Sprott Physical Silver Trust Completes US$575M Initial Public Offering

On November 3, 2010, Sprott Physical Silver Trust (the “Trust”) completed a cross-border initial public offering of 57,500,000 trust units (the “Units”) at US$10 per Unit for gross proceeds of US$575,000,000.

The Trust was created to invest and hold substantially all its assets in physical silver bullion and provide a secure, convenient and exchange-traded way for investors interested in holding physical silver bullion without the inconvenience that is typical of a direct investment in physical silver bullion. The Trust is managed by Sprott Asset Management LP (“Sprott”), a wholly owned subsidiary of Sprott Inc. The units are listed on the NYSE Arca and the Toronto Stock Exchange.

The offering was made simultaneously in the United States and Canada through a syndicate of underwriters led by Morgan Stanley and RBC Capital Markets in the United States and RBC Capital Markets and Morgan Stanley in Canada. The underwriters for the offering in Canada also included TD Securities Inc., Canaccord Genuity Corp., National Bank Financial Inc., BMO Capital Markets, HSBC Securities (Canada) Inc., GMP Securities L.P., Wellington West Capital Markets Inc. and Mackie Research Capital Corporation.

Canadian counsel to the Trust and Sprott was Heenan Blaikie LLP, with a team that included Sonia Yung, Paola Turner and Ora Wexler (securities) and Peter Clark (tax). United States counsel to the Trust and Sprott was Seward & Kissel LLP, with a team that included Anthony Tu-Sekine, Eric Wu (securities) and James Cofer (tax).

Canadian counsel to the underwriters was Davies Ward Phillips & Vineberg LLP, with a team that comprised Shawn McReynolds, Robert Murphy, Tracie Allan and Chris Figel (securities) and Ronald Wilson and Neal Armstrong (tax). United States counsel to the underwriters was Shearman & Sterling LLP, with a team that comprised Christopher Cummings, Stephen Centa, Hugo Sin and Tina Li (securities) and Laurence Crouch, Anil Kalia and Eileen O'Pray (tax).

Lawyer(s)

Christopher J. Cummings Robert S. Murphy Laurence E. Crouch Peter L. Clark Paola A. Turner D. Shawn McReynolds Eileen M. O'Pray Ronald S. Wilson Ora Wexler Stephen Centa Tracie Allan Sonia Yung Neal H. Armstrong Chris Figel

Firm(s)

Seward & Kissel LLP Davies Ward Phillips & Vineberg LLP Shearman & Sterling LLP