NYSE: OUNZ

The redeemable per share value of the Shares
increased from $27.01 at January 31, 2025 to $46.56 at January 31, 2026, the Trust’s fiscal year end. Outstanding Shares in the
Trust increased from 48,664,686 Shares at January 31, 2025 to 62,358,853 Shares outstanding at January 31, 2026.

The Trust is not managed like a corporation or
an active investment vehicle. It does not have any officers, directors or employees and is administered by the Trustee pursuant to the
Trust Agreement. The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended (the “1940
Act”), and is not required to register under such act. The Trust does not and will not hold or trade in commodities futures contracts
regulated by the Commodity Exchange Act, as amended (the “CEA”), as administered by the Commodity Futures Trading Commission
(the “CFTC”). The Trust is not a commodity pool for purposes of the CEA and neither the Sponsor nor the Trustee is subject
to regulation as a commodity pool operator or a commodity trading advisor in connection with the Shares. The Trust has no fixed termination
date.

The gold held by the Trust will only be distributed
to Authorized Participants (defined below) in connection with the redemption of Baskets or sold (1) on an as-needed basis to pay Trust
expenses not assumed by the Sponsor, (2) in the event the Trust terminates and liquidates its assets, or (3) as otherwise required by
law or regulation.

The Sponsor of the registrant maintains an Internet
website at www.merkfunds.com and www.merkgold.com, through which the registrant’s Annual Reports on Form 10-K, Quarterly Reports
on Form 10-Q, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), are made available free of charge after they have been filed or furnished to the Securities
and Exchange Commission (the “SEC”). Additional information regarding the Trust may also be found on the SEC’s EDGAR
database at www.sec.gov.

Trust Objective

The primary objective of the Trust is to provide
investors with an opportunity to invest in gold through the Shares and be able to take delivery of physical gold in exchange for their
Shares. The Trust’s secondary objective is for the Shares to reflect the performance of the price of gold less the expenses of
the Trust’s operations. The Trust is not actively managed. It does not engage in any activities designed to obtain a profit from,
or to compensate investors for losses caused by, changes in the price of gold.

1

Each Share represents a fractional undivided
beneficial interest in the Trust’s net assets. The Trust’s assets consist of gold held on the Trust’s behalf in financial
institutions for safekeeping. Physical gold that the Trust will hold includes “London Bars” and, for the limited purposes
described herein, other gold bars and coins, without numismatic value, having a minimum fineness (or purity) of 995 parts per 1,000 (99.5%)
or, for American Gold Eagle gold coins, with a minimum fineness of 91.67%. The Trust receives gold deposited by Authorized Participants
in exchange for the creation of Baskets and delivers gold to Authorized Participants in exchange for Baskets surrendered to it for redemption.
In connection with the delivery of Shares by a Delivery Applicant as described below, the Sponsor may engage in over-the-counter transactions
with a precious metals dealer to exchange gold for physical gold of different specifications.

Investors may contact their broker-dealer to
purchase and sell Shares. An investor who would like to take delivery of physical gold for its Shares is referred to as a Delivery Applicant:

●
A Delivery Applicant wishing to deliver Shares in exchange for physical
gold must submit to the Sponsor a delivery application (“Delivery Application”) and payment for (1) the applicable processing
fees, and (2) the applicable delivery fees to cover the cost of preparing and transporting physical gold from the Custodian or the
precious metals dealer from which they were obtained to the location specified by the Delivery Applicant in the Delivery Application.
The number of Shares to be delivered must (i) correspond to at least one Fine Ounce of gold and (ii) have a minimum dollar value
in an amount that is specified by the Sponsor from time to time on the Trust’s website. Taking delivery of physical gold is
subject to guidelines intended to minimize the amount of cash that will be distributed with physical gold. The Delivery Application
is not binding until the Shares are delivered to the Trust.

●
Upon pre-approval of the Delivery Application by the Sponsor, a Delivery
Applicant shall instruct its broker dealer to submit the Delivery Application and transfer the Shares to the Trustee; the submission
and transfer by the broker-dealer will be a binding and irrevocable request to take delivery of physical gold in exchange for Shares
based on instructions in the Delivery Application (a “Share Submission”).

●
Once the Trustee has received a Delivery Applicant’s Share Submission,
a number of Fine Ounces of physical gold not exceeding the Fine Ounces represented by the Shares surrendered will be delivered to
the Delivery Applicant based on instructions in the Delivery Application. To the extent a Delivery Application specifies London Bars,
physical gold will be delivered by the Custodian; to the extent the Delivery Application specifies physical gold other than London
Bars, if available, gold held by the Trust will be exchanged with the help of a precious metals dealer and delivered to the Delivery
Applicant. The Delivery Application process is designed to keep the Fine Ounces represented by the Share Submission as close as possible
to the Fine Ounces of the gold delivered. Any excess Fine Ounces included in the Share Submission will be sold by the Custodian and
the Trustee will deliver proceeds to DTC with instructions to credit the Delivery Applicant’s brokerage account.

The Shares are intended to constitute a cost-efficient
mechanism for investors to make an investment in gold. Although the Shares are not the exact equivalent of an investment in gold, they
provide investors with an alternative that allows a level of participation in the gold market through the securities market. The Shares
are:

●
Listed and trade on NYSE Arca like other exchange-traded securities
under the symbol “OUNZ.”

●
Easily accessible to investors through traditional brokerage accounts.

●
Backed by allocated gold held by the Custodian and no more than 430
Fine Ounces of unallocated gold held with the Custodian.

●
Different from other financial products that gain exposure to gold
in that other financial products may use derivatives to gain exposure to the price of gold.

●
Cost efficient because the expenses involved in an investment in physical
gold are dispersed among all investors in the Shares.

2

Overview of the Gold Industry (unaudited)

Gold demand

Today, gold is used as both a commodity and a
store of value. The first category includes gold jewelry and the gold that has been manufactured into industrial products. The second
category includes gold reserves held by the official sector and private investors.

Jewelry demand

Jewelry demand has historically accounted for
the largest component of total gold demand. At the end of 2025, the estimated total existing above-ground stock of gold amounted to 7.1
billion Ounces1, and 44% of the estimated total has been used in jewelry.

The motivation behind gold jewelry demand differs
in various regions of the world. In the developed countries, gold jewelry is primarily bought for adornment purposes, while in the developing
world, gold jewelry has also been used as a store of value. India, East Asia (excluding Japan) and the Middle East are the major gold
jewelry markets by volume in the developing world; gold jewelry is generally of higher cartage and the price more closely reflects the
value of gold in these regions compared to developed countries.

Gold jewelry demand on average has been around
69.2 million Ounces per year from the period of 2010 to 2025. Total annual jewelry demand amounted to 52.7 million Ounces in 2025. The
largest decline was in 2020, down 38.4% or 21.9 million Ounces. Gold jewelry demand, as a proportion of total gold demand was 60.4% in
2013 before falling to 43.8% in 2024. In 2025, gold jewelry demand, as a proportion of total demand, decreased to 33.2% from 43.8% in
2024.

Industrial and medical demand

In addition to its application in jewelry, gold
has been widely used in manufacturing and medical treatment. In 2025, 6.5% of gold demand came from industrial fabrication. From the
period of 2010 to 2025, over 70% of industrial demand has been derived from electronic component manufacturing, in large part due to
gold’s high electronic conductivity and natural resistance to corrosion. Gold is also used for industrial decoration, such as gold
plating and coating.

Gold is primarily used for industrial purposes
in developed countries, while in developing nations, it is mainly used for jewelry. Demand for gold in electronics manufacturing fell
sharply in 2009, dropping 11.7% from 2008 due to weak economic conditions, but rebounded by 17.3% in 2010. From 2010 to 2016, electronics-related
gold demand declined annually before fluctuating in the following years: 8.7 million Ounces in 2017, 8.8 million in 2018, 8.6 million
in 2019, 8.2 million in 2020, 9.0 million in 2021, 8.3 million in 2022, 8.0 million in 2023, rising again to 8.7 million Ounces in 2024,
and 87 million in 2025.

Additionally, gold has long been used for medical
and dental purposes. Its outstanding bio-compatibility, malleability and resistance to bacterial colonization make it a well-suited material
for various biomedical applications in the human body. Dental use is the primary medical application. Other medical uses include gold
wires used in heart transplants and gold-plated stents to support blood vessels. Demand for gold from this sector was down slightly in
recent years.

Investment demand

As of 2026, around 2.9 billion Ounces of above-ground
gold was held as an investment or store of value, accounting for 40.8% of the estimated total, under half of which was held by the official
sector. In 2026, the official stock purchased by the official sector was 29.3 million Ounces.

Central banks and supranational organizations
(e.g., the International Monetary Fund (the “IMF”) and Bank of International Settlements (the “BIS”) hold
gold as part of their reserve assets. Central banks affect the gold market through buying, selling and lending, as well as swaps and
other derivative activities.

1
Source: World Gold Council (also for subsequent industry data, unless
otherwise annotated)

3

Gold is a preferred store of value and investment in the private sector.
Unlike equities, bonds, and currencies, it carries no risk of issuer default or mismanagement and is independent of government or corporate
liabilities. Many investors view gold as a safe-haven asset, a portfolio diversifier, and a hedge against inflation.

