Mr. Michel Beland reports

ELEMENT CLOSES $2.78 BILLION OFFERING OF SUBSCRIPTION RECEIPTS, DEBENTURES AND SERIES G PREFERRED SHARES

Element Financial Corp. has closed its previously announced prospectus offering of subscription receipts, 4.25-per-cent extendible convertible unsecured subordinated debentures and 6.50-per-cent cumulative five-year rate-reset preferred shares, Series G. The offering raised gross proceeds of $2.78-billion, and the company intends to use the net proceeds of $2.72-billion from the offering to finance future acquisitions.

Element issued, on a bought-deal basis: (i) 119,735,000 subscription receipts at a price of $17.00 per subscription receipt for gross proceeds of approximately $2.04-billion; (ii) $575-million aggregate principal amount of debentures; and (iii) 6.9 million Series G shares at a price of $25.00 per share for gross proceeds of $172.5-million. The offering included the exercise in full by the underwriters of their respective overallotment options to purchase: (i) an additional 10,885,000 subscription receipts; (ii) an additional $75.0-million aggregate principal amount of debentures; and (iii) an additional 900,000 Series G shares, each on the same terms as the initial offering, resulting in additional gross proceeds of $282.5-million.

The offering of the subscription receipts was conducted by a syndicate of underwriters co-led by BMO Capital Markets, Barclays Capital Canada Inc., CIBC World Markets Inc., National Bank Financial Inc., RBC Dominion Securities Inc. and TD Securities Inc., and including Credit Suisse Securities (Canada) Inc., GMP Securities LP, Macquarie Capital Markets Canada Ltd., Manulife Securities Inc., Cormark Securities Inc. and Desjardins Securities Inc. The offering of the debentures was conducted by a syndicate of underwriters led by BMO Capital Markets and including Barclays Capital Canada, CIBC World Markets, National Bank Financial, RBC Dominion Securities, TD Securities, Credit Suisse Securities (Canada), GMP Securities, Macquarie Capital Markets Canada, Cormark Securities, Desjardins Securities and Manulife Securities. The offering of Series G shares was conducted by a syndicate of underwriters co-led by BMO Capital Markets, CIBC World Markets, National Bank Financial, RBC Dominion Securities and TD Securities, and including GMP Securities, Cormark Securities, Desjardins Securities, Macquarie Capital Markets Canada and Manulife Securities.

Further details concerning the subscription receipts, the debentures, the Series G shares and the company's anticipated use of funds in respect of the offering are set out in Element's prospectus supplement dated May 22, 2015, available on SEDAR.

The subscription receipts, the debentures and the Series G shares will commence trading today on the Toronto Stock Exchange under the symbols EFN.N, EFN.DB.A and EFN.PR.G., respectively.

We seek Safe Harbor.