Mr. Jake Lawrence reports

SCOTIABANK ANNOUNCES REDEMPTION OF SCOTIABANK TRUST SECURITIES - SERIES 2003-1 (SCOTIA BATS II) BY SCOTIABANK CAPITAL TRUST

Bank of Nova Scotia's Scotiabank Capital Trust, an open-end trust, intends to redeem all issued and outstanding Scotiabank trust securities Series 2003-1 (Scotia BaTS II) on June 30, 2013. The redemption price per share will be equal to $1,000 per Scotia BaTS II plus unpaid indicated distributions to the June 30, 2013, redemption date. Formal notice will be delivered to the holders of the Scotia BaTS II in accordance with the terms thereof.

In accordance with the terms of the declaration of trust governing Scotiabank Capital Trust, an amount equal to the redemption proceeds has been deposited in trust for the holders of Scotia BaTS II, which deposit constitutes payment and satisfaction by Scotiabank Capital Trust of the redemption proceeds payable on the Scotia BaTS II. As a result, the rights of a holder of the Scotia BaTS II are limited to receiving, on June 30, 2013, the proportion of the amount so deposited applicable to such holder's Scotia BaTS II, without any interest thereon.

The redemption of the Scotia BaTS II will be financed out of the general funds of Scotiabank Capital Trust.