Exhibit 99.6 
    
   
 INDEPENDENT AUDITORS' REPORT OF REGISTERED PUBLIC ACCOUNTING FIRM
 To Sprott Asset Management LP (the "Manager"), the Trustee and the Unitholders of the Sprott Physical Gold Trust
  We have audited the accompanying financial statements of Sprott Physical Gold Trust, which comprise the statements of financial position as at December 31, 2011 and 2010, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and a summary of significant accounting policies and other explanatory information.
  Management's responsibility for the financial statements
  Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
  Auditors' responsibility
  Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
  An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
  We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.
  Opinion
  In our opinion, the financial statements present fairly, in all material respects, the financial position of Sprott Physical Gold Trust as at December 31, 2011 and 2010, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.
   
  
 
    Other matter
  We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Sprott Physical Gold Trust's internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 30, 2012 expressed an unqualified opinion on Sprott Physical Gold Trust's internal control over financial reporting.
    /s/ Ernst & Young LLPMarch 30, 2012

Toronto, Canada
Chartered Accountants

Licensed Public Accountants
  
  
  
     
  Sprott Physical Gold Trust
  Audited financial statements
  December 31, 2011
   
   Sprott Physical Gold Trust Statements of comprehensive income
  For the year ended

December 31, 2011


For the year ended

December 31, 2010$



$IncomeUnrealized gains on gold bullion


135,875,354



182,837,158135,875,354



182,837,158ExpensesManagement fees (note 11)


5,961,159



2,307,496Sales Tax


885,538



230,058Bullion storage fees


490,561



178,969Audit fees


236,918



90,784Independent Review Committee fees


32,418



34,082Listing and regulatory filing fees


203,867



98,168General and administrative


88,754



46,674Net foreign exchange (gains) losses


(9,490
)


2,470Legal fees


322,025



8,254Trustee fees


5,515



4,1278,217,264



3,001,082Realized gains (losses) on investmentsNet realized gains on sales of investments


83,411



–Net realized gains on investments


83,411



–Net income for the period


127,741,501



179,836,076Other comprehensive income


–



–Total comprehensive income for the period


127,741,501



179,836,076Basic and diluted income per Unit(note 9)


1.01



3.01
  The accompanying notes are an integral part of these financial statements.
  On behalf of the Manager, Sprott Asset Management LP,
 by its General Partner, Sprott Asset Management GP Inc.:
  /s/ ERIC SPROTT

/s/ STEVEN ROSTOWSKYEric Sprott

Steven RostowskyDirector

Director
  
   
  Sprott Physical Gold Trust Statements of financial position
  As at

December 31, 2011


As at

December 31, 2010$



$AssetsCash (note 6)


10,562,922



5,862,468Gold bullion


1,911,430,374



1,166,105,984Total assets


1,921,993,296



1,171,968,452LiabilitiesAccounts payable


309,710



223,036Total liabilities


309,710



223,036EquityUnitholders' capital


1,685,014,381



1,039,890,051Unit premium and reserves


79,541



16,759Retained earnings


307,210,490



179,790,710Underwriting commissions and issue expenses


(70,620,827
)


(47,952,104
)Total equity(note 8)


1,921,683,586



1,171,745,416Total liabilities and equity


1,921,993,296



1,171,968,452Total equity per Unit


13.17



12.07
  The accompanying notes are an integral part of these financial statements.
   
  Sprott Physical Gold Trust Statements of changes in equity
  Number

of Units

Outstanding


Unitholders'

Capital


Retained

Earnings


Underwriting

Commissions

and Issue

Expenses


Unit

Premiums and

Reserves


Total Equity$



$



$



$



$Balance at December 31, 2009


1



10



–



–



–



10Cancellation of Unit


(1
)


(10
)


–



–



–



(10
)Proceeds from issuance of Units (note 8)


97,078,555



1,040,179,870



–



–



–



1,040,179,870Cost of redemption of Units (note 8)


(28,982
)


(289,819
)


–



–



16,759



(273,060
)Net income for the year


–



–



179,790,710



–



.