Over the past decade, there has been a steady
rise in the number of investors worldwide holding gold. A large part of this trend has been the advent and proliferation of gold-tracking
exchange-traded funds, which allow investors greater access to investments in gold. In 2025, ETF investment demand was 16.2% of the total
annual gold demand, as compared to -0.1% in 2024.

Sources of gold supply

Sources of gold supply include mine production,
secondary supply from recycled gold and official sector sales.

Mine production

The largest portion of gold supply comes from
mine production, including gold produced both from primary deposits and from secondary deposits where the gold is mined as a by-product.
All the recorded gold ever mined in human history amounts to approximately 7.1 billion Ounces, or 219,891 metric tons. To put this in
perspective, if every single ounce of this gold were placed next to each other, the resulting cube of pure gold would only measure around
22 meters on each side, says World Gold Council.

Gold is produced from mines on every continent
except Antarctica (where mining is forbidden by the Antarctica Treaty). South Africa used to be the world’s largest gold producing
country. At its peak in the early 1970s, South Africa contributed over 70% of world production. However, over the past four decades,
South African output has been declining while other countries have expanded gold mining considerably.

Over recent years, gold has been increasingly
mined in developing countries; China is currently the world’s largest gold producing country. Other notable gold producing countries
include Australia, Russia and South Africa. In 2025, global mine production amounted to 118 million Ounces, which was 0.7 million Ounces
more than the year prior.

Recycled gold

Recycled gold, or scrap gold, is the second largest
source of gold supply. Gold’s indestructibility means it can be recovered from recycled jewelry and industrial products. This gold
can then be melted, refined and cast into bullion bars for resale in the gold market. Supplies emanating from recycled gold have risen
steadily in the past two decades and are predominantly sourced from recycled gold jewelry.

Recycled gold supply is highly affected by gold
prices and economic conditions. Supplies reached elevated levels during the 1997–1998 Asian financial crisis and hit a record of
53.7 million Ounces in 2010, spurred by the global financial crisis and rising gold prices. Since then, the total amount of scrap gold
has decreased to 45.1 million Ounces in 2025.

In 2016, the most recent year for which comprehensive
data is available, China, India, and Turkey are the three largest countries supplying recycled gold, accounting for 34.8% of total recycled
gold recovered. China is now the largest scrap-supplying nation, supplying 7.5 million Ounces, or 18.3% of total secondary supply, in
2016. India and Turkey contributed 10.4% and 6.1% to the total secondary gold supply, respectively, in 2016.

Official sector sales

Approximately 17.6%2 of total above-ground
gold stock is held by the official sector, a proportion that had declined over recent years before the global financial crisis. During
1989–2007, official sector sales outstripped annual purchases, meaning the official sector became a net seller of gold to the private
sector.

2
Source: World Gold Council

4

From 1989 to 2007, the official sector supplied
an approximate total of 238.8 million Ounces in gold to the private sector. In 1999, the European Central Bank and 14 other central banks
signed the first Central Bank Gold Agreement (a “CBGA”). The signatory institutions agreed not to enter the gold market as
sellers except for already decided sales. In the second CBGA, Bank of Greece replaced the Bank of England. In August 2009, 19 central
banks announced the third CBGA. Under this agreement, the annual ceiling for gold sales was reduced to 12.9 million Ounces.

Since the onset of the financial crisis, the
official sector reversed its role as a net seller over the previous nineteen years. From 2008 to 2013, the official sector was a net
purchaser of 60.0 million Ounces of gold. Central banks of major developing economies, including the People’s Bank of China, the
Reserve Bank of India and the Russian central bank, have substantially increased gold reserves. In September 2009, the IMF Executive
Board approved the sale of 13.0 million Ounces, approximately one-eighth of the Fund’s total holdings of gold, to help boost its
lending resources. The IMF completed the gold sales program in December 2010. In 2025, Kazakhstan increased their gold reserves by 1.8
million Ounces and Turkey increased their gold reserves by 0.8 million Ounces, in 2025.

The gold market and price movement

Global gold trade consists of the over-the-counter
(“OTC”) market, the futures and options markets and the London interbank market.

OTC market

The OTC market accounts for the largest percentage
of global gold trading volume. It trades on a 24-hour per business day continuous basis and provides a relatively flexible market in
terms of quotes, size, price, destinations for delivery and other factors. The standard trade size ranges between 5,000 and 10,000 Ounces.

OTC market makers include the nine market-making
members of the LBMA, and the main centers are London, New York and Zurich. Market participants include jewelry manufacturers, mining
companies, central banks, investors and speculators. Liquidity in the OTC market varies during the day, with the most liquid time periods
generally occurring in New York business day mornings, when trading hours in European time zones overlap with trading hours in the United
States.

The London Bullion Market is the largest wholesale
OTC market for gold and is operated by the LBMA, which acts as the principal point of contact between the market and its regulators.
Gold bars must meet the requirements defined by the LBMA.

Futures and options exchanges

Major gold futures and options exchanges include
the New York Commodities Exchange (“COMEX”), an affiliate of the Chicago Mercantile Exchange, Inc., as well as the Multi
Commodity Exchange of India (“MCX”), the Tokyo Commodities Exchange (“Tocom”), and the Shanghai Futures Exchange
(“SHFE”). Other key exchanges for gold derivatives include NYSE Liffe and the Dubai Gold & Commodities Exchange. Gold
futures and options on these platforms are traded in standardized sizes and delivery dates, with only a small fraction resulting in physical
delivery.

The COMEX is the largest gold futures and options
exchange. In 2025, total gold futures and options contract volume amounted to 64.6 million and 17.4 million contracts, respectively3.

3
Source: CME Group (Dec. 2025)

5

Allocated and Unallocated Gold

Allocated gold is stored in a vault under a custody
arrangement, and the individual bars are the property of the owner. When held in this fashion, allocated gold is neither an asset, nor
a liability, of a financial institution. As it is typically held under a custody relationship, storage fees and insurance premiums are
common when holding gold in allocated form.

From an investor’s standpoint, unallocated
gold (sometimes referred to as “paper gold”) is a claim on a non-specific pool of gold held by a financial institution. It
is typically held in a gold account at the financial institution. There are no tangible gold bars stored in the investor’s name;
rather, the investor has a claim on the financial institution’s assets (the underlying gold).

Both methods of investing give investors exposure
to gold. However, some have been cautious of utilizing unallocated gold, as it represents a liability from a financial institution’s
standpoint and such a financial institution may lend out the underlying gold an investor has a claim on.

Historical movements in the gold price

The following chart illustrates the historical
movements in the price of gold for the period January 1970 to January 2026, measured in U.S. dollar per Ounce.

Gold hit a 20-year low of just over $250 per
Ounce in mid-1999 before gradually rising due to increasing physical demand, particularly in major markets like China, Egypt, India,
and Japan. This upward trend continued from 2001 until May 2006.

6

Following a peak around $725 per Ounce in May
2006, the gold price fell to just over $560 in October 2006. Investors’ concerns that monetary authorities would move to counter
the threat of rising inflation by aggressively raising interest rates is frequently cited as the reason for this price correction.

However, as the Federal Reserve Bank began to
reduce interest rates in response to the subprime mortgage crisis in August 2007, the gold price rallied again. The continued reduction
in the Federal Funds rate may have helped drive the price of gold to a fresh high above $1,010 in March 2008.

As the subprime mortgage problems escalated into
a global financial crisis in late 2008 and the Eurozone debt crisis deepened in 2011, the gold price successively reached new record highs.
The gold price reached a historically high level of $1,900.20 on September 5, 2011. Market concerns surrounding the implications of monetary
policies, political uncertainty, sovereign credit risks and U.S. dollar weakness may have underpinned gold demand as a store of value
through this period.

Following its peak in September 2011, the gold
price entered a period of decline, influenced by changing investor sentiment. The Federal Reserve’s indications of monetary policy
normalization, including potential reductions in asset purchases, contributed to the price softening. By mid-2013, gold had fallen to
$1,200 per Ounce, reflecting reduced demand for safe-haven assets amid a stronger economic outlook.

Between 2014 and 2018, gold prices fluctuated
within a broad range, shaped by global economic conditions, central bank policies, and geopolitical events. A strengthening U.S. dollar
and rising interest rates, particularly as the Federal Reserve increased benchmark rates between 2015 and 2018, placed some downward pressure
on gold. However, continued central bank purchases and periodic geopolitical uncertainties provided support.

In 2019, gold prices began trending upward, influenced
by concerns over slowing global economic growth, ongoing trade tensions between the U.S. and China, and central banks shifting toward
more accommodative policies. This trend continued into 2020 as the COVID-19 pandemic led to economic disruptions and increased stimulus
measures, bringing gold above $2,000 per Ounce for the first time in August 2020.

After reaching its 2020 peak, gold prices saw
periods of volatility between 2021 and 2023, reflecting inflationary pressures, changing interest rate expectations, and geopolitical
developments. While a stronger dollar and rising interest rates weighed on gold at times, economic uncertainty and renewed demand for
safe-haven assets helped support prices leading into 2024.

