NYSE: SIVR

The
Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under
such act. The Trust does not and will not hold or trade in commodities futures contracts, “commodity interests” or
any other instruments regulated by the Commodity Exchange Act (the “CEA”), as administered by the Commodity Futures
Trading Commission (the “CFTC”) and the National Futures Association (“NFA”). The Trust is not a commodity
pool for purposes of the CEA and the Shares are not “commodity interests,” and neither the Sponsor nor the Trustee
is subject to regulation as a commodity pool operator or a commodity trading advisor in connection with the Shares. The Trust
has no fixed termination date.

The
Sponsor of the registrant maintains an Internet website at www.abrdn.com/us/etf through which the registrant’s annual reports
on Form 10-K, quarterly reports on Form 10-Q, and amendments to those reports filed or furnished pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, are made available free of charge as soon as reasonably
practicable after they have been filed or furnished to the Securities and Exchange Commission (the “SEC”). The SEC
maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that
file electronically at www.sec.gov.

Trust
Objective

The
investment objective of the Trust is for the Shares to reflect the performance of the price of physical silver, less the Trust’s
expenses. The Shares are intended to constitute a simple and cost-effective means of making an investment similar to an investment
in physical silver. An investment in physical silver requires expensive and sometimes complicated arrangements in connection with
the assay, transportation, warehousing and insurance of the metal. Traditionally, such expense and complications have resulted
in investments in physical silver being efficient only in amounts beyond the reach of many investors.

The
Shares are intended to provide institutional and retail investors with a simple and cost-efficient means, with minimal credit
risk, of gaining investment benefits similar to those of holding silver bullion. The Shares offer an investment that:

● Easily
Accessible and Relatively Cost Effective. Investors can access the silver bullion
market through a traditional brokerage account. The Sponsor believes that investors will
be able to more effectively implement strategic and tactical asset allocation strategies
that use silver bullion by using the Shares instead of using the traditional means of
purchasing, trading and holding silver bullion and for many investors, transaction costs
related to the Shares will be lower than those associated with the purchase, storage
and insurance of physical silver.

● Exchange
Traded and Transparent. The Shares trade on the NYSE Arca, providing investors with
an efficient means to implement various investment strategies. The Shares are eligible
for margin accounts and are backed by the assets of the Trust and the Trust does not
hold or employ any derivative securities. Furthermore, the value of the Trust’s
holdings are reported on the Trust’s website daily.

● Minimal
Credit Risk. The Shares represent an interest in physical silver owned by the Trust
(other than an amount held in unallocated form which is not sufficient to make up a whole
bar of which is held temporarily to effect a creation or redemption of Shares). Physical
silver of the Trust in the Custodian’s possession is not subject to borrowing arrangements
with third parties. Other than the silver temporarily being held in an unallocated silver
account with the Custodian, the physical silver of the Trust is not subject to counterparty
or credit risks. See “Risk Factors—Silver held in the Trust’s unallocated
silver account and any Authorized Participant’s unallocated silver account is not
segregated from the Custodian’s assets...” This contrasts with most other
financial products that gain exposure to silver through the use of derivatives that are
subject to counterparty and credit risks.

2

Investing
in the Shares does not insulate the investor from certain risks, including price volatility. See “Risk Factors.”

Overview
of the Silver Industry

This
section provides a brief introduction to the silver industry by looking at some of the key participants, detailing the primary
sources of demand and supply and outlining the role of the “official” sector (i.e., central banks) in the market.

In
this annual report, the term “ounces” refers to troy ounces.

Market
Participants

The
participants in the world silver market may be classified in the following sectors: the mining and producer sector, the banking
sector, the official sector, the investment sector, and the manufacturing sector. A brief description of each follows.

Mining
and Producer Sector

This
group includes mining companies that specialize in silver and silver production, mining companies that produce silver as a by-product
of other production (such as a copper or gold producer), scrap merchants and recyclers. According to The Silver Institute’s
World Silver Survey 2025, the top 20 producing countries are set forth in the table below. As the World Silver Survey 2025 was
published in April 2025, information for 2025 is not available as of the date of this report.

In
million ounces
2023
2024
Y/Y

Mexico
181.9
185.7
2%

China
111.6
110.1
-1%

Peru
108.9
108.0
-1%

Bolivia
43.2
47.8
11%

Chile
52.0
43.2
-17%

Poland
42.5
42.5
0%

Russia
38.3
41.0
7%

Australia
32.7
38.8
19%

United
States
33.1
36.2
10%

Argentina
26.0
24.9
-4%

India
23.8
22.5
-5%

Kazakhstan
16.4
16.1
-2%

Sweden
12.6
11.6
-8%

Indonesia
10.9
11.5
5%

Canada
7.1
9.5
33%

Morocco
8.9
8.6
-4%

Uzbekistan
7.1
7.8
9%

Papua
New Guinea
4.3
4.2
-3%

Spain
3.7
3.5
-5%

Portugal
3.4
3.5
3%

Others
44.4
42.8
-4%

Total
812.7
819.7
1%

Source:
The Silver Institute - World Silver Survey 2025 (Metals Focus)

Banking
Sector

Bullion
banks provide a variety of services to the silver market and its participants, thereby facilitating interactions between other
parties. Services provided by the bullion banking community include traditional banking products as well as mine financing, physical
silver purchases and sales, hedging and risk management, inventory management for industrial users and consumers and silver leasing.

3

The
Official Sector

There
are no official statistics published by the International Monetary Fund, Bank of International Settlements, or national banks
on silver holdings by national governments. The main reason for this is that silver is generally not recognized as a reserve asset.
Consequently, there are very limited silver stocks held by governments.
According to The Silver Institute World Silver Survey 2025, the identifiable silver bullion inventories are as set forth in the
table below. As the World Silver Survey 2025 was published in April 2025, information for 2025 is not available as of the date
of this report.

Million
ounces
2022
2023
2024
Y/Y

London
Vaults
840.9
856.2
827.5
-3 %

COMEX
299.0
277.9
318.6
15 %

Shanghai
Futures Exchange (SHFE)
69.2
38.2
43.9
15 %

Shanghai
Gold Exchange (SGE)
69.0
46.5
40.5
-13 %

Other
7.4
4.1
8.6
109 %

Total
1,285.5
1,229.9
1,239.2
1 %

*Year-end;
Source: The Silver Institute - World Silver Survey 2025 (Metals Focus, LBMA, CME, SGE, SHFE, MCX & OSE)

The
Investment Sector

This
sector includes the investment and trading activities of both professional and private investors and speculators. These participants
range from large hedge and mutual funds to day-traders on futures exchanges, and retail-level coin collectors.

The
Manufacturing Sector

The
fabrication and manufacturing sector represents all the commercial and industrial users of silver. Industrial applications comprise
the largest use of silver. The jewelry and silverware sector is the second largest, followed by the photographic industry (although
the latter has been declining over a number of years as a result of the spread of digital photography).

World
Silver Supply and Demand 2016-2025

The
following table sets forth a summary of the world silver supply and demand for the period from 2016 to 2025 and is based on information
reported by the World Silver Survey 2025, published by The Silver Institute. As the World Silver Survey 2025 was published in
April 2025, the table below includes forecasted information for 2024 as of date of publication. As of the date of this report,
final figures (i.e., non-forecasted) for 2025 are not yet available.

Year
on Year

(in
millions of ounces)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025F*
2024
2025F*

Supply

Mine
Production
900.1
863.9
850.8
837.4
783.8
830.8
839.4
812.7
819.7
835.0
1 %
2 %

Recycling
156.3
160.2
162.3
163.8
180.5
190.7
193.5
183.5
193.9
193.2
6 %
-0.4 %

Net
Hedging Supply
—
—
—
13.9
8.5
—
—
—
—
0.9
na
na

Net
Official Sector Sales
1.1
1.0
1.2
1.0
1.2
1.5
1.7
1.6
1.5
1.5
-9 %
4 %

Total
Supply
1,057.4
1,025.1
1,014.3
1,016.2
974.0
1,023.1
1,034.6
997.8
1,015.1
1,030.6
2 %
2 %

Demand

Industrial
491.0
528.0
525.8
525.4
511.9
564.1
592.3
657.1
680.5
677.4
4 %
-0.5 %

Electrical
& Electronics
309.0
339.1
330.4
326.6
321.4
350.7
370.7
444.4
460.5
465.6
4 %
1 %

…of
which photovoltaics
81.6
99.3
87.0
74.9
82.8
88.9
118.1
192.7
197.6
195.7
3 %
-1 %

Brazing
Alloys & Solders
49.1
50.9
52.0
52.4
47.5
50.5
49.2
50.2
51.6
52.9
3 %
3 %

Other
Industrials
132.9
138.0
143.5
146.4
142.9
162.9
172.4
162.6
168.4
158.9
4 %
-6 %

Photography
34.7
32.4
31.4
30.7
26.9
27.7
27.7
27.3
25.5
24.2
-7 %
-5 %

Jewelry
189.1
196.2
203.2
201.6
150.9
182.0
234.5
203.1
208.7
196.2
3 %
-6 %

Silverware
53.5
59.4
67.1
61.3
31.2
40.7
73.5
55.1
54.2
46.0
-2 %
-15 %

Net
Physical Investment
212.9
155.8
165.9
187.4
208.1
284.3
338.3
244.3
190.9
204.4
-22 %
7 %

Net
Hedging Demand
12.0
1.1
7.4
—
—
3.5
17.9
11.5
4.3
—
-62 %
na

Total
Demand
993.3
972.9
1,008.8
1,006.4
929.0
1,102.4
1,284.2
1,198.5
1,164.1
1,148.3
-3 %
-1 %

Market
Balance
64.1
52.2
13.5
9.8
45.1
(79.3 )
(249.6 )
(200.6 )
(148.9 )
(117.6 )
-26 %
-21 %

Net
Investment in ETPS
53.9
7.2
(21.4 )
83.3
331.1
64.9
(117.4 )
(37.6 )
61.6
70.0
na
14 %

Market
Balance less ETPS
10.2
45.1
34.9
(73.5 )
(286.1 )
(144.3 )
(132.2 )
(163.0 )
(210.5 )
(187.6 )
29 %
-11 %

Silver
Price (US$/oz, London Price)
17.1
17.1
15.7
16.2
20.6
25.1
21.7
23.4
28.3
—
21 %
na

*
Forecasted

Source:
The Silver Institute - World Silver Survey 2025 (Metals Focus)

The
following are some of the main characteristics of the silver market illustrated by the table.

