICLE I</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>ORDERS FOR PURCHASE AND REDEMPTION</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.01. <U>Authorization to Purchase and Redeem Baskets</U>. Subject to the
provisions of the Authorized Participant Agreement, during the term of the
Authorized Participant Agreement the Authorized Participant will be authorized
to purchase and redeem Baskets of Shares in compliance with the provisions of
the relevant Prospectus. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.02. <U>Procedures for Orders</U>. Each party hereto agrees to comply with the
provisions of the relevant Prospectus and the Procedures to the extent
applicable to it. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.03. <U>Consent to Recording</U>. The phone lines used by the Trustee, the
Custodian, the Sponsor and/or their affiliated persons may be recorded, and the
Authorized Participant hereby consents to the recording of all calls with any
of those parties. In the event that the Trustee, the Custodian, the Sponsor or
any of their affiliated persons becomes legally compelled to disclose to any
third party any recording involving communications with the Authorized
Participant, the Sponsor agrees to provide the Authorized Participant with
reasonable advance written notice identifying the recordings to be so disclosed
unless prohibited by applicable rule, law or order, together with copies of
such recordings, so that the Authorized Participant may seek a protective order
or other appropriate remedy with respect to the recordings or waive its right
to do so. In the event that such protective order or other remedy is not
obtained or the Authorized Participant waives its right to seek such protective
order or remedy, the Sponsor will use commercially reasonable efforts to obtain
reliable assurance that confidential treatment will be accorded the recorded
conversation. The Trustee, the Sponsor or any of their affiliated persons shall
not otherwise disclose to any third party any recording involving
communications with the Authorized Participant without the Authorized Participant&#146;s
express written consent, except the Trustee and the Sponsor may disclose to any
regulatory or self-regulatory organization, to the extent required by
applicable rule or law, any recording involving communications with the
Authorized Participant. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.04. <U>Irrevocability</U>. The Authorized Participant agrees that delivery to
the Trustee of an Order shall be irrevocable; provided that the Trust will
reject any Order that is not properly completed. In the event that the purchase
or redemption of Baskets is suspended by the Trustee or the Sponsor and such
suspension affects any Order submitted by the Authorized Participant, the
Trustee or Sponsor, as applicable, will promptly notify the Authorized
Participant of such suspension. In such case, the Sponsor agrees to undertake
commercially reasonable efforts to accommodate any request by the Authorized
Participant to cancel a previously placed Order. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.05. <U>Costs and Expenses</U>. The Authorized Participant shall be responsible
for the expenses and costs incurred by the Trust that can be directly
attributable to Orders submitted by the Authorized Participant other than
ordinary course expenses and costs which are reimbursed</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S2-1</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>through payment of the fee contemplated in Section 2.02(g) of the
Procedures. The Trustee or the Sponsor shall provide the Authorized Participant
with reasonably detailed information relating to such expenses and costs upon
request by the Authorized Participant. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.06. <U>Delivery of Property to the Trust and Shares Surrendered for
Redemption</U>. The Authorized Participant understands and agrees that in the
event Deposit Property is not transferred to the Trust by the time specified
for the Purchase Order, or Shares are not delivered to the Trustee by the time
specified for the Redemption Order and, in each such case, in compliance with
the Procedures and the relevant Prospectus, the Purchase Order or Redemption
Order may be cancelled by the Trustee and the Authorized Participant will be solely
responsible for all costs incurred by the Trust, the Trustee or the Custodian
related to the cancelled Order. The Authorized Participant will not, however,
be responsible for costs incurred by the Trust, the Trustee, or the Custodian
related to cancelled Orders where the failure to transfer Deposit Property to
the Trust is due to the gross negligence, bad faith, or reckless or willful
misconduct of the Trustee, the Sponsor, or the Custodian. The foregoing
provisions notwithstanding, the Authorized Participant shall not be liable for
any failure or delay in making Delivery of Bullion in respect of a Purchase
Order or for any failure or delay in surrendering Shares for redemption arising
from nuclear fission or fusion, radioactivity, war, terrorist event, invasion,
insurrection, civil commotion, riot, strike, act of government, public
authority, public service or utility problems, power outages resulting in
telephone, telecopy and computer failures, acts of God, such as fires, floods,
extreme weather conditions, market conditions or activities causing trading
halts, systems failures involving computer or other information systems
affecting the Authorized Participant, or similar extraordinary events beyond
the Authorized Participant&#146;s control. In the event of any such delay, the time
to complete Delivery in respect of a Purchase Order or Redemption Order will be
extended for a period equal to that during which the inability to perform
continues. Upon the deposit of any Bullion, the Authorized Participant as Depositor
represents and warrants that (i) the Bullion meets the relevant requirements to
be such Bullion and contains the required number of Ounces, (ii) the Authorized
Participant is duly authorized to make such deposit of Bullion and (iii) at the
time of delivery, the Bullion is free and clear of any lien, pledge,
encumbrance, right, charge or claim.</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.07. <U>Title to Deposit Property and Shares Surrendered for Redemption</U>.
The Authorized Participant represents and warrants to the Trustee and the
Sponsor that </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. in
 connection with each Purchase Order, the Authorized Participant will have the
 right and authority to transfer to the Trust the corresponding Deposit
 Property, and that upon delivery of such Deposit Property to the Custodian
 and/or the relevant sub-custodian in accordance with the Procedures, the
 Trust will acquire good and unencumbered title to such property, free and
 clear of all liens, charges, duties imposed on the transfer of assets and
 encumbrances and not subject to any adverse claims or transferability
 restrictions, whether arising by operation of law or otherwise; and </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. in
 connection with a Redemption Order, the Authorized Participant will have the
 right and authority to surrender to the Trustee for redemption the
 corresponding Shares, and upon such surrender the Trust will acquire good and
 unencumbered title to such Shares, free and clear of all liens, charges,
 duties imposed on the transfer of assets and encumbrances and not subject to
