Capital Markets: A year in review

Capital Markets: A year in review Initial optimism in 2011 gave way to increased concern over the health of the global economy as the year progressed. JANUARY FEBRUARY OCTOBER MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER NOVEMBER DECEMBER This trend was reflected in the performance of our capital markets which were adversely affected by continuing TIGHTNESS in the global credit markets, the Eurozone debt crisis and other negative sentiment. Despite the low number of traditional IPOS, TMX 2011 Group, which operates the TSX and TSX-V, reported 128 IPOS on the TSX and 159 IPOS on the TSX-V in 2011- another illustration of the TSX extent to which alternative listing methods such as CPC transactions and reverse take-overs M & A have eclipsed traditional IPOS in Canada in recent years. 128 IPOS NPO IN A RATHER ACTIVE YEAR FOR HOSTILE M&A TSX-V ACTIVITY IN CANADA, 2000 2011 THERE WERE ONLY SHAREHOLDER In 2011, timing was everything. US IPO activity in the first quarter reached levels not seen since the tech boom of 2000, and the situation in Canada, while more muted, predicted a strong year RIGHTS PLAN DECISIONS. 159 IPOS TMх- ASx SGX SEG TMX GROUP тм 80 IPO TM KASDAQ Significantly, TMX Group also reported that 2011 was the third consecutive year GLOBAL stock exchange transactions announced between October 2010 and November 2011 IPO that the TSX and TSX-V have led global exchanges in the number of new listings. Maple Group Acquisition Corp TS London Stock Exchange Canada has been swept up in the global wave of consolidation in the stock exchange sector with the ongoing battle for control of TMX Group Inc. TMX's aborted merger with London Stock Exchange Group plc and current proposed takeover by Maple Group Acquisition Corporation illustrate the trends driving consolidation in the global exchange industry and the political and regulatory challenges posed by stock exchange mergers. 58%. Half of the approximately 9,500 mineral exploration assets owned by TSX and TSX-V listed companies are TSX and TSX-V are home to O of the world's public mining companies, and TSX and TSX-V issuers were involved in raising 60% of the world's mining TSX equity capital in 2011. located outside of Canada and relate to the global mining deals of Barrick, Cliffs, Minmetals/Anvil, Riotinto/Hathor, KGHM/Quadra. In the past ten years, 80% of worldwide mining financings completed have been completed on the TSX or TSX-V. 80% HIGHER PRICES CAN CURRENTLY BE OBTAINED FOR BOTH NATURAL GAS AND CRUDE OIL OUTSIDE OF NORTH AMERICA. FOR EXAMPLE, NATURAL GAS IN ASIA SELLS FOR $$ $ $ $ THREE TO FOUR TIMES THE PRICE IN NORTH AMERICA WHERE ABUNDANT SUPPLY HAS DEPRESSED PRICES. OSLER Osler, Hoskin & Harcourt LLP %24