Sprott Physical Silver Trust Management Report of Fund Performance Investment Objective and Strategies Risks Results of Operations 3 The Trust’s net asset value per unit on December 31, 2014 was $6.09. The units closed at $6.15 on the NYSE Arca and $6.16 on the TSX on  December 31, 2014 compared to closing prices of $7.57 on the NYSE Arca and $7.58 on the TSX on December 31, 2013. The units are  denominated in U.S. dollars on both exchanges. During the year ended December 31, 2014, the Trust’s units traded on the NYSE Arca at an  average premium to net asset value of approximately 3.0%. The value of the net assets of the Trust as of December 31, 2014 was $775.0 million or $6.09 per unit, compared to $967.6 million or $7.60 per  unit per unit as at December 31, 2013, the Trust’s most recent fiscal year end. The Trust held 49,287,870 ounces of physical silver bullion as of  December 31, 2014, unchanged from December 31, 2013. As at December 31, 2014, the spot price of silver was $15.70 an ounce compared to  a price of $19.47 an ounce as at December 7 K H 7 U X V W U H W X U Q H G í F R P S D U H G W R W K H U H W X U Q R Q V S R W V L O Y H U R I í  19.34% for the  year ended December 31, 2014. During the year ended December 31, 2014, the Trust did not issue any units. The Trust redeemed 5,065 units for cash at a total cost of $38,183  during the period. For the year ended December 31, 2014, the total change in unrealized losses on physical silver bullion amounted to $185.6 million compared  to the change in unrealized losses of $536.1 million during the same period in 2013. The risks of investing in the Trust are detailed in the Trust’s annual information form dated March 31, 2014. There have been no material  changes to the Trust since inception that have affected the overall level of risk. The principal risks associated with investing in the Trust are the  price of silver, the net asset value and/or the market price of the units, the purchase, transport, insurance and storage of physical silver bullion,  liabilities of the Trust, and redemption of units. Sprott Physical Silver Trust (the “Trust”) is a closed-end mutual fund trust organized under the laws of the Province of Ontario, Canada,  created to invest and hold substantially all of its assets in physical silver bullion. 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. The Trust intends to achieve its objective by investing primarily in long-term holdings of  unencumbered, fully allocated, physical silver bullion and does not speculate with regard to short-term changes in silver prices. The units of the Trust are listed on the New York Stock Exchange (“NYSE”) Arca and the Toronto Stock Exchange (“TSX”) under the  symbols “PSLV” and “PHS.U”, respectively. December 31, 2014