 any adverse claims, transferability restrictions (whether arising by
 operation of law or otherwise), loan, pledge, repurchase or securities
 lending agreements or other arrangements which, under such circumstances,
 would </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>S2-2</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=BOTTOM>
 <P ALIGN=JUSTIFY>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=BOTTOM>
 <P ALIGN=JUSTIFY>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=JUSTIFY><FONT SIZE=2>preclude the delivery of such Shares to the Trustee on the third
 Business Day following the date of the Redemption Order. </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.08. <U>Certain Payments or Distributions</U>. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. With
 respect to any Purchase Order, the Trustee acknowledges and agrees to return
 to the Authorized Participant or any Authorized Participant Client for which
 it is acting any payment, distribution or other amount paid to the Trust in
 respect of any Deposit Property transferred to the Trust that, based on the
 valuation of such Deposit Property at the time of transfer, should have been
 paid to the Authorized Participant or any Authorized Participant Client.
 Likewise, the Authorized Participant acknowledges and agrees to return to the
 Trust any payment, distribution or other amount paid to the Authorized
 Participant or any Authorized Participant Client in respect of any Deposit
 Property transferred to the Trust that, based on the valuation of such
 Deposit Property at the time of transfer, should have been paid to the Trust.
 </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. With
 respect to any Redemption Order, the Authorized Participant on behalf of
 itself and any Authorized Participant Client acknowledges and agrees to
 return to the Trust any payment, distribution or other amount paid to it or
 an Authorized Participant Client in respect of any property transferred to
 the Authorized Participant or any Authorized Participant Client that, based
 on the valuation of such property at the time of transfer, should have been
 paid to the Trust. The Trustee is entitled to reduce the amount of any
 property due to the Authorized Participant or any Authorized Participant
 Client by an amount equal to any payment, distribution or other sum to be
 paid to the Authorized Participant or to the Authorized Participant Client in
 respect of any property transferred to the Authorized Participant or any
 Authorized Participant Client that, based on the valuation of such property
 at the time of transfer, should be paid to the Trust. If, however, the
 Trustee so reduces an amount of any property appropriately due to the
 Authorized Participant, the Authorized Participant shall not be required to
 return to the Trust payments, distributions or other amounts equal to such
 reduction that has been paid to the Authorized Participant or the Authorized
 Participant Client as is contemplated in the first sentence of this Section
 1.08(b). Likewise, the Trust acknowledges and agrees to return to the
 Authorized Participant or any Authorized Participant Client any payment,
 distribution or other amount paid to it in respect of any Shares transferred
 to the Trust that, based on the valuation of such Shares at the time of
 transfer, should have been paid to the Authorized Participant or such
 Authorized Participant Client. </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.09. <U>Ambiguous Instructions</U>. In the event that a Purchase Order or
Redemption Order contains terms that differ from the information provided in
the related telephone call or email transmission, the Trustee will attempt to
contact the Authorized Participant to request confirmation of the terms of the
order at the telephone number indicated in the Purchase Order or Redemption
Order. If an Authorized Representative confirms the terms as they appear in the
Purchase Order or Redemption Order, then the order will be accepted and
processed. If an Authorized Representative contradicts the terms of the
Purchase Order or Redemption Order, the order will be deemed invalid, and a
corrected Purchase Order or Redemption Order must be received by the Trustee
not later than the earlier of (i) within fifteen (15) minutes of such contact
with the Authorized Representative or (ii) thirty (30) minutes after the Order
Cutoff Time. For the avoidance of doubt, notwithstanding the invalidation of
the initial Purchase Order or Redemption Order pursuant to this paragraph, a
Purchase Order or Redemption Order that is</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S2-3</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>otherwise in proper form shall be deemed submitted at the time of its
initial submission for purposes of determining when orders are deemed
&#147;received.&#148; If the Trustee is not able to contact an Authorized Person, then
the Purchase Order or Redemption Order shall be accepted and processed in
accordance with its terms notwithstanding any inconsistency from the terms of
the telephone information. In the event that a Purchase Order or Redemption
Order contains terms that are illegible, the submission will be deemed invalid
and the Trustee will attempt to contact the Authorized Participant to request
retransmission. A corrected Purchase Order or Redemption Order must be received
by the Trustee, as applicable, not later than the earlier of (i) within fifteen
(15) minutes of such contact with the Authorized Participant or (ii) thirty
(30) minutes after the Order Cutoff Time. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>ARTICLE II</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>AUTHORIZED REPRESENTATIVES</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.01. <U>Certification</U>. Concurrently with the execution of the Authorized
Participant Agreement, the Authorized Participant shall deliver to the Trustee
a certificate in a form as attached at Schedule 3-A to the Authorized
Participant Agreement (an &#147;<B>Authorized
Representative Certificate</B>&#148;) signed by the Authorized Participant&#146;s
Secretary or other duly authorized person setting forth the names, signatures,
e-mail addresses and telephone and facsimile numbers of all persons authorized
to give instructions relating to any activity contemplated hereby or any other
notice, request or instruction on behalf of the Authorized Participant (each an
&#147;<B>Authorized Representative</B>&#148;). Such
certificate may be accepted and relied upon by the Trustee as conclusive
evidence of the facts set forth therein and shall be considered to be in full
force and effect until (i) receipt by the Trustee of a superseding Authorized
Representative Certificate, or (ii) termination of the Authorized Participant
Agreement. After such Authorized Representative Certificate is accepted by the
Trustee, the Authorized Participant may authorize additional Authorized
Representatives to give instructions relating to any activity contemplated
hereby or any other notice, request or instruction on behalf of the Authorized
Participant by delivering to the Trustee an addendum to the certificate
described above in a form as attached at Schedule 3-B to the Authorized
Participant Agreement. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.02. <U>PIN Numbers</U>. The Trustee shall issue to each Authorized
Participant a unique personal identification number (&#147;<B>PIN Number</B>&#148;) by which such Authorized
