Mr. Prem Watsa reports

FAIRFAX RESPONDS FURTHER TO SHORT SELLER REPORT

The management team of Fairfax Financial Holdings Ltd. has now reviewed all 72 pages of the Muddy Waters report and reviewed its allegations and insinuations. Fairfax categorically denies and refutes all of them, without exception, as false and misleading.

To the best of the company's knowledge, Muddy Waters has never attended Fairfax's conference calls and never asked a question, called Fairfax or written to Fairfax, but instead went to CNBC during Fairfax's quiet period with these one-sided, ill-informed allegations and insinuations in a transparent attempt to profit by short-selling Fairfax's stock. Muddy Waters may have successfully done this with other companies, but it has woefully misjudged the strength of Fairfax's financials and prospects, and Fairfax is confident the marketplace will reflect its strong fundamentals.

Prem Watsa, chairman and chief executive officer of Fairfax, commented: "We are neither Berkshire Hathaway nor GE, as Muddy Waters suggests. We are Fairfax, a strong and enduring company built over 38 years, committed to integrity, customer service, employee welfare and the communities we operate in. We have a unique fair-and-friendly culture throughout our organization. We strive to provide excellent returns to shareholders, and are committed to providing full disclosure in our annual report, highlighting both our pluses and minuses.

"We have always been focused on building for the long term and have never given any quarterly guidance.

"Over 38 years, our book value per share has compounded by 18.9 per cent per year and our stock price at 18 per cent per year. Out of 6,000 companies listed in the U.S. [United States] in 1985, when we began, less than 20 companies have a similar record. We have discussed repeatedly in our annual reports that we have not achieved our 15-per-cent objective in the last five to 10 years. However, we have more than achieved our 15-per-cent return over the last several years. Moreover, as those following Fairfax more closely are aware, the foundation of our operating income (underwriting profit, interest and dividend income, and profit from associates) is stronger than ever, and bodes well for the future.

"Our company is very strong and the best is yet to come. We look forward to answering any questions in our conference call on Friday, Feb. 16, 2024, at 8:30 a.m. ET."

About Fairfax Financial Holdings Ltd.

Fairfax is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance, and the associated investment management.

We seek Safe Harbor.