This information should be read in conjunction with the financial
statements and notes to the financial statements included in Item 1 of Part 1 of this Form 10-Q. The discussion and analysis that follows
may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, and within the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking
statements may relate to the Trust’s financial condition, operations, future performance and business. These statements can be identified
by the use of the words “may”, “should”, “expect”, “plan”, “anticipate”, “believe”,
“estimate”, “predict”, “potential” or similar words and phrases. These statements are based upon certain
assumptions and analyses the Sponsor has made based on its perception of historical trends, current conditions and expected future developments.
Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements, to conform such statements to actual
results or to reflect a change in management’s expectations or predictions.
Introduction
The Trust is a common law trust, formed under the laws of the state
of New York on December 30, 2009. 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 and is not required to register under such act. It does not hold or trade
in commodity futures contracts, nor is it a commodity pool, or subject to regulation as a commodity pool operator or a commodity trading
adviser in connection with issuing Shares.
The Trust holds platinum and is expected to issue Baskets in exchange
for deposits of platinum and to distribute platinum in connection with redemptions of Baskets. Shares issued by the Trust represent
units of undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect
the performance of the price of platinum bullion, less the Trust’s expenses. The Sponsor believes that, for many
investors, the Shares will represent a cost effective investment relative to traditional means of investing in platinum.
The Trust issues and redeems Shares only with Authorized Participants
in exchange for platinum and only in aggregations of 50,000 Shares or integral multiples thereof. A list of current Authorized
Participants is available from the Sponsor or the Trustee.
Shares of the Trust trade on the NYSE Arca, Inc. (“NYSE Arca”)
under the symbol “PPLT”.
Valuation of Platinum and Computation of Net Asset Value
On each day that the NYSE Arca is open for regular trading, as promptly
as practicable after 4:00 p.m. New York time on such day (the “Evaluation Time”), the Trustee evaluates the platinum
held by the Trust and determines the NAV of the Trust.
At the Evaluation Time, the Trustee values the
Trust’s platinum on the basis of that day’s LBMA Platinum Price PM. If there is no LBMA Platinum Price PM on any day,
the Trustee is authorized to use the LBMA Platinum Price AM announced on that day. If neither price is available for that day, the
Trustee will value the Trust’s platinum based on the most recently announced LBMA Platinum Price PM or LBMA Platinum Price AM.
Realized gains and losses on transfers of platinum, or platinum distributed for the redemption of Shares, are calculated on a trade
date basis as the difference between the fair value and average cost of platinum transferred.
The LME is responsible for the administration of the
electronic platinum price fixing system (“LMEbullion”) that replicates electronically the manual London platinum fix processes
previously employed by the LPPFCL, as well as providing electronic market clearing processes for platinum bullion transactions at the
fixed prices established by the LME pricing mechanism. LMEbullion, like the previous London platinum fix processes, establishes and publishes
fixed prices for troy ounces of platinum twice each London trading day during fixing sessions beginning at 9:45 a.m. London time (the
“LBMA Platinum Price AM”) and 2:00 p.m. London time (the “LBMA Platinum Price PM”).
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Once the value of the platinum has been determined, the Trustee
subtracts all estimated accrued but unpaid fees (other than the fees accruing for such day on which the valuation takes place that are
computed by reference to the value of the Trust or its assets), expenses and other liabilities of the Trust from the total value of the platinum
and all other assets of the Trust (other than any amounts credited to the Trust’s reserve account, if established). The resulting
figure is the ANAV of the Trust. The ANAV of the Trust is used to compute the Sponsor’s Fee.
All fees accruing for the day on which the valuation takes place that
are computed by reference to the value of the Trust or its assets are calculated using the ANAV calculated for such day. The Trustee subtracts
from the ANAV the amount of accrued fees so computed for such day and the resulting figure is the NAV of the Trust. The Trustee also determines
the NAV per Share by dividing the NAV of the Trust by the number of the Shares outstanding as of the close of trading on the NYSE Arca
(which includes the net number of any Shares created or redeemed on such evaluation day).
Any estimate of the accrued but unpaid fees, expenses and liabilities
of the Trust for purposes of computing the NAV of the Trust and ANAV made by the Trustee in good faith shall 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 NAV of the Trust is obtained by subtracting the
Trust’s liabilities on any day from the value of the platinum owned and receivable by the Trust on that day; the NAV per Share is
obtained by dividing the NAV of the Trust on a given day by the number of Shares outstanding on that day.
Recent Events
After the close of markets on May 14, 2026, the
Trust effected a ten-for-one forward share split of the Shares issued by the Trust (the “Split”).