Participant shall be identified and instructions issued by the Authorized
Participant shall be authenticated. The PIN Number shall be kept confidential
and only provided to Authorized Representatives. The Authorized Participant may
revoke the PIN Number at any time upon written notice to the Trustee, and the
Authorized Participant shall be responsible for doing so in the event that it
becomes aware that an unauthorized person has received access to its PIN Number
or has or intends to use the PIN Number in an unauthorized manner. Upon receipt
of such written request, the Trustee shall, as promptly as practicable,
de-activate the PIN Number. If an Authorized Participant&#146;s PIN Number is
changed, the new PIN Number will become effective on a date mutually agreed
upon by the Authorized Participant and the Trustee. Except as otherwise
provided in these Standard Terms, the Authorized Participant agrees that,
absent the Trustee&#146;s fraud, gross negligence, bad faith or reckless or willful
misconduct in failing to cancel the PIN Number promptly following a written
request to do so from the Authorized Participant or the termination of the
Authorized Participant Agreement, none of the Trust or the Trustee shall be
liable for losses incurred by the Authorized Participant as a result of
unauthorized use of the Authorized Participant&#146;s PIN Number prior to the time
when the Authorized Participant provides</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S2-4</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>notice to the Trustee of the termination or revocation of authority
pursuant to Section 2.03 and the Trustee has de-activated the PIN Number as
provided for in this paragraph. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.03. <U>Termination of Authority</U>. Upon the termination or revocation of
authority of an Authorized Representative by the Authorized Participant, the
Authorized Participant shall (i) give, as promptly as practicable under the
circumstances, written notice of such fact to the Trustee and such notice shall
be effective upon receipt by the Trustee; and (ii) request a new PIN Number.
The Trustee shall, as promptly as practicable, de-activate the PIN Number upon
receipt of such written notice. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.04. <U>Verification</U>. The Trustee may assume that all instructions issued
to it using the Authorized Participant&#146;s PIN Number have been properly placed
by Authorized Representatives, unless the Trustee has actual knowledge to the
contrary or the Authorized Participant has revoked its PIN Number. The Trustee
shall have no duty to verify that an Order is being placed by an Authorized
Representative that uses a valid PIN Number. The Authorized Participant agrees
that the Trustee shall not be responsible, absent the Trustee&#146;s fraud, gross
negligence, bad faith or reckless or willful misconduct, for any losses
incurred by the Authorized Participant as a result of an Authorized
Representative identifying himself or herself as a different Authorized
Representative or an unauthorized person identifying himself or herself as an
Authorized Representative, unless the Trustee previously received from the
Authorized Participant written notice to revoke its PIN Number. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>ARTICLE III</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>STATUS OF THE AUTHORIZED PARTICIPANT</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.01. <U>Clearing Status</U>. The Authorized Participant represents, covenants
and warrants that, as of the date of execution of the Authorized Participant
Agreement, and at all times during the term of the Authorized Participant
Agreement, the Authorized Participant is and will be entitled to use the
clearing and settlement services of each of the national or international
clearing and settlement organizations through which, in compliance with the
Procedures, the transactions contemplated hereby will clear and settle. Any
change in the foregoing status of the Authorized Participant shall terminate
the Authorized Participant Agreement and the Authorized Participant shall give
prompt written notice thereof to the Trustee. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.02. <U>Broker-Dealer Status</U>. The Authorized Participant represents and
warrants that, if required under U.S. law, it is (i) registered as a
broker-dealer under the Securities Exchange Act of 1934, as amended, (ii)
qualified to act as a broker or dealer in the states or other jurisdictions
where it transacts business to the extent so required by applicable law, and
(iii) a member in good standing with FINRA. The Authorized Participant agrees
that it will maintain such registrations, qualifications, and membership in
good standing and in full force and effect throughout the term of the
Authorized Participant Agreement. The Authorized Participant further agrees to
comply with all applicable U.S. federal laws, the laws of the states or other
jurisdictions concerned, and the rules and regulations promulgated thereunder,
to the extent such laws and regulations are applicable to the Authorized Participant&#146;s
transactions in Shares, and with the FINRA By-Laws and Conduct Rules of the
NASD (or with comparable FINRA Conduct Rules, if such NASD Conduct Rules are
subsequently repealed, rescinded, or are otherwise replaced by FINRA Conduct
Rules) to the extent the foregoing relates to the Authorized Participant&#146;s
transactions in, and activities with respect to, Shares, and that it will not </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S2-5</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=JUSTIFY><FONT SIZE=2>offer or sell Shares in any state or jurisdiction where they may not
lawfully be offered and/or sold. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
3.03. <U>Foreign Status</U>. If the Authorized Participant is offering and
selling Shares in jurisdictions outside the several states, territories and
possessions of the United States and is not otherwise required to be
registered, qualified, or a member of FINRA as set forth in the preceding
paragraph, the Authorized Participant nevertheless agrees to observe the
applicable laws of the jurisdiction in which such offer and/or sale is made and
to conduct its business in accordance with the FINRA Conduct Rules, to the
extent the foregoing relates to the Authorized Participant&#146;s transactions in,
and activities with respect to, Shares. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.04. <U>Compliance with Certain Laws</U>. If the Authorized Participant is
subject to the requirements of the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001 (the &#147;<B>U.S.A. PATRIOT Act</B>&#148;),
the Authorized Participant has policies and procedures reasonably designed to
comply with the anti-money laundering and related provisions of the U.S.A.
PATRIOT Act. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.05. <U>Authorized Participant Status</U>. The Authorized Participant understands
and acknowledges that the method by which Baskets of Shares will be created and
traded may raise certain issues under applicable securities laws. For example,
because new Baskets of Shares may be issued and sold by the Trust on an ongoing
basis, at any point a &#147;distribution&#148;, as such term is used in the 1933 Act, may
