Mr. Stephane Lemay reports

POWER FINANCIAL ANNOUNCES CONVERSION RIGHTS FOR NON-CUMULATIVE 5-YEAR RATE RESET FIRST PREFERRED SHARES, SERIES P AND NON-CUMULATIVE FLOATING RATE FIRST PREFERRED SHARES, SERIES Q

Power Financial Corp. does not intend to exercise its right to redeem all or part of the currently outstanding 9,657,516 non-cumulative five-year rate reset first preferred shares, Series P, nor all or part of the currently outstanding 1,542,484 non-cumulative floating rate first preferred shares, Series Q, on Jan. 31, 2026. As a result, subject to certain conditions, the holders of the Series P shares have the right to convert all or part of their Series P shares, on a one-for-one basis, into Series Q shares, and subject to certain conditions, the holders of the Series Q shares have the right to convert all or part of their Series Q shares, on a one-for-one basis, into Series P shares, in each case on Feb. 2, 2026, pursuant to the terms and conditions of the Series P shares and the Series Q shares.

Holders of Series P shares who do not exercise their right to convert their Series P shares into Series Q shares on the conversion date will retain their Series P shares, and holders of the Series Q shares who do not exercise their right to convert their Series Q shares into Series P shares on the conversion date will retain their Series Q shares, in each case, subject to certain conditions.

The foregoing conversion rights of the Series P shares and the Series Q shares are subject to the conditions that: (i) if Power Financial determines that there would remain outstanding on the conversion date less than one million Series Q shares, after having taken into account all Series P shares and Series Q shares tendered for conversion, then holders of Series P shares will not be entitled to convert their shares into Series Q shares and all remaining Series Q shares will automatically be converted into Series P shares without the consent of the holders, on a one-for-one basis, on the conversion date, and (ii) alternatively, if Power Financial determines that there would remain outstanding on the conversion date less than one million Series P shares, after having taken into account all Series P shares and Series Q shares tendered for conversion, then holders of Series Q shares will not be entitled to convert their shares into Series P shares and all remaining Series P shares will automatically be converted into Series Q shares without the consent of the holders, on a one-for-one basis, on the conversion date. In either case, Power Financial will give written notice to that effect to the registered holders of Series P shares and/or Series Q shares, as the case may be, no later than Jan. 26, 2026.

The dividend rate applicable to the Series P shares for the five-year period from Jan. 31, 2026, to but excluding Jan. 31, 2031, and the dividend rate applicable to the Series Q shares for the three-month period from Jan. 31, 2026, to but excluding April 30, 2026, will be determined and announced by way of a news release on Jan. 2, 2026.

Beneficial owners of Series P shares or Series Q shares who wish to exercise their conversion right should communicate with their broker or other nominee to obtain instructions for exercising such right during the conversion period, which runs from Jan. 2, 2026, until Jan. 16, 2026, at 5 p.m. Eastern Time.

About Power Financial Corp.

Power Financial, a wholly owned subsidiary of Power Corp. of Canada, is an international management and holding company with interests in financial services and asset management businesses in Canada, the United States and Europe. It also has significant holdings in a portfolio of global companies based in Europe.

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