http://www.iShares.com. The Amex will also disclose the NAV, Basket Silver Amount, and
Indicative Basket Silver Amount on its Web site.
The Sponsor fee, in the absence of any extraordinary expenses and liabilities, is
established at 0.50% of the net assets of the Trust. As a result, assuming there is no
extraordinary movement in the intra-day market price of silver, the amount of silver by which the
Basket Silver Amount will decrease each day will be predictable (i.e., 1/365th of the net asset
value of the Trust multiplied by 0.50%). Given the anticipated predictability of the daily decline
in the Basket Silver Amount, as stated, BNY will disclose and disseminate the Indicative Basket
Silver Amount for the next business day shortly after 4:00 p.m. Authorized Participants may use
the Indicative Basket Silver Amount as guidance regarding the amount of silver expected to be
deposited with the custodian, JP Morgan Chase, in connection with the issuance of Silver Shares
on the next business day.
As a result, the amount of silver required for the Basket Silver Amount is not
disseminated during the trading day to correspond to changes in the value of silver as measured
by spot silver prices.33 Before 4:00 p.m., the Authorized Participants may use the Indicative
Basket Silver Amount published by the Sponsor and BNY the day before as guidance in respect
of the amount of silver that they may expect to be required to deposit. But if the Indicative
Basket Silver Amount published by the Sponsor and BNY turns out to be incorrect (for example,
because the Trust incurred an extraordinary expense such as legal fees in excess of the amount
assumed by the Sponsor), the amount actually determined by BNY will control.
The Amex will disseminate via the facilities of the CTA an “Indicative Trust Value” at least every 15 seconds during the trading day that represents an indicative value for the Silver Shares based silver dealer pricing. Telephone conference between Jeffrey Burns,