An anonymous director of Horizons ETFs reports

HORIZONS ETFs CONFIRMS 2023 ANNUAL NON-CASH DISTRIBUTIONS

Horizons ETFs Management (Canada) Inc. has confirmed the annual non-cash distributions to unitholders of certain of the exchange-traded funds that it manages for the 2023 tax year as indicated in the attached table. Please note that this is a further update to the estimated annual non-cash distributions previously announced on Nov. 29, 2023, and updated on Dec. 20, 2023.

The record date for non-cash distributions is Dec. 29, 2023. The nominal payment date applied to the non-cash distributions will be Jan. 8, 2024, though in actuality, there will be no physical payment made as would be the case with cash distributions. In early 2024, the tax characteristics of all distributions for 2023 for the ETFs will be reported to brokers through the CDS Clearing and Depository Services Inc. and will be posted on the Horizons ETFs' website shortly thereafter.

                         2023 ANNUAL NON-CASH DISTRIBUTIONS

ETF name                                            Ticker        Final   Final non-cash    
                                                    symbol    confirmed     distribution   
                                                                 annual        as a % of   
                                                               non-cash          Dec. 28, 
                                                           distribution             2023,    
                                                               per unit              NAV

Horizons Copper Producers Index ETF (1)               COPP     $1.34697             4.95%
Horizons Seasonal Rotation ETF (2)                     HAC     $0.72246             2.54%
Horizons Pipelines & Energy Services Index ETF (3)     HOG     $0.38697             3.77%
Horizons Inovestor Canadian Equity Index ETF (4)      INOC     $0.08004             0.56%
Horizons Active Ultra-Short Term Investment 
Grade Bond ETF (5)                                     HFR     $0.05556             0.56%
Horizons 0-3 Month U.S. T-Bill ETF (6)              UBIL.U     $0.00873             0.02%
Horizons Robotics & AI Index ETF (7)                  RBOT     $0.00001             0.00%
                                                    RBOT.U     $0.00001             0.00%
Horizons Global Semiconductor Index ETF (8)           CHPS     $0.00001             0.00%
                                                    CHPS.U     $0.00001             0.00%

As disclosed herein, the final determination of the nature of these non-cash 
distributions will be reported to brokers through CDS in early 2024. The 
expected nature of the non-cash distributions for each of the ETFs in the 
table is as follows:
(1) Horizons Copper Producers Index ETF (COPP) -- 100 per cent capital 
gains.
(2) Horizons Seasonal Rotation ETF (HAC) -- 0.33 per cent income and 99.67
per cent capital gains.
(3) Horizons Pipelines & Energy Services Index ETF (HOG) -- 100 per cent 
capital gains.   
(4) Horizons Inovestor Canadian Equity Index ETF (INOC) -- 100 per cent 
capital gains.    
(5) Horizons Active Ultra-Short Term Investment Grade Bond ETF (HFR) -- 
100 per cent income.  
(6) Horizons 0-3 Month U.S. T-Bill ETF (UBIL.U) -- 100 per cent capital 
gains. 
(7) Horizons Robotics & AI Index ETF (RBOT) -- 100 per cent income. Please 
note that distributions for RBOT are declared and  paid in Canadian dollars, 
including those listed under the U.S.-dollar-traded ticker RBOT.U. The 
approximate U.S.-dollar-equivalent distribution rate for RBOT.U is 0.001 
cent per unit.       
(8) Horizons Global Semiconductor Index ETF (CHPS) -- 100 per cent income. 
Please note that distributions for CHPS are declared and paid in Canadian 
dollars, including those listed under the U.S.-dollar-traded ticker CHPS.U. 
The approximate U.S.-dollar-equivalent distribution rate for CHPS.U is 0.001 
cent per unit.

All the ETFs are required to distribute any net income and capital gains that they have earned in the year. The annual non-cash distributions will not be paid in cash, but will be reinvested and reported as taxable distributions, and will be used to increase each unitholder's adjusted cost base for the respective ETF. The nature of the non-cash distributions for the respective ETFs as either income or capital gains is disclosed in the footnotes to the attached table. The non-cash distributions will be reinvested automatically in additional units of the respective ETFs and immediately consolidated so that the number of units held by the unitholder, the units outstanding of the ETFs and the net asset value of the ETFs will not change as a result of the non-cash distributions. The amounts do not include the cash distributions announced on Dec. 20, 2023.

About Horizons ETFs Management (Canada) Inc.

Horizons ETFs is an innovative financial service company and offers one of the largest suites of exchange-traded funds in Canada. The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has more than $29-billion of assets under management and 119 ETFs listed on major Canadian stock exchanges.

Commissions, management fees and expenses all may be associated with an investment in exchange-traded products managed by Horizons ETFs Management (Canada) Inc. The Horizons exchange-traded products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons exchange-traded products. Please read the relevant prospectus before investing.

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