In 2025, gold started off at the year at $2,624.50
per Ounce. The metal reached a high of $4,533.21 per Ounce on December 26, 2025. The low for 2025 was $2,636.47 on January 6, 2025, and
ended the year at $4,319.37 per Ounce.

Volatility

Annualized Standard Deviation

S&P 500
Spot Gold
Spot Silver

1991–1995
10.1%
9.8%
23.2%

1996–2000
16.0%
13.0%
22.4%

2001–2005
14.9%
13.5%
24.1%

2006–2010
17.8%
19.5%
34.5%

2011–2015
11.7%
18.4%
35.5%

2016–2020
15.2%
13.8%
30.0%

2021–2025
15.1%
14.4%
27.9%

Source: Bloomberg, Merk Investments LLC

Gold price volatility was 9.8% during 1991–1995
and rose to 13.0% for the period of 1996–2000, 13.5% for 2001–2005 and 19.5% for 2006–2010. Gold price volatility declined
to 18.4% during the 2011–2015 period. In 2016-2020, gold price volatility came down further to 13.8%. In 2021-2025, 14.4%. The
price of gold has historically been less volatile than other commodities such as silver. This lower volatility may reflect gold’s
role as a financial asset and the much broader liquid financial market that gold has compared to other commodities.

Valuation of Gold and Computation of Net Asset
Value

On each business day that the NYSE Arca is open
for regular trading, as promptly as practicable after 4:00 PM (New York time) the Trustee will value the gold held by the Trust and will
determine the net asset value (“NAV”) of the Trust, as described below.

The NAV of the Trust is the aggregate value of
gold and other assets, if any, of the Trust (other than any amounts credited to the Trust’s reserve account, if any) and cash,
if any, less liabilities of the Trust, which include estimated accrued but unpaid fees, expenses and other liabilities.

7

All gold is valued based on its Fine Ounce content,
calculated by multiplying the weight of gold by its purity; the same methodology is applied independent of the type of gold held by the
Trust; similarly, the value of up to 430 Fine Ounces of unallocated gold the Trust may hold is calculated by multiplying the number of
Fine Ounces with the price of gold determined by the Trustee as follows. Prior to August 7, 2023 (the “Index Change Date”),
the Trustee valued the gold held by the Trust based on the afternoon session of the twice daily fix of the price of a Fine Ounce of gold
which starts at 3:00 PM London, England time and is performed in London by the ICE Benchmark Administration as an independent third-party
administrator (the “LBMA PM Gold Price”).

On the Index Change Date, the pricing index the
Sponsor uses in relation to the Shares issued by the Trust changed to reference the Solactive Gold Spot Index (the “Solactive Index”)
in lieu of the LBMA PM Gold Price.

Following the Index Change Date, the Trustee
values the gold held by the trust based on the Solactive Index. Solactive AG (“Solactive”) owns, calculates, and disseminates
the Solactive Index. The Solactive Index is a U.S. Dollar denominated index that aims to provide a price fixing for the gold spot price
quoted as U.S. Dollars per Troy Ounce (“XAU”) and determined for the close of trading on the New York Stock Exchange (“NYSE”).
The Solactive Index calculates gold bullion fixing prices by taking Time Weighted Average Prices (“TWAP”) of XAU trading
prices provided via ICE Data Services (“IDS”) data feed.

Specifically, the Solactive Index uses a TWAP
calculation to determine an average price that is time-weighted, using price values of actual transactions (“Trade Ticks”)
for two specified time periods around the scheduled close of trading on the NYSE (generally, 4:00 PM Eastern Time). The TWAP is derived
for (1) the period ahead of the fixing (“Time Period 1”), which consists of the five minutes before the close of trading,
and (2) the period directly after the fixing (“Time Period 2”), which consists of the six seconds after the close of trading.
The TWAPs for Time Period 1 and Time Period 2 are then aggregated, with 90% weighting given to Time Period 1 and 10% weighting given
to Time Period 2, to calculate the Solactive Index. The TWAPs for Time Period 1 and Time Period 2 are then added together to establish
the Solactive Index price.

For any calculation day t, the Solactive
Index (Indext), is determined in accordance with the following formula:

The Solactive Index is calculated and published
by Solactive no later than 30 minutes following the close of trading on the NYSE, disseminated to major financial data providers, and
made publicly available via the Trust’s website.

The Solactive Index calculation is based on XAU
market data from IDS, which is a major provider of financial market data. The data is available through IDS’s data streaming service,
which covers 2,700 spot rates and over 7,500 forwards and non-deliverable forwards, with an average of over 130 million updates per day
for spot. IDS compiles data from over 100 sources, including market makers, execution venues, banks and brokers from across the globe,
and every updating Trade Tick of spot streaming data is available via IDS’s Integrated Data Viewer service in a file-based format.

It is unlikely that, on any given trading day
for the Shares, there would be no Trade Ticks recorded for XAU in either Time Period 1 or Time Period 2, such that the Solactive Index
calculation could not be performed on such day. Trade Ticks representing XAU are the closing prices for specific gold bullion transactions
posted in a 24-hour, global, over-the-counter gold bullion market, which is not subject to trading suspensions, trading halts, or market
closures. However, in the unlikely event that IDS is unable to publish pricing information for XAU, for whatever reason, during either
Time Period 1 or Time Period 2 on a given trading day, the last available Solactive Index calculation will be used in accordance with
Solactive’s published and publicly available disruption policy.

If the Sponsor determines that such price is
inappropriate to use, it shall identify an alternate basis for evaluation to be employed by the Trustee. The Sponsor may instruct the
Trustee to use a different publicly available price which the Sponsor determines to fairly represent the commercial value of the Trust’s
gold.

8

The Trustee’s estimation of accrued but
unpaid fees, expenses and liabilities will be conclusive upon all persons interested in the Trust, and no revision or correction in any
computation made under the Trust Agreement will be required by reason of any difference in amounts estimated from those actually paid.

The Sponsor and the investors may rely on any
evaluation or determination of any amount made by the Trustee, and except for any determination by the Sponsor as to the price to be
used to evaluate gold, the Sponsor will have no responsibility for the evaluation’s accuracy. The determinations the Trustee makes
will be made in good faith upon the basis of, and the Trustee will not be liable for any errors contained in, information reasonably
available to it. The Trustee will not be liable to the Sponsor, Authorized Participants, the investors or any other person for errors
in judgment. However, the preceding liability exclusion will not protect the Trustee against any liability resulting from bad faith or
gross negligence in the performance of its duties.

Trust Expenses

The Trust’s only ordinary recurring expense
is the remuneration due to the Sponsor of 0.25% of the NAV of the Trust (the “Sponsor’s Fee”). In exchange for the
Sponsor’s Fee, the Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust: the
Trustee’s monthly fee and out-of-pocket expenses; the Custodian’s fee; the fees and expenses of Foreside Fund Services, LLC;
expenses reimbursable under the Trust’s Custody Agreement with the Custodian (the “Custody Agreement”); the precious
metals dealer’s fees and expenses reimbursable under its agreement with the Sponsor; exchange listing fees; SEC registration fees;
printing and mailing costs; maintenance expenses for the Trust’s website; audit fees and up to $100,000 per annum in legal expenses.
The Sponsor also paid the costs of the Trust’s organization and the initial sale of the Shares, including applicable SEC registration
fees.

The Sponsor’s Fee will accrue daily based
on the prior business day’s NAV and will be payable in Shares corresponding to the NAV of the Shares at the time of payment on
a monthly basis in arrears. The fee will be paid by delivering that number of Shares which equals the daily accrual of the Sponsor’s
Fee for such prior month based on the NAV of the Shares on the first business day of the following month.

In addition to the Sponsor’s Fee, the Sponsor
receives the exchange fee paid by Delivery Applicants in the exchange process. Such fees are used to recoup the expenses the Sponsor
bears for over-the-counter transactions. The Sponsor may earn a profit on its fees.

From time to time, the Sponsor may waive all
or a portion of the Sponsor’s Fee at its discretion. The Sponsor is under no obligation to continue a waiver after the end of a
stated period, and if such waiver is not continued, the Sponsor’s Fee will thereafter be paid in full. Presently, the Sponsor does
not intend to waive any of its fees.

Furthermore, the Sponsor may, in its sole discretion,
agree to rebate all or a portion of the Sponsor’s Fee attributable to Shares held by certain institutional investors subject to
minimum share holding and lock up requirements as determined by the Sponsor to foster stability in the Trust’s asset levels. Any
such rebate will be subject to negotiation and written agreement between the Sponsor and the investor on a case by case basis. The Sponsor
is under no obligation to provide any rebates of the Sponsor’s Fee. Neither the Trust nor the Trustee will be a party to any Sponsor’s
Fee rebate arrangements negotiated by the Sponsor.

The Sponsor will assume certain extraordinary
expenses which are not usually incurred during the normal course of business, such as litigation expenses, subject to a total of $100,000
per annum. Extraordinary expenses of the Trust that are not assumed by the Sponsor may be paid by the Sponsor at its sole discretion
and reimbursed by the Trust in Shares corresponding to the value of gold at the time of reimbursement.