The
balance between silver supply and demand is a fundamental driver of its price. Silver has some of the same drivers of investment
demand as gold, in that it can be used as a hedge against inflation or currency devaluation, or for portfolio diversification
as an alternative currency. As such, silver investment demand may be influenced by interest rates. Silver, unlike gold, has a
significant demand for industrial applications, such as electronics, solar panels, and medical equipment, due to its unique properties,
such a high thermal and electrical conductivity.

New
mine production accounts for approximately 82.3% of total silver supply. Recycled silver accounts for around 17.3% of total supply.

Industrial
applications and jewelry demand accounted for over 58% of total demand in 2024. Photography has been taking a lower share of overall
silver demand, falling from 3.5% in 2016 to 2.2% in 2024, while photovoltaic demand has risen in recent years accounting for 17%
in 2024. Net physical investment (i.e. in coins and bars) fell for a second consecutive year, accounting for 16% of demand in
2024, down from a high of 26.3% in 2022.

4

The
price of silver is volatile and fluctuations are expected to have a direct impact on the value of the Shares. However, movements
in the price of silver in the past are not a reliable indicator of future movements. Movements may be influenced by various factors,
including announcements from central banks regarding a country’s reserve silver holdings, agreements among central banks,
political uncertainties around the world, and economic concerns. The following chart illustrates the movements in the price of
an ounce of silver in dollars from December 31, 2015 to December 31, 2025 and is based on information provided by Bloomberg:

Source:
Bloomberg, Aberdeen. Chart data from 12/31/2015 to 12/31/2025. Spot Silver Price = SLVRLND Index.

The
following is a discussion of the movements in the price of silver illustrated by the table:

The
rise in the value of the U.S. Dollar, sluggish industrial growth and a tame inflation environment (which led some investors to
revise their expectations of the effects of monetary expansion) were some of the drivers behind the movement fall in silver prices
from 2011 to 2019. Silver reversed course in 2020, after COVID stimulus measures were announced, helping prices rise 46.75%,
closing the year at $26.49 per ounce. In 2021, silver took a slight step back after its performance in 2020, as it returned -13%
for the year, as silver took a backseat to riskier asset classes.

2022
was a volatile year for silver as well as other metals in the wake of Russia’s invasion of Ukraine. The invasion caused
sanctions and geopolitical unrest which weighed on the economic outlook and affected the interest rate outlook. Ultimately silver
finished the year at $23.95 per ounce, with a yearly performance of +2.77%.

The
strong demand and reduced supply trends that were prevalent towards the end of 2022 were expected to continue in 2023. However
economic and geopolitical factors including a US banking crisis drove interest rate and industrial demand volatility for the year.
The price of silver ultimately ended the year at $23.79 per ounce on December 29, 2023, down -0.65% for the year, as market participants
were disappointed by the lack of economic stimulus in China.

In
2024, the spot price of silver began the year on a downward trend as the economic stimulus out of China at the end of 2023 disappointed
investors and had little immediate effect on the economy. The potential for U.S. interest rate cuts inspired some increased attention
by investors over the summer months. The U.S. Federal Reserve’s interest rate cut provided an additional tailwind that would
send the price as high as $32.48 per ounce on September 26, 2024. Headwinds grew as the US election resulted in an increased potential
of tariffs that are large enough to slow Chinese economic growth. Overall, the year was marked by alternating optimism and pessimism
on China’s economic activity and levels of stimulus. Additional volatility came from a disappointing energy transition in
the U.S. despite an outperforming energy transition in China where silver’s use in solar panel manufacturing is a key silver
demand driver.

In
2025, as the threat of extreme tariffs and sanctions came into focus, the spot price of silver finally responded to the deficit
that had existed over the prior six years. That market deficit has mostly been driven by industrial demand, however investor interest
in Exchange-Traded Products (ETPs) also accounted for a sizable portion of this year’s rally. In April, the US administration
added silver to the draft Section 232 notice, including it as a critical mineral and fueling speculation of US tariffs, which
resulted in large volumes of silver being moved from London vaults to U.S. exchange vaults to avoid any potential tariffs, with
the result of tightening silver availability in London, the highest volume market. The spot price rose to $54.10 per ounce on
October 17, 2025. Following a 14% selloff in October, the spot price found ongoing support from industrial demand in India and
China, as the jewelry/investing sector substituted silver purchases for gold, industrial demand increased, and the Indian government
approved holding both gold and silver ETPs in local pension plans. While the decision to impose tariffs on critical minerals was
ultimately delayed into 2026, market speculation and investor interest in ETPs more than doubled the market deficit with large
purchases throughout the year. These factors combined to support a year-end rally that drove the spot price of silver to $71.99
per ounce on December 31, 2025, an increase of 149% from the prior year end.

5

Operation
of the Silver Bullion Market

The
global trade in silver consists of Over-the-Counter (“OTC”) transactions in spot, forwards, and options and other
derivatives, together with exchange-traded futures and options.

Global
Over-The-Counter Market

The
OTC silver market includes spot, forward, and option and other derivative transactions conducted on a principal-to-principal basis.
While this is a global, nearly 24-hour per day market, its main centers are London (the biggest venue) and New York. Market makers,
as well as others in the OTC market, trade with each other and with their clients on a principal-to-principal basis. All risks
and issues of credit are between the parties directly involved in the transaction. Market makers include the market making members
of the London Bullion Market Association (“LBMA”), the trade association that acts as the coordinator for activities
conducted on behalf of its members and other participants in the London bullion market. The eleven market-making members of the
LBMA are: BNP Paribas SA, Citibank N.A, HSBC Bank Plc, Goldman Sachs International, ICBC Standard Bank, JPMorgan Chase Bank, Merrill
Lynch International, Morgan Stanley & Co. International LTD, Standard Chartered Bank, Toronto-Dominion Bank and UBS AG. The
OTC market provides a relatively flexible market in terms of quotes, price, size, destinations for delivery and other factors.
Bullion dealers customize transactions to meet clients’ requirements. The OTC market has no formal structure and no open
outcry meeting place. Mining companies, central banks, manufacturers of jewelry and industrial products, together with investors
and speculators, tend to transact their business through one of these market centers. Centers such as Dubai and several cities
in the Far East also transact substantial OTC market business, typically involving jewelry and small bars of silver (1 kilogram
or less) and will hedge their exposure by selling into one of these main OTC centers. Bullion dealers have offices around the
world and most of the world’s major bullion dealers are either members or associate members of the LBMA. As of the date
of this report, there are a further 80 full members, plus a number of associate members around the world. The number of LBMA market-making,
clearing and full members reported in this annual report are as of the date of this annual report. These numbers may change from
time to time as new members are added and existing members drop out. In the OTC market for silver, the standard size of trades
between market makers is 100,000 ounces. Liquidity in the OTC market can vary from time to time during the course of the 24-hour
trading day. Fluctuations in liquidity are reflected in adjustments to dealing spreads—the differential between a dealer’s
“buy” and “sell” prices. The period of greatest liquidity in the bullion markets generally occurs at the
time of day when trading in the European time zones overlaps with trading in the United States, which is when OTC market trading
in London, New York, Zurich and other centers coincides with futures and options trading on the Commodity Exchange, Inc. (“COMEX”),
a designated contract market within the CME Group. This period lasts for approximately four hours each New York business day morning.

The
London Silver Bullion Market

Although
the market for physical silver is distributed globally, most OTC market trades are cleared through London. In addition to coordinating
market activities, the LBMA acts as the principal point of contact between the market and its regulators. A primary function of
the LBMA is its involvement in the promotion of refining standards by maintenance of the “Good Delivery List,” which
is a list of LBMA accredited refiners of silver. The LBMA also coordinates market clearing and vaulting, promotes good trading
practices and develops standard documentation.

The
unit of trade in London is the troy ounce, whose conversion between grams is: 1,000 grams is equivalent to 32.1507465 troy ounces
and 1 troy ounce is equivalent to 31.1034768 grams. A Silver Good Delivery Bar is acceptable for delivery in settlement of a transaction
on the OTC market. A Silver Good Delivery Bar must contain between 750 troy ounces and 1,100 troy ounces of silver with a minimum
fineness (or purity) of 999.0 parts per 1,000. A Silver Good Delivery Bar must also bear the stamp of one of the refiners who
are on the LBMA-approved list. Unless otherwise specified, the silver spot price always refers to that of a Silver Good Delivery
Bar. Business is generally conducted over the phone and through electronic dealing systems.

On
July 14, 2017, the LBMA announced that ICE Benchmark Administration (“IBA”) had been selected to be the third-party
administrator for the “LBMA Silver Price”. Effective from October 2, 2017, IBA is providing the auction platform and
methodology as well as the overall administration and governance for the LBMA Silver Price benchmark. IBA operates an “equilibrium
auction”, which is an electronic, tradable and auditable, over-the-counter auction for LBMA-authorized participating silver
bullion banks or market makers and sponsored clients of direct participants (“silver participants”) that establishes
a reference silver price for that day’s trading, often referred to as the “LBMA Silver Price”. The LBMA Silver
Price equilibrium auction operated by CME Group Inc. and Refinitiv prior to October 2, 2017 was selected by the LBMA as the silver
valuation replacement for the London silver fix previously determined by the London Silver Market Fixing Ltd. that was discontinued
on August 14, 2014. The LBMA Silver Price has become a widely used benchmark for daily silver prices and is quoted by various
financial information sources as the London silver fix was previously.

The
LBMA Silver Price is the result of an “equilibrium auction” because it establishes a price for a troy ounce of Silver
Good Delivery Bars that clears the maximum amount of bids and offers for silver entered by order-submitting silver participants
each day. IBA uses ICE’s front-end system, WebICE, as the technology platform that allows direct participants, as well as
sponsored clients of direct participants, to manage their orders in the auction in real time via their own desktops. As the IBA
electronic silver auction market develops, IBA expects to admit additional silver participants to the order submission process.
The benchmark is published when the auction finishes, typically a few minutes after 12:00 noon (London time).

