Fund Description: Sprott Physical Silver Trust is a commodity trust created to invest and hold substantially all of its assets in physical silver bullion. INVESTMENT OBJECTIVE: The Trust seeks to provide a secure, convenient and exchange-traded investment alternative for investors interested in holding physical silver bullion without the inconvenience that is typical of a direct investment in physical silver bullion. TRUST STRATEGY: The Trust intends to invest primarily in long-term holdings of unencumbered, fully allocated, physical silver bullion and will not speculate with regard to short-term changes in silver prices. The Trust does not anticipate making regular cash distributions to unitholders. The Trust will provide institutional and retail investors with indirect access to the physical silver bullion market while providing them with the liquidity of an exchange traded security. The units may be bought and sold on the NYSE Arca and the TSX like any other exchange-listed securities. Except with respect to cash held by the Trust to pay expenses and anticipated redemptions, the Trust expects to own only London Good Delivery physical silver bullion. The Manager intends to invest and hold approximately 97% of the total net assets of the Trust in physical silver bullion in London Good Delivery bar form. The Trust will not invest in silver certificates or other financial instruments that represent silver or that may be exchanged for silver. The Manager expects that, for many investors, costs associated with buying and selling the units in the secondary market and the payment of the Trust’s ongoing expenses will be lower than the costs associated with buying and selling physical silver bullion and storing and insuring physical silver bullion in a traditional allocated silver bullion account. The Trust’s physical silver bullion will be fully allocated and stored at the Royal Canadian Mint. For information on fees and expenses of the Trust, see page 29 of the Prospectus. TRUST MANAGEMENT: The Manager, Sprott Asset Management LP, is responsible for the day-to-day business and administration of the Trust, including management of the Trust’s portfolio and all clerical, administrative and operational services.