9

Otherwise, the Trustee will, when directed by
the Sponsor, and, in the absence of such direction, in its discretion, sell gold in such quantity and at such times as may be necessary
to permit payment in cash of the Trust’s extraordinary expenses not assumed by the Sponsor. The Trustee is authorized to sell gold
as directed by the Sponsor or otherwise at such times and in the smallest amounts required to permit such payments as they become due,
it being the intention to avoid or minimize the Trust’s holdings of assets other than gold. Accordingly, the amount of gold to
be sold will vary from time to time depending on the level of the Trust’s expenses and the market price of gold. The Custodian
may purchase from the Trust, at the request of the Trustee, gold needed to cover Trust expenses not assumed by the Sponsor at the price
used by the Trustee to determine the value of gold held by the Trust on the date of the sale.

Cash held by the Trustee pending payment of the
Trust’s expenses will not bear any interest.

The Sponsor’s Fee for the year ended January
31, 2026, was $4,831,111.

Creations and Redemption of Shares

Authorized Participants

The Trust issues and redeems Baskets only to
Authorized Participants. The creation and redemption of Baskets will only be made in exchange for the delivery to the Trust or the distribution
by the Trust of the amount of gold represented by the Baskets being created or redeemed, the amount of which will be based on the combined
Fine Ounces represented by the number of Shares included in the Baskets being created or redeemed determined on the day the order to
create or redeem Baskets is properly received.

Orders to create and redeem Baskets may be placed
only by Authorized Participants. An Authorized Participant must: (1) be a registered broker-dealer or other securities market participant,
such as a bank or other financial institution, which, but for an exclusion from registration, would be required to register as a broker-dealer
to engage in securities transactions; (2) be a participant in the Depository Trust Company (“DTC”); and (3) must have an
agreement with the Custodian establishing an unallocated account in London or have an existing unallocated account meeting the standards
described in the Trust Agreement. To become an Authorized Participant, a person must enter into an Authorized Participant Agreement with
the Sponsor and the Trustee (“Authorized Participant Agreement”). The Authorized Participant Agreement provides the procedures
for the creation and redemption of Baskets and for the delivery of the gold required for such creations and redemptions. The Authorized
Participant Agreement and the related procedures attached thereto may be amended by the Trustee and the Sponsor, without the consent
of any investor or Authorized Participant. A transaction fee of $500 will be assessed on all creation and redemption transactions. Multiple
Baskets may be created on the same day, provided each Basket meets the requirements described below and that the Custodian is able to
allocate gold to the Trust allocated account (the “Trust Allocated Account”) such that the Trust’s unallocated account
(the “Trust Unallocated Account”) holds no more than 430 Fine Ounces of gold at the close of a business day.

Authorized Participants who make deposits with
the Trust in exchange for Baskets will receive no fees, commissions or other form of compensation or inducement of any kind from either
the Sponsor or the Trust, and no such person has any obligation or responsibility to the Sponsor or the Trust to effect any sale or resale
of Shares.

Delivery Applicants

In exchange for its Shares and payment of a processing
fee, a Delivery Applicant will be entitled to one or more bars or coins of physical gold having approximately the total Fine Ounces represented
by the Shares on the day on which the Delivery Applicant’s broker-dealer submits his or her Shares to the Trust in exchange for
physical gold (a “Share Submission Day”). As it is unlikely that the total Fine Ounces of physical gold will exactly correspond
to the Fine Ounces represented by a specific number of Shares, a Delivery Applicant will likely receive some cash representing the net
sale proceeds of any excess Fine Ounces (i.e., the cash proceeds). To minimize the cash proceeds of any exchange, the Delivery Application
requires that the number of Shares submitted closely correspond in Fine Ounces to the Fine Ounces of physical gold that is held or that
is to be acquired by the Trust for which the delivery is sought. Share submissions are processed in the order approved.

10

Creation Procedures—Authorized Participants

On any business day, an Authorized Participant
may place an order with the Trustee to create one or more Baskets. For purposes of processing both purchase and redemption orders, a
“business day” means any day other than a day: (1) when the NYSE Arca is closed for regular trading; or (2) if the order
or other transaction requires the receipt or delivery, or the confirmation of receipt or delivery, of gold in the United Kingdom or in
some other jurisdiction on a particular day, (A) when banks are authorized to close in the United Kingdom or in such other jurisdiction
or when the London gold market is closed or (B) when banks in the United Kingdom or in such other jurisdiction are, or the London gold
market is, not open for a full business day and the order or other transaction requires the execution or completion of procedures which
cannot be executed or completed by the close of the business day. Purchase orders must be placed by 3:59:59 PM (New York time). The day
on which the Trustee receives a valid purchase order is the purchase order date.

By placing a purchase order, an Authorized Participant
agrees to deposit gold with the Trust, as described below. Prior to the delivery of Baskets for a purchase order, the Authorized Participant
also must have wired to the Trustee the amount of the non-refundable transaction fee due for the purchase order and an amount equal to
all taxes, governmental charges and fees payable in connection with such deposit, the transfer of gold and the issuance and delivery
of Shares.

Determination of Required Deposits

The amount of the required gold deposit for a
Basket is determined by dividing the number of Fine Ounces of gold held by the Trust by the number of Baskets outstanding, as adjusted
for the amount of gold constituting estimated accrued but unpaid fees and expenses of the Trust. The number of Baskets outstanding is
determined by dividing the number of Shares outstanding by 50,000 (or other number of Shares in a Basket for such business day).

Fractions of a Fine Ounce of gold smaller than
0.001 of a Fine Ounce included in the gold deposit amount are disregarded in the foregoing calculation. All questions as to the composition
of a gold deposit for a Basket will be finally determined by the Trustee. The Trustee’s determination of the required gold deposit
for a Basket shall be final and binding on all persons interested in the Trust.

Delivery of Required Deposits

An Authorized Participant who places a purchase
order is responsible for crediting its unallocated account, if held at the Custodian, with the required gold deposit amount in gold and,
if the Authorized Participant does not maintain its unallocated account with the Custodian, causing the required gold deposit to be transferred
to the Custodian, by 11:00 AM, London, England time, on the third business day following the purchase order date. No Shares are issued
unless and until the Custodian has informed the Trustee that it has credited to the Trust Allocated Account at the Custodian the corresponding
amount of gold. If the Custodian has notified the Trustee and the Sponsor that it is unable to move the gold from the Trust Unallocated
Account to the Trust Allocated Account in connection with a particular purchase order or generally, the Trustee will, unless otherwise
instructed by the Sponsor, reject the particular purchase order as well as any other subsequent purchase orders on the same business
day. Upon receipt of the gold deposit amount, the Custodian, after receiving appropriate instructions from the Authorized Participant
and the Trustee, will use commercially reasonable endeavors to transfer by 2:00 PM (London, England time) on the third business day following
the purchase order date the gold deposit amount in gold to the Trust Unallocated Account, and on the same business day, acting on standing
instructions given by the Trustee, the gold deposit amount from Trust Unallocated Account to the Trust Allocated Account by allocating
specific bars of gold such that no more than 430 Fine Ounces remain in the Trust Unallocated Account. Upon transfer of the gold deposit
amount to the Trust Allocated Account, the Trustee will direct DTC to credit the number of Baskets ordered to the Authorized Participant’s
DTC account. The expense and risk of delivery, ownership and safekeeping of gold until such gold has been received by the Trust shall
be borne solely by the Authorized Participant.

Because gold is allocated only in multiples of
whole bars, the amount of gold allocated from the Trust Unallocated Account to the Trust Allocated Account may be less than the total
Fine Ounces credited to the Trust Unallocated Account. Any balance will be held in the Trust Unallocated Account. The Custodian may hold
no more than 430 Fine Ounces of gold (maximum weight corresponding to one London Bar) in the Trust Unallocated Account at the close of
a business day.

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Rejection of purchase orders

The Trustee may reject a gold deposit at any
time when the Trustee’s transfer books are closed or if the Sponsor thinks it necessary or advisable for any reason. None of the
Trustee, the Sponsor or the Custodian will be liable for the rejection of any purchase order or gold deposit.

Redemption Procedures—Authorized Participants

The procedures by which an Authorized Participant
can redeem one or more Baskets mirror the procedures for the creation of Baskets. On any business day, an Authorized Participant may
place an order with the Trustee to redeem one or more Baskets. Redemption orders must be placed no later than 3:59:59 PM (New York time)
on each business day the NYSE Arca is open for regular trading. A redemption order so received is effective on the date it is received
in satisfactory form by the Trustee. The redemption procedures allow only Authorized Participants to redeem Baskets. An investor may
not redeem Baskets other than through an Authorized Participant.

By placing a redemption order, an Authorized
Participant agrees to deliver the Baskets to be redeemed through DTC’s book-entry system to the Trust no later than the third business
day following the effective date of the redemption order. Prior to the delivery of the redemption distribution for a redemption order,
the Authorized Participant must also have wired to the Trustee the non-refundable transaction fee due for the redemption order.

