The Bank of Nova Scotia – CI Performer Deposit Notes TM (Yield) Series 1 FundSERV: SSP200

The information contained herein is confidential and for advisor use only. The information contained herein is not to be reproduced or distributed to the public or the press. The information in this presentation must be read in conjunction with the Information Statement. This document is a summary only of certain aspects of the Notes and you are urged to read the Information Statement in its entirety for complete information related to the Notes, including the risk actors. A hard copy of the Information Statement will be sent to all Investors. A prospective investor should decide to invest in the Notes only after carefully considering with his or her advisor as to whether the Notes are a suitable investment in light of the information set out in the Information Statement. None of the Bank including in its capacity as Calculation Agent, Scotia Capital Inc., including in its capacity as Selling Agent, nor CI Investments Inc. in its capacity as Fund Manager makes any recommendation as to whether the Notes are a suitable investment for any person. The Notes have certain investment characteristics that differ from conventional fixed income investments in that they do not provide holders with any return or income stream prior to the Maturity Date, or a return at the Maturity Date that is calculated by reference to a fixed or floating rate of interest that is determinable prior to the Maturity Date. The return on the Notes (if any), unlike the return on many deposit liabilities of Canadian chartered banks, is uncertain in that the Notes could produce no return on the holder’s original investment. Therefore, the Notes are not suitable investments for a holder if the holder needs or expects to receive any return or a specific return on investment. The Notes are designed for holders with a long–term investment horizon who are prepared to hold the Notes to the Maturity Date and are prepared to assume risks with respect to a return tied to the performance of the assets. Prospective purchasers should take into account additional risk factors associated with this Offering. See “Risk Factors” in the Information Statement. If a holder sells Notes prior to the Maturity Date, the holder may have to do so at a discount from the original Principal Amount even if the performance of the Portfolio has been positive and, as a result, the holder may suffer losses. In addition, an “Early Trading Charge” of up to 6.95% of the principal amount of a Note will be applied if the holder sells a Note prior to maturity in years 1 to 3 following the issue date. The Notes are not redeemable by the investor. The Notes are generally not suitable for an investor who requires liquidity prior to the Maturity Date. An investor should consult his or her investment advisor concerning whether it would be more favorable to the investor in the circumstances at any time, to sell the Notes (assuming the availability of a secondary market) or to hold the Notes until the Maturity Date. An investor should also consult his or her tax advisor as to the income tax consequences arising from a sale prior the Maturity Date as compared to holding the Notes until the Maturity Date. The Notes are issued by The Bank of Nova Scotia. The Selling Agent is a subsidiary of the Bank. As a result, the Bank is a related and issuer of the Selling Agent under applicable securities legislation. “CI”, “CI Investments”, Signature”, “Signature”, “Signature Income & Growth Fund” and the CI Investments design are trademarks of CI Investments Inc. and have been licensed for use by Scotia Capital. “Scotiabank”, “Scotia Capital”, “Performer Deposit Notes” and the flying “S” logo are registered trademarks of The Bank of Nova Scotia (“Bank”).

Key Features 8-year Principal Protected Notes linked to the performance of the Signature Income & Growth Fund 125% exposure to the fund on inception 5.76% per annum indicative monthly coupons based on 125% exposure to 75% of Fund distributions* (monthly coupons treated as interest income) 200% potential exposure to the Fund using leverage generating an indicative potential distribution rate of 9.21% per annum Capital gains potential if sold prior to maturity * As at February 28, 2007, the indicated distribution rate on the Fund was 6.25%. There is no guarantee that the Fund will achieve its target yield or make any distributions, or that the Deposit Notes will maintain 125% exposure. Accordingly, the amount of any distribution paid for any month during the term of the Deposit Notes will likely vary and could be zero.

