Letter to Shareholders

Gold mining shares underperformed broader equity markets during the first six months of the fiscal year due primarily to a declining gold price. For the fiscal six month period ended May 31, 2013, gold traded between $1,726 and $1,355 per ounce based on the London P.M. gold fix, reaching a multi-year low on May 20, 2013. While the gold price generally remained weak during the period, a sharp price decline in early April of almost $200 per ounce pushed many long-term gold investors to the sidelines. It is widely believed that the strengthening of the U.S. economic environment, combined with a general stabilization of the economic situation within the European Union, prompted many investors to reduce their exposure to precious metals.

For the fiscal six months ended May 31, 2013, ASA Gold and Precious Metals Limited (“ASA” or the “Company”) reported a negative total return of 35.0% on the Company’s net asset value (NAV) and a negative 34.7% on the Company’s share price. Both the share price and NAV outperformed the return on the FTSE Gold Mines Total Return Index of negative 36.9% for the same period. During the same six month period, the gold price declined 19.2%, closing at $1,394.50 per ounce on May 31, 2013. Since the end of May, the gold price has continued to erode based on improvements in the overall health of the U.S. economy and comments from the U.S. Federal Reserve regarding the outlook for an end to quantitative easing.

ASA’s shares traded at an average discount of 6.1% during the recent fiscal six month period, an improvement over the average discount of 7.2% during the same period of 2012. Over the last several years, the discount at which ASA’s shares trade in the market has continued to narrow. We believe that this improvement is a result of an increase in the Company’s continued marketing efforts, active portfolio management and an effective discount management program enacted by the Board of Directors. The Company continues to maintain its share repurchase program but did not acquire any additional shares during the last six months as a result of the low discount during this period. The Board continues to closely monitor the discount and undertakes a thorough review of the discount management program regularly.

ASA distributed $0.03 per share to shareholders during the first six months of the 2013 fiscal year, unchanged from the first six months of 2012. The Company’s distributions have increased in recent years largely due to higher dividends paid by the Company’s investments and the realization of capital gains. As the gold price rose, mining companies witnessed higher net income and growing cash balances that enabled them to increase dividends. The reversal in the gold price combined with rising production costs has increased balance sheet pressure and lowered distributable income for the mining companies, resulting in a review of many corporate dividend policies. We anticipate that dividends from the miners will stagnate or decline in the near term as a result of these trends, which may reduce income to the Company.

Market Observations

While a number of reasons can be given for the poor performance of gold and the gold mining companies, the most significant reason appears to be a renewed faith on the part of investors in the outlook for the U.S. economy. An increased willingness to participate in, and to commit additional savings to, the broader equity markets implies a lower level of concern about the state of the economy and a reduced appetite for the kind of portfolio insurance sought from gold. Despite investors’ perceived

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need for less protection at the moment, we believe gold’s long-term role as an important portfolio diversifier and as a form of portfolio insurance has not changed.

Examining the performance of the ten largest gold mining companies during the first calendar quarter of 2013 offers some sobering statistics. During this period, the gold price averaged 3.5% lower than during the first quarter of 2012, yet revenue declined by 9.3%, net income declined by 29.7%, cash flow declined by 21.6% and gold production declined by 2.1%. These statistics indicate that much of the decrease in profitability was due to rising operating costs, which increased 11.4% during the same time period. Cost inflation has forced many mining companies to re-evaluate, close or sell some of their higher cost assets. Already, we have witnessed several companies postponing or cancelling the development of projects considered key assets only two years ago. As senior gold producers re-examine their own portfolios of assets, their demand for new assets through the acquisition of smaller, less capitalized gold companies has also been sharply reduced, driving valuations for the junior gold companies to very low levels. Longer term, senior gold producers will be forced to seek replacement assets for their maturing mining operations or face a decline in gold production. This should improve the valuation of mid-tier and junior companies that have high-quality mining assets. The recent changes to ASA’s portfolio reflect these strategic considerations.

The financial crisis of 2008 coincided with a growing popularity of the gold ETF as a new means for investors to invest in gold. Gold ETF products have witnessed a broad based acceptance by investors concerned about the state of the global economy, as they sought a form of portfolio insurance from gold. In recent months, sales by investors in gold ETF products have resulted in a substantial increase in gold bullion liquidity in the market and increased pressure on the gold price. Chart 1 below illustrates the significant reversal in the popularity of gold ETF products in recent months.

While the appetite for gold appears to have waned in the North American markets, demand internationally remains robust with large buyers soaking up the liquidity coming out of North American ETFs. According to the World Gold Council (WGC), Indian gold imports should reach 300-400 tonnes in the second quarter of 2013, an increase of more than 200% year-over-year despite recent government constraints on gold imports. Likewise, the WGC is estimating that gold imports into China could reach 880 tonnes during 2013. For both China and India, these are record levels of gold demand. We believe this international demand will help to support the gold price in the coming months.