The redemption distribution from the Trust will
consist of a credit to the redeeming Authorized Participant’s unallocated account representing the amount of the gold held by the
Trust evidenced by the Shares being redeemed as of the date of the redemption order. Fractions of a Fine Ounce included in the redemption
distribution smaller than 0.001 of a Fine Ounce are disregarded. Redemption distributions will be subject to the deduction of any applicable
tax, fees or other governmental charge that may be due, as well as any charges or fees in connection with the transfer of gold and the
issuance and delivery of Shares, and any expense associated with the delivery of gold other than by credit to an Authorized Participant’s
unallocated account with the Custodian.

Delivery of redemption distribution

The redemption distribution due from the Trust
is delivered to the Authorized Participant on the third business day following the redemption order date if, by 9:00 AM (New York time)
on such third business day, the Trustee’s DTC account has been credited with the Baskets to be redeemed.

The Custodian will arrange for the redemption
amount in gold to be transferred from the Trust Allocated Account to the Trust Unallocated Account and, thereafter, to the redeeming
Authorized Participant’s unallocated account. The Authorized Participant and the Trust each are at risk in respect of gold credited
to their respective unallocated accounts in the event of the Custodian’s insolvency. See “Risk Factors—The Trust Would
Be An Unsecured Creditor of the Custodian in the Event of Insolvency.”

As with the allocation of gold to the Trust Allocated
Account that occurs upon a purchase order, if in transferring gold from the Trust Allocated Account to the Trust Unallocated Account
in connection with a redemption order there is an excess amount of gold transferred to the Trust Unallocated Account, the excess over
the gold redemption amount will be held in the Trust Unallocated Account. The Custodian may hold no more than 430 Fine Ounces of gold
(maximum weight corresponding to one London Bar) in the Trust Unallocated Account at the close of each business day.

Suspension or rejection of redemption orders

The Trustee may, in its discretion, and will
when directed by the Sponsor, suspend the right of redemption, or postpone the redemption settlement date or reject a particular redemption
order (1) for any period during which the NYSE Arca is closed other than customary weekend or holiday closings, or trading on the NYSE
Arca is suspended or restricted or (2) for any period during which an emergency exists as a result of which delivery, disposal or evaluation
of gold is not reasonably practicable. Neither the Sponsor nor the Trustee will be liable to any person or in any way for any loss or
damages that may result from any such suspension or postponement.

The Trustee will reject a redemption order if
the order is not in proper form as described in the Authorized Participant Agreement or if the fulfillment of the order, in the opinion
of its counsel, might be unlawful.

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The Sponsor

The Sponsor, Merk Investments LLC, is a Delaware
limited liability company. The Sponsor’s office is located at 1150 Chestnut St. Menlo Park, CA 94025. The Sponsor has provided
investment advisory services to mutual funds since 2005. As of December 31, 2025, the Sponsor had approximately $3,712.2 million of assets
under management. The Sponsor’s role is discussed below, and it has undertaken the responsibilities set forth below.

The Sponsor’s Role

The Sponsor arranged for the creation of the
Trust, the registration of the Shares for their public offering in the United States and the listing of the Shares on the NYSE Arca.
In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume the following administrative and marketing expenses incurred
by the Trust: the Trustee’s monthly fee and out-of-pocket expenses; the Custodian’s fee; the fees and expenses of Foreside
Fund Services, LLC and other marketing expenses; expenses reimbursable under the Custody Agreement; the precious metals dealer’s
fees and expenses reimbursable under its agreement with the Sponsor; exchange listing fees; SEC registration fees; printing and mailing
costs; maintenance expenses for the Trust’s website; audit fees and up to $100,000 per annum in legal expenses. The Sponsor is
paid in Shares in lieu of cash.

The Sponsor will not exercise day-to-day oversight
over the Trustee or the other service providers to the Trust. The Sponsor may remove the Trustee and appoint a successor Trustee if:
(1) the Trustee ceases to meet certain objective requirements (including the requirement that it have capital, surplus and undivided
profits of at least $150 million); (2) having received written notice of a material breach of its obligations under the Trust Agreement,
the Trustee has not cured the breach within 30 days; or (3) the Trustee fails to consent to the implementation of an amendment to the
Trust’s initial Internal Control Over Financial Reporting deemed necessary by the Sponsor and, after consultations with the Sponsor,
the Sponsor and the Trustee fail to resolve their differences regarding the proposed amendment. The Sponsor also has the right to replace
the Trustee during the 90 days following any merger, consolidation or conversion in which the Trustee is not the surviving entity or,
in its discretion, on the fifth anniversary of the creation of the Trust or on any subsequent third anniversary thereafter. The Sponsor
also has the right to direct the Trustee to appoint any new or additional Custodians that the Sponsor selects.

The Sponsor: (1) will develop a marketing plan
for the Trust on an ongoing basis; (2) will prepare marketing materials regarding the Shares; (3) will maintain the Trust’s website;
(4) may engage in over-the-counter transactions with a precious metals dealer to exchange the Trust’s gold for gold of different
specifications as requested by a Delivery Applicant in a Delivery Application; (5) may provide instructions for assaying gold, and other
instructions relating to custody of the Trust’s gold, as necessary; (6) may request the Trustee to order Custodian audits (to the
extent permitted under the Custody Agreement); and (7) will review Delivery Applications from Delivery Applicants wishing to take delivery
of physical gold for their Shares and coordinate the delivery of physical gold to the Delivery Applicants.

The Sponsor periodically engages in over-the-counter
transactions to exchange London Bars for physical gold of other specifications. The Sponsor engages in such transactions pursuant to
instructions from a Delivery Applicant who requests 10 Ounce Bars (containing 10 Fine Ounces of gold), 1 Ounce Bars (containing 1 Fine
Ounce of gold) and gold coins in exchange for their Shares. The Sponsor pays for such conversion but seeks to recover these costs by
charging an exchange fee to Delivery Applicants exchanging Shares for physical gold. The exchange fee will not exactly reflect the actual
cost of conversion to the Sponsor and may reflect a markup to compensate the Sponsor for the risk the Sponsor is taking on by exchanging
physical gold for physical gold other than London Bars before knowing investor demand for delivery or market conditions at the time investor
demand for delivery changes. The Sponsor selects the precious metals dealers with whom it seeks to exchange the Trust’s physical
gold.

The Trustee

The Bank of New York Mellon, a banking corporation
organized under New York State law with trust powers, serves as the Trustee. The Trustee has a trust office at 240 Greenwich Street,
22W, New York, NY 10286. The Trustee is subject to supervision by the New York State Financial Services Department and the Board of Governors
of the Federal Reserve System. Information regarding creation and redemption Basket composition, NAV of the Trust, transaction fees for
the creation and redemption of Baskets and the names of the parties that have executed an Authorized Participant Agreement may be obtained
from the Trustee. A copy of the Trust Agreement is available for inspection at the Trustee’s trust office identified above. Under
the Trust Agreement, the Trustee is required to maintain capital, surplus and undivided profits of at least $150 million.

13

The Trustee’s Role

The Trustee is generally responsible for the
day-to-day administration of the Trust, including keeping the Trust’s operational records. The Trustee’s principal responsibilities
include: (1) valuing the Trust’s gold and calculating the NAV per share of the Trust, (2) supplying inventory information to the
Sponsor for the Trust’s website; (3) receiving and processing orders from Authorized Participants for the creation and redemption
of Baskets; (4) coordinating the processing of orders from Authorized Participants with the Custodian and DTC, including coordinating
with the Custodian the receipt of unallocated gold transferred to the Trust in connection with each issuance of Baskets; (5) cooperating
with the Sponsor, the Custodian and the precious metals dealer in connection with the delivery of physical gold to Delivery Applicants
in exchange for their Shares; (6) issuing and allocating Shares to the Sponsor in lieu of paying the Sponsor’s Fee in cash; (7)
issuing and allocating Shares to the Sponsor to reimburse cash payments owed by the Trust, but undertaken by the Sponsor; (8) selling
the Trust’s gold pursuant to the Sponsor’s direction or otherwise as needed to pay any extraordinary Trust expenses that
are not assumed by the Sponsor; (9) holding the Trust’s cash and other financial assets, if any; (10) when appropriate, making
distributions of cash or other property to investors; and (11) receiving and reviewing reports on the custody of and transactions in
the Trust’s gold from the Custodian and taking such other actions in connection with the custody of gold as the Sponsor instructs.
The Trustee shall, with respect to directing the Custodian, act in accordance with the instructions of the Sponsor. If the Custodian
resigns, the Trustee shall appoint any replacement Custodian selected by the Sponsor in accordance with the Trust Agreement. Under the
agreement with the Custodian, the Trustee, the Sponsor and the Sponsor’s auditors and inspectors may visit the premises of the
Custodian for the purpose of examining the Trust’s gold and certain related records maintained by the Custodian.

The Trustee intends to regularly communicate
with the Sponsor in connection with the administration of the Trust. The Trustee does not monitor the performance of the Custodian other
than to review the reports provided by the Custodian pursuant to the Custody Agreement. The Trustee, along with the Sponsor, will liaise
with the Trust’s legal, accounting and other professional service providers as needed. The Trustee will assist and support the
Sponsor with the preparation of all periodic reports required to be filed with the SEC on behalf of the Trust. The Trustee’s monthly
fees and out-of-pocket expenses will be paid by the Sponsor. Affiliates of the Trustee may from time to time act as Authorized Participants
or purchase or sell gold or Shares for their own account, as agent for their customers and for accounts over which they exercise investment
discretion.

