Mr. Steve Malone reports

CLIFFSIDE CAPITAL LTD. ANNOUNCES FISCAL 2021 RESULTS

Cliffside Capital Ltd. has released strong financial results for the year ended Dec. 31, 2021. The company reported:

• Acquisition of a record-high $98.6-million in gross finance receivables;
• Net income before taxes for the year ended Dec. 31, 2021, of $1.6-million;
• Adjusted net income before taxes for the year ended Dec. 31, 2021, of $2.3-million (refer to reconciliation of non-international financial reporting standard measures in the 2021 management's discussion and analysis);
• The company's profitability is reflective of better portfolio performance as a result of lower write-offs and lower delinquency levels.

As previously announced, the company raised $4.5-million in gross proceeds through a private placement of its common shares in third quarter 2021, of which it invested $3.75-million for a 60-per-cent ownership interest in a newly formed special-purpose private limited partnership, CAR LP I. The new private limited partnership was formed to acquire non-prime consumer auto loan receivables. The new financing structure for CAR LP I has resulted in better financing costs and improved cash flows for the company.

The company also approved the initiation of a quarterly dividend and declared its inaugural quarterly cash dividend in third quarter 2021, which was followed by quarterly cash dividends declared in fourth quarter 2021 and first quarter 2022 on the company's outstanding common shares of 0.25 cent per common share (one cent on an annualized basis), reflective of the strong performance of the company's portfolio. Each such dividend qualified as an eligible dividend as defined in the Income Tax Act (Canada). The dividends were subject to customary Canadian withholding tax for shareholders who are non-resident in Canada.

"This year has proven to be the most significant on record for the company. We saw record acquisition of new finance receivables, a new investment in CAR LP I and the declaration of a quarterly cash dividend program. As the market likely starts to normalize in 2022 after several years of low interest rates and various COVID-19 consumer support programs, we will remain focused on acquiring assets with strong risk-adjusted returns to continue driving long-term value for our shareholders," said chief executive officer Steve Malone.

About Cliffside Capital Ltd.

Cliffside is focused on investing in strategic partnerships with parties which have specialized expertise and a proven record in originating and servicing loans and similar types of financial assets. Cliffside's strategy is to generate revenue as an investor, affording its shareholders an opportunity to invest in the growing alternative lending sector with the potential for attractive yields and minimal operational risk while earning a reliable total return.

We seek Safe Harbor.