Trustees of Central GoldTrust Have No Solution to Unlock $65 Million in Unitholder Value

• The Trustees own less than 0.01% and have no plan to eliminate the discount to NAV
• A Trustee earns up to USD$87,600 each year from funds run by the Trust's management, making them beholden to management to keep their lucrative fees
• Management collected over USD$1.7 million in 2014 while unitholders suffered an average discount to NAV of 5.7%
• Polar urges unitholders to vote the BLUE proxy to amend unit redemption features and elect five highly-qualified independent Trustees

TORONTO, April 9, 2015 /CNW/ Polar Securities Inc. ("Polar") is calling on fellow unitholders of Central GoldTrust ("CGT" or the "Trust") (TSX:GTU-U; NYSE MKT:GTU) to unlock over USD$65 million in value by voting their BLUE proxy in support of Polar's proposed unit redemption feature and its five highly-qualified independent Trustees at the annual and special meeting of the Trust to be held on May 1, 2015 (the "Meeting").

Polar is proposing to amend the unit redemption features of CGT's units ("Units") to benefit ALL unitholders, regardless of the size of their holdings. Unitholders should expect to accrue at least USD$3,364 of additional value for each 1,000 Units held.

"The incumbent Trustees of CGT, led by Chairman, President & CEO Stefan Spicer, appear completely incapable of resolving the persistent discount of the trading price of Units to their net asset value. Mr. Spicer earns his fees on the basis of the NAV of the fund, which, unfortunately, makes him indifferent to the discount," observed Paul Sabourin, CIO of Polar, from his office in Toronto.

"The Trustees continue to sit idly by as unitholders alone bear the burden of over USD$65 million in tangible value that is locked in the Trust. We believe that Mr. Spicer's trustees have a fundamental misunderstanding of how the market will react to a physical unit redemption feature," continued Mr. Sabourin. "We have come forward with a proven solution and, based on conversations to date, we are confident fellow unitholders are supportive."

CENTRAL GOLDTRUST HAS A PROBLEM THAT NEEDS TO BE SOLVED

• Over the past 3 years, the trading prices of the Units underperformed the returns of gold by 8.9%.
• Units have consistently traded at a discount to NAV for the past 2 years, and over the past year the average discount has been 6.2%.
• Polar is confident that an effective redemption feature will resolve the underperformance

THE TRUSTEES ARE MISLEADING UNITHOLDERS

• The Trustees have attempted to obscure, mislead and confuse unitholders in an attempt to preserve their entitlements - their significant management and trustee fees.
• Mr. Spicer and the Trustees highlight a potential 10% increase in the Trust's management expense ratio. This equates to just 0.036% of the NAV which is overwhelmed by the current 8.5% discount to NAV. Put another way, per 1,000 units, the Trustees believe that saving $16 justifies rejecting Polar's proposal that should add at least $3,364 in value to your units.
• The Trustees have raised tax as a "material" issue for certain U.S. unitholders that have made QEF elections. The Trustees are trying to scare you. Using the Trustees' own numbers, if redemptions for 10% of the outstanding Units were to occur, this would represent only 0.89% of the NAV, versus the 8.5% discount to NAV. Any potential tax is mostly a timing issue: your cost base will go up, reducing your future tax liabilities.

MR. SPICER AND THE TRUSTEES ARE NOT ALIGNED WITH UNITHOLDERS

• Despite the Trust's stated bullish outlook on gold, all the Trustees combined own just 2,600 Units or just 0.01% of the Units. Over the last 5 years, the Trustees have earned over USD$600,000 in fees from the Trust and own just USD$105,950 in CGT Units.
• Polar is one of the largest holders of CGT and owns over 1 million Units or approximately 5.7% - Polar is aligned with all unitholders.
• Management continues to collect fees on the NAV and not the market price of the Units, so they are indifferent to the discount.

THE TRUSTEES APPEAR TO WORK FOR MR. SPICER - NOT UNITHOLDERS

• All but one of the Trustees serve on other boards Chaired by Mr. Spicer and earn up to USD$87,600 each year from these boards.
• Management received over $1.7 million in 2014 alone, while the Units traded at an average discount to NAV of 5.7%.

THE BOARD HAS NO SOLUTION FOR THE NAV DISCOUNT

• Despite hiring 4 or more separate outside advisors, all at unitholder expense, CGT provides NO alternate plan to fix the pervasive trading discount.
• The Trustees are incapable of unlocking value at CGT as none of the independent Trustees have capital markets expertise, and very little public board experience, other than serving on Mr. Spicer's boards.

BREAK OUT OF THE GOLDTRUST VALUE TRAP - VOTE BLUE FOR CHANGE

Fellow unitholders, we need your support to unlock over $65 million of unitholder value. Vote the BLUE proxy today in favour of Polar's redemption proposal and for Polar's five highly qualified and independent nominees.

If you have any questions or need assistance in voting your BLUE proxy, please contact Shorecrest Group Ltd. at 1-888-637-5789 (toll free within North America) or 647-931-7454 (collect calls accepted), or by email at [email protected].

POLAR SECURITIES INC.

Established in 1991, Polar, based in Toronto, Canada, is registered as an Investment Dealer, Investment Fund Manager and Futures Commission Merchant with the Ontario Securities Commission and is a member of the Investment Industry Regulatory Organization of Canada. Polar acts as the investment manager for certain investment funds and manages over CAD$2 billion of client funds. Polar's investment philosophy focuses on capital preservation and low volatility. During its tenure, Polar has invested in more than 10 Canadian precious metals funds and more than 75 Canadian closed-end products and has extensive expertise in structuring, managing and investing in complex investment products.

SOURCE Polar Securities Inc.

Unitholders of CGT:
Shorecrest Group Ltd.
1-888-637-5789 (toll free within North America)
647-931-7454 (collect calls accepted)
[email protected]

Media:
Riyaz Lalani
Bayfield Strategy, Inc.
[phone]
[email protected]