At
the opening of each auction, IBA in the role of auction chairman (“Chairman”) announces an opening price (in U.S.
Dollars), that takes into account current market conditions and begins auction rounds, with an expected duration of at least 30
seconds each. During each auction round, participants may enter the volume they wish to buy or sell at that price, and such orders
will be part of the price formation. Aggregate bid and offer volume is shown live on WebICE. At the end of each auction round,
the total net volume is calculated. If this “imbalance” is larger than the imbalance tolerance (normally 500,000 oz.)
then the Chairman sets a new price (based on the current market conditions, and the direction and magnitude of the imbalance in
the round) and begins a new auction round. If the imbalance is less than the tolerance, then the auction is complete with all
volume tradeable at that price. The price is then set in U.S. Dollars and also converted into other currencies, including Australian
Dollars, British Pounds, Canadian Dollars, Euros, Onshore and Offshore Yuan, Indian Rupees, Japanese Yen, Malaysian Ringgit, Russian
Rubles, Singapore Dollars, South African Rand, Swiss Francs, New Taiwan Dollars, Thai Baht and Turkish Lira. The auction is run
at 12:00 noon (London time).

6

During
the auction, the price at the start of each round, and the volumes at the end of each round are available through major market
data vendors. As soon as the auction finishes, the final prices and volumes are available through major market data vendors. IBA
also publishes transparency reports, detailing the prices, volumes and times for each round of the auction. These transparency
reports are available through major market data vendors and IBA when the auction finishes. The process can also be observed real-time
through a WebICE screen. The auction mechanism provides a complete audit trail.

As
of the date of this report, there are thirteen direct participants who have been accredited to contribute to the LBMA Silver Price:
Citibank N.A. London Branch, Coins ‘N Things Inc., DRW Investments, LLC, Goldman Sachs International plc, HSBC Bank USA NA, Jane Street Global
Trading LLC, JP Morgan Chase Bank N.A London Branch, Koch Supply and Trading LP, Marex, Morgan Stanley, Standard Chartered Bank,
StoneX Financial Ltd. and The Toronto Dominion Bank.

Since
April 1, 2015, the LBMA Silver Price has been regulated by the Financial Conduct Authority (“FCA”) in the United Kingdom
(“UK”). IBA is authorized as a regulated benchmark administrator by the FCA. Under the UK benchmark regulation, the
governance structure for a regulated benchmark must include an Oversight Committee, made up of market participants, industry bodies,
direct participant representatives, infrastructure providers and the administrator (i.e., IBA). Through the Oversight Committee
the LBMA continues to have significant involvement in the oversight of the auction process, including, among other matters, changes
to the methodology and accreditation of direct participants. The price discovery process for the LBMA Silver Price is subject
to surveillance by IBA. IBA has been formally assessed against the IOSCO Principles for Financial Benchmarks (the “IOSCO
Principles”). In order to meet the IOSCO Principles, the price discovery used for the LBMA Silver Price benchmark is auditable
and transparent.

The
LBMA Silver Price is viewed as a full and fair representation of all market interest at the conclusion of the auction. IBA’s
auction process is similar to CME Group’s auction process, which in turn was similar to the non-electronic process previously
used to establish the London silver fix where the London silver fix process adjusted the silver price up or down until all the
buy and sell orders are matched, at which time the price was declared fixed. Nevertheless, the LBMA Silver Price has several advantages
over the previous London silver fix. IBA’s auction process is fully transparent in real-time to direct participants and
sponsored clients and, at the close of each auction, to the general public. IBA’s auction process is also fully auditable
since an audit trail exists for every change made in the process. Moreover, the audit trail and active surveillance of the auction
process by IBA, as well as the FCA’s oversight of IBA, deters manipulative and abusive conduct in establishing each day’s
LBMA Silver Price.

Since
August 15, 2014, the Sponsor determined that the London silver fix, which ceased to be published as of that date, would be an
inappropriate basis for valuing silver bullion received upon purchase of the Trust’s Shares, delivered upon redemption of
the Trust’s Shares and otherwise held by the Trust on a daily basis, and that the LBMA Silver Price is an appropriate alternative
for determining the value of the Trust’s silver each trading day. The Sponsor also determined that the LBMA Silver Price
fairly represents the commercial value of silver bullion held by the Trust and that “Benchmark Price” (as defined
in the Trust Agreement) means, as of any day, (i) such day’s LBMA Silver Price; or (ii) such other publicly available price
which is reasonably available to the Trustee at no cost to the Trustee and which the Sponsor may determine fairly represents the
commercial value of silver held by the Trust and instructs the Trustee to use as the Benchmark Price.

Futures
Exchanges

The
most significant silver futures exchanges are the COMEX, a designated contract market within the CME Group, and the Tokyo Commodity
Exchange (“TOCOM”). Futures exchanges seek to provide a neutral, regulated marketplace for the trading of derivatives
contracts for commodities. Futures contracts are defined by the exchange for each commodity. For each commodity traded, this contract
specifies the precise quality and quantity standards. The contract’s terms and conditions also define the location and timing
of physical delivery.

An
exchange does not buy or sell those contracts, but seeks to offer a transparent forum where members, on their own behalf or on
the behalf of customers, can trade the contracts in a safe, efficient and orderly manner. During regular trading hours at the
COMEX, the commodity contracts are traded on CME Globex system, an electronic auction in which all bids, offers and trades must
be publicly announced to all members and, upon execution, centrally cleared. Electronic trading is offered by the exchange almost
24 hours a day (except for a short break in the evening), six days a week.

In
addition to the public nature of the pricing, futures exchanges in the United States are regulated at two levels: internal and
external governmental supervision. The internal is performed through self-regulation and consists of regular monitoring of the
following: the central algorithmic matching process to ensure that it is conducted in conformance with all exchange rules; the
orderly trading and settlement of futures and options; the financial condition of all exchange member firms to ensure that they
continuously meet financial commitments; and the volume positions of commercial and non-commercial customers to ensure that physical
delivery and other commercial commitments can be met, and that pricing is not being improperly affected by the size of any particular
customer positions. External governmental oversight is performed by the CFTC, which reviews all the rules and regulations of United
States futures exchanges and clearing houses and monitors their enforcement.

7

Market
Regulation

The
global silver markets are overseen and regulated by both governmental and self-regulatory organizations. In addition, certain
trade associations have established rules and protocols for market practices and participants. In the UK, responsibility for the
regulation of the financial market participants, including the major participating members of the LBMA falls under the authority
of the FCA as provided by the Financial Services and Markets Act 2000 (“FSM Act”). Under this act, all UK-based banks,
together with other investment firms, are subject to a range of requirements, including fitness and properness, capital adequacy,
liquidity, and systems and controls.

The
FCA is responsible for regulating investment products, including derivatives, and those who deal in investment products. Regulation
of spot, commercial forwards, and deposits of silver not covered by the FSM Act is provided for by The London Code of Conduct
for Non-Investment Products, which was established by market participants in conjunction with the Bank of England.

The
TOCOM has authority to perform financial and operational surveillance on its members’ trading activities, scrutinize positions
held by members and large-scale customers, and monitor the price movements of futures markets by comparing them with cash and
other derivative markets’ prices. To act as a Futures Commission Merchant Broker on the TOCOM, a broker must obtain a license
from Japan’s Ministry of Economy, Trade and Industry, the regulatory authority that oversees the operations of the TOCOM.

The
US Commodity Futures Trading Commission (“CFTC”) regulates trading in commodity contracts, such as futures, options
and swaps. In addition, under the Commodity Exchange Act (“CEA”), the CFTC has jurisdiction to prosecute manipulation
and fraud in any commodity (including precious metals) traded in interstate commerce as spot as well as deliverable forwards.
The CFTC is the exclusive regulator of U.S. commodity exchanges and clearing houses.

Secondary
Market Trading

While
the Trust’s investment objective is for the Shares to reflect the performance of the price of physical silver, less the
expenses of the Trust, the Shares may trade in the secondary market on the NYSE Arca at prices that are lower or higher relative
to their net asset value (the value of the Trust’s assets less its liabilities (“NAV”)) per Share. The amount
of the discount or premium in the trading price relative to the NAV per Share may be influenced by non-concurrent trading hours
between the NYSE Arca, COMEX and the London silver markets. While the Shares trade on the NYSE Arca until 4:00 PM New York time,
liquidity in the global silver market is reduced after the close of the COMEX at 1:30 PM New York time. As a result, during this
time, trading spreads, and the resulting premium or discount, on the Shares may widen.

Valuation
of Silver and Computation of Net Asset Value

On
each day that the NYSE Arca is open for regular trading, as promptly as practicable after 4:00 p.m., New York time, on such day
(“Evaluation Time”), the Trustee evaluates the silver held by the Trust and determines both the adjusted net asset
value (“ANAV”) and the NAV of the Trust.

At
the Evaluation Time, the Trustee values the Trust’s silver on the basis of that day’s “LBMA Silver Price”
(the daily price of an ounce of silver determined by an electronic, over-the-counter auction that starts at 12:00 noon London,
England time in which LBMA-accredited bullion banks or market makers participate), or, if no LBMA Silver Price is made on such
day, or has not been announced by the Evaluation Time, the next most recent LBMA Silver Price determined prior to the Evaluation
Time will be used, unless the Sponsor determines that such price is inappropriate as a basis for evaluation. In the event the
Sponsor determines that the LBMA Silver Price or such other publicly available price as the Sponsor may deem fairly represents
the commercial value of the Trust’s silver is not an appropriate basis for evaluation of the Trust’s silver, it shall
identify an alternative basis for such evaluation to be employed by the Trustee. Neither the Trustee nor the Sponsor shall be
liable to any person for the determination that the LBMA Silver Price or such other publicly available price is not appropriate
as a basis for evaluation of the Trust’s silver or for any determination as to the alternative basis for such evaluation
provided that such determination is made in good faith. See “Operation of the Silver Bullion Market–The London
Silver Bullion Market” for a description of the LBMA Silver Price.