179,790,710Underwriting commissions and issue expenses


–



–



–



(47,952,104
)


–



(47,952,104
)Balance at December 31, 2010


97,049,573



1,039,890,051



179,790,710



(47,952,104
)


16,759



1,171,745,416Balance at December 31, 2010


97,049,573



1,039,890,051



179,790,710



(47,952,104
)


16,759



1,171,745,416Proceeds from issuance of Units (note 8)


49,018,500



646,593,090



–



–



–



646,593,090Cost of redemption of Units (note 8)


(146,876
)


(1,468,760
)


(321,721
)


–



62,782



(1,727,699
)Net income for the year


–



–



127,741,501



–



–



127,741,501Underwriting commissions and issue expenses


–



–



–



(22,668,723
)


–



(22,668,723
)Balance at December 31, 2011


145,921,197



1,685,014,381



307,210,490



(70,620,827
)


79,541



1,921,683,586
  The accompanying notes are an integral part of these financial statements.
   
  Sprott Physical Gold Trust Statements of cash flows
  For the year ended

December 31, 2011


For the year ended

December 31, 2010$



$Cash flows from operating activitiesNet income for the period


127,741,501



179,836,076Adjustment to reconcile net income for the period to net cash from operating activitiesUnrealized gains on gold bullion


(135,875,354
)


(182,837,158
)Realized gains on redemptions for gold bullion


(83,411
)Net changes in operating assets and liabilitiesIncrease in accounts payable


86,672



223,036Net cash used in operating activities


(8,130,592
)


(2,778,046
)Cash flows from investing activitiesPurchase of gold bullion


(609,875,542
)


(983,268,826
)Net cash used in investing activities


(609,875,542
)


(983,268,826
)Cash flows from financing activitiesProceeds from issuance of Units (note 8)


646,593,090



1,040,179,870Payments on cancellation of Unit (note 8)


–



(10
)Payments on redemption of Units (note 8)


(1,217,780
)


(318,426
)Underwriting commissions and issue expenses


(22,668,723
)


(47,952,104
)Net cash provided by financing activities


622,706,587



991,909,330Net increase in cash during the period


4,700,454



5,862,458Cash at beginning of period


5,862,468



10Cash at end of period(note 6)


10,562,922



5,862,468
  The accompanying notes are an integral part of these financial statements.
   
  Sprott Physical Gold Trust
 Notes to the Interim Financial Statements December 31, 2011
  1. ORGANIZATION OF THE TRUST
  Sprott Physical Gold Trust (the "Trust") is a closed-end mutual fund trust created under the laws of the Province of Ontario, Canada, pursuant to a trust agreement dated as of August 28, 2009, as amended and restated as of December 7, 2009 and as further amended and restated as of February 1, 2010 (the "Trust Agreement"). The Trust's initial public offering closed on March 3, 2010. The Trust is authorized to issue an unlimited number of redeemable, transferable trust units (the "Units"). All issued Units have no par value, are fully paid for, and are listed and traded on the New York Stock Exchange Arca (the "NYSE Arca") and the Toronto Stock Exchange (the "TSX") under the symbols "PHYS" and "PHY.U", respectively.
  The investment objective of the Trust is to seek to provide a secure, convenient and exchange-traded investment alternative for investors interested in holding physical gold bullion without the inconvenience that is typical of a direct investment in physical gold bullion. The Trust invests and intends to continue to invest primarily in long-term holdings of unencumbered, fully allocated, physical gold bullion and does not speculate with regard to short-term changes in gold prices. The Trust has only purchased and expects only to own "Good Delivery Bars" as defined by the London Bullion Market Association ("LBMA"), with each bar purchased being verified against the LBMA source.
  The Trust's registered office is located at Suite 2700, South Tower, Royal Bank Plaza, 200 Bay Street, Toronto, Ontario, Canada, M5J 2J1.
  Sprott Asset Management LP (the "Manager") acts as the manager of the Trust pursuant to the Trust Agreement and a management agreement with the Trust. RBC Dexia Investor Services Trust, a trust company organized under the laws of Canada, acts as the trustee of the Trust. RBC Dexia Investor Services Trust also acts as custodian on behalf of the Trust for the Trust's assets other than physical gold bullion. The Royal Canadian Mint acts as custodian on behalf of the Trust for the physical gold bullion owned by the Trust.
  The financial statements of the Trust as at and for the year ended December 31, 2011 were authorized for issue by the Manager on March 30, 2012.
  2. BASIS OF PREPARATION
  The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB" or the "Board").
  The financial statements have been prepared on a historical cost basis, except for physical gold bullion and financial assets and financial liabilities held at fair value through profit or loss, that have been measured at fair value.
  The financial statements are presented in U.S. dollars and all values are rounded to the nearest dollar unless otherwise indicated.
  2.1 Summary of Significant Accounting Policies
  (i) Cash and cash equivalents
  Cash and cash equivalents consist of cash on deposit with the Trust's custodian, which is not subject to restrictions.
  (ii) Gold bullion
  Investments in gold bullion are measured at fair value determined by reference to published price quotations, with unrealized and realized gains and losses recorded in income based on the International Accounting Standards ("IAS") 40 Investment Property fair value model as IAS 40 is the most relevant standard to apply. Investment transactions in physical gold bullion are accounted for on the business day following the date the order to buy or sell is executed.
   
