Mr. John Varnell reports

FAIRFAX INDIA COMPLETES SUBSCRIPTION OF ADDITIONAL EQUITY INTEREST IN IIFL CAPITAL SERVICES LIMITED

Through Fairfax India Holdings Corp.'s wholly owned subsidiary, FIH Mauritius Investments Ltd., has completed its previously announced subscription of equity shares of IIFL Capital Services Ltd., thereby increasing its equity interest in IIFL Capital by 11.2 per cent for consideration of 20 billion rupees (approximately $211-million (U.S.) at current exchange rates). Following completion of the subscription, the combined equity interest of Fairfax India and its affiliate, HWIC Asia Fund (Class A shares), has increased to 40.8 per cent (38.0 per cent held by Fairfax India and 2.8 per cent held by HWIC Asia Fund (Class A shares)).

As previously announced, pursuant to the terms of an investment agreement with IIFL Capital and its existing promoters, Fairfax India, through its wholly owned subsidiary, FIH Mauritius Investments, has also agreed to acquire additional equity shares of IIFL Capital pursuant to an open offer by Fairfax India to IIFL Capital's public shareholders, as required by applicable Indian securities laws, to acquire up to a maximum of 26 per cent of IIFL Capital's share capital. Pursuant to the investment agreement, if shares tendered to the open offer are insufficient for Fairfax India, together with its affiliate, to own at least a 51-per-cent equity interest in IIFL Capital, IIFL Capital's existing promoters have agreed to sell such number of equity shares to Fairfax India that would result in Fairfax India acquiring the target shareholding. Subject to the results of the open offer, the aggregate consideration for the open offer and potential acquisition from IIFL Capital's existing promoters is expected to be approximately 19.3 billion rupees (approximately $204-million (U.S.) at current exchange rates). The foregoing transactions are expected to close in fourth quarter 2026, subject to completion of the open offer and other customary closing conditions.

About Fairfax India Holdings Corp.

Fairfax India is an investment holding company whose objective is to achieve long-term capital appreciation while preserving capital by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India.

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