The Trustee will keep proper books of registration
and transfer of Shares at its office located in New York or such office as it may subsequently designate. These books and records are
open to inspection by any person who establishes to the Trustee’s satisfaction that such person is an investor at all reasonable
times during the usual business hours of the Trustee. The Trustee will keep a copy of the Trust Agreement on file in its office which
will be available for inspection on reasonable advance notice at all reasonable times during its usual business hours by any investor.

The Custodian

JPMorgan serves as the Custodian for the Trust.
The Custodian is a national banking association organized under the laws of the United States. The Custodian is subject to supervision
by the Federal Reserve Bank of New York and the Federal Deposit Insurance Corporation. The Custodian’s office is located at 25
Bank Street, Canary Wharf, London E14 SJP. In addition to supervision and examination by the federal banking authorities, London custodian
operations are generally subject to supervision by the Financial Services Authority.

The Custodian’s Role

The Custodian is responsible for holding the
Trust’s allocated gold as well as receiving and converting allocated and unallocated gold on behalf of the Trust. Unless otherwise
agreed between the Trustee (as instructed by the Sponsor) and the Custodian, physical gold must be held by the Custodian at its London
vault premises. At the end of each business day, the Custodian will hold no more than 430 Fine Ounces of unallocated gold for the Trust,
which corresponds to the maximum Fine Ounce weight of a London Bar. The Custodian converts the Trust’s gold between allocated and
unallocated gold when: (1) Authorized Participants engage in creation and redemption transactions with the Trust; (2) gold is sold to
pay Trust expenses; or (3) physical gold is converted into unallocated form to facilitate the exchange of Shares by a Delivery Applicant
for gold. The Custodian will facilitate the transfer of gold in and out of the Trust through the unallocated gold accounts it may maintain
for each Authorized Participant and the precious metals dealer and through the unallocated gold accounts it will maintain for the Trust.
The Custodian is responsible for allocating specific bars of gold to the Trust Allocated Account.

14

The Custodian will provide the Trustee with regular
reports detailing the gold transfers in and out of the Trust Unallocated Account with the Custodian and identifying the gold bars held
in the Trust Allocated Account.

The Custodian’s fees and expenses are paid
by the Sponsor. The Custodian and its affiliates may from time to time act as Authorized Participants or purchase or sell gold or Shares
for their own account, as an agent for their customers and for accounts over which they exercise investment discretion. The Trustee,
on behalf of the Trust, has entered into the Custody Agreement with the Custodian, under which the Custodian maintains the Trust Unallocated
Account and the Trust Allocated Account.

Pursuant to the Trust Agreement, if, upon the
resignation of the Custodian, there would be no custodian acting pursuant to the Custody Agreement, the Trustee shall, promptly after
receiving notice of such resignation, appoint a substitute custodian or custodians selected by the Sponsor pursuant to custody agreement(s)
approved by the Sponsor (provided, however, that the rights and duties of the Trustee under the Trust Agreement and the custody agreement(s)
shall not be materially altered without its consent). When directed by the Sponsor, and to the extent permitted by, and in the manner
provided by, the Custody Agreement, the Trustee shall remove the Custodian and appoint a substitute or additional custodian or custodians
selected by the Sponsor. After the entry into the Custody Agreement(s), the Trustee shall not enter into or amend any Custody Agreement
with a custodian without the written approval of the Sponsor (which approval shall not be unreasonably withheld or delayed). When instructed
by the Sponsor, the Trustee shall demand that a custodian of the Trust deliver such of the Trust’s gold held by it as is requested
of it to any other custodian or such substitute or additional custodian or custodians directed by the Sponsor. Each such substitute or
additional custodian shall, forthwith upon its appointment, enter into a Custody Agreement in form and substance approved by the Sponsor.

Under the Trust Agreement, the Sponsor is responsible
for appointing accountants or other inspectors to monitor the accounts and operations of the Custodian and any successor custodian or
additional custodian and for enforcing the obligations of each such custodian as is necessary to protect the Trust and the rights and
interests of the investors. The Trustee has no obligation to monitor the activities of the Custodian other than to receive and review
such reports of the gold held for the Trust by such Custodian and of transactions in gold held for the account of the Trust made by such
Custodian pursuant to the Custody Agreement.

When instructed by the Sponsor, the Trustee will
take action to remove gold from one custodian to another custodian selected by the Sponsor. In connection with such transfer of physical
gold, the Trustee will, at the direction of the Sponsor, cause the physical gold to be weighed or assayed. The Trustee shall have no
liability for any transfer of physical gold or weighing or assaying of delivered physical gold as directed by the Sponsor, and in the
absence of such direction shall have no obligation to effect such a delivery or to cause the delivered physical gold to be weighed, assayed
or otherwise validated.

Inspection of Gold

Under the Custody Agreement, the Custodian will
allow the Sponsor and the Trustee and their physical gold auditors (currently Inspectorate), access to its premises during normal business
hours, to examine the physical gold and such records as they may reasonably require to perform their respective duties with regard to
investors in Shares. The Trustee agrees that any such access shall be subject to execution of a confidentiality agreement and agreement
to the Custodian’s security procedures, and any such audit shall be at the Trust’s expense.

The Sponsor exercised its right to visit the
Custodian’s premises and inspect the Trust’s gold and related records most recently on July 3, 2024.

During the fiscal year that ended January 31,
2026, Inspectorate International Limited, a leading commodity inspection and testing company, conducted a physical gold audit of the
Trust on October 16, 2025. Due to unavailability of time slots at the vault, Inspectorate was unable to perform a physical inspection
of the Trust’s gold on January 31, 2026. Inspectorate was able to conduct a physical gold audit of the Trust on February 6, 2026.

15

Description of the Shares

General

The Trustee is authorized under the Trust Agreement
to create and issue an unlimited number of Shares. The Trustee will create Shares in Baskets (a Basket equals a block of 50,000 Shares)
only upon the order of an Authorized Participant. The Shares represent units of fractional undivided beneficial interest in the net assets
of the Trust and have no par value. The Trust also may issue Shares to compensate and reimburse the Sponsor in Shares rather than in
cash.

Description of Limited Rights

The Shares do not represent a traditional investment
and you should not view them as similar to “shares” of a corporation operating a business enterprise with management and
a board of directors. As an investor, you will not have the statutory rights normally associated with the ownership of Shares of a corporation,
including, for example, the right to bring “oppression” or “derivative” actions. All Shares are of the same class
with equal rights and privileges. Each share is transferable, is fully paid and non-assessable and entitles the holder to vote on the
limited matters upon which investors may vote under the Trust Agreement. The Shares are entitled to be redeemed or exchanged for gold
as described in this Report. The Shares do not entitle their holders to any conversion or pre-emptive rights or redemption rights for
single Shares.

Redemption of and Taking Delivery of Physical
Gold in Exchange for the Shares

The Shares may be redeemed by or through an Authorized
Participant in Baskets. Investors may also take delivery of physical gold in exchange for their Shares. See “Creations and Redemption
of Shares” for details.

Distributions

If the Trust is terminated and liquidated, the
Trustee will distribute to the investors any amounts remaining after the satisfaction of all outstanding liabilities of the Trust and
the establishment of such reserves for applicable taxes, other governmental charges and contingent or future liabilities as the Trustee
shall determine. Investors of record on the record date fixed by the Trustee for a distribution will be entitled to receive their pro
rata portion of any distribution.

Voting Rights

Under the Trust Agreement, except in limited
circumstances, investors do not have voting rights. However, registered holders of at least 25% of the Shares have the right to require
the Trustee to cure any material breach by it of the Trust Agreement, and registered holders of at least 75% of the Shares have the right
to require the Trustee to terminate the Trust Agreement. In addition, certain amendments to the Trust Agreement require advance notice
to the investors before the effectiveness of such amendments, but no investor vote or approval is required for any amendment to the Trust
Agreement.

Book-Entry Form

Individual certificates will not be issued for
the Shares. Instead, one or more global certificates will be deposited by the Trustee with DTC and registered in the name of Cede &
Co., as nominee for DTC. The global certificates will evidence all of the Shares outstanding at any time. Under the Trust Agreement,
investors may only hold Shares through (1) participants in DTC, such as a bank, broker-dealer or trust company (“DTC Participants”),
(2) those who maintain, either directly or indirectly, a custodial relationship with a DTC Participant (“Indirect Participants”),
and (3) those banks, brokers, dealers, trust companies and others who hold interests in the Shares through DTC Participants or Indirect
Participants. The Shares are only transferable through the book-entry system of DTC. Investors who are not DTC Participants may transfer
their Shares through DTC by instructing the DTC Participant holding their Shares (or by instructing the Indirect Participant or other
entity through which their Shares are held) to transfer the Shares. Transfers will be made in accordance with standard securities industry
practices.

DTC may decide to discontinue providing its service
with respect to Baskets and/or the Shares by giving notice to the Trustee and the Sponsor. Under such circumstances, the Sponsor will
find a replacement for DTC to perform its functions at a comparable cost or, if a replacement is unavailable, the Trustee will terminate
the Trust.

