AWC STRATEGIC INCOME FUND LTD.

What is the Strategic Income Fund?

Alta West Capital (AWC) has had a vision for some time on delivering a product to the market which would provide a termed yield to investors, backed by first mortgages but with a timed liquidity. We are proud to now offer this product: AWC Strategic Income Fund.

The AWC Strategic Income Fund (SIF) is a corporation that issues unsecured debentures on a fixed term. This will allow investors to deploy capital for various lengths of time, with the capital redeemed at the term’s end date. This will facilitate appropriate cash management and risk diversification.

What is a Debenture?

A debenture is an unsecured debt obligation which has a fixed term and fixed rate of interest.

Overview

The AWC Strategic Income Fund issues debentures to Accredited or Permitted investors (as those terms are defined in Securities Legislation). Funds can be invested for 3, 6, 9, or 12 month terms, and the rate received will vary based on the term length selected. The investor will receive a debenture, of which the proceeds of the sale will be used to invest in assets of the SIF.

SIF funds 1st mortgages in major demographic areas in Canada with a Loan-to-Value ratio no greater than 65%. The investor will receive their interest payment (simple, not amortized) at the debenture’s maturity date.

Issuance

SIF currently issues these debentures on a quarterly basis. Issuances will be announced 30 days in advance.

Commencement

Upon the commencement date of a quarterly period, SIF will deploy the capital towards 1st mortgages funded by AWC. SIF will be both the sole lender as well as a syndicated investor where it invests in mortgages with other investors

Maturity

Investors will receive their interest payments along with their principal on the maturity date of their investment.

Servicing

SIF will be administered by AWC. AWC acts as the Fund Manager and has a fiduciary responsibility to act in the best interests of the fund. servicing may include, but is not limited to: renewals, pay downs, foreclosures and general administration.

Maturity

One month before the debenture’s termination date, the investor will determine whether they wish to receive their principal and outstanding interest to their prescribed account or join the next issuance.

This is not a guaranteed investment. There can be loss of principle and/or interest or delays in being paid out. The interest rates quoted are not guaranteed and are based on assumptions regarding the mortgage rates, timeliness of receipts, loan losses and expenses with respect to the underlying pool of mortgages that back the debentures. Important information regarding debentures issued by the AWC Strategic Income Fund are set out in the Debenture Agreement, which should be reviewed carefully prior to investment.

Alta West Mortgage Capital Corporation is a registered Exempt Market Dealer (EMD), Restricted Portfolio Manager and Investment Fund Manager in the province of Alberta. The firm is also registered in the provinces of British Columbia, Saskatchewan, Manitoba and Ontario as an EMD. This communication is for general information purposes and is not a solicitation to purchase securities. Units of Alta West Capital funds are available to selected investors only and are not available for general distribution. Please contact Investor Relations for further information.