Notice of EGM

ETFS Commodity Securities Limited

17 December 2014

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 Leveraged Commodity Securities

Proposed convening of Meetings to reduce Principal Amountsof the ETFS Leveraged Commodity Securities of certain classes

Following recent changes in commodity prices generally and in respect of WTI Crude Oil and Brent Crude in particular, the Prices of certain ETFS Leveraged Commodity Securities ("Securities") have fallen towards their respective Principal Amounts. As a result of these falls in Price, the Issuer is preparing a circular to the holders of certain classes of ETFS Leveraged Commodity Securities, convening meetings for the purposes of seeking approval from Security Holders to reduce the Principal Amounts of the affected classes of ETFS Leveraged Commodity Securities, including ETFS Daily Leveraged WTI Crude Oil ("LOIL") and ETFS Daily Leveraged Brent Crude ("LBRT").

Prior to the proposed meetings of Security Holders the Issuer may, under Condition 7.18 of the Securities, suspend the right to Redeem any such Securities under Condition 7.1(a) (Settlement Pricing) whose Price falls below the Principal Amount. If this occurs, redemptions under Condition 7.1(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. 

Based on the trading price of WTI Crude Oil on the New York Mercantile Exchange, Inc. and on the trading price of Brent Crude on the Intercontinental Exchange, Inc., it is possible that the Settlement Price for The Bloomberg WTI Crude Oil Sub-IndexSM, by reference to which the Price of the LOIL Securities is calculated or the Settlement Price for The Bloomberg Brent Crude Sub-IndexSM, by reference to which the Price of the LBRT Securities is calculated, may soon, be such that the Price of the LOIL securities or the Price of the LBRT securities will fall below their respective Principal Amounts. If the Price of the LOIL securities does fall below US$0.59 or the Price of the LBRT securities does fall below US$5.00, then the right to Redeem such securities, respectively, under Condition 7.1(a) (Settlement Pricing) will then be suspended under Condition 7.18 until further notice. All Settlement Redemption Forms lodged on or after the day when the Price falls below US$0.59 or US$5.00 (as the case may be) will in that event be invalid under Condition 7.18(c). 

To enable normal Redemptions to continue all Redemptions under Agreed Pricing for LOIL or LBRT (as the case may be) will, unless otherwise agreed, be based on the closing settlement price level of the relevant Commodity Index and the pricing formula as stated in the Prospectus. This will allow the creation and redemption of the Securities to continue unaffected. Accordingly the Issuer does not expect any disruption to trading in the ETFS Daily Leveraged WTI Crude Oil Individual Securities, the ETFS Daily Leveraged Brent Crude Individual Securities or, more generally, the ETFS Leveraged Commodity 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 meetings will not affect Security Holders of other Commodity Securities including Classic Commodity Securities, Longer Dated Commodity Securities and Short Commodity Securities.

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

A further announcement will be made in due course.

For further information, please contact

Richard Parker,

R&H Fund Services (Jersey) Limited

Tel: +44 (0) 1534 825200

Fax: +44 (0) 1534 825335

E-mail address: [email protected]