  (iii) Other financial liabilities
  This category includes all financial liabilities, other than those classified at fair value through profit and loss. The Trust includes in this category management fees payable, due to brokers and other accounts payable.
  (iv) Share Capital
  Classification of redeemable units
  Redeemable units are classified as equity instruments when:
  •
The units entitle the holder to a pro rata share of the Trust's net assets in the event of the Trust's liquidation;
  •
The redeemable units are in the class of instruments that is subordinate to all other classes of instruments;
  •
All redeemable units in the class of instruments that is subordinate to all other classes of instruments have identical features;
  •
The redeemable units do not include any contractual obligation to deliver cash or another financial asset other than the holder's rights to a pro rata share of the Trust's net assets; and
  •
The total expected cash flows attributable to the redeemable units over the life of the instrument are based substantially on the profit or loss, the change in the recognized net assets or the change in the fair value of the recognized and unrecognized net assets of the Trust over the life of the instrument.
  In addition to the redeemable units having all the above features, the Trust must have no other financial instrument or contract that has:
  •
Total cash flows based substantially on the profit or loss, the change in the recognized net assets or the change in the fair value of the recognized and unrecognized net assets of the Trust; and
  •
The effect of substantially restricting or fixing the residual return to the redeemable unitholders.
  The Trust continuously assesses the classification of the redeemable units. If the redeemable units cease to have all the features or meet all the conditions set out to be classified as equity, the Trust will reclassify them as financial liabilities and measure them at fair value at the date of reclassification, with any differences from the previous carrying amount recognised in equity.
  (v) Fees and commission expenses
  Fees and commission expenses are recognized on an accrual basis.
  (vi) Income taxes
  In each taxation year, the Trust will be subject to income tax on taxable income earned during the year, including net realized taxable capital gains. However, the Trust intends to distribute its taxable income to unitholders at the end of every fiscal year and therefore the Trust itself would not have any income tax liability.
  (vii) Functional and presentation currency
  The Trust's functional and presentation currency is the US Dollar. The Trust's performance is evaluated and its liquidity is managed in US Dollars. Therefore, the US Dollar is considered as the currency that most faithfully represents the economic effects of the underlying transactions, events and conditions.
  3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
  The preparation of the Trust's financial statements requires the Manager to make judgments, estimates and assumptions that affect the amounts recognized in the financial statements. However, uncertainty about these assumptions and estimates could
   
