Mr. Scott Thomson reports

SCOTIABANK PARTNERS WITH NCH'KAY DEVELOPMENT LIMITED PARTNERSHIP, DES NEDHE FINANCIAL LP AND CHIPPEWAS OF RAMA FIRST NATION TO ESTABLISH A NEW INVESTMENT DEALER IN CANADA

Bank of Nova Scotia has entered into an agreement with two indigenous development corporations and one first nation to seek regulatory approval to create and operate a new investment dealer in Canada. The proposed investment dealer, to be named Cedar Leaf Capital Inc., will be majority-owned by three indigenous shareholders: Nch'Kay Development LP, Des Nedhe Financial LP and Chippewas of Rama First Nation, and controlled initially by Scotiabank.

Subject to regulatory approval, Cedar Leaf Capital will be the first-to-market majority indigenous-owned investment dealer in Canada. At formation, 70 per cent of the equity of Cedar Leaf Capital will be owned by its three indigenous shareholders, directly or indirectly, apportioned approximately 23.3 per cent to each. It is intended that Cedar Leaf Capital will become wholly indigenous-owned, -controlled and -operated in the future. Until such time, the firm's operations will leverage Scotiabank's infrastructure and core enterprise frameworks as it develops its self-sustaining operations. Once achieved, and subject to further regulatory approval, Scotiabank intends to facilitate an orderly transition to reduce the bank's controlling interest in the entity.

With necessary approvals, Cedar Leaf Capital will commence operations as an investment dealer and offer institutional clients in all provinces and territories of Canada financial advisory services with a particular focus on acting as a placement agent or underwriter of Canadian fixed-income securities offerings.

Clint Davis (he/him) will be appointed chief executive officer of Cedar Leaf Capital. Mr. Davis is Inuk from Labrador and a beneficiary (member of the community) under the Labrador Inuit land claim agreement. Mr. Davis has more than 20 years of experience with financial institutions and indigenous organizations in Canada, driving a strategic vision that advances indigenous development corporations and businesses, and advising indigenous communities and development corporations on economic development and capacity building opportunities.

As the first indigenous-owned-and-led investment dealer in Canada, Cedar Leaf Capital's objectives will extend beyond those of a traditional market intermediary. An indigenous-owned-and-led investment dealer will foster greater indigenous participation in the capital markets, create commercial opportunities for indigenous communities and partner with established market participants to assist them in meeting their reconciliation commitments.

Reconciliation and deepening relationships with indigenous communities are stated priorities for governments and businesses across Turtle Island. Cedar Leaf Capital will offer a new way for capital markets participants to address and advance their reconciliation commitments and support indigenous advancement.

Scotiabank is committed to reconciliation and is investing in meaningful programs for indigenous employees, clients and communities. In May of 2023, Scotiabank formalized its commitment to truth and reconciliation by embarking on the development of a truth and reconciliation action plan and by establishing a truth and reconciliation team. When completed, the plan will articulate the bank's formal steps in the direction of reconciliation by supporting pre-existing programs and through the co-development of new consistent, meaningful and progressive actions intended to establish relationships of trust between Scotiabank and indigenous employees, customers and communities.

Quotes

Scott Thomson, president and CEO, Scotiabank:

"Reconciliation and deepening relationships with indigenous communities are critical priorities and we are immensely proud to partner with these indigenous shareholders to work together and take additional and meaningful steps forward. While the economic participation of indigenous communities has seen significant advancement, much more must be done. Cedar Leaf Capital will provide an important step to expanding access and opportunities within capital markets to indigenous communities."

Mr. Davis, chief executive officer of Cedar Leaf Capital:

"Cedar Leaf Capital will actively seek to establish roles in dealer syndicates on new bond offerings, acting in broadly syndicated offerings with the ambition to grow into lead roles. In addition, we will seek to identify, attract and develop indigenous talent, serving as a training ground for indigenous young people who are considering a career in capital markets and finance. Cedar Leaf Capital will exemplify reconciliation in action."

Chief Ted Williams, Chippewas of Rama First Nation:

"We are proud to participate in this distinct, unique, innovative collaboration with corporate Canada and indigenous leadership in business."

Sean Willy, president and CEO, Des Nedhe Group:

"Scotiabank and Des Nedhe have a strong existing partnership which supports English River FN's economic prosperity. Working together with Rama FN and Nch'Kay (Squamish) to jointly build this first-of-its-kind financial institution is testament to the partners' shared objectives towards indigenous economic empowerment. We are very proud to be a founding partner in Cedar Leaf Capital."

Mindy Wight, CEO, Nch'Kay Development Corp.:

"This is an exciting opportunity for Nch'Kay and the Squamish Nation. As a CPA, and former CFO, I am especially pleased that Nch'Kay is involved this groundbreaking, strategic and thoughtful partnership with Scotiabank, Rama First Nation and Des Nedhe Group, as it advances indigenous leadership in financial services."

Loretta Marcoccia, executive vice-president, global operations and technology, Scotiabank, and chair, Cedar Leaf Capital:

"As the first indigenous-owned-and-led investment dealer in Canada, Cedar Leaf Capital's objectives will extend beyond those of a traditional market intermediary. Some of the largest corporations in Canada, and the vast majority of provincial/territorial governments and agencies, have an expressed desire to work with indigenous-owned businesses. Cedar Leaf Capital opens the door to a broad group of corporate and government borrowers and will provide an important step forward in support for the indigenous economy."

Meigan Terry, senior vice-president and chief sustainability, social impact and communications officer, Scotiabank:

"At Scotiabank, we recognize that the journey of truth and reconciliation must be rooted in respect and co-developed with indigenous peoples. In 2023, Scotiabank embarked on the development of a truth and reconciliation action plan through which we are working to co-develop meaningful and progressive actions towards reconciliation. The establishment of Cedar Leaf Capital supports Scotiabank's steadfast commitment to reconciliation."

Paul Scurfield, global head, capital markets, global banking and markets, Scotiabank:

"With a team of seasoned capital markets and risk management professionals, Cedar Leaf Capital will seek to provide differentiated debt capital markets advice and execution services to governments and corporate clients and to establish roles in dealer syndicates on new bond issue transactions with the near-term ambition of taking lead roles, particularly in indigenous-related financings."

About Bank of Nova Scotia

Scotiabank's vision is to be its clients' most trusted financial partner, to deliver sustainable, profitable growth and maximize total shareholder return. Guided by its purpose, for every future, the bank helps its clients, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With assets of approximately $1.4-trillion (as at Oct. 31, 2023), Scotiabank trades on the Toronto Stock Exchange (BNS) and New York Stock Exchange (BNS).