An anonymous trustee reports

SILVER BULLION TRUST PROVIDES SPROTT LITIGATION UPDATE

Silver Bullion Trust (amounts are in U.S. dollars) has provided an update to unitholders on the application commenced by Silver Bullion and Central GoldTrust on June 24, 2015, in the Ontario Superior Court of Justice (commercial list), naming as respondents Sprott Asset Management Gold Bid LP, Sprott Asset Management Silver Bid LP, Sprott Asset Management LP, Sprott Physical Gold Trust and Sprott Physical Silver Trust.

As previously announced, in its court application, Silver Bullion claims that: (i) Sprott's hostile bid fails to comply with the advance notice rule recently adopted by Silver Bullion; (ii) the hostile bid constitutes an illegal proxy solicitation; (iii) the hostile bid breaches statutory rights of withdrawal under applicable takeover bid rules; and (iv) Sprott has breached its obligations to disclose its joint actions with Polar Securities Inc. Silver Bullion seeks an order enjoining Sprott's hostile bid. Silver Bullion also seeks an order that amendments, recently adopted, to the declaration of trust of Silver Bullion (as described in Silver Bullion's news release of June 24, 2015) were validly made and are binding on Sprott.

The Ontario Superior Court of Justice has fixed July 29, 2015, for the hearing of the application. The parties have agreed on a timetable for steps in the application.

Pending the hearing of the application on July 29, 2015, Sprott has agreed not to take up or pay for any Silver Bullion units deposited under its hostile bid, or to take any steps to exercise any rights or voting powers in connection with any Silver Bullion units deposited under its hostile bid.

Sprott has announced its intention to extend the expiry time of its hostile bid to 5 p.m. on Aug. 7, 2015, unless further extended.

Additional information and where to find it

The recommendation of the board of trustees of Silver Bullion in respect of the Sprott offer is contained in the trustees circular, which has been filed with Canadian securities regulatory authorities. Unitholders are urged to read the trustees circular and other relevant materials because they contain important information. The trustees circular and other filings made by Silver Bullion with Canadian securities regulatory authorities may be obtained without charge at SEDAR and at the investor relations section of the Silver Bullion website.

Unitholders who have already tendered their units to the Sprott offer can withdraw their units by contacting their broker or D.F. King & Co., North America, toll-free at 1-800-251-7519; or by e-mail at inquiries@dfking.com.

We seek Safe Harbor.