If You Invested in MicroSectors™ Gold Miners 3X Leveraged ETNs (GDXU)

MicroSectors Gold Miners 3x Leveraged ETN (GDXU) is an exchange-traded note issued by Bank of Montreal ("BMO"). According to BMO, these MicroSectors Gold Miners 3X Leveraged Exchange Traded Notes are designed to provide a 3x leveraged long exposure to the performance of the S-Network MicroSectors Gold Miners Index (the "Index") on a daily basis, before fees and charges. The notes are senior, unsecured obligations of BMO and are subject to BMO's credit risk.

The ETNs are described by BMO as daily trading tools intended for sophisticated investors who actively manage their positions. The issuer states that the ETNs are not intended to be "buy and hold" investments or to be held to maturity. Because the leverage resets each day, the performance of GDXU over periods longer than one day can differ, and most likely will differ, significantly from three times the return of a direct long investment in the Index over the same period.

BMO explains that the closing Indicative Note Value of the ETNs reflects a daily deduction of a Daily Financing Charge and other fees and charges described in the ETN prospectus (the "ETN Prospectus"). The Daily Financing Charge is based on the Federal Reserve Bank Prime Loan Rate plus a financing spread. BMO has disclosed that the financing spread for GDXU can be adjusted pursuant to the terms of the ETNs, and that changes to this spread can adversely affect investor returns.

The ETNs are linked to the S-Network MicroSectors Gold Miners Index, which is referenced in BMO's product communications. The ETNs are listed with the ticker symbol GDXU and are part of the MicroSectors-branded family of exchange-traded products that use licensing arrangements with REX Shares ("REX"). BMO notes that MicroSectors and REX are trademarks of REX and that the Index has been licensed for use by REX in connection with these ETNs. BMO also states that the ETNs are not sponsored, endorsed, sold, or promoted by REX or any of the REX Index Parties.

According to BMO, investors in GDXU face the possibility of significant losses, including the potential loss of the entire amount invested over a short period of time. The issuer highlights that the ETNs are very sensitive to changes in the level of the underlying Index and that returns may be negatively impacted in complex ways by index volatility on a daily or intraday basis. BMO emphasizes that investment suitability must be determined individually for each investor and that the ETNs are not suitable for all investors.

BMO has filed a registration statement, including a pricing supplement, product supplement, prospectus supplement, and base prospectus, with the U.S. Securities and Exchange Commission ("SEC") relating to these ETNs. In multiple Form 6-K filings, BMO indicates that information about the bank and its securities, including the registration statement on Form F-3 (File No. 333-285508), is incorporated by reference into SEC documents. The ETN Prospectus for GDXU is available through the SEC's EDGAR system, and BMO directs investors to review those documents carefully before making any investment decision.

Bank of Montreal files periodic reports with the SEC as a foreign private issuer on Form 40-F and provides additional information through current reports on Form 6-K. These filings include documents such as annual reports to shareholders, earnings coverage ratios, and consolidated capitalization information, some of which are incorporated by reference into BMO's registration statements that relate to its ETN offerings, including GDXU.

Because GDXU is an exchange-traded note rather than an equity security in an operating company, analysis of this product focuses on the terms of the note, its leveraged exposure to the referenced Index, the fee and financing structure described in the ETN Prospectus, and the credit profile of BMO as issuer, as reflected in its SEC filings.

Key characteristics of GDXU

• Product type: Exchange-traded note issued by Bank of Montreal.
• Leverage profile: Designed to reflect 3x leveraged long exposure to the S-Network MicroSectors Gold Miners Index on a daily basis, before fees and charges.
• Financing structure: Daily Financing Charge based on the Federal Reserve Bank Prime Loan Rate plus a financing spread, as described in the ETN Prospectus.
• Risk profile: BMO states that the ETNs are highly volatile, very sensitive to changes in the level of the Index, and can lead to significant losses, including the entire investment, in a short period of time.
• Issuer: Senior, unsecured obligations of Bank of Montreal, subject to BMO's credit risk, with related information filed with the SEC on forms including Form F-3, Form 40-F, and Form 6-K.

Investor considerations

BMO indicates that GDXU is intended for sophisticated investors who understand leveraged daily reset products and who can actively and continuously monitor their positions, potentially on an intraday basis. Any decision to hold the ETNs for more than one day is described as a series of daily or more frequent decisions. BMO also notes that changes to the financing spread and the associated Daily Financing Charge can adversely affect returns and may affect the trading price and liquidity of the ETNs.

Prospective investors are directed by BMO to review the ETN Prospectus, including the pricing supplement and related documents filed with the SEC, for detailed risk factors, fee disclosures, and a full description of the terms of GDXU.