January 18, 2012 - Sprott Physical Silver Trust Prices Follow-on Offering of Trust Units In An Aggregate Amount of US$303,600,000

CNW
Jan 18, 2012

TORONTO, Jan. 18, 2012/CNW/ - 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, announced today that it has priced its follow-on offering of 23,000,000 transferable, redeemable units of the Trust ("Units") at a price of US$13.20 per Unit (the "Offering"). As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 3,450,000 additional Units. The gross proceeds from the Offering will be US$303,600,000 (US$349,140,000 if the underwriters exercise in full the over-allotment option).

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.  Under the trust agreement governing the Trust, the net proceeds of the Offering per Unit must be not less 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.

The Units are listed on the NYSE Arca and the TorontoStock Exchange under the symbols "PSLV" and "PHS.U", respectively. The Offering will be made simultaneously in the United Statesand Canadaby underwriters led by Morgan Stanley and RBC Capital Markets in the United Statesand RBC Capital Markets and Morgan Stanley inCanada.

Copies of the U.S. prospectus related to the Offering may be obtained by contacting Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New York 10014 Attention: Prospectus Department (telephone [phone](toll free) or 917-606-8474) or by e-mailing  [e-mail], or RBC Capital Markets Corporation, Attention: Prospectus Department, Three World Financial Center, 200 Vesey Street, 8th floor, New York, New York 10281-8098 (telephone: [phone], fax: [phone]).  Copies of the Canadian prospectus related to this Offering may be obtained by contacting RBC Capital Markets,Attention: Distribution Centre, 277 Front St. W., 5th Floor, Toronto, Ontario M5V2X4 (fax: [phone] ) or Morgan Stanley & Co. LLC 180 Varick Street, 2nd Floor, New York, New York 10014 Attention: Prospectus Department (telephone  [phone](toll free) or 917-606-8474) or by e-mailing [e-mail].  The Offering in Canadais only being made by the Canadian prospectus, which includes important detailed information about the Units being offered.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the Units, nor shall there be any sale of the Units in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.