Gold Resource Corporation (GRC) shareholders now have the ability to convert their cash dividends in the form of physical gold and/or silver, providing direct exposure to physical precious metals. Upon execution and conversion from cash into physical, the shareholder has the option to direct their holdings to be stored and managed in a GBI approved vault or take physical delivery.

GBI is a leading physical precious metals provider servicing both Retail and Institutional investors. GBI’s proprietary technology allows clients to acquire and manage their precious metal holdings directly through its online platform. Some of the largest Broker-Dealers and Wealth Managers in the world utilize GBI’s technology for their precious metals needs. GBI is the safest, most reliable option for physical precious metals ownership. For more information please visit GBI’s website at: www.bullioninternational.com

The dividend program consists of minted .999 fine Gold Resource Corporation Eagle one ounce gold rounds and .999 fine Gold Resource Corporation Eagle one ounce silver rounds.

No. This is a new optional program that provides you with an attractive and easy way to own physical precious metals. It will not replace your cash dividend program unless you choose to participate.

To participate, shareholders must opt-in to the Gold and Silver Dividend program by opening an Individual Bullion Account with GBI. Next, shareholders must move their existing GRC shares into their own name in order to be recorded and verifiable at GRC’s transfer agent, Computershare. This Individual Bullion Account will receive GRC cash dividends directly from Computershare via direct deposit. GBI will facilitate the conversion from a cash dividend to physical precious metal dividends in the form of one ounce GRC Eagle gold and/or silver rounds.

For more information, please read this Getting Started document.

Simply put, so GRC and GBI can find you. To enable shareholders to participate in the program, GRC must have the ability to verify an individual shareholder’s position size and dividend amount. Holding your GRC shares in your own name allows shareholders to be identified at GRC’s transfer agent (Computershare). “Street name” does not allow GRC to verify an individual shareholder nor their position size for their dividend conversion.

After the GRC shares have been placed in the shareholders own name at Computershare (the Company’s transfer agent) and a Bullion Account has been set up online, each shareholder will have the ability to access, direct and manage their own individual account. Options include setting the percentage allocation of their cash dividend to be converted into either one ounce GRC Eagle gold rounds, silver rounds, or a combination of both. Cash to physical conversion will most likely not be divisible into exactly one ounce gold or silver rounds, so the cash remainder will accumulate in the client's Bullion Account and be re-allocated accordingly during the next dividend conversion. Shareholders will also have the ability to withdraw cash from the GBI account at any time.

Creating a Bullion Account is quick and easy. Creating an account online typically takes an individual under 10 minutes. Here is what you will need to create an account:

• If you have a Computershare Account, your Account Number (Your Computershare Account Number will be required before any dividends can be invested)
• A US social security number or a verifiable passport number.
• A primary address that can be confirmed via background checks
• Personal contact information (email, telephone, etc.)

No, unfortunately shares held in retirement accounts are not eligible to be transferred or utilized in the program at this time.

Conversion from cash into physical takes place on the shareholders Payment Date for a dividend. The price that will be used for the purchase of the metals, will be based on the London PM Fix Price for Gold and Silver on the dividend Record Date.

The shareholder's Bullion Account must be opened and activated with the dividends directed from Computershare into that account by midnight before the Record Date in order to participate for that dividend period.

No interest will be paid on cash balances in the Bullion Account not converted into physical. On the dividend Payment Date, Gold and Silver dividends will be distributed as directed by the account holder and the conversion will take place.

The only funds allowed to be converted into GRC Eagles are those dividend funds directly deposited by the transfer agent (Computershare), reflecting the shareholder's dividend amount. The shareholder can, however, make additional deposits to cover delivery or storage fees as they see fit. No direct purchase of the rounds are available at this time.

After conversion, the shareholder will receive a Client eStatement for the month. This eStatement will outline the activity, precious metals position, and financial balances on the account for that dividend period. If the shareholder elected to take physical delivery of their precious metals as part of their standing monthly instructions, a shipping notification will be sent within a few business days.