Once
the value of the silver has been determined, the Trustee subtracts all estimated accrued but unpaid fees (other than the fees
accruing for such day on which the valuation takes place which are computed by reference to the value of the Trust or its assets),
expenses and other liabilities of the Trust from the total value of the silver and any other assets of the Trust. The resulting
figure is the ANAV of the Trust. The ANAV of the Trust is used to compute the Sponsor’s Fee.

All
fees accruing for the day on which the valuation takes place which are computed by reference to the value of the Trust or its
assets are calculated using the ANAV calculated for such day. The Trustee subtracts from the ANAV the amount of accrued fees so
computed for such day and the resulting figure is the NAV of the Trust. The Trustee also determines the NAV per Share by dividing
the NAV of the Trust by the number of the Shares outstanding as of the close of trading on the NYSE Arca (which includes the net
number of any Shares created or redeemed on such evaluation day).

8

Any
estimate of the accrued but unpaid fees, expenses and liabilities of the Trust for purposes of computing the NAV of the Trust
and ANAV made by the Trustee in good faith shall be conclusive upon all persons interested in the Trust and no revision or correction
in any computation made under the Trust Agreement will be required by reason of any difference in amounts estimated from those
actually paid.

The
Sponsor and the Shareholders may rely on any evaluation furnished by the Trustee, and the Sponsor has no responsibility for the
evaluation’s accuracy. The determinations the Trustee makes will be made in good faith upon the basis of, and the Trustee
will not be liable for any errors contained in, information reasonably available to it. The Trustee will not be liable to the
Sponsor, The Depository Trust Company (“DTC”), Authorized Participants, the Shareholders or any other person for errors
in judgment. However, the preceding liability exclusion will not protect the Trustee against any liability resulting from bad
faith or gross negligence in the performance of its duties.

On
May 23, 2024, the Sponsor entered into an Amendment (the “Trust Amendment”) to the Depositary Trust Agreement (the
“Trust Agreement”) with the Trustee. The Trust Amendment reflects the following changes, effective as of June 18,
2024, as approved and directed by the Sponsor on behalf of the Trust: (1) the amendment of the definition of “Benchmark
Price” to mean, “as of any day, (i) such day’s LBMA Silver Price; or (ii) such other publicly available price
which is reasonably available to the Trustee at no cost to the Trustee and which the Sponsor may determine fairly represents the
commercial value of silver held by the Trust and instructs the Trustee to use as the Benchmark Price”; and (2) the replacement
of the defined term for “London Fix” with the defined term “LBMA Silver Price”, which “means the
price of a troy ounce of silver as determined by ICE Benchmark Administration, the third party administrator of the London silver
price selected by the LBMA, or any successor administrator of the London silver price, at or about 12:00 p.m. London, England
time”.

Trust
Expenses

The
Trust’s only ordinary recurring expense is the Sponsor’s Fee. In exchange for the Sponsor’s Fee, the Sponsor
has agreed to assume the following administrative and marketing expenses incurred by the Trust: the Trustee’s monthly fee
and out-of-pocket expenses, the Custodian’s fee and reimbursement of the Custodian’s expenses under the Custody Agreements,
Exchange listing fees, SEC registration fees, printing and mailing costs, audit fees and up to $100,000 per annum in legal expenses.

The
Sponsor’s Fee accrues daily at an annualized rate equal to 0.45% of the ANAV of the Trust and is payable monthly in arrears.
The Sponsor, from time to time, may temporarily waive all or a portion of the Sponsor’s Fee at its discretion. The Sponsor
has voluntarily agreed to waive a portion of the Sponsor’s Fee to reduce the Sponsor’s Fee to 0.30% of the ANAV of
the Trust through February 28, 2027. This fee waiver has been in existence since the Trust was formed. Although the Sponsor has
no current intention of doing so, because the fee waiver is voluntary, the Sponsor may revert to the 0.45% fee prior to February
28, 2027. Should the Sponsor choose to revert to the 0.45% fee (or an amount higher than 0.30% but no greater than 0.45% annualized),
prior to February 28, 2027, it will provide Shareholders with at least 30 days’ prior written notice of such change through
either a prospectus supplement to its registration statement or through a report furnished on Form 8-K. In the future, the Sponsor
may continue its fee waiver, waive a larger or smaller portion of its fee or discontinue its fee waiver. If, at any point in the
future, the Sponsor does not continue its partial fee waiver, the full Sponsor’s Fee will accrue and be paid to the Sponsor
for subsequent periods. The Sponsor is under no obligation to continue to waive all or part of the Sponsor’s Fee on an ongoing
basis.

Furthermore,
the Sponsor may, in its sole discretion, agree to rebate all or a portion of the Sponsor’s Fee attributable to Shares held
by certain institutional investors subject to minimum shareholding and lock up requirements as determined by the Sponsor to foster
stability in the Trust’s asset levels. Any such rebate will be subject to negotiation and written agreement between the
Sponsor and the investor on a case-by-case basis. The Sponsor is under no obligation to provide any rebates of the Sponsor’s
Fee. Neither the Trust nor the Trustee will be a party to any Sponsor’s Fee rebate arrangements negotiated by the Sponsor.
Any Sponsor’s Fee rebate shall be paid by the Sponsor and not from the assets of the Trust.

The
Sponsor’s Fee is paid by delivery of silver to an account maintained by the Custodian for the Sponsor on an unallocated
basis, monthly on the first business day of the month in respect of fees payable for the prior month. The delivery is of that
number of ounces of silver which equals the daily accrual of the Sponsor’s Fee for such prior month calculated at the LBMA
Silver Price.

The
Trustee will, when directed by the Sponsor, and, in the absence of such direction, may, in its discretion, sell silver in such
quantity and at such times as may be necessary to permit payment in cash of Trust expenses not assumed by the Sponsor. The Trustee
is authorized to sell silver at such times and in the smallest amounts required to permit such payments as they become due, it
being the intention to avoid or minimize the Trust’s holdings of assets other than silver. Accordingly, the amount of silver
to be sold will vary from time to time depending on the level of the Trust’s expenses and the market price of silver. The
Custodian has agreed to purchase from the Trust, at the request of the Trustee, silver needed to cover Trust expenses not assumed
by the Sponsor at a price at least equal to the price used by the Trustee to determine the value of the silver held by the Trust
on the date of the sale.

9

The
Sponsor’s Fee, net of waiver, for the year ended December 31, 2025 was $7,297,886 (December 31, 2024: $3,923,620; December
31, 2023: $3,247,514).

Cash
held by the Trustee pending payment of the Trust’s expenses will not bear any interest. Each delivery or sale of silver
by the Trust to pay the Sponsor’s Fee or other Trust expenses will be a taxable event to Shareholders. See “United
States Federal Income Tax Consequences - Taxation of US Shareholders.”

Creation
and Redemption of Shares

The
Trust creates and redeems Shares from time to time, but only in one or more Baskets of 50,000 Shares. The creation and redemption
of Baskets is only made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of physical silver
represented by the Baskets being created or redeemed, the amount of which is based on the combined NAV of the number of Shares
included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received.

Authorized
Participants are the only persons that may place orders to create and redeem Baskets. Authorized Participants must be (1) registered
broker-dealers or other securities market participants, such as banks and other financial institutions, which are not required
to register as broker-dealers to engage in securities transactions, and (2) participants in DTC. To become an Authorized Participant,
a person must enter into an Authorized Participant Agreement with the Sponsor and the Trustee. The Authorized Participant Agreement
provides the procedures for the creation and redemption of Baskets and for the delivery of silver and any cash required for such
creations and redemptions. The Authorized Participant Agreement and the related procedures attached thereto may be amended by
the Trustee and the Sponsor, without the consent of any Shareholder or Authorized Participant. Authorized Participants pay a transaction
fee of $500 to the Trustee for each order they place to create or redeem one or more Baskets. Authorized Participants who make
deposits with the Trust in exchange for Baskets receive no fees, commissions or other form of compensation or inducement of any
kind from either the Sponsor or the Trust for serving as an Authorized Participant, and no such person has any obligation or responsibility
to the Sponsor or the Trust to effect any sale or resale of Shares.

Authorized
Participants are cautioned that some of their activities will result in their being deemed participants in a distribution in a
manner which would render them statutory underwriters and subject them to the prospectus-delivery and liability provisions of
the Securities Act.

Prior
to initiating any creation or redemption order, an Authorized Participant must have entered into an agreement with the Custodian
or a silver clearing bank to establish an Authorized Participant Unallocated Account in London (“Authorized Participant
Unallocated Bullion Account Agreement”). Authorized Participant Unallocated Accounts may only be used for transactions with
the Trust. Silver held in Authorized Participant Unallocated Accounts is typically not segregated from the Custodian’s or
other silver clearing bank’s assets, as a consequence of which an Authorized Participant will have no proprietary interest
in any specific bars of silver held by the Custodian or the clearing bank. Credits to its Authorized Participant Unallocated Account
are therefore at risk of the Custodian’s or other silver clearing bank’s insolvency. No fees will be charged by the
Custodian for the use of the Authorized Participant Unallocated Account as long as the Authorized Participant Unallocated Account
is used solely for silver transfers to and from the Trust Unallocated Account and the Custodian (or one of its affiliates) receives
compensation for maintaining the Trust Allocated Account. Authorized Participants should be aware that the Custodian’s liability
threshold under the Authorized Participant Unallocated Bullion Account Agreement is generally gross negligence, not negligence,
which is the Custodian’s liability threshold under the Trust’s Custody Agreements.

As
the terms of the Authorized Participant Unallocated Bullion Account Agreement differ in certain respects from the terms of the
Trust’s Unallocated Account Agreement, potential Authorized Participants should review the terms of the Authorized Participant
Unallocated Bullion Account Agreement carefully. A copy of the Authorized Participant Agreement may be obtained by potential Authorized
Participants from the Trustee.