The Split applied to shareholders
of record as of the close of the markets on May 14, 2026, and was payable after the close of the markets on May 15, 2026. The Split
was effective prior to the market open on May 18, 2026, when the Shares of the Trust began trading at their post-Split prices. In
the ten-for-one Split, shareholders received ten post-Split-Shares for every Share held of record as of the close of the markets on
May 14, 2026.
The information presented attributable to periods prior to the Split has been adjusted to reflect the effects of the
Split.
The Quarter Ended June 30, 2026
The Trust’s NAV decreased from $2,396,712,689 at March
31, 2026 to $1,773,133,277 at June 30, 2026, a 26.02% decrease for the quarter. The change in the Trust’s NAV resulted primarily from
a decrease in the price per ounce of platinum, which fell 17.87% from $1,908.00 at March 31, 2026 to $1,567.00 at June 30, 2026 and a
decrease in outstanding Shares, which fell from 138,500,000 Shares at March 31, 2026 to 124,950,000 Shares at June 30, 2026, as a result
of 4,800,000 Shares (96 Baskets) being created and 18,350,000 Shares (367 Baskets) being redeemed during the quarter.
The NAV per Share decreased 17.98% from $17.30 at March
31, 2026 to $14.19 at June 30, 2026. The Trust’s NAV per Share fell slightly more than the price per ounce of platinum on a percentage
basis due to the Sponsor’s Fee, which was $3,509,784 for the quarter, or 0.60% of the Trust’s ANAV on an annualized basis.
The NAV per Share of $19.43 at April 17, 2026 was the
highest during the quarter, compared with a low of $14.19 at June 30, 2026.
The decrease in net assets from operations
for the quarter ended June 30, 2026 was $400,692,903, resulting from a change in unrealized loss on investment in platinum of $493,083,455
and the Sponsor’s Fee of $3,509,784, offset by a realized gain of $1,429,056 on the transfer of platinum to pay expenses and a
realized gain of $94,471,280 on platinum distributed for the redemption of Shares. Other than the
Sponsor’s Fee, the Trust had no expenses during the quarter ended June 30, 2026.
The Six Months Ended June 30, 2026
The Trust’s NAV decreased from
$2,862,967,538 at December 31, 2025 to $1,773,133,277 at June 30, 2026, a 38.07% decrease for the period. The change in the
Trust’s NAV resulted from a decrease in the price per ounce of platinum, which fell 22.69% from $2,027.00 at December 31, 2025
to $1,567.00 at June 30, 2026 and a decrease in outstanding Shares, which fell from 155,500,000 at December 31, 2025 to 124,950,000
at June 30, 2026, as a result of 16,300,000 Shares (326 Baskets) being created and 46,850,000 Shares (937 Baskets) being redeemed
during the period.
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The NAV per Share decreased 22.92% from $18.41 at December
31, 2025 to $14.19 at June 30, 2026. The Trust’s NAV per Share fell slightly more than the price per ounce of platinum on a percentage
basis due to the Sponsor’s Fee, which was $7,867,739 for the period, or 0.60% of the Trust’s ANAV on an annualized basis.
The NAV per Share of $25.52 at January 26, 2026 was
the highest during the period, compared with a low of $14.19 at June 30, 2026.
The decrease in net assets from operations for the
period ended June 30, 2026 was $584,894,639, resulting from a change in unrealized loss on investment in platinum of $896,103,112 and the
Sponsor’s Fee of $7,867,739, offset by a realized gain of $315,759,911 on platinum distributed for the redemption of Shares and
a realized gain of $3,316,301 on the transfer of platinum to pay expenses. Other than the Sponsor’s Fee, the Trust had no expenses
during the period ended June 30, 2026.
Liquidity & Capital Resources
The Trust is not aware of any trends, demands, commitments, events
or uncertainties that are reasonably likely to result in material changes to its liquidity needs. In exchange for the Sponsor’s
Fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust
during the period covered by this report was the Sponsor’s Fee. The Trust’s only source of liquidity is its transfers and sales of
platinum.
The Trustee will, at the direction of the Sponsor or in its own discretion,
sell the Trust’s platinum as necessary to pay the Trust’s expenses not otherwise assumed by the Sponsor. The Trustee
will not sell platinum to pay the Sponsor’s Fee but will pay the Sponsor’s Fee through in-kind transfers of platinum
to the Sponsor. At June 30, 2026, the Trust did not have any cash balances.
Off-Balance Sheet Arrangements
The Trust is not a party to any off-balance sheet arrangements.
Critical Accounting Policies
The financial statements and accompanying notes are prepared in accordance
with accounting principles generally accepted in the United States of America. The preparation of these financial statements relies on
estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions
affect the Trust’s application of accounting policies. Refer to Note 2 to the Financial Statements for further information on accounting
policies.