Polar Securities commits to not redeeming Central GoldTrust units for at least eight months

  • Polar will not utilize proposed redemption feature in 2015
  • Redemption feature improves probability that CGT will trade at a premium
  • Commitment made to unitholders in light of management scare tactics

TORONTO, April 21, 2015 /CNW/ - Polar Securities Inc. ("Polar") a 5.7% unitholder of Central GoldTrust ("CGT" or the "Trust") (TSX:GTU-U; NYSE MKT:GTU) today committed that if Polar's proposed unit redemption feature is adopted by CGT, Polar will not redeem its units in 2015.

"We hope this commitment to our fellow unitholders to forgo redemptions from the Trust for a period of at least eight months, demonstrates that Polar is looking out for the best interests of all unitholders. Our goal from the outset was to address the significant trading discount to net asset value, suffered by all unitholders. We believe that our proposal also improves the probability that CGT will trade at a premium, and we'd like to give that some time to play out," said Paul Sabourin, CIO of Polar.

"Management has repeatedly attempted to scare and mislead unitholders by insisting that Polar will immediately redeem its units of the Trust. Our commitment to forgo redemptions in 2015, while allowing other unitholders to redeem, directly refutes their central assertion and is consistent with what we offered management back in February," continued Mr. Sabourin.

ABOUT THE POLAR PROPOSAL AND OUR NOMINEES

Polar is proposing to amend CGT's existing redemption features with proven, industry standard redemption features to benefit ALL unitholders, regardless of the size of their holdings. Based on March 31, 2015 closing prices, unitholders should expect to gain at least USD$3,102 of additional value for each 1,000 Units held.

Polar has nominated 5 independent trustees who bring decades of experience from Canada's largest financial institutions and extensive public board experience. Their combined expertise, both managing and advising public and private companies, will enable them to unlock value at CGT for ALL unitholders.

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

Vote the BLUE proxy today in favour of Polar's redemption proposal and for Polar's five highly qualified and independent nominees.

In order to ensure that your vote is counted, your vote must be submitted before 12:00 p.m. (noon) (Toronto time) on Tuesday, April 28, 2015.

For additional information please visit Polar's website www.UnitholdersForCGT.com.

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

POLAR SECURITIES INC.

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

SOURCE Polar Securities Inc.

For further information: Unitholders of CGT: Shorecrest Group Ltd., 1-888-637-5789 (toll free within North America), 647-931-7454 (collect calls accepted), contact@shorecrestgroup.com; Media: Riyaz Lalani, Bayfield Strategy, Inc., (416) 907-9365, rlalani@bayfieldstrategy.com

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Polar Securities Inc.

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