16

The rights of the investors generally must be
exercised by DTC Participants acting on their behalf in accordance with the rules and procedures of DTC. Because the Shares can only
be held in book-entry form through DTC and DTC Participants, investors must rely on DTC, DTC Participants and any other financial intermediary
through which they hold the Shares to receive the benefits and exercise the rights described in this section. Investors should consult
with their broker or financial institution to find out about procedures and requirements for securities held in book-entry form through
DTC.

United States Federal Income Tax Consequences

This section summarizes the material federal
income tax consequences that generally will apply to the purchase, ownership and disposition of Shares by a “U.S. Investor”
(as defined below) and certain federal tax consequences that may apply to the purchase, ownership and disposition of Shares by a “non-U.S.
Investor” (as defined below). The following discussion represents, insofar as it describes conclusions regarding federal tax law
and subject to the limitations and qualifications described therein, the opinion of K&L Gates LLP, special federal income tax counsel
to the Sponsor. The discussion is based on the Internal Revenue Code of 1986, as amended (the “Code”), and final and temporary
Treasury regulations promulgated thereunder as in effect on the date of this Report and judicial and administrative interpretations thereof
publicly available at that date; no assurance can be given that future legislation, regulations, court decisions and/or administrative
pronouncements will not significantly change applicable law and materially affect the conclusions expressed herein, and any such change,
even though made after an investor has invested in the Trust, could be applied retroactively. This discussion does not purport to be
complete or to deal with all aspects of federal income taxation that may be relevant to an investor in light of its particular circumstances
or to an investor mentioned in the second sentence of the next paragraph.

The tax treatment of investors may vary depending
on their own particular circumstances. Certain investors - including banks, thrift institutions and certain other financial institutions,
insurance companies, tax-exempt organizations, brokers and dealers in securities or currencies, certain securities traders, persons holding
Shares as a position in a “hedging,” “straddle,” “conversion” or “constructive sale”
transaction (as those terms are defined in the authorities mentioned above), qualified pension and profit-sharing plans, individual retirement
accounts (“IRAs”), certain other tax-deferred accounts, U.S. expatriates, persons whose “functional currency”
is not the U.S. dollar, persons subject to the federal alternative minimum tax, foreign investors (except as specifically provided under
“Income Taxation of Non-U.S. Investors” and “Estate and Gift Tax Considerations for Non-U.S. Investors” below)
and other investors with special circumstances - may be subject to special rules not discussed below. In addition, the following discussion
applies only to investors who will hold Shares as “capital assets” (as defined in section 1221 of the Code).

The discussion below does not address the
effect of any state, local or foreign tax law on an investor. Purchasers of Shares are urged to consult their own tax advisers with respect
to all federal, state, local and foreign tax law considerations potentially applicable to their investment in Shares.

For purposes of this discussion, a “U.S.
Investor” is an investor who or that is:

●
An individual who is treated as a citizen or resident of the United
States for federal tax purposes;

●
A corporation or partnership (or other entity treated as such for those
purposes) that is created or organized in the United States or under the laws of the United States or any state thereof or the District
of Columbia;

●
An estate other than an estate the income of which, from non-U.S. sources
that is not effectively connected with the conduct of a trade or business within the United States, is not includible in gross income;

●
A trust if a court within the United States is able to exercise primary
supervision over the administration of the trust and one or more persons described in any of the three preceding clauses have the
authority to control all substantial decisions of the trust; or

●
An eligible trust that has made a valid election under applicable Treasury
regulations to continue to be treated as a domestic trust.

An investor that is not a U.S. Investor as so
defined is referred to below as a “non-U.S. Investor.” For federal tax purposes, the treatment of any beneficial owner of
an interest in a partnership (including any entity classified as such for those purposes) will generally depend on the partner’s
status and the partnership’s activities. Partnerships and partners should consult their tax advisers about the federal income tax
consequences of purchasing, owning and disposing of Shares.

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Taxation of the Trust

The Trust is treated as a “grantor trust”
for federal tax purposes. As a result, the Trust itself is not subject to federal income tax. Instead, the Trust’s income and expenses
“flow through” to its investors, and the Trustee reports the Trust’s income, gains, losses and deductions to the Internal
Revenue Service (“IRS”) on that basis. There can be no assurance that the IRS will agree with that treatment, and it is possible
that the IRS or another tax authority could assert a position contrary thereto and that a court could sustain that contrary position.
Neither the Sponsor nor the Trustee has requested or will request a ruling from the IRS with respect to the classification or treatment
of the Trust for federal tax purposes. If the IRS were to assert successfully that the Trust is not a “grantor trust,” the
Trust would be classified as a partnership for those purposes, which may affect timing and other tax consequences to its investors.

Taxation of U.S. Investors

An investor in the Trust is treated, for federal
tax purposes, as if it directly owns a pro rata share of the Trust’s assets and directly receives that share of any Trust
income and incurs that share of the Trust’s expenses. In the case of an investor that purchases Shares for cash, its initial tax
basis in its pro rata share of the assets held in the Trust at the time it acquires its Shares will be equal to its cost of acquiring
the Shares. In the case of an investor that acquires its Shares as part of the creation of a Basket, the delivery of gold to the Trust
in exchange for a pro rata share of the underlying gold the Trust holds at the time it acquires its Shares will not be a taxable
event to the investor, and the investor’s tax basis in and holding period for that share of the Trust’s gold will be the
same as its tax basis in and holding period for the gold delivered in exchange therefor. For purposes of this discussion, and unless
stated otherwise, it is assumed that all of an investor’s Shares are acquired on the same date and at the same price per Share.
Investors that hold multiple lots of Shares, or that are contemplating acquiring multiple lots of Shares, should consult their own tax
advisers as to the determination of the tax basis in and holding period for the underlying gold represented by such Shares.

If the Trust sells gold, for example to generate
cash to pay its fees or expenses, an investor will recognize gain or loss in an amount equal to the difference between (1) the investor’s
pro rata share of the amount the Trust realizes on the sale and (2) the investor’s tax basis in its pro rata share
of the gold that was sold. Although it is not entirely free from doubt, the Trust treats the issuance of Shares to the Sponsor as payment
of the Sponsor’s Fee and/or reimbursement of the Trust’s expenses and/or liabilities as a taxable exchange by the Trust of
the portion of the underlying gold represented by those Shares and thus also constitutes a taxable event for investors. An investor’s
tax basis in its share of any gold sold or exchanged by the Trust generally is determined by multiplying the investor’s total basis
in its share of all the gold held in the Trust immediately prior to the sale or exchange by a fraction, the numerator of which is the
amount of gold sold or exchanged and the denominator of which is the total amount of all the gold so held. After any such sale or exchange,
an investor’s tax basis in its pro rata share of the gold remaining in the Trust will be equal to its tax basis in its share
of the total amount of the gold held in the Trust immediately prior to the sale or exchange less the portion of that basis allocable
to its share of the gold that was sold or exchanged.

On the sale of some or all of its Shares, an
investor will be treated as having sold the part of its pro rata share of the gold held in the Trust at that time that is attributable
to the Shares sold. Accordingly, the investor generally will recognize gain or loss on the sale in an amount equal to the difference
between (1) the amount realized pursuant to the sale of the Shares and (2) the investor’s tax basis in that attributable part,
as determined in the manner described in the preceding paragraph.

If an investor redeems (which term, and its variations,
as used in this section includes a surrender, and its variations, to the Trust by a Delivery Applicant of) some or all of its Shares
in exchange for (i.e., in order to take delivery of) the underlying gold (including American Gold Eagle gold coins, with a minimum fineness
of 91.67% (“American Gold Coins”)) represented by the redeemed Shares, the exchange will generally not be a taxable event
for the investor (except as noted below with respect to any cash proceeds). In addition, if an investor acquires its Shares as part of
the creation of a Basket by delivering to the Trust gold in specified denominations (e.g., unallocated gold), the subsequent redemption
of its Shares for gold delivered by the Trust in different denominations (e.g., LBMA gold in denominations of 350 to 430 Fine
Ounces or 10 Ounce Bars of gold or coins) will not constitute a taxable event, provided that the amount of gold received on the redemption
contains the equivalent metallic content of the gold delivered on the creation, less amounts accrued or sold to pay the Trust’s
expenses and other charges. An investor’s tax basis in the gold received on a redemption generally will be the same as the investor’s
tax basis in the portion of its pro rata share of the gold held in the Trust immediately prior to the redemption that is attributable
to the redeemed Shares. An investor’s holding period with respect to the gold received on a redemption should include the period
during which the investor held the redeemed Shares. A subsequent sale of the gold received by the investor will be a taxable event.

If an investor is entitled to any cash proceeds
on the redemption of some or all of its Shares, the investor will be treated as having sold the portion of its pro rata share
of the gold held in the Trust equal in value to the cash proceeds.

18

An investor’s tax basis in its pro rata
share of the gold held in the Trust immediately after any sale or redemption of less than all of the investor’s Shares generally
will equal (1) its tax basis in its share of the total amount of the gold held in the Trust immediately prior to the sale or redemption
less (2) the portion of such basis that is taken into account in determining the amount of gain or loss the investor recognizes on the
sale or, in the case of a redemption, is treated as the basis in the gold received by the investor in the redemption.

