Sprott Physical Gold Trust Announces Exercise of Over-allotment Option by
Underwriters in Follow-on Offering of Trust Units

TORONTO, May 27 /CNW/ - Sprott Physical Gold Trust (the "Trust") (NYSE: PHYS/TSX: PHY.U), a trust created to invest and hold substantially all of its assets in physical gold bullion and managed by Sprott Asset Management LP, today announced that the underwriters for the previously announced follow-on public offering (the "Offering") of units ("Units") of the Trust have agreed to purchase an additional 3,240,000 Units in connection with the exercise of their over-allotment option.

Including this exercise of the over-allotment option, the gross proceeds of the Offering will be US$279,450,000, consisting of 24,840,000 Units offered at US$11.25 per Unit.

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, as 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. The underwriters for the Offering in Canada included TD Securities Inc., BMO Capital Markets, Canaccord Genuity Corp., HSBC Securities (Canada) Inc., National Bank Financial Inc. and GMP Securities L.P.

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.

SOURCE Sprott Inc.

For further information: For further information: Investor contact information: Telephone: (416) 203-2310, Toll Free: 1-877-403-2310, Email: ir@sprott.com

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