occur. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>ARTICLE IV</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>ROLE OF AUTHORIZED PARTICIPANT</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.01. <U>No Agency</U>. The Authorized Participant acknowledges and agrees that
for all purposes of the Authorized Participant Agreement, the Authorized
Participant will have no authority to act as agent for the Trust or the Trustee
in any matter or in any respect. The Authorized Participant agrees to make
itself and its employees available, upon reasonable request, during normal
business hours to consult with the Trustee, the Sponsor or their designees
concerning the performance of the Authorized Participant&#146;s responsibilities
under the Authorized Participant Agreement; <I>provided,
however</I>, that the Authorized Participant shall be under no
obligation to divulge or otherwise disclose any information that the Authorized
Participant reasonably believes (i) the disclosure of which to third parties is
in violation of any applicable law or regulation or is otherwise prohibited, or
(ii) is confidential or proprietary in nature. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.02. <U>Rights and Obligations of DTC Participant</U>. The Authorized
Participant, as a DTC Participant, agrees that it shall be bound by all of the
obligations of a DTC Participant in addition to any obligations that it
undertakes hereunder or in accordance with the Procedures. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.03. <U>Beneficial Owner Communications</U>. The Authorized Participant agrees
(i) subject to any limitations arising under federal or state securities laws
relating to privacy, its internal privacy policies, or other obligations it may
have to its customers, to assist the Trustee or the Sponsor in determining
certain information regarding sales of Shares made by or through the Authorized
Participant (including, without limitation, the ownership level of each
beneficial owner relating to positions in Shares that the Authorized
Participant may hold as record holder) upon the request of the Trustee or the
Sponsor that is necessary for the Trustee or Sponsor to</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S2-6</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2>comply with their obligations to distribute information to beneficial
owners of Shares under applicable state or federal securities laws or (ii) in
lieu thereof, and at the option of the Authorized Participant, to forward to
such beneficial owners written materials and communications received from the
Sponsor or the Trustee in sufficient quantities to allow mailing thereof to
such beneficial owners, including notices, annual reports, disclosure or other
informational materials and any amendments or supplements thereto that may be
required to be sent by the Sponsor or the Trustee to such beneficial owners
pursuant applicable law or regulation or otherwise, or that the Sponsor or the
Trustee reasonably wishes to distribute to such beneficial owners, in each case
at the expense of the Sponsor and/or the Trust. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.04. <U>Authorized Participant Customer Information</U>. The Sponsor and the
Trustee agree that the names and addresses and other information concerning the
Authorized Participant&#146;s customers are and shall remain the sole property of
the Authorized Participant, and none of the Sponsor, the Trust, or the Trustee,
or any of their respective affiliates shall use such names, addresses or other
information for any purpose except in connection with the performance of their
duties and responsibilities under the Authorized Participant Agreement, the
Procedures, the Standard Terms and the applicable Prospectus and except for
servicing and informational mailings related to the Trust(s) referred to in
Section 4.03 above. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>ARTICLE V</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>MARKETING MATERIALS AND REPRESENTATIONS AND
WARRANTIES</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.01. <U>Authorized Participant&#146;s Representation</U>. The Authorized
Participant represents, warrants and agrees that, in connection with any sale
or solicitation of a sale of Shares, it will not make, or permit any of its
representatives to make on its behalf, any representations concerning Shares
other than those not inconsistent with the Trust&#146;s then current Prospectus or
any promotional materials or sales literature furnished to the Authorized
Participant by the Sponsor. The Authorized Participant agrees not to furnish or
cause to be furnished to any person or display or publish any information or
materials relating to Shares (excluding, without limitation, promotional
materials and sales literature, advertisements, press releases, announcements,
statements, posters, signs or other similar materials not inconsistent with the
Trust&#146;s then current Prospectus and in accordance with applicable laws and
regulations, and any materials prepared and used for the Authorized
Participant&#146;s internal use only or brokerage communications prepared by the
Authorized Participant in the normal course of its business), except such
information and materials as may be furnished to the Authorized Participant by
the Sponsor and such other information and materials as may be approved in
writing by the Sponsor. The Authorized Participant understands that the Trust
will not be advertised as offering redeemable securities, and that any advertising
materials will prominently disclose that the Shares are not redeemable units of
beneficial interest in the Trust. Notwithstanding the foregoing, the Authorized
Participant and its Affiliates and representatives may, without the approval of
the Sponsor, prepare and circulate in the regular course of their respective
businesses, research, reports, marketing materials, sales literature or similar
materials that include information, opinions or recommendations relating to
Shares (i) for public dissemination, provided that such reports, research,
marketing materials, sales literature or other similar materials comply with
applicable FINRA rules and (ii) for internal use by the Authorized Participant
and its Affiliates and representatives. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S2-7</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.02. <U>Prospectus</U>. The Sponsor will provide, or cause to be provided, to the
Authorized Participant copies of the then current Prospectus and any printed
supplemental information in reasonable quantities upon request. The Sponsor
will, as promptly as practicable under the circumstances, notify the Authorized
Participant when a revised, supplemented or amended Prospectus for the Shares
is available, and deliver or otherwise make available to the Authorized
Participant copies of such revised, supplemented or amended Prospectus at such
time and in such quantities as may be reasonable to permit the Authorized
Participant to comply with any obligation the Authorized Participant may have
to deliver such Prospectus to its customers. The Sponsor will make such revised,
supplemented or amended Prospectus available to the Authorized Participant no
later than its effective date. The Sponsor shall be deemed to have complied
with this Section 5.02 when the Authorized Participant has received such
revised, supplemented or amended Prospectus by e-mail, in printable form, with
such number of hard copies as may be agreed from time to time by the parties
promptly thereafter </FONT> </P>