Investment Highlights Monthly Income –75% of ordinary cash distributions paid out as Monthly Coupons with the remainder reinvested to enhance growth potential –5.76% indicative monthly coupon per annum* Opportunity for Growth –125% initial exposure with up to 200% potential exposure through the Loan facility –Dynamic asset allocation strategy offers enhanced returns by increasing Fund exposure when Fund outperforms and decreasing Fund exposure when Fund underperforms Low Cost Fees and Margin –Maximum annual Program fee of 2.95%, only 0.61% more than the February 2007 MER on the Class A units of the Fund –Interest rate of 1-month Bankers’ Acceptance Rate %, well below rates charged on investor margin accounts * As at February 28, 2007, the indicated distribution rate on the Fund was 6.25%. There is no guarantee that the Fund will achieve its target yield or make any distributions, or that the Deposit Notes will maintain 125% exposure. Accordingly, the amount of interest paid or partial principal repaid for any month during the term of the Deposit Notes will likely vary and could be zero.

75% of all ordinary distributions by the Fund will be paid as Monthly Coupons. All other distributions notionally reinvested in additional Units of the Fund. Amount of Monthly Coupons will be dependent on the distribution rate of the Fund and the Deposit Note’s exposure to the Fund (i.e., number of Units held in the Fund Account) at the relevant time. Assuming 6.25% annual distributions and the maximum 200% exposure to the Fund – the Bank of Nova Scotia – CI Performer Deposit Notes can yield 9.21% p.a. of the NAV of the Deposit Notes. Initially, $125 per note will be invested in the Fund. On inception, based on the expected initial yield of the Fund (6.25% as at February 28, 2007), CI Perfomer Deposit Notes will yield 5.76% per annum. Monthly Coupons will not reduce the amount of principal repaid at maturity. Term-to-maturity: 8 years Monthly Coupons

The chart sets out indicative Distribution rates on the Notes in different scenarios that vary depending on the performance of the Fund Account. The data is based on: (i)an indicative annual Distribution rate on the Units of 6.25% (ii)monthly coupons equal to 75% of Distributions and; (iii)a constant Floor value. Note NAV Change In Note NAV Exposure to Fund Monthly p.a. $ %200%9.21% $ %156%7.18% $ %125%5.76% $ %102%4.71% $ %77%3.55% $ %59%2.72% $ %44%2.03% $ %33%1.52% $ %24%1.11% $ %18%0.83% $ %13%0.60% $ %0% % Note: A Protection Event occurs in the NAV decreases to $1.50 or less above the Floor per Note. If a Protection Event occurs, the Units in the Fund Account are redeemed at the then prevailing net asset value per Unit and the proceeds used to pay down the Loan and acquire Bonds for the Bond Account.

Signature Income & Growth Fund Fund Description Seeks to provide a steady flow of current income while preserving capital by investing in a diversified portfolio of equity and fixed income securities Targets an approximate annual distribution rate of 6.25% paid out monthly Fund Management Expertise Eric Bushell, Senior Vice-President, Portfolio Management and Chief Investment Officer of the award-winning Signature Advisors James Dutkiewicz, Vice-President and Portfolio Manager with Signature Advisors Asset Allocation, February 28, 2007 Canadian Equity 36.36% Bond 25.22% United States Equity 12.31% International Equity 13.86% Cash 12.24% Other 0.03%

Excellent Track Record * Source: MorningStar Research Inc. **Past performance is not necessarily indicative of future performance. 1 yr, 2 yr & 5 yr rates are annualized. Growth of $10,000 Dec 2000 to Dec 2006** 4 star fund by Morningstar - 1st quartile returns* Annual Fund Performance** Fund Performance as at February 28, 2007** YTD 1Mo3Mo1Yr2Yr5Yr 1.2% -0.4% 2.8% 11.2% 13.4% 10.7% 9.0% -2.4% 15.6% 13.3% 14.7% 12.7%

Dynamic Asset Allocation: On Issue Date $125 per deposit note will be used to notionally purchase the Shares. Allocation Events rebalance the portfolio from time to time in accordance with a pre-defined set of rules. These rules ensure that there are sufficient assets to return the principal amount at maturity and may also allow for leverage through a notional loan facility during positive performance. During the term of the Notes funds are allocated between the Shares and the Notional Bonds using the following rules: As the Distance  Allocation to the Shares  As the Distance  Allocation to the Shares  Note Notional Bonds The Fund Reallocation based on market movements $125 Initial Investment Distance = (NAV – Floor) Fund Account Value How Does Dynamic Asset Allocation Work?

