An anonymous director reports

SUN LIFE FINANCIAL ANNOUNCES DIVIDEND RATES ON CLASS A NON-CUMULATIVE RATE RESET PREFERRED SHARES SERIES 10R AND CLASS A NON-CUMULATIVE FLOATING RATE PREFERRED SHARES SERIES 11QR

Sun Life Financial Inc. has set the dividend rates for its Class A non-cumulative rate reset preferred shares, Series 10R, and Class A non-cumulative floating rate preferred shares, Series 11QR.

With respect to any Series 10R shares that remain outstanding after Sept. 30, 2016, commencing as of that date, holders thereof will be entitled to receive non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the board of directors of Sun Life Financial, and subject to the Insurance Companies Act (Canada). The dividend rate for the five-year period commencing on Sept. 30, 2016, to, but excluding, Sept. 30, 2021, will be 2.842 per cent per year or 17.7625 cents per share per quarter, being equal to the sum of the government of Canada yield, as defined in the terms of the Series 10R shares, on Wednesday, Aug. 31, 2016, plus 2.17 per cent, as determined in accordance with the terms of the Series 10R shares.

With respect to any Series 11QR shares that are issued on Sept. 30, 2016, holders thereof will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the board of directors of Sun Life Financial, and subject to the Insurance Companies Act (Canada), based on a dividend rate equal to the sum of the T-bill rate, as defined in the terms of the Series 11QR shares, plus 2.17 per cent (calculated on the basis of the actual number of days elapsed in such quarterly floating rate period divided by 365 days), subject to certain adjustments in accordance with the terms of the Series 11QR shares. The dividend rate for the period commencing on Sept. 30, 2016, to but excluding Dec. 31, 2016, will be equal to 2.682 per cent per year or 16.9003 cents per share, as determined in accordance with the terms of the Series 11QR shares.

Beneficial owners of Series 10R shares who wish to exercise the right of conversion should communicate as soon as possible with their broker or other nominee, and should ensure that their instructions are followed in order to meet the deadline to exercise such right of conversion, which is 5 p.m. ET on Thursday, Sept. 15, 2016.

An application will be made to list the Series 11QR shares on the Toronto Stock Exchange.

About Sun Life Financial

Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth products and services to individuals and corporate customers. As of June 30, 2016, the Sun Life Financial group of companies had total assets under management of $865-billion.