Mr. Jake Lawrence reports

SCOTIABANK ANNOUNCES REDEMPTION OF PREFERRED SHARES SERIES 15

Bank of Nova Scotia intends to exercise its right to redeem all outstanding non-cumulative preferred shares, Series 15, of Scotiabank on July 27, 2016, at a price equal to $25 per share, together with all declared and unpaid dividends. Formal notice will be issued to shareholders in accordance with the share conditions.

The redemption has been approved by the Office of the Superintendent of Financial Institutions and will be financed out of the general proceeds of Scotiabank.

On May 31, 2016, the board of directors of Scotiabank announced a quarterly dividend of 28.125 cents per Series 15 share. This will be the final dividend on the Series 15 shares and will be paid in the usual manner on July 27, 2016, to shareholders of record at the close of business on July 5, 2016, as previously announced. After July 27, 2016, the Series 15 shares will cease to be entitled to dividends.