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SECURITIES AND EXCHANGE COMMISSION (Release No. 34-53521; File No. SR-Amex-2005-072) - page 8 / 32

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Basket Aggregations of Shares will be issued as an in-kind exchange for a corresponding

amount of silver. The basket amount of silver, measured in ounces (the “Basket Silver

Amount”) will be determined on each business day by the Trustee, BNY.28 Authorized

Participants that wish to purchase a Basket must transfer the Basket Silver Amount to the Trust

in exchange for a Basket of Shares. Authorized Participants that wish to redeem a Basket of

Shares will receive the Basket Silver Amount in exchange for each Basket surrendered. JP

Morgan Chase Bank, N.A., London Branch (“JP Morgan Chase” or “Custodian”) will be the

custodian for the Trust and responsible for safekeeping the silver.29

On each business day, BNY will make available immediately prior to the opening of

trading on the Amex, the Indicative Basket Silver Amount for the creation of a Basket.30 BNY

will adjust the quantity of silver included in the Basket Silver Amount (determined shortly after

4:00 p.m.) to reflect sales of silver to cover expenses and any loss of deposited silver that may

occur since the previous calculation. The Amex will disseminate at least every 15 seconds

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A troy ounce, equal to 1.0971428 ounces avoirdupois, with a minimum fineness of 0.999. “Avoirdupois” is the system of weights used in the U.S. and U.K. for goods other than precious metals, gems, and drugs. In that system, a pound is 16 ounces and an ounce is 16 drams.

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If the total value of the Trust’s silver held by the Custodian exceeds $1 billion, then the Custodian will be under no obligation to accept additional silver deliveries. In such a case, the Trustee will retain an additional custodian.

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The Sponsor will also make the next day’s Indicative Basket Silver Amount available on the Trust Web site (http://www.iShares.com) shortly after 4:00 p.m. ET each business day. The Basket Silver Amount, Indicative Basket Silver Amount, and net asset value (“NAV”) will be publicly available simultaneously to all market participants (to avoid any informational advantage) on either the Trust Web site or Amex Web site. These items will also be communicated to Authorized Participants via facsimile or electronic mail message. Telephone conference between Jeffrey Burns, Associate General Counsel, Amex, and Florence Harmon, Senior Special Counsel, Division of Market Regulation, Commission, on January 13, 2006.

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