Sale of Bonds and/or Loan facility used to purchase additional Shares Distance returns to 17% No action taken Shares sold, Loan amount paid down & remainder used to purchase Bonds Distance returns to 17% If Distance is: How Does Dynamic Asset Allocation Work?

The diagram illustrates how the Note could potentially be leveraged and de-leveraged over the term of the Note as the NAV of the note rises and falls with respect to the Floor Price (i.e. the cost to purchase notional Bonds to ensure $100 at maturity). At inception, the exposure to the Fund is 125% with the potential for 200% exposure. Regardless, the Notes provide for 100% principal protection on the notes, if held to maturity, even if the value of the Portfolio falls below the Principal Amount. How Does Dynamic Asset Allocation Work?

Leveraging Event If the Distance rises above 21%, a Leveraging Event will occur. The Loan amount is increased with the proceeds notionally invested in the Fund Account to return the Distance back to approximately 17%. This allows $31.10 of additional Units to be notionally purchased via the Loan thereby increasing Fund Account Value to $

De-Leveraging Event If the Distance falls below 13%, then a De-Leveraging Event will occur. Units are notionally redeemed and proceeds from the sale will first be applied to repay the Loan. Once the Loan is fully paid down, any additional proceeds are notionally invested in the Bond Account, returning the Distance back to 17%. This would require $28.85 of Units to be notionally redeemed, thereby reducing Fund Account Value to $91.75.

Protection Event A “Protection Event” would occur if the NAV reaches or falls below $1.50 per Note above the Floor, at which time the Portfolio would be entirely invested in Bonds. Following a Protection Event, the Portfolio will remain entirely in Bonds until the Maturity Date regardless of the subsequent performance of the Units.

Key Benefits Principal Protection with attractive potential yield –Investor’s principal, if held to maturity, is secure regardless of the performance of the Portfolio –Current indicative monthly distribution rate of 5.76%* Potential for Enhanced Returns –Up to 200% exposure to the Fund using the dynamic asset allocation strategy Lower cost alternative to margin accounts –Leverage applied at Banker’s Acceptance Rate plus 0.25% –Most margin accounts charge Prime % (currently 7.00%) Potential for Tax Advantages –Variable Return, if any, should not be subject to tax until it is paid –Capital gains potential if sold prior to maturity *As at February 28, 2007 **Holders should consult and rely on their own tax advisors.

Potential Investors Conservative Investors:  Medium to long-term, risk-sensitive investors who are holding high levels of cash. Fixed-Income Investors:  Investors hesitant to lock in long-term rates at current levels.  Investors missing investment goals due to low interest rates. Retirement Accounts:  The Bank of Nova Scotia – CI Performer Deposit Notes offer attractive features for retirees:  Signature Income & Growth Fund provides stable, predictable distributions from a diversified asset mix.  Principal protection at maturity that is not reduced by monthly coupons.

Summary of Terms IssuerBank of Nova Scotia Issue DateMay 24, 2007 Maturity DateMay 24, 2015 (Term to Maturity: 8 years) Issue SizeSubscription Price: $100 per Deposit Note Minimum Purchase: $5,000 (50 Deposit Notes) Structural Features Dynamic Asset Allocation Strategy. Underlying Fund: Signature Income & Growth Fund. Potential for 200% exposure to the Fund. 125% exposure on inception - 100% principal protection at maturity. Monthly coupons equivalent to 75% ordinary distributions of the Fund. Monthly coupons at inception expected to equal 5.76% per annum. Fees & ExpensesPortfolio Fee: 2.95% of Fund Account Value; 0.50% of Bond Account Value. Loan Facility: Interest charged at BA’s, plus 25 bps per annum. All fees and expenses calculated daily and payable monthly in arrears from assets in the Portfolio. RRSP Eligibility100% eligible for RRSPs, RRIFs, RESPs, DPSPs and LIRAs. All registered plan purchases must be placed through a dealer or intermediary sponsored plan. Secondary MarketScotia Capital will maintain a secondary market for Deposit Notes (subject to availability). Early trading charge may apply on dispositions prior to maturity. Selling period March 26 – May 18

Advisor Compensation:  Upfront Commission: 5.00%  Trailer: 0.50% p.a. of Fund Account Value  FundSERV Code: SSP200

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