Mr. John Varnell reports

FAIRFAX RAISES $1.325 BILLION WITH OVERSUBSCRIBED OFFERINGS COMPLETES ISSUANCES OF SUBORDINATE VOTING SHARES, PREFERRED SHARES AND NOTES

Fairfax Financial Holdings Ltd. has completed its previously announced bought deal financings for subordinate voting shares, preferred shares, Series M and senior notes due 2025. As a result of the underwriters' exercising their overallotment option to purchase an additional 150,000 subordinate voting shares, at a price of $650 per subordinate voting share, Fairfax has issued 1.15 million subordinate voting shares for gross proceeds of $747.5-million. The underwriters for the offering of Series M shares also exercised their option to purchase an additional 1.2 million Series M shares at a price of $25 per share. As a result, Fairfax has issued 9.2 million Series M shares for gross proceeds of $230-million pursuant to the preferred share offering. In addition, Fairfax has completed its previously announced offering of notes in a principal amount of $350-million. The total gross proceeds of the subordinate voting share offering, preferred share offering and notes offering are approximately $1,325-million.

The subordinate voting shares were sold through a syndicate of underwriters led by BMO Capital Markets that also included RBC Capital Markets, Scotiabank, CIBC World Markets Inc., TD Securities Inc. and Cormark Securities Inc. The Series M shares were sold through a syndicate of Canadian underwriters led by BMO Capital Markets, RBC Capital Markets and Scotiabank, and that also included CIBC World Markets Inc., National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., Desjardins Securities Inc., GMP Securities L.P. and Cormark Securities Inc. The notes were offered through a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets and Scotiabank, and that also included CIBC World Markets Inc., TD Securities Inc. and National Bank Financial Inc.

Fairfax intends to use the net proceeds of the subordinate voting share offering, the preferred share offering and the notes offering to partially finance the previously announced proposed acquisition of all of the issued and to be issued shares of Brit PLC. There can be no assurance that such acquisition will be completed. If the acquisition is not successfully completed, Fairfax intends to use the net proceeds from the offerings to augment its cash position, to increase short-term investments and marketable securities held at the holding company level, to refinance or retire outstanding debt and other corporate obligations of Fairfax and its subsidiaries from time to time, and for general corporate purposes.

We seek Safe Harbor.