Mr. John Varnell reports

FAIRFAX COMPLETES C$650 MILLION SENIOR NOTES OFFERING

Fairfax Financial Holdings Ltd. has completed its previously announced offering of: (i) $350-million in aggregate principal amount of 5.00 per cent senior notes due 2037; and (ii) $300-million in aggregate principal amount of 5.65 per cent senior notes due 2056.

The senior notes were offered through a syndicate of dealers led by CIBC World Markets Inc. and TD Securities Inc., as joint bookrunners and lead agents, National Bank Financial Inc. and Citigroup Global Markets Canada Inc., as joint bookrunners, and including BMO Nesbitt Burns Inc., Scotia Capital Inc., Merrill Lynch Canada Inc., RBC Dominion Securities Inc., Desjardins Securities Inc., J.P. Morgan Securities Canada Inc., Mizuho Securities Canada Inc. and Morgan Stanley Canada Ltd., as additional agents. The senior notes are unsecured obligations of Fairfax.

Fairfax intends to use the net proceeds of the offering to refinance, repay or redeem outstanding debt, equity or other corporate obligations of Fairfax and its subsidiaries, to pursue potential acquisition or investment opportunities (which may include acquisitions of minority interests in its subsidiaries), and for general corporate purposes. This may include the redemption or repurchase of certain of Fairfax's previously issued debt or equity securities. As of the date of this news release, Fairfax has not made any determination as to the specific debt, equity or other corporate obligations to be repaid or redeemed, nor the amount, timing or method of such repurchase or redemption. Similarly, as of the date of this news release, Fairfax has not made any determination as to the specific acquisitions or investment opportunities to be pursued, nor the cost, timing or method of such acquisitions or investments. Any such repurchase, redemption, acquisition or investment will be subject to market conditions. Any proceeds not used to refinance, repay or redeem outstanding debt, equity or other corporate obligations, or to pursue potential acquisition or investment opportunities, will be used for general corporate purposes, which may include to augment Fairfax's cash position or to increase short-term investments and marketable securities held at the holding company level.

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

We seek Safe Harbor.