## OPERATING EXPENSES 

The Trust pays its own operating expenses, which include, but are not limited to, audit, legal, trustee fees, unitholder reporting expenses, general and administrative fees, filing and listing fees payable to applicable securities regulatory authorities and stock exchanges, storage fees for the physical silver bullion, costs incurred in connection with the Trust’s continuous disclosure public filing requirements and investor relations and any expenses associated with the implementation and on-going operation of the Independent Review Committee of the Trust. Operating expenses for the year ended December 31, 2014 amounted to $2,477,218 (not including applicable Canadian taxes) compared to $1,913,509 for the same period in 2013. The increase in operating expenses over the period was primarily due to higher legal and listing fees, higher administrative expenses related to the allocation of expenses across the funds administered by the Manager and higher unitholder reporting costs. Operating expenses for the year ended December 31, 2014 amounted to 0.26% of the average net assets during the year, compared to 0.16% for the same period in 2013. 

## Related Party Transactions 

## MANAGEMENT FEES 

The Trust pays the Manager, Sprott Asset Management LP, a monthly management fee equal to $^{1}$/$_{12}$ of 0.45% of the value of the net assets of the Trust (determined in accordance with the trust agreement), plus any applicable Canadian taxes. The management fee is calculated and accrued daily and payable monthly in arrears on the last day of each month. For the year ended December 31, 2014, the Trust incurred management fees of $4,254,205 (not including applicable Canadian taxes) compared to $5,345,220 for the same period in 2013. 