  result in outcomes that may require a material adjustment to the carrying amount of the asset or liability affected in future periods.
  Judgements
  In the process of applying the Trust's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognized in the financial statements:
  Going Concern
  The Trust's management has made an assessment of the Trust's ability to continue as a going concern and is satisfied that the Trust has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt upon the Trust's ability to continue as a going concern. Therefore, the financial statements continue to be prepared on a going concern basis.
  Estimates and Assumptions
  The key accounting assumptions concerning the future and other key sources of estimation uncertainty at the recording date, that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below. The Trust based its assumptions and estimates on parameters available when the financial statements were prepared. However, existing circumstances and assumptions about future developments may change due to market changes or circumstances arising beyond the control of the Trust. Such changes are reflected in the assumptions when they occur.
  For tax purposes, the Trust generally treats gains from the disposition of gold bullion as capital gains, rather than income, as the Trust intends to be a long-term passive holder of gold bullion, and generally disposes of its holdings in gold bullion only for the purposes of meeting redemptions and to pay expenses. The Canada Revenue Agency has, however, expressed its opinion that gains (or losses) of mutual fund trusts resulting from transactions in commodities should generally be treated for tax purposes as ordinary income rather than as capital gains, although the treatment in each particular case remains a question of fact to be determined having regard to all the circumstances.
  4. CERTAIN RELEVANT STANDARDS, INTERPRETATIONS AND AMENDMENTS ISSUED BUT NOT YET EFFECTIVE
  Standards issued but not yet effective at the date of the issuance of the Trust's financial statements are listed below.
  IFRS 9 Financial Instruments: Classification and Measurement: IFRS 9 as issued reflects the first phase of the Board's work on the replacement of IAS 39 Financial Instruments: Recognition and Measurement, and applies to classification and measurement of financial assets as defined in IAS 39. The standard is effective for annual periods beginning on or after January 1, 2013. The adoption of IFRS 9 is not expected to have a material effect on the classification and measurement of the Trust's financial assets.
  In May 2011, the IASB issued the following standard which has not yet been adopted by the Trust: IFRS 13 Fair Value Measurement. The aforementioned new standard is effective for annual periods beginning on or after January 1, 2013 with early adoption permitted. The Trust has started the process of assessing the impact that the new and amended standard will have on its financial statements or whether to early adopt any of the new requirements.
  5. SEGMENT INFORMATION
  For management purposes, the Trust is organized into one main operating segment, which invests in physical gold bullion. All of the Trust's activities are interrelated, and each activity is dependent on the others. Accordingly, all significant operating decisions are based upon an analysis of the Trust as one segment. The financial results from this segment are equivalent to the financial statements of the Trust as a whole. The Trust's operating income is earned entirely in Canada and is primarily generated from its investment in physical gold bullion.
  6. CASH AND CASH EQUIVALENTS
  As at December 31, 2011, cash and cash equivalents consisted entirely of cash on deposit.
   
  7. FAIR VALUE OF FINANCIAL INSTRUMENTS
  As at December 31, 2011, due to the short-term nature of financial assets and financial liabilities recorded at cost, it is assumed that the carrying amount of those instruments approximates their fair value.
  8. UNITHOLDERS' CAPITAL
  The Trust is authorized to issue an unlimited number of redeemable, transferrable Trust Units in one or more classes and series of Units. The Trust's capital is represented by the issued, redeemable, transferable Trust Units. Quantitative information about the Trust's capital is provided in the statement of changes in equity. Under the Trust Agreement, Units may be redeemed at the option of the unitholder on a monthly basis for physical gold bullion or cash. Units redeemed for physical gold bullion will be entitled to a redemption price equal to 100% of the NAV of the redeemed Units on the last business day of the month in which the redemption request is processed. A unitholder redeeming Units for physical gold bullion will be responsible for expenses in connection with effecting the redemption and applicable delivery expenses, including the handling of the notice of redemption, the delivery of the physical gold bullion for Units that are being redeemed and the applicable gold storage in-and-out fees. Units redeemed for cash will be entitled to a redemption price equal to 95% of the lesser of (i) the volume-weighted average trading price of the Units traded on the NYSE Arca, or, if trading has been suspended on the NYSE Arca, on the TSX for the last five business days of the month in which the redemption request is processed and (ii) the NAV of the redeemed Units as of 4:00 p.m., Eastern time, on the last business day of the month in which the redemption request is processed.
  When Units are redeemed and cancelled and the cost of such Units is either above or below their stated or assigned value, the cost is allocated to unitholders' capital in an amount equal to the stated or assigned value of the Units and any difference is allocated to the Unit premiums and reserves account. For the year ended December 31, 2011, the Trust issued 49,018,500 Units and redeemed 146,876 Units.
  Net Asset Value
  Net Asset Value ("NAV") is defined as the Trust's net assets (fair value of total assets less fair value of total liabilities, excluding all liabilities represented by outstanding Units, if any) calculated using the value of physical gold bullion based on the end-of-day price provided by a widely recognized pricing service.
  Capital management
  As a result of the ability to issue, repurchase and resell Units of the Trust, the capital of the Trust as represented by the Unitholders' capital in the statement of financial position can vary depending on the demand for redemptions and subscriptions to the Trust. The Trust is not subject to externally imposed capital requirements and has no legal restrictions on the issue, repurchase or resale of redeemable Units beyond those included in the Trust Agreement. The Trust may not issue additional Units except (i) if the net proceeds per Unit to be received by the Trust are not less than 100% of the most recently calculated NAV immediately prior to, or upon, the determination of the pricing of such issuance or (ii) by way of Unit distribution in connection with an income distribution.
  The Trust's objectives for managing capital are:
  •
To invest and hold substantially all of its assets in physical gold bullion; and
  •
To maintain sufficient liquidity to meet the expenses of the Trust, and to meet redemption requests as they arise.
  Refer to "Financial risk management objectives and policies" (Note 10) for the policies and procedures applied by the Trust in managing its capital.
  9. EARNINGS PER UNIT
  Basic earnings per unit ("EPU") is calculated by dividing the net income for the year attributable to the Trust's unitholders by the weighted average number of units outstanding during the year.
  The Trust's diluted EPU is the same as basic EPU, since the Trust has not issued any instruments with dilutive potential.
  
