ETFS Commodity Securities Natural Gas Price Fall

ETFS Commodity Securities Limited

1 November 2010

ETFS COMMODITY SECURITIES LIMITED

(Incorporated and registered in Jersey under the Companies (Jersey) Law 1991(as amended) with registered number 90959)

(the "Issuer")

Notice regarding ETFS Commodity Securities

Following recent falls in the price of natural gas, the Price of the Natural Gas Micro Securities (the "Micro Securities") has fallen below its Principal Amount. As a consequence the Price of ETFS Natural Gas Individual Securities ("NGAS") (which is comprised of such Micro Securities) has also fallen below its Principal Amount (US$0.30) to US$0.29 as at 27 October 2010. As a result of this fall in Price, the Issuer is preparing a circular to the holders of the Micro Securities of that class and of those types of ETFS Commodity Securities that are comprised in whole or in part of the Micro Securities of that class (the "Securities") convening a meeting for the purposes of seeking approval from the relevant Security Holders to reduce the Principal Amount of the Micro Securities (and consequently of the other types of Securities).

Prior to the proposed meeting of the Security Holders, the Issuer may, under Condition 8.19 of the Securities, suspend the right to Redeem any such Micro Securities under Condition 8.1(a) (Settlement Pricing) whose Price falls below the Principal Amount and all types of Commodity Securities that are comprised in whole or in part of such Micro Securities. If this occurs, redemptions under Condition 8.1(b) (Agreed Pricing) will continue to occur normally. This procedure has been designed to ensure that all Security Holders who are able to redeem Securities can each continue to receive a price for their Securities based on the relevant commodity index.

As the Price of NGAS and the Micro Securities have fallen below their respective Principal Amounts, the right to Redeem the Micro Securities, NGAS, ETFS All Commodities DJ-UBSCI ("AIGC") and ETFS Energy DJ-UBSCI ("AIGE") under Condition 8.1(a) (Settlement Pricing) had been suspended under Condition 8.19 until further notice. To enable normal Redemptions to continue, all Redemptions under Agreed Pricing for the Micro Securities, NGAS, AIGC and AIGE will, unless otherwise agreed, be based on the settlement price of the relevant Commodity Contract and the pricing formula as stated in the Issuer's prospectus ("Prospectus"). This will allow the creation and redemption of the Micro Securities, NGAS, AIGC and AIGE to continue unaffected. Accordingly, the Issuer does not expect any disruption to trading in the Securities.

The Issuer intends to terminate the temporary suspension of Redemption by Settlement Pricing once the Issuer has received approval from the Security Holders to reduce the Principal Amount as provided for in the circular to be issued in due course. The proposed meeting will not affect the Security Holders of other types of Commodity Securities including other types of Individual Securities and Index Securities, any Forward Commodity Securities, any Leveraged Commodity Securities or any Short Commodity Securities.

Security Holders should note that the current circumstances are contemplated in the Prospectus where there are significant falls in commodity prices and the relevant commodity indices. 

For further information, please contact:

Christopher Osgood

R&H Fund Services (Jersey) Limited

Tel: +44 (0) 1534 825200

Fax: +44 (0) 1534 825250

E-mail address: [email protected]