Certain
Authorized Participants are expected to have the facility to participate directly in the physical silver market and the silver
futures markets. In some cases, an Authorized Participant may from time to time acquire silver from or sell silver to its affiliated
silver trading desk, which may profit in these instances. Each Authorized Participant must be registered as a broker-dealer under
the Securities Exchange Act of 1934 (“Exchange Act”) and regulated by FINRA or be exempt from being or otherwise not
be required to be so regulated or registered, and must be qualified to act as a broker or dealer in the states or other jurisdictions
where the nature of its business so requires. Certain Authorized Participants are regulated under federal and state banking laws
and regulations. Each Authorized Participant has its own set of rules and procedures, internal controls and information barriers
as it determines is appropriate in light of its own regulatory regime.

10

Authorized
Participants may act for their own accounts or as agents for broker-dealers, custodians and other securities market participants
that wish to create or redeem Baskets. An order for one or more Baskets may be placed by an Authorized Participant on behalf of
multiple clients. As of the date of this report, Goldman Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC,
Merrill Lynch Professional Clearing Corp., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc.,
UBS Securities LLC and Virtu Americas, LLC have each signed an Authorized Participant Agreement with the Trust and, upon the effectiveness
of such agreement, may create and redeem Baskets as described above. Persons interested in purchasing Baskets should contact the
Sponsor or the Trustee to obtain the contact information for the Authorized Participants. Shareholders who are not Authorized
Participants are only able to redeem their Shares through an Authorized Participant.

All
silver will be delivered to the Trust and distributed by the Trust in unallocated form through credits and debits between Authorized
Participant Unallocated Accounts and the Trust Unallocated Account. Silver transferred from an Authorized Participant Unallocated
Account to the Trust in unallocated form will first be credited to the Trust Unallocated Account. Thereafter, the Custodian will
allocate, specific bars of silver representing the amount of silver credited to the Trust Unallocated Account (to the extent such
amount is representable by whole silver bars) to the Trust Allocated Account. The movement of silver is reversed for the distribution
of silver to an Authorized Participant in connection with the redemption of Baskets.

All
physical silver represented by a credit to any Authorized Participant Unallocated Account and to the Trust Unallocated Account
and all physical silver held in the Trust Allocated Account with the Custodian must be of at least a minimum fineness (or purity)
of 995 parts per 1,000 (99.5%) and otherwise conform to the rules, regulations practices and customs of the LBMA, including the
specifications for a Silver Good Delivery Bar.

Under
the Authorized Participant Agreement, the Sponsor has agreed to indemnify the Authorized Participants against certain liabilities,
including liabilities under the Securities Act.

The
following description of the procedures for the creation and redemption of Baskets is only a summary and an investor should refer
to the relevant provisions of the Trust Agreement and the form of Authorized Participant Agreement for more detail.

Creation
Procedures

On
any business day, an Authorized Participant may place an order with the Trustee to create one or more Baskets. Creation and redemption
orders are accepted on “business days” the NYSE Arca is open for regular trading. Settlements of such orders requiring
receipt or delivery, or confirmation of receipt or delivery, of silver in the United Kingdom or another jurisdiction will occur
on “business days” when (1) banks in the United Kingdom or another jurisdiction and (2) the London silver markets
are regularly open for business. If such banks or the London silver markets are not open for regular business for a full day,
such a day will only be a “business day” for settlement purposes if the settlement procedures can be completed by
the end of such day. Settlement of orders requiring receipt or delivery, or confirmation of receipt or delivery, of Shares will
occur, after confirmation of the applicable silver delivery, on “business days” when the NYSE Arca is open for regular
trading. In the event of a level 3 market-wide circuit breaker resulting in a trading halt for the remainder of the trading day,
the time of the market-wide trading halt is considered the close of regular trading and no creation orders for the current trade
date will be accepted after that time (the “cutoff”). Orders placed after the cutoff will be deemed to be rejected
and will not be processed. Orders should be placed in proper form on the following business day. Purchase orders must be placed
no later than 3:59:59 p.m. on each business day the NYSE Arca is open for regular trading.

By
placing a purchase order, an Authorized Participant agrees to deposit silver with the Trust. Prior to the delivery of Baskets
for a purchase order, the Authorized Participant must also have wired to the Trustee the non-refundable transaction fee due for
the purchase order.

Determination
of required deposits

The
amount of silver in the required deposit is determined by dividing the number of ounces of silver held by the Trust by the number
of Baskets outstanding, as adjusted for the amount of silver constituting estimated accrued but unpaid fees and expenses of the
Trust. Fractions of a fine ounce of silver smaller than 0.001 of a fine ounce which are included in the silver deposit amount
are disregarded in the foregoing calculation. All questions as to the composition of a Creation Basket Deposit will be finally
determined by the Trustee. The Trustee’s determination of the Creation Basket Deposit shall be final and binding on all
persons interested in the Trust.

Delivery
of required deposits

An
Authorized Participant who places a purchase order is responsible for crediting its Authorized Participant Unallocated Account
with the required silver deposit amount by the prescribed settlement date in London. Upon receipt of the silver deposit amount,
the Custodian, after receiving appropriate instructions from the Authorized Participant and the Trustee, will transfer on the
prescribed settlement date the silver deposit amount from the Authorized Participant Unallocated Account to the Trust Unallocated
Account and the Trustee will direct DTC to credit the number of Baskets ordered to the Authorized Participant’s DTC account.
The expense and risk of delivery, ownership and safekeeping of silver until such silver has been received by the Trust shall be
borne solely by the Authorized Participant. The Trustee may accept delivery of silver by such other means as the Sponsor, from
time to time, may determine with the Trustee to be acceptable for the Trust, provided that the same is disclosed in a prospectus
relating to the Trust filed with the SEC pursuant to Rule 424 under the Securities Act. If silver is to be delivered other than
as described above, the Sponsor is authorized to establish such procedures and to appoint such custodians and establish such custody
accounts in addition to those described in this report, as the Sponsor determines to be desirable.

11

Acting
on standing instructions given by the Trustee, the Custodian will transfer the silver deposit amount from the Trust Unallocated
Account to the Trust Allocated Account by transferring silver bars from its inventory to the Trust Allocated Account. The Custodian
uses commercially reasonable efforts to complete the transfer of silver to the Trust Allocated Account prior to the time by which
the Trustee is to credit the Basket to the Authorized Participant’s DTC account; if, however, such transfers have not been
completed by such time, the number of Baskets ordered will be delivered against receipt of the silver deposit amount in the Trust
Unallocated Account, and all Shareholders will be exposed to the risks of unallocated silver to the extent of that silver deposit
amount until the Custodian completes the allocation process. See “Risk Factors-Silver held in the Trust’s unallocated
silver account and any Authorized Participant’s unallocated silver account will not be segregated from the Custodian’s
assets “

Because
silver is only allocated in multiples of whole bars, the amount of silver allocated from the Trust Unallocated Account to the
Trust Allocated Account may be less than the total fine ounces of silver credited to the Trust Unallocated Account. Any balance
will be held in the Trust Unallocated Account. The Custodian uses commercially reasonable efforts to minimize the amount of silver
held in the Trust Unallocated Account; no more than 1,100 troy ounces of silver (maximum weight to make one Silver Good Delivery
Bar) is expected to be held in the Trust Unallocated Account at the close of each business day.

Rejection
of purchase orders

The
Trustee may reject a purchase order or a Creation Basket Deposit if such order or Creation Basket Deposit is not presented in
proper form as described in the Authorized Participant Agreement or if the fulfillment of the order, in the opinion of counsel,
might be unlawful. None of the Trustee, the Sponsor or the Custodian will be liable for the rejection of any purchase order or
Creation Basket Deposit.

Redemption
Procedures

The
procedures by which an Authorized Participant can redeem one or more Baskets will mirror the procedures for the creation of Baskets.
On any business day, an Authorized Participant may place an order with the Trustee to redeem one or more Baskets. Redemption orders
must be placed no later than 3:59:59 p.m. on each business day the NYSE Arca is open for regular trading. In the event of a level
3 market-wide circuit breaker resulting in a trading halt for the remainder of the trading day, the time of the market-wide trading
halt is considered the close of regular trading and no redemption orders for the current trade date will be accepted after that
time (the “cutoff”). Orders placed after the cutoff will be deemed to be rejected and will not be processed. Orders
should be placed in proper form on the following business day. A redemption order so received is effective on the date it is received
in satisfactory form by the Trustee. The redemption procedures allow Authorized Participants to redeem Baskets and do not entitle
an individual Shareholder to redeem any Shares in an amount less than a Basket, or to redeem Baskets other than through an Authorized
Participant.

By
placing a redemption order, an Authorized Participant agrees to deliver the Baskets to be redeemed through DTC’s book entry
system to the Trust not later than by the prescribed settlement date. Prior to the delivery of the redemption distribution for
a redemption order, the Authorized Participant must also have wired to the Trustee the non-refundable transaction fee due for
the redemption order.

Determination
of redemption distribution

The
redemption distribution from the Trust consists of a credit to the redeeming Authorized Participant’s Authorized Participant
Unallocated Account representing the amount of the silver held by the Trust evidenced by the Shares being redeemed. Fractions
of a fine ounce of silver included in the redemption distribution smaller than 0.001 of a fine ounce are disregarded. Redemption
distributions will be subject to the deduction of any applicable tax or other governmental charges which may be due.

Delivery
of redemption distribution

The
redemption distribution due from the Trust will be delivered to the Authorized Participant on the prescribed settlement date following
a loco London redemption order date if, by 10:00 a.m. New York time on the prescribed settlement date, the Trustee’s DTC
account has been credited with the Baskets to be redeemed. If a loco swap or physical transfer is necessary to effect a loco London
redemption, the redemption distribution due from the Trust will be delivered to the Authorized Participant on or before the prescribed
settlement date if, by 10:00 a.m. New York time on the first business day after the loco London redemption order date, the Trustee’s
DTC account has been credited with the Baskets to be redeemed. In the event that, by 10:00 a.m. New York time on the prescribed
settlement date, the Trustee’s DTC account has not been credited with the total number of Shares corresponding to the total
number of Baskets to be redeemed pursuant to such redemption order, the Trustee shall send to the Authorized Participant and the
Custodian via fax or electronic mail message notice of such fact and the Authorized Participant shall have one business day following
receipt of such notice to correct such failure. If such failure is not cured within such one business day period, the Trustee
(in consultation with the Sponsor) will cancel such redemption order and will send via fax or electronic mail message notice of
such cancellation to the Authorized Participant and the Custodian, and the Authorized Participant will be solely responsible for
all costs incurred by the Trust, the Trustee or the Custodian related to the cancelled order. The Trustee is also authorized to
deliver the redemption distribution notwithstanding that the Baskets to be redeemed are not credited to the Trustee’s DTC
account by 10:00 a.m. New York time on the prescribed settlement date if the Authorized Participant has collateralized its obligation
to deliver the Baskets through DTC’s book entry system on such terms as the Sponsor and the Trustee may from time to time
agree upon.