Maximum 28% Long-Term Capital Gains Tax Rate
for U.S. Investors Who Are Individuals

Gains recognized by an individual, estate or
trust (each referred to below as an “individual” unless the context requires otherwise) from the sale of “collectibles,”
which term includes gold, held for more than one year are subject to federal income tax at a maximum rate of 28% rather than the lower
maximum rates applicable to most other long-term capital gains individuals recognize (a maximum of 15% for a single individual with taxable
income not exceeding $545,500 ($613,700 for married individuals filing jointly) and 20% for individuals with taxable income exceeding
those respective amounts, which apply for 2026 and will be adjusted for inflation annually thereafter). For these purposes, gain an individual
recognizes on the sale of an interest in a “grantor trust” that holds collectibles (such as the Trust) is treated as gain
recognized on the sale of the collectibles, to the extent the gain is attributable to unrealized appreciation in value of the collectibles.
Therefore, any gain recognized by an individual U.S. Investor attributable to a sale or exchange of Shares held for more than one year,
or attributable to the Trust’s sale of any gold that the investor is treated (through his, her or its ownership of Shares) as having
held for more than one year, generally will be subject to federal income tax at a maximum rate of 28%. The tax rates for capital gains
recognized on the sale of assets held by an individual U.S. Investor for one year or less, or by a taxpayer other than an individual,
are generally the same as those at which ordinary income is taxed.

3.8% Tax on Net Investment Income

An individual is required to pay a 3.8% tax on
the lesser of (1) the excess of the individual’s “modified adjusted gross income” over a threshold amount ($250,000
for married persons filing jointly and $200,000 for single taxpayers) or (2) the individual’s “net investment income,”
which generally includes dividends, interest, and net gains from the disposition of investment property. This tax is in addition to any
other taxes due on that income. U.S. Investors should consult their own tax advisers regarding the effect, if any, this provision may
have on their investment in Shares.

Brokerage Fees and Trust Expenses

Any brokerage or other transaction fee incurred
by an investor in purchasing Shares will be included in the investor’s tax basis in the Trust’s underlying assets. Similarly,
any brokerage fee incurred by an investor in selling Shares will reduce the amount the investor realizes with respect to the sale.

Investors will be required to recognize the full
amount of gain or loss on a sale of gold by the Trust (as discussed above), even though some or all of the sale proceeds are used by
the Trustee to pay Trust expenses. An investor may deduct its respective pro rata share of each expense incurred by the Trust
to the same extent as if it directly incurred the expense. Investors who are individuals, however, may be required to treat some or all
of the expenses of the Trust as miscellaneous itemized deductions, which are not deductible.

Investment by U.S. Tax-Exempt Investors

Certain U.S. Investors (referred to in this paragraph
as “U.S. Tax-Exempt Investors”) are subject to federal income tax only on their “unrelated business taxable income”
(“UBTI”). It is expected that, unless a U.S. Tax-Exempt Investor incurs debt to purchase Shares, it should not realize UBTI
with respect to its pro rata share of the Trust’s assets.

Investment by Regulated Investment Companies

Mutual funds and other investment vehicles that
are “regulated investment companies” within the meaning of Code section 851 should consult with their tax advisers concerning
(1) the likelihood that an investment in a Share, although it is a “security” within the meaning of the 1940 Act, may be
considered an investment in the underlying gold for purposes of Code section 851(b), and (2) the extent to which an investment in Shares
might nevertheless be consistent with preservation of their qualification under that section.

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Investment by Certain Retirement Plans

Section 408(m) of the Code provides that the
purchase of a “collectible” as an investment for an IRA, or for a participant-directed account maintained under any plan
that is tax-qualified under Code section 401(a) (“Tax-Qualified Account”), is treated as a taxable distribution from the
account to the owner of the IRA, or to the participant for whom the Tax-Qualified Account is maintained, of an amount equal to the cost
to the account of acquiring the collectible. The Trust, through the Sponsor, has received a private letter ruling from the IRS that (1)
the acquisition of Shares by an IRA or a Tax-Qualified Account will not constitute the acquisition of a collectible and (2) an IRA or
such an account owning Shares will not be treated as having made a distribution to the IRA owner or plan participant under Code section
408(m) solely by virtue of owning those Shares. If a redemption of Shares results in the delivery of gold to an IRA or Tax-Qualified
Account, however, that exchange would constitute the acquisition of a collectible to the extent provided under that section. See also
“ERISA and Related Considerations.”

Income Taxation of Non-U.S. Investors

A non-U.S. Investor generally will not be subject
to federal income tax with respect to gain recognized on the sale or other disposition of Shares, or on the sale of gold by the Trust,
unless (1) the non-U.S. Investor is an individual and is present in the United States for 183 days or more during the taxable year of
the sale or other disposition and the gain is treated as being from U.S. sources or (2) the gain is effectively connected with the conduct
by the non-U.S. Investor of a trade or business in the United States and certain other conditions are met. Non-U.S. Investors are advised
to consult their own tax advisers as to the tax consequences, under the laws of any non-U.S. jurisdiction to which they are subject,
of their purchase, holding, sale and redemption of or any other dealing in Shares and, in particular, as to whether any value added tax,
other consumption tax or transfer tax is payable in relation to such purchase, holding, sale, redemption or other dealing.

Estate and Gift Tax Considerations for Non-U.S.
Investors

Individuals who are neither citizens nor residents
(as determined for federal estate and gift tax purposes) of the United States (collectively, “Non-Residents”) are subject
to estate tax on all property that has a U.S. “situs.” Shares may well be considered to have a U.S. situs for these purposes.
If Shares are so considered, they would be includible in the U.S. gross estate of a Non-Resident investor; federal estate tax is imposed
at rates of up to 40% of the fair market value of the U.S. taxable estate. In addition, the federal “generation-skipping transfer
tax” may apply in certain circumstances. The estate of a Non-Resident investor who was resident in a country that has an estate
tax treaty with the United States may be entitled to benefit from such treaty.

For Non-Residents, the federal gift tax generally
applies only to gifts of tangible personal property or real property having a U.S. situs. Tangible personal property (including gold)
has a U.S. situs if it is physically located in the United States. Although the matter is not settled, it appears that ownership of Shares
might not be considered ownership of the underlying gold for this purpose, even to the extent that gold is held in custody in the United
States. Instead, Shares might be considered intangible property, and therefore they might not be subject to U.S. gift tax if transferred
during the holder’s lifetime.

Non-Resident investors are urged to consult their
tax advisers regarding the possible application of federal estate, gift and generation-skipping transfer taxes in their particular circumstances.

U.S. Information Reporting and Withholding

The Trustee will make information available that
will enable brokers and custodians through which investors hold Shares to prepare and file certain information returns with the IRS,
and will provide certain tax-related information to investors, in connection with the Trust. To the extent required by applicable regulations,
each investor will be provided with information regarding its allocable portion of the Trust’s annual income, deductions, gains
and losses (if any). A U.S. Investor may be subject to federal backup withholding, at the rate of 24%, in certain circumstances unless
it provides its taxpayer identification number to its broker and complies with certain certification procedures; the amount of any backup
withholding will be allowed as a credit against an investor’s federal income tax liability and may entitle an investor to a refund,
provided that the required information is furnished to the IRS. A non-U.S. Investor may have to comply with certification procedures
to establish that it is not a U.S. Investor, and some non-U.S. Investors will be required to meet certain information reporting or certification
requirements imposed by the Foreign Account Tax Compliance Act, to avoid withholding.

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ERISA and Related Considerations

The Employee Retirement Income Security Act of
1974, as amended (“ERISA”), and section 4975 of the Code impose certain requirements on employee benefit plans and certain
other plans and arrangements, including IRAs and individual retirement annuities, Keogh plans and certain collective investment funds
or insurance company general or separate accounts in which such plans, accounts, annuities or arrangements are invested, that are subject
to ERISA or the Code, respectively (collectively, “Plans”), and on persons who are fiduciaries with respect to the investment
of assets treated as “plan assets” of a Plan. Investments by Plans are subject to the fiduciary requirements and the applicability
of prohibited transaction restrictions under ERISA.

Government plans and some church plans are not
subject to the fiduciary responsibility provisions of ERISA or the provisions of Code section 4975 but may be subject to substantially
similar rules under state or other federal law. Fiduciaries of any such plans are advised to consult with their counsel prior to an investment
in Shares.

In contemplating an investment of a portion of
Plan assets in Shares, the Plan fiduciary responsible for making such investment should carefully consider, taking into account the facts
and circumstances of the Plan, the “Risk Factors” discussed below and whether such investment is consistent with its fiduciary
responsibilities, including (1) whether the fiduciary has the authority to make the investment under the appropriate governing Plan instrument,
(2) whether the investment would constitute a direct or indirect non-exempt prohibited transaction with a “party in interest”
or “disqualified person,” (3) the Plan’s funding objectives, and (4) whether under the general fiduciary standards
of investment prudence and diversification such investment is appropriate for the Plan, taking into account the Plan’s overall
investment policy, the composition of its investment portfolio and its need for sufficient liquidity to pay benefits when due.