Mr. John Varnell reports

FAIRFAX AGREES TO SELL A PORTION OF ITS INTEREST IN POSEIDON CORP.

Fairfax Financial Holdings Ltd. has entered into agreements, together with certain of its affiliates, to sell an aggregate of 67,618,981 common shares of Poseidon Corp., the holding company that owns Seaspan Corp., at a price of $28.30 (U.S.) per share, for aggregate proceeds of approximately $1.91-billion (U.S.).

The shares are being sold by Fairfax by way of separate agreements to: (i) an existing shareholder of Poseidon that has determined to increase its ownership interest in Poseidon (in respect of 37,820,167 shares); and (ii) two new strategic investors (in respect of 9,932,937 shares and 19,865,877 shares, respectively). Following the sale of the shares, which represent approximately 23.2 per cent of the total issued and outstanding common shares of Poseidon, Fairfax would retain an equity ownership of approximately 22.1 per cent of the issued and outstanding common shares as well as 12 million Series J preferred shares in the capital of Poseidon's wholly owned subsidiary, Atlas Corp.

"We are very pleased to have agreed to sell approximately half of our position in Poseidon at a price that we think reflects the achievements and success of the company since we helped take it private in 2023, and also the bright future for the company going forward," said Prem Watsa, chairman and chief executive officer of Fairfax Financial. "Poseidon has done incredibly well under the outstanding management of David Sokol and Bing Chen, and we are happy to retain a significant equity stake in the company as it brings on new strategic partners, joining Ocean Network Express, to help continue to grow Poseidon as a world-leading independent maritime asset owner and operator."

Each sale transaction is expected to close in the second quarter of 2026, with each being subject to certain customary closing conditions, including the receipt of regulatory approvals and third party consents. Following the consummation of the transactions, Fairfax expects to continue to account for its investment in the common shares of Poseidon under the equity method of accounting.

About Fairfax Financial Holdings Ltd.

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

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