<P ALIGN=CENTER><FONT SIZE=2>ARTICLE VI</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>INDEMNIFICATION; LIMITATION OF LIABILITY</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
6.01. <U>Indemnification</U>. The provisions of this Section 6.01 shall survive
termination of the Agreement. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The
 Authorized Participant shall indemnify and hold harmless the Sponsor, in its
 capacity as sponsor of the applicable Trust, the Trustee, the Trust and their
 respective Affiliates, subsidiaries, directors, officers, employees and
 agents, and each person, if any, who controls such persons within the meaning
 of Section 15 of the 1933 Act (each an &#147;<B>AP</B>
 <B>Indemnified Party</B>&#148;) from and
 against any loss, liability, cost and expense (including reasonable
 attorneys&#146; fees) incurred by such AP Indemnified Party as a result of (i) any
 breach by the Authorized Participant of any provision of the Authorized
 Participant Agreement that relates to the Authorized Participant; (ii) any failure
 on the part of the Authorized Participant to perform any of its obligations
 set forth in the Authorized Participant Agreement applicable to it; (iii) any
 failure by the Authorized Participant to comply in all material respects with
 applicable laws, including rules and regulations of self-regulatory
 organizations to the extent such laws, rules and regulations are applicable
 to the transactions being undertaken pursuant to the Authorized Participant
 Agreement; or (iv) actions of such AP Indemnified Party pursuant to any
 instructions issued in accordance with the relevant Prospectus, Authorized
 Participant Agreement, the Procedures, or the Standard Terms reasonably
 believed by the AP Indemnified Party to be genuine and to have been given by
 the Authorized Participant except to the extent that the Authorized
 Participant had previously revoked a PIN Number used in giving such
 instructions or representations (where applicable) and such revocation was
 given by the Authorized Participant and received by the Trustee in accordance
 with the terms of Section 2.03 hereto. The Authorized Participant shall not
 be liable under its indemnity agreement contained in this paragraph with
 respect to any claim made against any AP Indemnified Party unless the AP
 Indemnified Party shall have notified the Authorized Participant in writing
 of the claim within a reasonable time after the summons or other first
 written notification giving information of the nature of the claim was served
 upon the AP Indemnified Party (or after the AP Indemnified Party shall have
 received notice of service on any designated agent). However, failure to
 notify the Authorized Participant of any claim shall not relieve the
 Authorized Participant from any liability which it may</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>S2-8</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>have to any AP Indemnified Party against whom such action is brought
 otherwise than on account of its indemnity agreement contained in this
 paragraph and shall only release it from such liability under this paragraph
 to the extent it has been materially prejudiced by such failure to give
 notice. The Authorized Participant shall be entitled to participate at its
 own expense in the defense, or, if it so elects, to assume the defense of any
 suit brought to enforce any claims, but if the Authorized Participant elects
 to assume the defense, the defense shall be conducted by counsel chosen by it
 and satisfactory to the AP Indemnified Parties in the suit and who shall not,
 except with consent of the AP Indemnified Parties, be counsel to the
 Authorized Participant. If the Authorized Participant does not elect to
 assume the defense of any suit, it will reimburse the AP Indemnified Parties
 in the suit for the reasonable fees and expenses of any counsel retained by
 them. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The
 Sponsor hereby agrees to indemnify and hold harmless the Authorized
 Participant, its Affiliates, subsidiaries, directors, officers, employees and
 agents, and each person, if any, who controls such persons within the meaning
 of Section 15 of the 1933 Act (each a &#147;<B>Sponsor
 Indemnified Party</B>&#148;) from and against any loss, liability, cost and
 expense (including reasonable attorneys&#146; fees) incurred by such Sponsor
 Indemnified Party as a result of (i) any breach by the Sponsor of any
 provision of the Authorized Participant Agreement that relates to the Sponsor;
 (ii) any failure on the part of the Sponsor to perform any of its obligations
 set forth in the Authorized Participant Agreement applicable to it; (iii) any
 failure on the part of the Sponsor to comply in all material respects with
 applicable laws, including rules and regulations of self-regulatory
 organizations to the extent such laws, rules and regulations are applicable
 to the transactions being undertaken pursuant to the Authorized Participant
 Agreement; (iv) actions of such Sponsor Indemnified Party pursuant to any
 instructions issued or representations made in accordance with the relevant
 Prospectus, Authorized Participant Agreement, the Procedures, or the Standard
 Terms reasonably believed by the Sponsor Indemnified Party to be genuine and
 to have been given by the Sponsor; or (v) any untrue statements or omissions
 made in any promotional material or sales literature furnished to the
 Authorized Participant by the Sponsor or otherwise approved in writing by the
 Sponsor. The Sponsor shall not be liable under its indemnity agreement
 contained in this paragraph with respect to any claim made against any
 Sponsor Indemnified Party unless the Sponsor Indemnified Party shall have
 notified the Sponsor in writing of the claim within a reasonable time after
 the summons or other first written notification giving information of the
 nature of the claim shall have been served upon the Sponsor Indemnified Party
 (or after the Sponsor Indemnified Party shall have received notice of service
 on any designated agent). However, failure to notify the Sponsor of any claim
 shall not relieve the Sponsor from any liability which it may have to any
 Sponsor Indemnified Party against whom such action is brought otherwise than
 on account of its indemnity agreement contained in this paragraph and shall
 only release it from such liability under this paragraph to the extent it has
 been materially prejudiced by such failure to give notice. The Sponsor shall
 be entitled to participate at its own expense in the defense, or, if it so
 elects, to assume the defense of any suit brought to enforce any claims, but
 if the Sponsor elects to assume the defense, the defense shall be conducted
 by counsel chosen by it and satisfactory to the Sponsor Indemnified Parties
 in the suit and who shall not, except with the consent of the Sponsor
 Indemnified Parties, be counsel to the Sponsor. If the Sponsor does not elect
 to assume the defense of any suit, it will </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>S2-9</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>reimburse the Sponsor Indemnified Parties in the suit for the
 reasonable fees and expenses of any counsel retained by them. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. No
 indemnifying party, as described in paragraphs (a) and (b) above, shall,
 without the written consent of the AP Indemnified Party or the Sponsor
 Indemnified Party, as the case may be, effect the settlement or compromise
 of, or consent to the entry of any judgment with respect to, any pending or
 threatened action or claim in respect of which indemnification may be sought
 hereunder (whether or not the indemnified party is an actual or potential
 party to such action or claim) unless such settlement, compromise or judgment
 (i) includes an unconditional release of the AP Indemnified Party or Sponsor
 Indemnified Party, as the case may be, from all liability arising out of such
 action or claim and (ii) does not include a statement as to or an admission
 of fault, culpability or a failure to act, by or on behalf of any AP
 Indemnified Party or Sponsor Indemnified Party, as the case may be. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. The
 Authorized Participant shall not be liable to any AP Indemnified Party for
 any damages arising out of (i) mistakes or errors in data provided in
 connection with purchase or redemption transactions except for data provided
 by the Authorized Participant, or (ii) mistakes or errors by, or arising out
 of interruptions or delays of communications with, the Trustee or any AP
 Indemnified Party. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The
 indemnification provided for in Section 6.01(a) shall not apply to the extent
 any such losses, liabilities, damages, costs and expenses are incurred as a
 result of any fraud, gross negligence, bad faith or reckless or willful
 misconduct on the part of an AP Indemnified Party. The indemnification
 provided for in Section 6.01(b) shall not apply to the extent any such
 losses, liabilities, damages, costs and expenses are incurred as a result of
 any fraud, gross negligence, bad faith or reckless or willful misconduct on
 the part of a Sponsor Indemnified Party. </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The
 indemnity agreements contained in this Section 6.01 shall remain in full force
 and effect and shall survive any termination of this Agreement. The Sponsor
 and the Authorized Participant agree promptly to notify each other of the
 commencement of any Proceeding against it and against any of their officers
 or directors in connection with the issuance and sale of the Shares or in
 connection with the registration statement or the relevant Prospectus. </FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>ARTICLE VII</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>MISCELLANEOUS</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
7.01. <U>Commencement of Trading</U>. The Authorized Participant may not submit
an Order prior to the effectiveness of the registration statement, or amendment
to the registration statement, filed with the Securities and Exchange
Commission and pursuant to which the Authorized Participant is identified as
such in the relevant Prospectus. </FONT></P>

