Claymore Gold Bullion Trust (the “Fund”), a closed-end investment trust established under the laws of the Province of
Ontario, proposes to issue units (the “Units”) of the Fund (the “Offering”) at a price of $10.00 per Unit. Each Unit will
be comprised of one redeemable, transferable trust unit of the Fund (each, a “Fund Unit”) and one warrant (each, a
“Warrant”). The Units will separate into Fund Units and Warrants immediately upon the closing of the Offering
(the “Closing”). Each Warrant will entitle the holder thereof to acquire one Fund Unit (the “Warrant Units”) at an
exercise price of $10.00 at any time before 4:00 p.m. (Toronto time) on the date that is 6 months following the
Closing Date (as defined herein) (the “Expiry Time”). Warrants not exercised by the Expiry Time will be void
and of no value. See “Attributes of the Units”.
The Fund has been created to provide holders of Units (the “Unitholders”) with an exposure to physical gold bullion
with a currency hedge against the US dollar (“USD”). The Manager (defined below) believes that the Fund will
provide a secure, low-cost and convenient alternative to investors interested in holding gold bullion. Given that gold
bullion is priced in USD, the Fund will hedge substantially all of the Fund’s USD currency value back to the
Canadian dollar. The Fund will automatically convert (the “Conversion”) into an exchange-traded fund (“ETF”) if the
Fund Units trade at a discount to net asset value (“NAV”) after ●, 2009. Claymore (as defined below) has a patent
pending in Canada for the ETF conversion process. See “Conversion of the Fund”.
The investment objective of the Fund is to replicate the performance of the price of gold bullion, less the Fund’s
expenses and fees. The Fund does not anticipate making regular distributions. See “Investment Objective”.
The net proceeds of the Offering will be used to purchase and hold physical gold bullion (the “Portfolio”) in
accordance with the investment objective, strategy, policies and restrictions of the Fund. All of the Fund’s physical
gold bullion will be stored on an allocated, segregated and insured basis in the underground treasury vaults of a
Canadian Schedule I chartered bank or an affiliate or a division thereof. See “Investment Strategy” and “Use of
Proceeds”.
Claymore Investments, Inc. (the “Manager” or “Claymore”), a registered investment counsel, portfolio manager and limited
market dealer, will be the manager of the Fund and will be responsible for the administration of the Fund. Claymore
is a wholly owned subsidiary of Claymore Group Inc., a financial services and asset management company based in the
Chicago, Illinois area. Claymore Group Inc. and its affiliates have approximately 177 employees in North America and, as
of March 31, 2009, provided supervisory, management or distribution related services to closed-end funds, unit
investment trusts, exchange traded funds, separately managed accounts and mutual funds with combined assets of
approximately U.S.$10 billion. See “Organization and Management Details of the Fund – The Manager”.