Sprott Physical Silver Trust Announces Completion of its Follow-on Offering of Trust Units

TORONTO, Jan. 23, 2012 /PRNewswire/ - Sprott Physical Silver Trust (the "Trust") (NYSE: PSLV / TSX: PHS.U), a trust created to invest and hold substantially all of its assets in physical silver bullion and managed by Sprott Asset Management LP (the "Manager"), today announced that it has completed its follow-on offering of 26,450,000 units of the Trust ("Units") at US$13.20 per Unit for gross proceeds of US$349,140,000 (the "Offering"). This includes the exercise in full by the underwriters of their over-allotment option.  Purchasers in the Offering included Sprott Inc. and the Sprott Foundation, which are affiliates of the Manager.

The Trust will use the net proceeds of the Offering to acquire physical silver bullion in accordance with the Trust's objective and subject to the Trust's investment and operating restrictions described in the prospectus related to the Offering, and as of January 23, 2012 has contracted to purchase a total of approximately 10.57 million troy ounces of physical silver bullion. Once the Trust has taken delivery of all the silver bullion, it will publish the serial numbers of all bars held by the Trust on its website.  The net proceeds of the Offering per Unit were greater than 100% of the most recently calculated net asset value per Unit of the Trust prior to, or upon determination of, pricing of the Offering, as required under the trust agreement governing the Trust.