Chart 1: Global ETF Gold Bullion Holdings (Jan 2005 – May 2013)

Source: Bloomberg, ASA

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There are several reasons why we believe gold mining shares offer greater value than gold bullion or ETFs. These are dividends, growth, valuation, and leverage. While gold bullion offers many of the portfolio diversification benefits desired by investors, gold does not provide dividends or the possible long-term growth that the mining shares do. Mining shares also have traditionally provided greater leverage to changes in the gold price as rising commodity prices have typically resulted in substantial margin improvements for mining companies. The performance of gold mining shares during the last two years as compared to gold bullion has left mining shares as an inexpensive way of leveraging a potential increase in the gold price. We continue to view gold equities as the best option for diversification given their dividends, leverage to the gold price and current inexpensive valuations.

The South African platinum mining sector has been adversely affected during the last six months, with much of the news related to South African mining remaining negative due to increased levels of work stoppages and slim profitability. Continued high levels of labor unrest and rising production costs have constrained production for platinum and palladium (PGMs). On the other hand, recent figures related to the demand for PGMs from the automotive industry have been largely positive, with both Ford and Chrysler reporting significant increases in demand for automobiles, which are the largest consumers of PGMs. While demand from the European manufacturers remains soft due to weaker than expected European auto demand, all three of the big U.S. automobile manufacturers are looking to work through the summer and have cancelled planned shutdowns which have limited production in the last several years. With demand for cars seeming to turn the corner, we suspect it is just a matter of time before automotive manufacturers begin to work through their PGM inventories, resulting in rising demand reflected in the prices for platinum and palladium. The Company has increased its investments in PGMs via ETFs as we believe that both metals contain favorable outlooks given the general improvement in the U.S. economy, positive auto demand outlook and potential economic stabilization of Europe. However, ASA’s positive view of the PGMs does not extend to the South African platinum miners, as mining operations in that country continue to suffer from the negative business environment and volatile labor relations. As ASA’s shareholders are aware, management has sharply reduced investments in South Africa over the last five years. ASA’s total exposure to South African mining companies has declined to an all-time low of 11.5% of net assets versus 71.6% ten years ago.

Chart 2: Asset Allocation by Country of Domicile

Source: ASA, Totals may not equal 100% due to independent rounding

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Management of ASA has utilized the recent decline in the gold price to establish positions in several new companies as the price weakness has created more attractive valuations. In the first half of fiscal 2013, ASA added three new positions to the portfolio and increased its holdings in four existing investments. In the first quarter, ASA initiated a new investment in Torex Gold Resources Inc., a company developing the Morelos project in Mexico. We believe that Torex is well-positioned to continue exploring their highly prospective land package and move their project towards production. A series of positive news releases from Torex in recent months has continued to reinforce our view of this new investment. Argonaut Gold Inc., a small gold producer with a first-class management team, was added to the portfolio during the second quarter. Argonaut is not only cash flow positive but has a strong growth profile that we believe is achievable without the need for significant external capital. With investor interest in the sector at low levels, finding capital to develop a new project is very difficult and thus a company such as Argonaut is well-positioned for the current environment. New Gold Inc. was also added to the portfolio in the second quarter. New Gold’s diversified asset base, relatively safe regional exposure and strong leadership make it a high-quality addition to the portfolio. Perhaps the most significant change in the Company’s portfolio compared to last year’s Schedule of Investments is the growing allocation to Freeport McMoRan Copper & Gold Inc. Freeport is one of the world’s largest copper producers and also one of the world’s largest gold producers due to by-product production from the Grasberg mine in Indonesia. Recent production difficulties at this mine, combined with some unpopular corporate activities, have led to a period of weak performance, which has allowed ASA to increase our investment in the company. Over the long-term, we believe Freeport is one of the strongest mining companies in the industry. Each of the recently added companies has a different risk/reward profile and we believe that by adding exposure to all four companies, combined with additional investments in existing positions, we have lowered the volatility of the portfolio while gaining exposure to high-quality assets with strong return potential.

ASA sold shares in seven of its holdings during the first half of fiscal 2013. Positions were trimmed that had outperformed and had become disproportionately large in relation to the total portfolio. From a risk management perspective, capital was reallocated from these investments to new, higher potential return opportunities. Additionally, ASA sold shares of companies that we believe face significant hurdles in the near term or have management teams that seem to be on the wrong track. We expect that these companies may underperform their peers while their issues are being resolved and believe that ASA capital is better invested elsewhere.

Overall, we believe that the very high level of volatility witnessed in the gold and precious metals sector is likely to continue for the remainder of the 2013 fiscal year. Investors remain skeptical of the growth plans for the mining companies and the market remains skittish regarding the outlook for precious metals in light of the general improvements in the global economic environment. While the demand for gold appears to be well supported by Chinese and Indian investors, North American investors continue to anticipate an end to quantitative easing in the United States and have reduced their holdings of gold bullion. With management of the mining companies increasingly focused on improving the returns to shareholders, we remain optimistic that these companies can begin to improve operating results over the next two years. We believe that many of the miners have been oversold in this environment and expect that high-quality miners with solid management teams will outperform over the long-term.