<P><FONT SIZE=1>&nbsp;</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>[<I>Signatures
Follow on Next Page</I>]</FONT></P>

<P><FONT SIZE=1>&nbsp;</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S2-10</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=JUSTIFY><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF</B>, the Sponsor and the Trustee have
executed these these First Amended and Restated Standard Terms as of the date
set forth above. </FONT></P>

<P><FONT SIZE=2><B>THE BANK OF NEW YORK MELLON</B>,
in its capacity as Trustee </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="3%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="47%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>By:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>ETF SECURITIES USA LLC</B>,
in its capacity as Sponsor </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="3%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="47%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>By:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<P><FONT SIZE=1><I>&nbsp;</I></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><I> [First Amended and Restated Standard Terms
Signature Page]</I></FONT></P>

<P><FONT SIZE=1>&nbsp;</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>S2-11</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>SCHEDULE 3-A: AUTHORIZED REPRESENTATIVES OF
THE AUTHORIZED PARTICIPANT</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><U>Certificate of Authorized Representatives of the Authorized Participant</U></FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following are the names, titles, signatures, phone numbers, and email addresses
of all persons (each, an &#147;Authorized Representative&#148;) authorized to give
instructions relating to any activity contemplated by the Authorized
Participant Agreement between [AUTHORIZED PARTICIPANT], The Bank of New York
Mellon and ETF Securities USA LLC dated [DATE] (the &#147;Agreement&#148;) or any other
notice, request or instruction on behalf of the Authorized Participant pursuant
to the Agreement. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="15%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="25%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="20%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="15%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="25%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Signature:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Signature:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Phone:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Phone:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Email:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Email:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Signature:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Signature:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Phone:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Phone:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Email:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Email:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Signature:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Signature:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Phone:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Phone:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Email:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Email:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned, [AP&#146;S AUTHORIZED SIGNATORY], does hereby certify that the persons
listed above have been duly authorized to act as Authorized Representatives
pursuant to the Authorized Participant Agreement. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="3%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="47%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>By:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>Date:</FONT></P>
 </TD>
 </TR>
</TABLE>
<P ALIGN=CENTER><FONT SIZE=2>S3-1</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<P ALIGN=CENTER><FONT SIZE=2><B>SCHEDULE 3-B: ADDENDUM TO CERTIFICATE OF
AUTHORIZED<BR> REPRESENTATIVES OF THE AUTHORIZED
PARTICIPANT</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B> [On AP&#146;s Firm Letterhead]</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="100%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2><B> [DATE]</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Attn: Jarvis Joseph </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>The Bank of New York
 Mellon </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>2 Hanson Place &#151; Floor 9th
 </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Brooklyn, NY 11217 </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>New York </FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Re:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=JUSTIFY><FONT SIZE=2>Addendum
 to the Certificate of Authorized Representatives for [AUTHORIZED PARTICIPANT]
 under the Authorized Participant Agreement for the relevant Trusts sponsored
 by ETF Securities USA LLC dated [DATE] (the &#147;Agreement&#148;) </FONT></P>
 </TD>
 </TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>