12

The
Custodian transfers the redemption silver amount from the Trust Allocated Account to the Trust Unallocated Account and, thereafter,
to the redeeming Authorized Participant’s Authorized Participant Unallocated Account. The Authorized Participant and the
Trust are each at risk in respect of silver credited to their respective unallocated accounts in the event of the Custodian’s
insolvency.

See
“Risk Factors–Silver held in the Trust’s unallocated silver account and any Authorized Participant’s unallocated
silver account is not segregated from the Custodian’s assets....”

As
with the allocation of silver to the Trust Allocated Account which occurs upon a purchase order, if in transferring silver from
the Trust Allocated Account to the Trust Unallocated Account in connection with a redemption order there is an excess amount of
silver transferred to the Trust Unallocated Account, the excess over the silver redemption amount will be held in the Trust Unallocated
Account. The Custodian uses commercially reasonable efforts to minimize the amount of silver held in the Trust Unallocated Account;
no more than 1,100 ounces of silver (maximum weight to make one Silver Good Delivery Bar) is expected to be held in the Trust
Unallocated Account at the close of each business day.

Suspension
or rejection of redemption orders

The
Trustee may, in its discretion, and will when directed by the Sponsor, suspend the right of redemption, or postpone the redemption
settlement date, (1) for any period during which the NYSE Arca is closed other than customary weekend or holiday closings, or
trading on the NYSE Arca is suspended or restricted or (2) for any period during which an emergency exists as a result of which
delivery, disposal or evaluation of silver is not reasonably practicable. None of the Sponsor, the Trustee or the Custodian are
liable to any person or in any way for any loss or damages that may result from any such suspension or postponement.

The
Trustee will reject a redemption order if the order is not in proper form as described in the Authorized Participant Agreement
or if the fulfillment of the order, in the opinion of its counsel, might be unlawful.

Creation
and Redemption Transaction Fee

To
compensate the Trustee for services in processing the creation and redemption of Baskets, an Authorized Participant is required
to pay a transaction fee to the Trustee of $500 per order to create or redeem Baskets. An order may include multiple Baskets.
The transaction fee may be reduced, increased or otherwise changed by the Trustee with the consent of the Sponsor. From time to
time, the Trustee, with the consent of the Sponsor, may waive all or a portion of the applicable transfer fee. The Trustee shall
notify DTC of any agreement to change the transaction fee and will not implement any increase in the fee for the redemption of
Baskets until 30 days after the date of the notice.

The
Sponsor

The
Trust’s Sponsor is abrdn ETFs Sponsor LLC a Delaware limited liability company formed on June 17, 2009.

The
Sponsor’s office is located at c/o abrdn ETFs Sponsor LLC, 1900 Market Street, Suite 200, Philadelphia, PA 19103. Prior
to April 27, 2018, the Sponsor was wholly-owned by ETF Securities Limited, a Jersey, Channel Islands based company. Effective
April 27, 2018, ETF Securities Limited sold its membership interest in the Sponsor to abrdn Inc. (known as Aberdeen Standard Investments
Inc. prior to January 1, 2022), a Delaware corporation. As a result of the sale, abrdn Inc. became the sole member of the Sponsor.
abrdn Inc.is a wholly-owned indirect subsidiary of Aberdeen Group plc. (“Aberdeen”). Aberdeen has retained “abrdn” as an operational abbreviation across its subsidiary legal entities (including
the Sponsor, fund names and descriptors). Under the Delaware Limited Liability Company Act and the governing documents of the Sponsor,
the sole member of the Sponsor, abrdn Inc., is not responsible for the debts, obligations and liabilities of the Sponsor solely
by reason of being the sole member of the Sponsor.

13

The
Sponsor’s Role

The
Sponsor arranged for the creation of the Trust, and is generally responsible for the ongoing registration of the Shares for their
public offering in the United States and the listing of the Shares on the NYSE Arca. The Sponsor has agreed to assume the organizational
expenses of the Trust and the following administrative and marketing expenses incurred by the Trust: the Trustee’s monthly
fee and out-of-pocket expenses, the Custodian’s fee and the reimbursement of the Custodian’s expenses under the Custody
Agreements, exchange listing fees, SEC registration fees, printing and mailing costs, audit fees and up to $100,000 per annum
in legal expenses. The Sponsor also paid the costs of the Trust’s organization and the initial sale of the Shares, including
the applicable SEC registration fees.

The
Sponsor does not exercise day-to-day oversight over the Trustee or the Custodian. The Sponsor may remove the Trustee and appoint
a successor Trustee (i) if the Trustee ceases to meet certain objective requirements (including the requirement that it have capital,
surplus and undivided profits of at least $150 million), (ii) if, having received written notice of a material breach of its obligations
under the Trust Agreement, the Trustee has not cured the breach within 30 days, or (iii) if the Trustee refuses to consent to
the implementation of an amendment to the Trust’s initial Internal Control Over Financial Reporting. The Sponsor also has
the right to replace the Trustee during the 90 days following any merger, consolidation or conversion in which the Trustee is
not the surviving entity or, in its discretion, on the fifth anniversary of the creation of the Trust or on any subsequent third
anniversary thereafter. The Sponsor also has the right to approve any new or additional custodian that the Trustee may wish to
appoint.

The
Sponsor or one of its affiliates or agents (1) develops a marketing plan for the Trust on an ongoing basis, (2) prepares marketing
materials regarding the Shares, including the content of the Trust’s website and (3) executes the marketing plan for the
Trust.

The
Trustee

The
Bank of New York Mellon, a banking corporation organized under the laws of the State of New York with trust powers (“BNYM”),
serves as the Trustee. BNYM has a trust office at 240 Greenwich Street, New York, NY 10286. BNYM is subject to supervision by
the New York State Financial Services Department and the Board of Governors of the Federal Reserve System. Information regarding
creation and redemption Basket composition, NAV of the Trust, transaction fees and the names of the parties that have each executed
an Authorized Participant Agreement may be obtained from BNYM. A copy of the Trust Agreement is available for inspection at BNYM’s
trust office identified above. Under the Trust Agreement, the Trustee is required to have capital, surplus and undivided profits
of at least $150 million.

The
Trustee’s Role

The
Trustee is generally responsible for the day-to-day administration of the Trust, including keeping the Trust’s operational
records. The Trustee’s principal responsibilities include (1) transferring the Trust’s silver as needed to pay the
Sponsor’s Fee in silver (silver transfers are expected to occur approximately monthly in the ordinary course), (2) valuing
the Trust’s silver and calculating the NAV of the Trust and the NAV per Share, (3) receiving and processing orders from
Authorized Participants to create and redeem Baskets and coordinating the processing of such orders with the Custodian and DTC,
(4) selling the Trust’s silver as needed to pay any extraordinary Trust expenses that are not assumed by the Sponsor, (5)
when appropriate, making distributions of cash or other property to Shareholders, and (6) receiving and reviewing reports from
or on the Custodian’s custody of and transactions in the Trust’s silver. The Trustee shall, with respect to directing
the Custodian, act in accordance with the instructions of the Sponsor. If the Custodian resigns, the Trustee shall appoint an
additional or replacement Custodian selected by the Sponsor.

The
Trustee intends to regularly communicate with the Sponsor to monitor the overall performance of the Trust. The Trustee does not
monitor the performance of the Custodian, or any other sub-custodian other than to review the reports provided by the Custodian
pursuant to the Custody Agreements. The Trustee, along with the Sponsor, will liaise with the Trust’s legal, accounting
and other professional service providers as needed. The Trustee will assist and support the Sponsor with the preparation of all
periodic reports required to be filed with the SEC on behalf of the Trust.

The
Trustee’s monthly fees and out-of-pocket expenses are paid by the Sponsor.

Affiliates
of the Trustee may from time to time act as Authorized Participants or purchase or sell silver or Shares for their own account,
as agent for their customers and for accounts over which they exercise investment discretion. Affiliates of the Trustee are subject
to the same transaction fee as other Authorized Participants.

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The
Custodian

Effective
May 23, 2024, the Trustee, at the direction of the Sponsor, entered into an Allocated Account Agreement and Unallocated Account
Agreement with ICBC Standard Bank Plc (“ICBC”), providing for the custody of the Trust’s silver. Effective August
8, 2024, JPMorgan Chase Bank N.A. no longer serves as a custodian of the Trust’s silver.

ICBC,
a public limited company incorporated under the laws of England and Wales, serves as a Custodian of the Trust’s silver.
ICBC’s office is located at 20 Gresham Street, London, EC2V 7JE, United Kingdom.

The
Custodian’s Role

The
Custodian is responsible for the safekeeping of the Trust’s silver deposited with it by Authorized Participants in connection
with the creation of Baskets. The Custodian is also responsible for selecting sub-custodians, if any. The Custodian facilitates
the transfer of silver in and out of the Trust through the unallocated silver accounts it will maintain for each Authorized Participant
and the unallocated and allocated silver accounts it maintains for the Trust. The Custodian holds the Trust’s allocated
silver at a sub-custodian. The Custodian is responsible for allocating specific bars of silver bullion to the Trust Allocated
Account. The Custodian provides the Trustee with regular reports detailing the silver transfers in and out of the Trust’s
unallocated and allocated silver accounts and identifying the silver bars held in the Trust’s allocated silver account.

The
Custodian’s fees and expenses under the Custody Agreements are paid by the Sponsor.

The
Custodian and its affiliates may from time to time act as Authorized Participants or purchase or sell silver or Shares for their
own account, as agent for their customers and for accounts over which they exercise investment discretion. The Custodian and its
affiliates are subject to the same transaction fee as other Authorized Participants.