David Christensen

President, Chief Executive Officer and Chief Investment Officer
July 19, 2013

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Copies of the Company’s financial reports, as well as its latest NAV, may be requested from ASA Gold and Precious Metals Limited, 400 S. El Camino Real, Suite 710, San Mateo, CA 94402, (650) 376-3135 or (800) 432-3378, or may be found on ASA’s website (www.asaltd.com). Shareholders are encouraged to visit the website for other important information about ASA, including press releases, historical NAV, share price and tax related information. Please direct your attention to the availability of the Dividend Reinvestment and Stock Purchase Plan and see page 20 of this report for further information.

Forward-Looking Statements

This shareholder letter includes forward-looking statements within the meaning of U.S. federal securities laws that are intended to be covered by the safe harbors created thereunder. The Company’s actual performance or results may differ from its beliefs, expectations, estimates, goals and projections, and consequently, investors should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and generally can be identified by words such as “believe,” “anticipate,” “estimate,” “expect,” “intend,” “should,” “may,” “will,” “seek,” or similar expressions or their negative forms, or by references to strategy, plans, goals or intentions. The absence of these words or references does not mean that the statements are not forward-looking. The Company’s performance or results can fluctuate from month to month depending on a variety of factors, a number of which are beyond the Company’s control and/or are difficult to predict, including without limitation: the Company’s investment decisions, the performance of the securities in its investment portfolio, economic, political, market and financial factors, and the prices of gold, platinum and other precious minerals that may fluctuate substantially over short periods of time. The Company may or may not revise, correct or update the forward-looking statements as a result of new information, future events or otherwise.

The Company concentrates its investments in the gold and precious minerals sector. This sector may be more volatile than other industries and may be affected by movements in commodity prices triggered by international monetary and political developments. The Company is a non-diversified fund and, as such, may invest in fewer investments than that of a diversified portfolio. The Company may invest in smaller-sized companies that may be more volatile and less liquid than larger more established companies. Investments in foreign securities, especially those in the emerging markets, may involve increased risk as well as exposure to currency fluctuations. Shares of closed-end funds frequently trade at a discount to net asset value. All performance information reflects past performance and is presented on a total return basis. Past performance is no guarantee of future results. Current performance may differ from the performance shown.

This shareholder letter does not constitute an offer to sell or solicitation of an offer to buy any securities.

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Certain Investment Policies and Restrictions (Unaudited)

The following is a summary of certain of the Company’s investment policies and restrictions and is subject to the more complete statements contained in documents filed with the Securities and Exchange Commission.

The concentration of investments in a particular industry or group of industries. It is a fundamental policy (i.e., a policy that may be changed only by shareholder vote) of the Company that at least 80% of its total assets be (i) invested in common shares or securities convertible into common shares of companies engaged, directly or indirectly, in the exploration, mining or processing of gold, silver, platinum, diamonds or other precious minerals, (ii) held as bullion or other direct forms of gold, silver, platinum or other precious minerals, (iii) invested in instruments representing interests in gold, silver, platinum or other precious minerals such as certificates of deposit therefor, and/or (iv) invested in securities of investment companies, including exchange traded funds, or other securities that seek to replicate the price movement of gold, silver or platinum bullion. Compliance with the percentage limitation relating to the concentration of the Company’s investments will be measured at the time of investment. If investment opportunities deemed by the Company to be attractive are not available in the types of securities referred to in the preceding paragraph, the Company may deviate from the investment policy outlined in that paragraph and make temporary investments of unlimited amounts in securities issued by the U.S. Government, its agencies or instrumentalities or other high quality money market instruments.

The percentage of voting securities of any one issuer that the company may acquire. It is a non-fundamental policy (i.e., a policy that may be changed by the Board of Directors) of the Company that the Company shall not purchase a security if, at the time of purchase, more than 20% of the value of its total assets would be invested in securities of the issuer of such security.

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of
ASA Gold and Precious Metals Limited

We have reviewed the accompanying consolidated statement of assets and liabilities of ASA Gold and Precious Metals Limited (the “Company”), including the consolidated schedule of investments, as of May 31, 2013 and May 31, 2012, and the related consolidated statement of operations for the six month periods ended May 31, 2013 and May 31, 2012, the consolidated statement of changes in net assets for the six month period ended May 31, 2013, and the financial highlights for the six-month periods ended May 31, 2013 and May 31, 2012. These financial statements and financial highlights are the responsibility of the Company’s management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the interim financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board, the statement of changes in net assets and the financial highlights for the year ended November 30, 2012 and in our report dated January 19, 2013, we expressed an unqualified opinion on such financial statements and financial highlights. Other auditors have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board, the financial highlights for each of the four years in the period ended November 30, 2011 and in their report, dated January 24, 2012, they expressed an unqualified opinion on those financial highlights.

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Consolidated Schedule of Investments
(Unaudited)

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Consolidated Schedule of Investments
(Unaudited) (continued)

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Portfolio Statistics (Unaudited)

May 31, 2013 and May 31, 2012

Principal Portfolio Changes During Six Month Periods Ended

May 31, 2013 and May 31, 2012 (unaudited)

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Consolidated Statements of Assets and Liabilities
(Unaudited)

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Consolidated Statements of Operations
(Unaudited)