This program is not viewed as a revenue stream for GRC. GRC passes along only the basic costs of minting and delivery. By passing along only those basic costs GRC hopes to be competitive with its Gold and Silver Dividend Program when compared to alternative physical outlets.

• GRC’s Minting costs: Gold ounce = $30.00
  Silver ounce = $1.90
• Vaulting costs: w/ GBI = 50 basis points (0.50%) annually for gold and 60 basis points (0.60%) annually for silver and is payable on a quarterly basis
• Delivery costs: Varies depending on amount and destination of shipment.
• Transaction Fees: GBI does not charge a transaction fee to facilitate the dividend program.

The above costs are those associated with owning physical metal and will be added to the London P.M. Fix (10:30 A.M. EST) on the dividend Record Date in order to establish the price of GRC Eagle one ounce rounds on the conversion date.

GBI will charge GRC shareholders an annual fee for storage, client service, insurance, general oversight and recordkeeping of client assets. This fee is 50 basis points (0.50%) annually for gold and 60 basis points (0.60%) annually for silver and is payable on a quarterly basis.

GBI calculates its storage fees based on the daily average value of a client’s position during the course of the month. The client only pays, for example, the fee for the metals they have in their account for that specific period. GBI will issue a quarterly invoice to shareholders for the total fees owed. Clients’ cash accounts will be automatically debited for this fee from their individual Bullion Account. In the event that a client does not have a current cash position adequate to cover the account fees they can deposit only those additional funds via wire or check necessary to cover fees. Outstanding fees will always be debited from free cash prior to a metals conversion. Funds deposited will only be used to cover fees; all money for conversion into gold and silver must come from Computershare and reflect the dividend amount.

No. You cannot purchase Gold or Silver Rounds directly from GRC. The only way to access GRC Eagle one ounce .999 fine rounds is to be enrolled in the Gold and Silver Dividend Program as a shareholder.

GRC will make every attempt to buy back the rounds as long as the rounds have been stored at a secure GBI vaulting facility. Sells, in this case, can be executed on-line using the GBI platform.

Shareholders taking personal delivery of the rounds, outside of GBI’s chain of custody, may be offered a discount to spot to cover potential re-assaying of the rounds and/or re-melting and re-minting costs. Selling GRC Eagle one ounce rounds elsewhere in the market may incur discounts to market spot prices, including but not limited to, gold melt discount pricing.

Once precious metals are delivered to the shareholder, these metals are considered to be out of the "Chain Of Custody" and are subject to a potential loss of value. Precious Metals Dealers must verify the authenticity of metals before they purchase them. Dealers typically pass the cost of authentication to the seller, in this case the shareholder. In addition, the shareholder will often acquire costs associated with self-storing and insuring their precious metals. Precious metals will not be delivered to any shareholder or their custodian without the acceptance of the risks and costs associated with taking delivery outside of the Chain Of Custody.

All precious metals stored or transported by GBI are insured for full replacement value.

All precious metal stored with GBI are audited on a daily basis by GBI's approved vaulting partners. In addition, an internationally recognized big four auditing firm independently audits all of the precious metal holdings on a quarterly basis. Precious metal holdings are confirmed with GRC and individual holdings are reported to each client via the on-line platform.

An UTMA is a good way to let minors own assets besides stocks, bonds, or mutual funds – which are generally more difficult for them to own.

Nearly any type of asset can be invested in an UTMA account, including (but not limited to) real estate, equities, and physical commodities.

The custodian who is designated at the time of the creation of an UTMA account manages the assets. Only one custodian may be designated per an UTMA account.

No. From the creation of the account through the final transfer to the minor, the assets are considered the child’s property.

Depending on your tax status, there may be donation restrictions. Speak to a registered tax advisor for more information regarding your personal status.

No. While the assets are usually used for college, the minor can use the funds for whatever they would like with no penalty.

No. All transfers to an UTMA account are irrevocable.