Inspection
of Silver

Under
the Custody Agreements, the Trustee, the Sponsor and the Trust’s auditors and inspectors may, only up to twice a year, visit
the premises of the Custodian for the purpose of examining the Trust’s silver and certain related records maintained by
the Custodian. In addition, under the Custody Agreements, the Custodian shall procure that any sub-custodian that it appoints
allows access to its premises during normal business hours to examine the Trust’s silver held there and such records as
the Trustee, the Sponsor or the Trust’s auditors and inspectors may reasonably require to perform their respective duties
to Shareholders.

The
Sponsor has exercised its right to visit the Custodian in order to examine the silver and the records maintained by the Custodian.
Inspections were conducted by Bureau Veritas Commodities UK Ltd, a leading commodity inspection and testing company retained by
the Sponsor, as of August 4, 2025 and January 5, 2026.

There
can be no guarantee that the Sponsor or the Trust’s auditors and inspectors will be able to perform physical inspections
of the Trust’s silver as planned. Local policies, regulations, or ordinances, as well as polices or restrictions adopted
by the Custodian, or any other sub-custodian, may temporarily prevent, or otherwise impair the ability of, the Sponsor or the
Trust’s auditors and inspectors, from performing a physical inspection of the Trust’s silver on a desired date. In
those situations, the Sponsor or the Trust’s auditors and inspectors may seek to verify the silver held by the Trust by
alternate means, including through virtual inspections of the Trust’s silver and/or a review of pertinent records.

Description
of the Shares

General

The
Trustee is authorized under the Trust Agreement to create and issue an unlimited number of Shares. The Trustee creates Shares
only in Baskets (a Basket equals a block of 50,000 Shares) and only upon the order of an Authorized Participant. The Shares represent
units of fractional undivided beneficial interest in and ownership of the Trust and have no par value. Any creation and issuance
of Shares above the amount registered on the Trust’s then-current and effective registration statement with the SEC will
require the registration of such additional Shares.

Description
of Limited Rights

The
Shares do not represent a traditional investment and Shareholders should not view them as similar to shares of a corporation operating
a business enterprise with management and a board of directors. Shareholders do not have the statutory rights normally associated
with the ownership of shares of a corporation, including, for example, the right to bring “oppression” or “derivative”
actions. All Shares are of the same class with equal rights and privileges. Each Share is transferable, is fully paid and non-assessable
and entitles the holder to vote on the limited matters upon which Shareholders may vote under the Trust Agreement. The Shares
do not entitle their holders to any conversion or pre-emptive rights, or, except as provided below, any redemption rights or rights
to distributions.

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Distributions

If
the Trust is terminated and liquidated, the Trustee will distribute to the Shareholders any amounts remaining after the satisfaction
of all outstanding liabilities of the Trust and the establishment of such reserves for applicable taxes, other governmental charges
and contingent or future liabilities as the Trustee shall determine. Shareholders of record on the record date fixed by the Trustee
for a distribution will be entitled to receive their pro rata portion of any distribution.

Voting
and Approvals

Under
the Trust Agreement, Shareholders have no voting rights, except in limited circumstances. The Trustee may terminate the Trust
upon the agreement of Shareholders owning at least 75% of the outstanding Shares. In addition, certain amendments to the Trust
Agreement require advance notice to the Shareholders before the effectiveness of such amendments, but no Shareholder vote or approval
is required for any amendment to the Trust Agreement.

Redemption
of the Shares

The
Shares may only be redeemed by or through an Authorized Participant and only in Baskets.

Book-Entry
Form

Individual
certificates will not be issued for the Shares. Instead, one or more global certificates is deposited by the Trustee with DTC
and registered in the name of Cede & Co., as nominee for DTC. The global certificates evidence all of the Shares outstanding
at any time. Under the Trust Agreement, Shareholders are limited to (1) participants in DTC such as banks, brokers, dealers and
trust companies (DTC Participants), (2) those who maintain, either directly or indirectly, a custodial relationship with a DTC
Participant (Indirect Participants), and (3) those banks, brokers, dealers, trust companies and others who hold interests in the
Shares through DTC Participants or Indirect Participants. The Shares are only transferable through the book-entry system of DTC.
Shareholders who are not DTC Participants may transfer their Shares through DTC by instructing the DTC Participant holding their
Shares (or by instructing the Indirect Participant or other entity through which their Shares are held) to transfer the Shares.
Transfers will be made in accordance with standard securities industry practice.

Custody
of the Trust’s Silver

Custody
of the silver bullion deposited with and held by the Trust is provided by sub-custodians selected by the Custodian. The Custodian
is a market maker, clearer and approved weigher under the rules of the LBMA.

The
Custodian is the custodian of the silver bullion credited to Trust Allocated Account in accordance with the Custody Agreements.
The Custodian segregates the silver bullion credited to the Trust Allocated Account from any other precious metal it holds or
holds for others by entering appropriate entries in its books and records. Under the Custody Agreements, the Trustee, the Sponsor
and the Trust’s auditors and inspectors may inspect the vaults of the Custodian. See “Inspection of Silver”.

The
Custodian, as instructed by the Trustee on behalf of the Trust, is authorized to accept, on behalf of the Trust, deposits of silver
in unallocated form. Acting on standing instructions specified in the Custody Agreements, the Custodian allocates silver deposited
in unallocated form with the Trust by selecting bars of silver bullion for deposit to the Trust Allocated Account. All silver
bullion allocated to the Trust must conform to the rules, regulations, practices and customs of the LBMA, and the Custodian must
replace any non-conforming silver bullion with conforming silver bullion as soon as practical upon a determination by the Custodian
any silver bullion is non-conforming.

The
process of withdrawing silver from the Trust for a redemption of a Basket follows the same general procedure as for depositing
silver with the Trust for a creation of a Basket, only in reverse. Each transfer of silver between the Trust Allocated Account
and the Trust Unallocated Account connected with a creation or redemption of a Basket may result in a small amount of silver being
held in the Trust Unallocated Account after the completion of the transfer. In making deposits and withdrawals between the Trust
Allocated Account and the Trust Unallocated Account, the Custodian will use commercially reasonable efforts to minimize the amount
of silver held in the Trust Unallocated Account as of the close of each business day. See “Creation and Redemption of Shares.”

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United
States Federal Income Tax Consequences

The
following discussion of the material US federal income tax consequences generally applies to the purchase, ownership and disposition
of Shares by a US Shareholder (as defined below) and certain US federal income tax consequences that may apply to an investment
in Shares by a Non-US Shareholder (as defined below). The discussion is based on the United States Internal Revenue Code of 1986
as amended (the “Code”). The discussion below is based on the Code, United States Treasury Regulations (“Treasury
Regulations”) promulgated under the Code and judicial and administrative interpretations of the Code, all as in effect on
the date of this annual report and all of which are subject to change either prospectively or retroactively. The tax treatment
of Shareholders may vary depending upon their own particular circumstances. Certain Shareholders (including broker-dealers, traders,
banks and other financial institutions, insurance companies, real estate investment trusts, tax-exempt entities, Shareholders
whose functional currency is not the U.S. Dollar or other investors with special circumstances) may be subject to special rules
not discussed below. In addition, the following discussion applies only to investors who hold Shares as “capital assets”
within the meaning of Code section 1221 and not as part of a straddle, hedging transaction or a conversion or constructive sale
transaction. Moreover, the discussion below does not address the effect of any state, local or foreign tax law or any transfer
tax on an owner of Shares. Purchasers of Shares are urged to consult their own tax advisors with respect to all federal, state,
local and foreign tax law or any transfer tax considerations potentially applicable to their investment in Shares.

For
purposes of this discussion, a “US Shareholder” is a Shareholder that is:

● An
individual who is treated as a citizen or resident of the United States;

● A
corporation (or other entity treated as a corporation for US federal tax purposes) created
or organized in or under the laws of the United States or any political subdivision thereof;

● An
estate, the income of which is includible in gross income for US federal income tax purposes
regardless of its source; or

● A
trust, if a court within the United States is able to exercise primary supervision over
the administration of the trust and one or more US persons have the authority to control
all substantial decisions of the trust.

Taxation
of the Trust

The
Trust is classified as a “grantor trust” for US federal income tax purposes. As a result, the Trust itself is not
subject to US federal income tax. Instead, the Trust’s income and expenses “flow through” to the Shareholders,
and the Trustee reports the Trust’s income, gains, losses and deductions to the Internal Revenue Service (“IRS”)
on that basis.

A
Shareholder that is not a US Shareholder as defined above (other than a partnership, or an entity treated as a partnership for
US federal tax purposes) generally is considered a “Non-US Shareholder” for purposes of this discussion. For US federal
income tax purposes, the treatment of any beneficial owner of an interest in a partnership, including any entity treated as a
partnership for US federal income tax purposes, generally depends upon the status of the partner and upon the activities of the
partnership. Partnerships and partners in partnerships should consult their tax advisors about the US federal income tax consequences
of purchasing, owning and disposing of Shares.

Taxation
of US Shareholders

Shareholders
generally are treated, for US federal income tax purposes, as if they directly owned a pro rata share of the underlying assets
held by the Trust. Shareholders are also treated as if they directly received their respective pro rata share of the Trust’s
income, if any, and as if they directly incurred their respective pro rata share of the Trust’s expenses. In the case of
a Shareholder that purchases Shares for cash, its initial tax basis in its pro rata share of the assets held in the Trust at the
time it acquires its Shares is equal to its cost of acquiring the Shares. In the case of a Shareholder that acquires its Shares
as part of a creation of a Basket, the delivery of silver to the Trust in exchange for the Shares is not a taxable event to the
Shareholder, and the Shareholder’s tax basis and holding period for the Shares are the same as its tax basis and holding
period for the silver delivered in exchange therefore (except to the extent of any cash contributed for such Shares). For purposes
of this discussion, it is assumed that all of a Shareholder’s Shares are acquired on the same date and at the same price
per Share. Shareholders that hold multiple lots of Shares, or that are contemplating acquiring multiple lots of Shares, should
consult their tax advisors.

