Sprott's Follow On Offering of PHYS Prices at US$14

Sprott Physical Gold Trust Prices Follow-on Offering of Trust Units In An Aggregate Amount of US$266 Million

TORONTO, ONTARIO--(Marketwire - 07/15/11) - Sprott Physical Gold Trust (the "Trust") (TSX:PHY.U - News)(NYSE:PHYS - News), a trust created to invest and hold substantially all of its assets in physical gold bullion and managed by Sprott Asset Management LP, announced today that it has priced its follow-on offering of 19,000,000 transferable, redeemable units of the Trust ("Units") at a price of US$14.00 per unit (the "Offering"). As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 2,850,000 additional Units. The gross proceeds from the Offering will be US$266 million (US$305.9 million if the underwriters exercise in full the over-allotment option).

The Trust will use the net proceeds of this Offering to acquire physical gold bullion in accordance with the Trust's objective and subject to the Trust's investment and operating restrictions described in the prospectus related to this 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 Toronto Stock Exchange under the symbols "PHYS" and "PHY.U", respectively. The Offering will be made simultaneously in the United States and Canada by Morgan Stanley and RBC Capital Markets.