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SECURITIES AND EXCHANGE COMMISSION (Release No. 34-53521; File No. SR-Amex-2005-072) - page 9 / 32

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throughout the trading day, via the facilities of the Consolidated Tape Association (“CTA”), an

amount representing on a per share basis, the current value of the Basket Silver Amount, known

as the “Indicative Trust Amount.”

The Shares will not be individually redeemable but will only be redeemable in Basket

Aggregations. To redeem, an Authorized Participant will be required to accumulate enough

Silver Shares to constitute a Basket Aggregation (i.e., 50,000 shares). An Authorized Participant

redeeming a Basket Aggregation will receive the silver amount of the Basket Silver Amount

announced by the Trustee. Upon the surrender of the Shares and payment of applicable

Trustee’s fee and any expenses, taxes or charges, BNY will deliver to the redeeming Authorized

Participant the amount of silver corresponding to the redeemed Baskets. Unless otherwise

requested by the Authorized Participants, silver will then be delivered to the redeeming

Authorized Participants in the form of physical bars only. Silver Shares will be registered in

book entry form through DTC.

The Exchange states that the Basket Silver Amount necessary for the creation of a Basket

will slightly diminish each day depending on the Trust’s daily expense accrual. The initial

Basket Silver Amount is 500,000 ounces of silver (with each Share initially representing 10

ounces of Silver). On each day that the Amex is open for regular trading, BNY will adjust the

quantity of silver constituting the Basket Silver Amount as appropriate to reflect sales of silver

needed for payment of the Sponsor’s fee (which is similar to an expense ratio)31 and any

31

The Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust: the Trustee’s fee, the Custodian’s fee, Amex listing fees, SEC registration fees, printing and mailing costs, audit fees and expenses and up to $100,000 per annum in legal fees and expenses. The Sponsor will also pay the costs of the Trust’s organization and the initial sale of the iShares, including applicable SEC registration fees. Telephone conference between Jeffrey Burns, Associate General Counsel, Amex, and

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