 For the year ended

December 31, 2011


For the year ended

December 31, 2010Net income for the year attributable to the Trust's redeemable units

$
127,741,501


$
179,836,076Weighted average number of redeemable units outstanding


126,996,156



59,766,609Basic and diluted income per redeemable unit

$
1.01


$
3.01
  10. FINANCIAL RISK AND MANAGEMENT OBJECTIVES AND POLICIES
  Introduction
  The Trust's objective in managing risk is the creation and protection of unitholder value. Risk is inherent in the Trust's activities, but it is managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other controls. The process of risk management is critical to the Trust's continuing profitability. The Trust is exposed to market risk (which includes price risk, interest rate risk and currency risk), credit risk and liquidity risk arising from the gold bullion that it holds.
  Risk management structure
  The Trust's Investment Manager is responsible for identifying and controlling risks.
  Risk mitigation
  The Trust has investment guidelines that set out its overall business strategies, its tolerance for risk and its general risk management philosophy.
  The discussion below clarifies the Trust's management of various risks.
  Excessive risk concentration
  The Trust's risk is concentrated in the value of physical gold bullion, whose value constitutes 99.5% of total equity as at December 31, 2011 (99.5% as at December 31, 2010).
  Price risk
  Price risk arises from the possibility that changes in the market price of the Trust's investments, which consist almost entirely of gold bullion, will result in changes in fair value of such investments.
  If the market value of gold increased by 1%, with all other variables held constant, this would have increased comprehensive income by approximately $19.1 million; conversely, if the value of gold bullion decreased by 1%, this would have decreased comprehensive income by the same amount.
  Interest rate risk
  Interest rate risk arises from the possibility that changes in interest rates will affect the value of financial instruments. The Trust does not hedge its exposure to interest rate risk as that risk is minimal.
  Currency risk
  Currency risk arises from the possibility that changes in the price of foreign currencies will result in changes in carrying value. The Trust's assets, substantially all of which consist of an investment in gold bullion, are priced in U.S. dollars. Some of the Trust's expenses are payable in Canadian dollars. Therefore, the Trust is exposed to currency risk, as the value of its liabilities denominated in Canadian dollars will fluctuate due to changes in exchange rates. Most of such liabilities, however, are short term in nature and are not significant in relation to the net assets of the Trust, and, as such, exposure to foreign exchange risk is limited. The Trust does not enter into currency hedging transactions.
  As at December 31, 2011, approximately $275,590 (December 31, 2010: $155,421) of the Trust's liabilities were denominated in Canadian dollars.
   