<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>Ladies and Gentlemen: </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the Agreement, the following are the names, titles, signatures, phone
numbers, and email addresses of additional Authorized Representatives of
[AUTHORIZED PARTICIPANT] (the &#147;AP&#148;) authorized to give instructions relating to
any activity contemplated by the Agreement or any other notice, request or
instruction on behalf of the AP pursuant to the Agreement. This list of
Authorized Representatives is an addendum and adds further Authorized
Representatives to the AP&#146;s most recently executed certificate (entitled
&#147;Certificate of Authorized Representatives of the Authorized Participant&#148;). </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="15%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="25%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="20%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="15%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="25%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
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 </TD>
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 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Signature:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Signature:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
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 <P><FONT SIZE=1>&nbsp;</FONT></P>
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 <P><FONT SIZE=1>&nbsp;</FONT></P>
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 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Phone:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Phone:</FONT></P>
 </TD>
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 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
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 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

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 <P><FONT SIZE=1>&nbsp;</FONT></P>
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 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Email:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Email:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

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 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
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 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
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 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

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 <P><FONT SIZE=1>&nbsp;</FONT></P>
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 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
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 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
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 <P><FONT SIZE=1>&nbsp;</FONT></P>
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 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Signature:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Signature:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
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 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Phone:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Phone:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Email:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>Email:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="90%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 </TR>
</TABLE>
<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please
provide PIN numbers for those listed above. </FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned, [AP&#146;S AUTHORIZED SIGNATORY], does hereby certify that the persons
listed above have been duly authorized to act as Authorized Representatives
pursuant to the Authorized Participant Agreement. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="3%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="47%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="50%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>By:</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>Name:</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>Title:</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=3 VALIGN=TOP>
 <P><FONT SIZE=2>Date:</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<P ALIGN=CENTER><FONT SIZE=2>S3-2</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
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<SEQUENCE>3
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M2$YZTU*4A%U'+89D`CD"-695$DN)I,QE^%B%583%D-DVM^,N8IVQJU1D:R;5
M>L/LY`$FPC!F'5,05Q]EZ*U69++D6)(\5Q+<>*VQ?4WEN&M2#.P\ME@"3```
M`````````````CV/HTN3A26W$8<E/DN,XEAHB-Q1-26W%$DC,K3NI,!&Z]2L
M25R9/KM-C2(!E3FH$:,^:6GI"3EH?D>(2O$L:0I"+RBRJ/L`.!49YO5IS=/F
M2*$N8IRH4-49+-W_`+8VFUMQ25XR,YE6GLF=ZS(`EL9J=";.<2GBIC49.9H2
M66UO-FE)9"6E2E*5D^C;8`KG>7W61_[76?\`3_\`BY?]7^R`LC!OY7IOH2\)
M@-R`````````````````````````````````````````````````````````
M``````````````````#BIEI3B75(2;J",D+,B-2259>(C[%MF4!R````````
M`````````````````55^.@-SA_\`]-$_]Q]#_P"M_H\I_0[@#8>_@#W\`>_@
M#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`
M>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#
MW\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>
M_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W\`>_@#W
>\`>_@#W\`>_@#W\`>_@$)_\`)_\`9?\`]_UP'__9
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>4
<FILENAME>c64628_ex31-1.htm
<TEXT>

<HTML>
<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P ALIGN=RIGHT><FONT SIZE=2><B>Exhibit 31.1 </B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT <BR>
TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</B></FONT></P>

<P><FONT SIZE=2>I, Graham Tuckwell, certify that: </FONT></P>

<P><FONT SIZE=2>I have reviewed this report on Form 10-K of the ETFS Palladium Trust (&#147;Trust&#148;); </FONT></P>

<P><FONT SIZE=2>Based on my
knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report; </FONT></P>

<P><FONT SIZE=2>Based on my
knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for,
the periods presented in this report; </FONT></P>

<P><FONT SIZE=2>The
registrant&#146;s other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have: </FONT></P>

<P><FONT SIZE=2>a. Designed such
disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared; </FONT></P>

<P><FONT SIZE=2>b. Designed
such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles; </FONT></P>

<P><FONT SIZE=2>c. Evaluated
the effectiveness of the registrant&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and </FONT></P>

<P><FONT SIZE=2>d. Disclosed
in this report any change in the registrant&#146;s internal control over financial
reporting that occurred during the registrant&#146;s fourth fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the
registrant&#146;s internal control over financial reporting; and </FONT></P>

<P><FONT SIZE=2>The
registrant&#146;s other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the
registrant&#146;s auditors and the audit committee the registrant&#146;s board of
directors (or persons performing the equivalent functions):</FONT></P>

<P><FONT SIZE=2>a. All
significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to
adversely affect the registrant&#146;s ability to record, process, summarize and
report financial information; and </FONT></P>

<P><FONT SIZE=2>b. Any fraud,
whether or not material, that involves management or other employees who have a
significant role in the registrant&#146;s internal control over financial reporting.</FONT></P>

<P><FONT SIZE=2>Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 28, 2011</FONT></P>


<BR>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="40%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="60%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>/s/ Graham
 Tuckwell</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>*</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>Graham
 Tuckwell** </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>Chief
 Executive Officer and President </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>(principal
 executive officer) </FONT></P>
 </TD>
 </TR>

