Mr. Ted Goldthorpe reports

MOUNT LOGAN CAPITAL INC. ANNOUNCES CONTINUED PARTNERSHIP WITH SPECIALIZED CREDIT MANAGER. SEPARATELY ANNOUNCES CLOSING OF DEBENTURE UNITS OFFERING

Mount Logan Capital Inc.'s chief executive officer, Ted Goldthorpe, was appointed to Marret's board of directors during January, 2024. Marret is a prominent Canadian asset manager specializing in global fixed-income investing and alternative strategies on behalf of institutional, high-net-worth and retail clients. Marret advises total assets of approximately $5-billion. In June, 2023, Mount Logan purchased a strategic minority stake in Marret from certain minority shareholders.

Separately, Mount Logan today announced the closing of an opportunistic $18.8-million privately placed debenture units offering through the issuance of 18,752 debenture units on a non-brokered private placement basis. Each debenture unit consists of: (i) one 8.85 per cent paid-in-kind unsecured debenture of the company in the principal amount of $1,000 (U.S.), and (ii) 50 common share purchase warrants of the company, each of which is exercisable to acquire one common share of Mount Logan at a price of $2.75 per share. The net proceeds from the offering will be used for general corporate purposes including the complete refinancing of $13.6-million of existing indebtedness at Lind Bridge, a wholly owned subsidiary of Mount Logan, with the balance being used for general corporate purposes, including supporting Mount Logan's working capital position, enabling Mount Logan to focus on its growth initiatives through 2024 and beyond.

Key commentary:

• Mount Logan acquired a minority stake in Marret in June, 2023, from a group of minority shareholders. There have been no changes following the close of the acquisition to the management team, day-to-day operations or majority ownership structure. Marret remains majority owned by CI Financial Corp., a publicly listed diversified global asset and wealth management company.
• Since Mount Logan's investment, Marret and Mount Logan have each benefited from access to broader credit investing skill sets. Mr. Goldthorpe was appointed to the Marret board of directors in January, 2024, following the collaboration among the respective teams throughout 2023.
• Mount Logan looks forward to working closely with Marret's best-in-class management team and majority shareholder, CI Financial, to capitalize on the opportunities available in the North American credit markets.
• Mount Logan maintains two minority investments in Canadian credit managers through its July, 2021, investment in Crown Private Credit Partners Inc., a Canadian alternative corporate financing business, and the June, 2023, minority stake purchase of Marret herein referenced. Mount Logan views each business as highly complementary to its core asset management offering.
• Additionally, the $18.8-million capital raise and opportunistic refinancing represents an important milestone for the business as it simplifies Mount Logan's capital structure at an attractive fixed rate over the next eight years. Of the net proceeds of the offering, $13.6-million will refinance existing indebtedness at Lind Bridge, a wholly owned subsidiary of Mount Logan. Following completion of the offering and refinancing, Mount Logan will have no outstanding indebtedness at Lind Bridge, which existing indebtedness had previously been raised to support direct growth investment into Ability Insurance Company, Mount Logan's wholly owned insurance company. The refinancing has no impact on previous investments in Ability or Ability's risk-based capital ratios (RBC). The balance of the proceeds of the offering after refinancing existing indebtedness will be used for general corporate purposes, primarily supporting the company's working capital position, and paying related transaction fees and expenses.
• The offering mentioned herein has no relation to the Marret minority stake purchase nor Mr. Goldthorpe's appointment to Marret's board of directors and each of these events are separate and distinct.

Opportunistic refinancing details

Mount Logan raised $18.8-million in aggregate principal amount of debentures. Each debenture unit was issued at a price of $1,000 (U.S.) and consisted of: (a) one 8.85 per cent unsecured debenture of the corporation having a principal amount of $1,000 (U.S.); and (b) 50 common share purchase warrants. Each debenture matures eight years following the closing of the offering and bears interest at a rate of 8.85 per cent per annum from the date of issue, accruing quarterly and compounded annually and payable on the maturity date. Each warrant is exercisable into one common share of the company at a price of $2.75 per share until Jan. 25, 2032, provided that the warrants are not exercisable prior Jan. 25, 2025.

Management commentary:

• Mr. Goldthorpe, chief executive officer and chairman of Mount Logan, said: "A lot of strong momentum to start 2024 for Mount Logan. I am grateful and excited for the opportunity to join the Marret board and help drive value for Marret stakeholders. Separately, we are pleased to complete the $18.8-million debenture units offering, which fully refinances our Lind Bridge indebtedness at an attractive fixed rate with an eight-year tenor. The debenture unit offering positions us well to focus on high-priority opportunities for the business across the asset management and insurance solutions landscape."
• Roberto Katigbak, chief executive officer at Marret, said: "We are extremely excited by the investment Mount Logan has made into Marret. Mount Logan shares our philosophy of delivering strong risk-adjusted returns, and this partnership can create tremendous value for our clients. We view our individual strengths in both private credit and in liquid public fixed-income markets to be highly complementary. We look forward to working closely with Mount Logan to expand our businesses while providing truly unique solutions for investors to navigate challenging markets."
• Darie Urbanky, chief operating officer and president of CI Financial, added: "CI Financial is excited about Mount Logan's investment into Marret and Ted's increased role through his appointment to Marret's board of directors. We see ample opportunities to grow Marret in the current market and believe Mount Logan's experience and additional credit capabilities will further reinforce Marret as a best-in-class credit manager."

About Mount Logan Capital Inc.

Mount Logan Capital is an alternative asset management and insurance solutions company that is focused on public and private debt securities in the North American market and the reinsurance of annuity products primarily through its wholly owned subsidiaries Mount Logan Management LLC and Ability Insurance Company. The company also actively sources, evaluates, underwrites, manages, monitors and primarily invests in loans, debt securities and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle.

We seek Safe Harbor.