  Credit risk
  Credit risk arises from the potential that counterparties will fail to satisfy their obligations as they come due. The Trust primarily incurs credit risk when entering into and settling gold bullion transactions. It is the Trust's policy to only transact with reputable counterparties. The Manager closely monitors the creditworthiness of the Trust's counterparties, such as bullion dealers, by reviewing their financial statements, when available, regulatory notices and press releases. The Trust seeks to minimize credit risk relating to unsettled transactions in gold bullion by only engaging in transactions with bullion dealers with high creditworthiness. The risk of default is considered minimal, as payment for gold bullion, is only made against the receipt of the bullion by the custodian.
  Liquidity risk
  Liquidity risk is defined as the risk that the Trust will encounter difficulty in meeting obligations associated with financial liabilities and redemptions. Liquidity risk arises because of the possibility that the Trust could be required to pay its liabilities earlier than expected. The Trust is also subject to redemptions for both cash and gold bullion on a regular basis. The Trust manages its obligation to redeem units when required to do so and its overall liquidity risk by only allowing for redemptions monthly, which require 15-day advance notice to the Trust. The Trust's liquidity risk is minimal, since its primary investment is physical gold bullion, which trades in a highly liquid market. All of the Trust's financial liabilities, including due to brokers, accounts payable and management fees payables have maturities of less than three months.
  11. RELATED PARTY DISCLOSURES
  The following parties are considered related parties to the Trust:
  Investment Manager – Sprott Asset Management LP
  The Trust pays the Manager a monthly management fee equal to 1/12 of 0.35% of the value of net assets of the Trust (determined in accordance with the Trust Agreement) plus any applicable Canadian taxes, calculated and accrued daily and payable monthly in arrears on the last day of each month. Total management fees for the period from January 1, 2011 to December 31, 2011 amounted to $5,961,159, compared to $2,307,496 for the same period in 2010.
  Also, the Manager has agreed that if the expenses of the Trust, including the management fee, at the end of any month exceed an amount equal to 1/12 of 0.65% of the value of the net assets of the Trust, the management fee payable to the Manager for such month will be reduced by the amount of such excess up to the gross amount of the management fee earned by the Manager from the Trust for such month. Any such reduction in the management fee will not be carried forward or remain payable to the Manager in future months. The Manager did not waive any amounts payable for the years ended December 31, 2011 and 2010.
  In calculating the expenses of the Trust for purposes of the expense cap, the following will be excluded: any applicable taxes payable by the Trust or to which the Trust may be subject, and any extraordinary expenses of the Trust.
  Ownership and Other
  As at December 31, 2011, the Trust's related parties included Eric Sprott, the CEO and Chief Investment Officer of the Manager. Eric Sprott owned 2.65% of the units of the Trust.
  As at December 31, 2011, certain funds for which the Manager of the Trust also acted as the Manager held Units of the Trust. The following funds held the indicated percentage of outstanding Units of the Trust as at December 31, 2011: Sprott Master Fund, Ltd. (0.28%), Sprott Mastter Fund II, Ltd. (0.27%) and Sprott Bull/Bear RSP Fund (0.12%).
  All related party transactions were made at arm's length on normal commercial terms and conditions. There have been no other transactions between the Trust and its related parties during the reporting period.
  12. INDEPENDENT REVIEW COMMITTEE ("IRC")
  In accordance with National Instrument 81-107, Independent Review Committee for Investment Funds ("NI 81-107"), the Manager has established an IRC for a number of funds managed by it, including the Trust. The mandate of the IRC is to consider and provide recommendations to the Manager on conflicts of interest to which the Manager is subject when
   
  managing certain funds, including the Trust. The IRC is composed of three individuals, each of whom is independent of the Manager and all funds managed by the Manager, including the Trust. Each fund subject to IRC oversight pays a share of the IRC member fees, costs and other fees in connection with operation of the IRC. The IRC reports annually to unitholders of the funds subject to its oversight on its activities, as required by NI 81-107.
  13. SOFT DOLLAR COMMISSIONS
  There were no soft dollar commissions for the years ended December 31, 2011 and 2010.
  14. PERSONNEL
  The Trust did not employ any personnel during the period, as its affairs were administered by the personnel of the Manager and/or the Trustee, as applicable.
  15. EVENTS AFTER THE REPORTING PERIOD
  On February 3, 2012, the Trust announced that it completed an offering of 20,000,000 transferable, redeemable units of the Trust at a price of $15.19 per unit. In addition, on February 7, 2012, the Trust announced that the underwriters of this offering purchased an additional 3,000,000 units following the exercise of their over-allotment option. The gross proceeds of these offerings were $349.4 million.
  There were no other material events after the reporting period.
  16. COMPARATIVE FINANCIAL STATEMENTS
  The comparative financial statements have been reclassified from statements previously presented to conform to the current year's presentation.
   
  Corporate Information
  Head Office
  Sprott Physical Gold Trust
 Royal Bank Plaza, South Tower
 200 Bay Street
 Suite 2700, PO Box 27
 Toronto, Ontario M5J 2J1
 Telephone: (416) 203-2310
 Toll Free: (877) 403-2310
 Email: ir@sprott.com
  Auditors
  Ernst & Young LLP
 Ernst & Young Tower
 P.O. Box 251, 222 Bay Street
 Toronto-Dominion Centre
 Toronto, Ontario M5K 1J7
  Legal Counsel
  Heenan Blaikie LLP
 P.O. Box 2900, Suite 2900
 333 Bay Street
 Bay Adelaide Centre
 Toronto, Ontario Canada M5H 2T4
  Seward & Kissel LLP
 1200 G Street N.W.
 Washington, DC 20005