When
the Trust sells or transfers silver, for example to pay expenses, a Shareholder generally will recognize gain or loss in an amount
equal to the difference between (1) the Shareholder’s pro rata share of the amount realized by the Trust upon the sale or
transfer and (2) the Shareholder’s tax basis for its pro rata share of the silver that was sold or transferred. Such gain
or loss will generally be long-term or short-term capital gain or loss, depending upon whether the Shareholder has a holding period
in its Shares of longer than one year. A Shareholder’s tax basis for its share of any silver sold by the Trust generally
will be determined by multiplying the Shareholder’s total basis for its Shares immediately prior to the sale, by a fraction
the numerator of which is the amount of silver sold, and the denominator of which is the total amount of the silver held by the
Trust immediately prior to the sale. After any such sale, a Shareholder’s tax basis for its pro rata share of the silver
remaining in the Trust will be equal to its tax basis for its Shares immediately prior to the sale, less the portion of such basis
allocable to its share of the silver that was sold.

17

Upon
a Shareholder’s sale of some or all of its Shares, the Shareholder will be treated as having sold a pro rata share of the
silver held in the Trust at the time of the sale. Accordingly, the Shareholder generally will recognize a gain or loss on the
sale in an amount equal to the difference between (1) the amount realized pursuant to the sale of the Shares, and (2) the Shareholder’s
tax basis for the Shares sold, as determined in the manner described in the preceding paragraph.

A
redemption of some or all of a Shareholder’s Shares in exchange for the underlying silver represented by the Shares redeemed
generally will not be a taxable event to the Shareholder. The Shareholder’s tax basis for the silver received in the redemption
generally will be the same as the Shareholder’s tax basis for the Shares redeemed. The Shareholder’s holding period
with respect to the silver received should include the period during which the Shareholder held the Shares redeemed. A subsequent
sale of the silver received by the Shareholder will be a taxable event.

An
Authorized Participant and other investors may be able to re-invest, on a tax-deferred basis, in-kind redemption proceeds received
from exchange-traded products that are substantially similar to the Trust in the Trust’s Shares. Authorized Participants
and other investors should consult their tax advisors as to whether and under what circumstances the reinvestment in the Shares
of proceeds from substantially similar exchange-traded products can be accomplished on a tax-deferred basis.

Under
current law, gains recognized by individuals, estates or trusts from the sale of “collectibles,” including physical
silver, held for more than one year are taxed at a maximum federal income tax rate of 28%, rather than the 20% rate applicable
to most other long-term capital gains. For these purposes, gains recognized by an individual upon the sale of Shares held for
more than one year, or attributable to the Trust’s sale of any physical silver which the Shareholder is treated (through
its ownership of Shares) as having held for more than one year, generally will be taxed at a maximum rate of 28%. The tax rates
for capital gains recognized upon the sale of assets held by an individual US Shareholder for one year or less or by a corporate
taxpayer are generally the same as those at which ordinary income is taxed.

In
addition, high-income individuals and certain trusts and estates are subject to a 3.8% Medicare contribution tax that is imposed
on net investment income and gain. Shareholders should consult their tax advisor regarding this tax.

Brokerage
Fees and Trust Expenses

Any
brokerage or other transaction fees incurred by a Shareholder in purchasing Shares is treated as part of the Shareholder’s
tax basis in the Shares. Similarly, any brokerage fee incurred by a Shareholder in selling Shares reduces the amount realized
by the Shareholder with respect to the sale.

Shareholders
will be required to recognize a gain or loss upon a sale of silver by the Trust (as discussed above), even though some or all
of the proceeds of such sale are used by the Trustee to pay Trust expenses. Shareholders may deduct their respective pro rata
share of each expense incurred by the Trust to the same extent as if they directly incurred the expense. Shareholders who are
individuals, estates or trusts, however, may be required to treat some or all of the expenses of the Trust, to the extent that
such expenses may be deducted, as miscellaneous itemized deductions. Miscellaneous itemized deductions, including expenses for
the production of income, will not be deductible for either regular federal income tax or alternative minimum tax purposes for
taxable years beginning after December 31, 2017 and before January 1, 2026 and thereafter generally are (i) deductible only to
the extent that the aggregate of a Shareholder’s miscellaneous itemized deductions exceeds 2% of such Shareholder’s
adjusted gross income for federal income tax purposes, (ii) not deductible for the purposes of the alternative minimum tax and
(iii) are subject to the overall limitation on itemized deductions under the Code.

Investment
by Regulated Investment Companies

Mutual
funds and other investment vehicles which are “regulated investment companies” within the meaning of Code section
851 should consult with their tax advisors concerning (1) the likelihood that an investment in Shares, although they are a “security”
within the meaning of the Investment Company Act of 1940, may be considered an investment in the underlying silver for purposes
of Code section 851(b), and (2) the extent to which an investment in Shares might nevertheless be consistent with preservation
of their qualification under Code section 851. In administrative guidance, the IRS stated that it will no longer issue rulings
under Code section 851(b) relating to the determination of whether or not an instrument or position is a “security”,
but, instead, intends to defer to guidance from the SEC for such determination.

United
States Information Reporting and Backup Withholding Tax for US and Non-US Shareholders

The
Trustee or the appropriate broker will file certain information returns with the IRS, and provides certain tax-related information
to Shareholders, in accordance with applicable Treasury Regulations. Each Shareholder will be provided with information regarding
its allocable portion of the Trust’s annual income (if any) and expenses.

A
US Shareholder may be subject to US backup withholding tax in certain circumstances unless it provides its taxpayer identification
number and complies with certain certification procedures. Non-US Shareholders may have to comply with certification procedures
to establish that they are not a US person in order to avoid the backup withholding tax.

18

The
amount of any backup withholding tax will be allowed as a credit against a Shareholder’s US federal income tax liability
and may entitle such a Shareholder to a refund, provided that the required information is furnished to the IRS.

Income
Taxation of Non-US Shareholders

The
Trust does not expect to generate taxable income except for gains (if any) upon the sale of silver. A Non-US Shareholder generally
is not subject to US federal income tax with respect to gains recognized upon the sale or other disposition of Shares, or upon
the sale of silver by the Trust, unless (1) the Non-US Shareholder is an individual and is present in the United States for 183
days or more during the taxable year of the sale or other disposition, and the gain is treated as being from United States sources;
or (2) the gain is effectively connected with the conduct by the Non-US Shareholder of a trade or business in the United States.

Taxation
in Jurisdictions other than the United States

Prospective
purchasers of Shares that are based in or acting out of a jurisdiction other than the United States are advised to consult their
own tax advisers as to the tax consequences, under the laws of such jurisdiction (or any other jurisdiction not being the United
States to which they are subject), of their purchase, holding, sale and redemption of or any other dealing in Shares and, in particular,
as to whether any value added tax, other consumption tax or transfer tax is payable in relation to such purchase, holding, sale,
redemption or other dealing.

ERISA
and Related Considerations

The
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and/or Code section 4975 impose certain requirements
on certain employee benefit plans and certain other plans and arrangements, including individual retirement accounts and annuities,
Keogh plans, and certain commingled investment vehicles or insurance company general or separate accounts in which such plans
or arrangements are invested (collectively, “Plans”), and on persons who are fiduciaries with respect to the investment
of “plan assets” of a Plan. Government plans and some church plans are not subject to the fiduciary responsibility
provisions of ERISA or the provisions of section 4975 of the Code, but may be subject to substantially similar rules under other
federal law, or under state or local law (“Other Law”).

In
contemplating an investment of a portion of Plan assets in Shares, the Plan fiduciary responsible for making such investment should
carefully consider, taking into account the facts and circumstances of the Plan and the “Risk Factors” discussed above
and whether such investment is consistent with its fiduciary responsibilities under ERISA or Other Law, including, but not limited
to: (1) whether the investment is permitted under the Plan’s governing documents, (2) whether the fiduciary has the authority
to make the investment, (3) whether the investment is consistent
with the Plan’s funding objectives, (4) the tax effects of the investment on the Plan, and (5) whether the investment is
prudent considering the factors discussed in this report. In addition, ERISA and Code section 4975 prohibit a broad range of transactions
involving assets of a plan and persons who are “parties in interest” under ERISA or “disqualified persons”
under section 4975 of the Code. A violation of these rules may result in the imposition of significant excise taxes and other
liabilities. Plans subject to Other Law may be subject to similar restrictions.

It
is anticipated that the Shares will constitute “publicly offered securities” as defined in the Department of Labor
“Plan Asset Regulations,” §2510.3-101 (b)(2) as modified by section 3(42) of ERISA. Accordingly, pursuant to
the Plan Asset Regulations, only Shares purchased by a Plan, and not an interest in the underlying assets held in the Trust, should
be treated as assets of the Plan, for purposes of applying the “fiduciary responsibility” rules of ERISA and the “prohibited
transaction” rules of ERISA and the Code. Fiduciaries of plans subject to Other Law should consult legal counsel to determine
whether there would be a similar result under the Other Law.

Investment
by Certain Retirement Plans

Code
section 408(m) provides that the acquisition of a “collectible” by an individual retirement account (“IRA”)
or a participant-directed account maintained under any plan that is tax-qualified under Code section 401(a) (“Tax Qualified
Account”) is treated as a taxable distribution from the account to the owner of the IRA, or to the participant for whom
the Tax Qualified Account is maintained, of an amount equal to the cost to the account of acquiring the collectible. The term
“collectible” is defined to include, with certain exceptions, “any metal or gem”. The IRS has issued several
private letter rulings to the effect that a purchase by an IRA, or by a participant-directed account under a Code section 401(a)
plan, of publicly-traded shares in a trust holding silver will not be treated as resulting in a taxable distribution to the IRA
owner or Tax Qualified Account participant under Code section 408(m). However the private letter rulings provide that, if any
of the Shares so purchased are distributed from the IRA or Tax Qualified Account to the IRA owner or Tax Qualified Account participant,
or if any silver is received by such IRA or Tax Qualified Account upon the redemption of any of the Shares purchased by it, the
Shares or silver so distributed will be subject to federal income tax in the year of distribution, to the extent provided under
the applicable provisions of Code sections 408(d), 408(m) or 402. Accordingly, potential IRA or Tax Qualified Account investors
are urged to consult with their own professional advisors concerning the treatment of an investment in Shares under Code section
408(m).

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