Xceed Company Profile Helping Canadians Make It Home

Forward-Looking And Other Statements This presentation contains forward-looking statements which reflect management’s expectations regarding Xceed Mortgage Corporation’s future growth, performance (both operational and financial), and business prospects and opportunities. Past results do not constitute a guarantee of future performance. A number of factors could cause actual results, performance, or achievements to differ materially from the results expressed or implied in these materials. Business prospects and opportunities considered are based on approximation extrapolation of potential market indicators. These factors should be considered carefully and prospective investors should not place undue reliance on any forward-looking statements

Corporate Overview Established in Canada in 1997 as a subsidiary of IMC Mortgage Corporation. Current investor group purchased 90% of common stock from BMO in April 2002 and recapitalized firm with $22.2MM. IPO of June 2004 raised additional $24.34MM

Value Proposition Focused Origination –Established mortgage broker relationships –Financial Institution channel –Direct business Risk-Reward Management –Credit risk –Market risk Business Model –Securitization program –Entrepreneurial culture –Structured management processes –Technology - 4 -

Executive Team Ivan Wahl – Chairman, CEO & Director –30 years of experience in the Canadian mortgage finance industry. –Played a leading role in the development of the mortgage-backed securitization industry in Canada. –Founded FirstLine Trust Company in 1985, grew and sold the business to CIBC in –Vice-Chairman and Director of CIBC Mortgages Inc. from 1995 to –Recipient of the Ernst & Young Financial Services Entrepreneur of the Year award for Michael Jones – President & COO –Previously Vice President, Commercial Mortgages for CIBC Mortgages Inc. where he also oversaw the CIBC Access Program. –Joined FirstLine Trust in John Ayanoglou – CFO & Corporate Secretary –Previously the Chief Financial Officer of publicly-listed Cartier Partners Financial Group. –Practiced within Financial Services Group of PricewaterhouseCoopers LLP from 1996 to Karen Martin – VP, Securitization and Capital Markets –Previously the Treasurer of Amicus Holdings (division of CIBC), Director of Balance Sheet Management, and General Manager of Securitization for CIBC. –Manager, Financial Analysis and Manager, Financial Reporting for FirstLine Trust Co. from 1988 to Majority of Board consists of non-related independent directors 30% control by management - 5 -

Financial Performance Revenue$1,558M$60,678M100.9% AUM$132MM$2,481MM74.9% Net Income (2) ($1,127)M$23,802M73.5% ROAE (3) (34.8%)23.7%21.9% (1) (1)Trailing twelve months ended January 31, 2007, except for Mortgages. (2)The CAGR figure for Net Income is calculated from fiscal year 2002 as net income was negative in (3)The percentage presented is the average ROAE calculated from fiscal year 2002 as net income was negative in CAGR - 6 -

Revenue Growth CAGR 100.9% Under Current Management * Xceed’s fiscal year end is October 31. The 2007 balance represents the trailing twelve months ended January 31, Under Previous Management

Total Assets Under Administration Growth CAGR 74.9% Under Previous Management after 5 years Under Current Management * Xceed’s fiscal year end is October 31. The 2007 balance represents the trailing twelve months ended January 31, $2,481

Increasing Profitability Under Current Management Under Previous Management Net Income Growth CAGR 73.5% * Xceed’s fiscal year end is October 31. The 2007 balance represents the trailing twelve months ended January 31, 2007.

Effective Use of Capital Under Current Management Under Previous Management Return on Equity Average 21.9% * Xceed’s fiscal year end is October 31. The 2007 ratio represents the trailing twelve months ended January 31, 2007.

Growth Potential Potential size of Canadian non-traditional market is estimated at 10% of the total residential mortgage financing market (approximately $700 billion) Total outstandings of the non-conforming market in Canada are approximately $12 billion Over $55 billion in untapped potential!! This represents 300,000 families living in apartments who may meet our underwriting requirements and would love to own their own homes

Market Niche Focus on non traditional market: Non Conforming Credit High Loan to Value Uninsured

25%50%75% 100% ABCABC Traditional Lenders (Big 6 Banks) Home Capital / Equitable Trust Mortgage Loan to Value (LTV) Ratio Borrower Credit Rating Market Position XCEED Wells Fargo / GMAC / First National/GE Money

Fundamentals Opportunity for product innovation beyond vanilla offerings. Low variable cost business model provides significant operating leverage: electronic approval / funding system, with single location (in Toronto). Efficient method of raising capital provides opportunity for high ROE Effective improvements in funding ratios to leverage increased volumes

Funding Methodology $350 million warehouse facility Securitization of mortgages thru regular (non- recourse) sale to CP Trust –Trust senior notes funded through established $100 billion dollar asset-backed commercial paper market –Trust credit enhancement provided by third party investors and Xceed New term structure

Solid Risk Control Interest Risk immunization thru swaps and other hedging mechanisms. Credit Risk control thru frequent asset quality and compliance reviews by DBRS and Trusts’ securitization agent –First charge, residential mortgages only, regionally diversified, in pre- approved locales –Average mortgage size is $160,000 –Option for mortgages with LTV > 90% to retain only the risk associated with 80% piece and sell the subordinated > 80% piece to third party financial institution OR to securitize entire mortgage

Credit Risk Typical Xceed Mortgage: Homeowner Equity Interest Sold To 3 rd Party F.I. Credit Risk Managed by Xceed 100% 92% 81% Securitized Portfolio

Diversification As at October 31, 2006

Financial Model: Pro-Forma Economics. Recurring Yield Spreads Mortgage Coupon (1) 7.30% Cost of Funds (1) (4.14%) Gross Spread3.16% Trust Costs (2) (1.24%) Net Spread1.92% Net Origination Income (3)(4) 0.09% Net Operating Expenses (4) (0.81%) Recurring Income (5) 1.20% 1)Approximate mortgage coupon rate and cost of funds are based on the average in the securitized portfolio as at January 31, )Trusts costs consist of allowance for losses, historical cost of credit enhancement in the existing securitized portfolio, program fees, and MCAP servicing costs. 3)Net Origination Income is comprised of application fee revenue based on Xceed’s historical product mix, less other costs incurred up to mortgage funding. These other costs include commissions and volume bonuses, cost of yield “buy up” on subordinate co-owned interest, and other origination costs. 4)This estimate is calculated by spreading the costs incurred during the twelve month period ending January 31, 2007, normalized, over the expected life of the mortgages originated. 5)Recurring income is before applicable taxes and does not consider prepayment fee income and certain pipeline hedging costs

Disciplined Underwriting Under Previous Management Under Current Management Reduction in Loss & Default Percentages (1) (1)Annualized credit loss and mortgage default ratios are a percentage of average combined securitized and non-securitized portfolios under administration. (2) Xceed’s fiscal year end is October 31. The 2007 ratios represents the trailing twelve months ended January 31, (2)

Summary Limited competition. Nascent, rapidly growing niche. Strong experienced management. Capital markets proprietary funding models. Performance based culture. Focused multi-channel origination. Disciplined underwriting. Disciplined default management. Risk adjusted pricing model. Flexible, scalable technology with comprehensive relevant reporting capability

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