</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>*</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>The
 originally executed copy of this Certification will be maintained at the
 Sponsor&#146;s offices and will be made available for inspection upon request.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>**</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>The
 Registrant is a trust and Mr. Tuckwell is signing in his capacity as an
 officer of ETF Securities USA LLC, the Sponsor of the Registrant.</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>5
<FILENAME>c64628_ex31-2.htm
<TEXT>

<HTML>
<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P ALIGN=RIGHT><FONT SIZE=2><B>Exhibit 31.2 </B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT <BR>
TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</B></FONT></P>

<P><FONT SIZE=2>I, Thomas Quigley, certify that: </FONT></P>

<P><FONT SIZE=2>I have
reviewed this report on Form 10-K of the ETFS Palladium Trust (&#147;Trust&#148;); </FONT></P>

<P><FONT SIZE=2>Based on my
knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report; </FONT></P>

<P><FONT SIZE=2>Based on my
knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report; </FONT></P>

<P><FONT SIZE=2>The
registrant&#146;s other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have: </FONT></P>

<P><FONT SIZE=2>a. Designed
such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared; </FONT></P>

<P><FONT SIZE=2>b. Designed
such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles; </FONT></P>

<P><FONT SIZE=2>c. Evaluated
the effectiveness of the registrant&#146;s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and </FONT></P>

<P><FONT SIZE=2>d. Disclosed
in this report any change in the registrant&#146;s internal control over financial
reporting that occurred during the registrant&#146;s fourth fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the
registrant&#146;s internal control over financial reporting; and </FONT></P>

<P><FONT SIZE=2>The
registrant&#146;s other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the
registrant&#146;s auditors and the audit committee the registrant&#146;s board of
directors (or persons performing the equivalent functions): </FONT></P>

<P><FONT SIZE=2>a. All
significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to
adversely affect the registrant&#146;s ability to record, process, summarize and
report financial information; and </FONT></P>

<P><FONT SIZE=2>b. Any fraud,
whether or not material, that involves management or other employees who have a
significant role in the registrant&#146;s internal control over financial reporting.
</FONT></P>

 <P><FONT SIZE=2>Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March
 28, 2011</FONT></P>


<BR>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="40%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="60%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>/s/ Thomas
 Quigley</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>*</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>Thomas
 Quigley** </FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>Chief
 Financial Officer and Treasurer</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN=2 VALIGN=BOTTOM>
 <P><FONT SIZE=2>(principal
 financial officer) </FONT></P>
 </TD>
 </TR>

</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>*</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>The
 originally executed copy of this Certification will be maintained at the
 Sponsor&#146;s offices and will be made available for inspection upon request.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>**</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>The
 Registrant is a trust and Mr. Quigley is signing in his capacity as an
 officer of ETF Securities USA LLC, the Sponsor of the Registrant.</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>6
<FILENAME>c64628_ex32-1.htm
<TEXT>

<HTML>
<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P ALIGN=RIGHT><FONT SIZE=2><B>Exhibit 32.1 </B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>CERTIFICATION PURSUANT TO<BR>
18 U.S.C. SECTION 1350<BR>
AS ADOPTED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the Annual Report of ETFS Palladium Trust (the &#147;Trust&#148;) on Form
10-K for the period ending December 31, 2010 as filed with the Securities and
Exchange Commission on the date hereof (the &#147;Report&#148;), I, Graham Tuckwell,
principal executive officer of ETF Securities USA LLC, the Sponsor of the
Trust, certify, pursuant to 18 U.S.C. &sect; 1350, as adopted pursuant to &sect; 906 of
the Sarbanes-Oxley Act of 2002, that: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
The Report fully complies with the requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
The information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the Trust. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="40%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="60%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>/s/ Graham
 Tuckwell</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>*</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Graham
 Tuckwell** </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Chief
 Executive Officer and President</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>(principal
 executive officer) </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March
 28,
 2011</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>*</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>The
 originally executed copy of this Certification will be maintained at the
 Sponsor&#146;s offices and will be made available for inspection upon request.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>**</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>The
 Registrant is a trust and Mr. Tuckwell is signing in his capacity as an
 officer of ETF Securities USA LLC, the sponsor of the Trust.</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>7
<FILENAME>c64628_ex32-2.htm
<TEXT>

<HTML>
<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P ALIGN=RIGHT><FONT SIZE=2><B>Exhibit 32.2</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>CERTIFICATION PURSUANT TO<BR>
18 U.S.C. SECTION 1350<BR>
AS ADOPTED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the Annual Report of ETFS Palladium Trust (the &#147;Trust&#148;) on Form
10-K for the period ending December 31, 2010 as filed with the Securities and
Exchange Commission on the date hereof (the &#147;Report&#148;), I, Thomas Quigley,
principal financial officer of ETF Securities USA LLC, the Sponsor of the
Trust, certify, pursuant to 18&nbsp;U.S.C. &sect; 1350, as adopted pursuant to &sect; 906
of the Sarbanes-Oxley Act of 2002, that: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
The Report fully complies with the requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
The information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the Trust. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="40%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="60%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>/s/ Thomas Quigley</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>*</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>

 <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Thomas
 Quigley** </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Chief
 Financial Officer and Treasurer</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>(principal
 financial officer) </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March
 28,
 2011</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR STYLE="FONT-SIZE:1PX">
 <TD WIDTH="4%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="96%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>*</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>The
 originally executed copy of this Certification will be maintained at the
 Sponsor&#146;s offices and will be made available for inspection upon request.</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2>**</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>The
 Registrant is a trust and Mr. Quigley is signing in his capacity as an
 officer of ETF Securities USA LLC, the sponsor of the Trust.</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
