The goal of the Sprott Physical Gold Trust and Sprott Physical Silver Trust and Sprott Physical Platinum and Palladium Trusts ("the Trusts") is to provide a secure, convenient and exchange-traded investment alternative for investors who want to hold physical bullion. The Trusts offer a number of compelling advantages over traditional exchange-traded bullion funds.

1) Secure Storage

The Trusts' physical gold, silver, and platinum bullion is fully allocated and stored at a secure third party storage location in Canada. The physical palladium bullion is fully allocated and segregated in a secure third party storage location in London and Zurich. The physical bullion is subject to a physical count periodically on a spot inspection basis and subject to audit procedures by the Trusts' external auditors on at least an annual basis.

2) Bullion Assets Not Held With a Bank Owned Custodian

Unlike most traditional exchange-traded precious metals funds, the Trusts hold their bullion assets in custody at a Federal Crown Corporation of the Government of Canada. There is no levered financial institution between the unitholders and the Trusts' physical bullion and no risk of financial loss in the event of a bankruptcy or nationalization of the financial institution. 

3) Potential Tax Advantage For Certain U.S. Investors*

For U.S. non-corporate investors who hold units for one year and timely file a QEF form, gains realized on the sale of the Trusts' units are currently taxed at a long-term capital gains rate with a maximum of 20%, versus a maximum of 28% applied against most precious metals ETFs and physical coins.

For more information, please see ''Tax Considerations-U.S. Federal Income Tax Considerations" in the Prospectus and always consult your tax accountant regarding your particular situation.

4) Ability to Redeem Units for Physical Bullion

Subject to minimum redemption amounts, Unitholders have the ability to redeem their units for physical bullion on a monthly basis. Please see "Redemption of Units" in the Prospectus for details.

The bullion Custodian can deliver the bars almost anywhere in the world via an Armored Transportation Service Carrier. Physical redemptions will never dilute remaining unitholders. All physical redemptions are equal to 100% of the NAV of the redeemed units, less redemption and delivery expenses, including the handling of the notice of redemption and the applicable bullion storage in-and-out fees.

5) Investment in Physical Bullion Only

With the exception of cash held by the Trusts to pay expenses and anticipated redemptions, the Trusts exclusively invest in physical bullion. At any given time, the Manager intends to hold 97% of the total net assets of the Trusts in physical bullion in London Good Delivery bar form for the gold and silver bullion and in Good Delivery plate and/or ingot form for the platinum and palladium bullion. The Trusts do not invest in precious metals or platinum or palladium certificates or other financial instruments that represent precious metals or platinum or palladium or that may be exchanged for precious metals or platinum or palladium.

6) Fully Allocated Physical Bullion - No Exceptions

The Trusts' bullion holdings are fully allocated. Unlike other bullion funds, the Trusts do not have an unallocated account that is used to facilitate transfers of bullion between financial institutions that act as authorized participants. Without exception, all of the bullion owned by the Trusts is held in the Trusts' allocated accounts in physical form.

7) Potential to Trade at a Premium to Net Asset Value

Because of their unique features and favourable tax treatment, units of the Trusts have the potential to trade at a premium to their net asset value. This offers investors a unique opportunity to profit from higher bullion prices as well as any market price increases relative to the NAV. The Trusts may also trade at a discount.

* The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering or tax, legal, accounting or professional advice. Readers should consult with their own accountants and/or lawyers for advice on the specific circumstances before taking any action.