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TORONTO, ONTARIO--(Marketwire - May 26, 2010) - Sprott Physical Gold Trust (the "Trust") (TSX:PHY.U)(NYSE:PHYS), a trust created to invest and hold substantially all of its assets in physical gold bullion and managed by Sprott Asset Management LP, has priced its follow-on offering to the public (the "Offering") of 21,600,000 transferable, redeemable units of the Trust ("Units"). As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 3,240,000 additional Units.

The Units have been priced at US$11.25 per Unit. The gross proceeds from the Offering will be US$243,000,000 (US$279,450,000 if the underwriters exercise in full the over-allotment option).

The Trust intends to 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. The net proceeds of the Offering per Unit will be greater than 100% of the most recently calculated net asset value per Unit of the Trust prior to pricing of the Offering, which is required under the trust agreement governing the Trust.

The Units are listed on the NYSE Arca and the Toronto Stock Exchange under the symbols "PHYS" and "PHY.U", respectively. The Offering was made simultaneously in the United States and Canada through a syndicate of underwriters led by Morgan Stanley and RBC Capital Markets in the United States and RBC Capital Markets and Morgan Stanley in Canada.

Copies of the U.S. prospectus related to this Offering may be obtained by contacting Morgan Stanley & Co. Incorporated, 180 Varick Street, 2nd Floor, New York, New York 10014 Attention: Prospectus Department (telephone: 866-718-1649 (toll free) or 917-606-8474) or by e-mailing [ prospectus@morganstanley.com ], or RBC Capital Markets Corporation, Attention: Prospectus Department, Three World Financial Center, 200 Vesey Street, 8th floor, New York, New York 10281-8098 (telephone: 212-428-6670, fax: 212-428-6260)

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.

Additional details on the Trust can be found in the final prospectus available on EDGAR ([ www.edgar.com ]) and SEDAR ([ www.sedar.com ]) or on the Trust's website at [ www.sprottphysicalgoldtrust.com ].