PRESS RELEASE

TORSTAR CORPORATION REPORTS THIRD QUARTER RESULTS

TORONTO, ONTARIO – (CNW – October 31, 2018) – Corporation (TSX:TS.B) today reported financial results for the third quarter ended September 30, 2018.

Highlights for the third quarter:

• We continue to make progress on the transformation of our business. On September 27, 2018, we launched our digital subscription offerings on thestar.com. The launch of digital subscriptions is a significant step in our transformation anchored around high quality, in-depth local, and investigative journalism. On September 20, 2018, we also introduced user registrations on yorkregion.com, simcoe.com and .com within the Community Brands segment to add value to our audiences through the enhanced collection and use of data as we continue to make investments in hyper-local content. We also continue to make progress in key areas such as data infrastructure, advanced analytics capabilities and customer life cycle management capabilities.

• During the quarter, we bolstered our national digital expansion with the launch of the thestar.com's mobile application in , , and Halifax.

• Subsequent to the end of the quarter, we acquired the assets of iPolitics, a digital political news outlet based in Ottawa that provides extensive digital online coverage of federal and provincial politics. The purchase of iPolitics complements the political coverage by the ’s Ottawa and Queen’s Park bureaus and we have included some iPolitics content as part of our basic digital subscription offering on thestar.com.

• On September 27, 2018, we received approval from the members of our eight registered defined benefit pension plans (the “Torstar Plans”) to proceed with the merger of the Torstar Plans with the Colleges of Applied Arts & Technology Pension Plan (the “CAAT Plan”) effective October 1, 2018, with Torstar and certain of its subsidiaries becoming participating employers under the CAAT Plan. The merger remains subject to the consent of the Superintendent of Financial Services (Ontario), which is not expected to occur prior to the second half of 2019.

• During the third quarter, we sold our portfolio investment in Kanetix Ltd. for cash proceeds of $5.6 million and recorded a gain before tax of $2.6 million in other comprehensive income.

• We ended the third quarter of 2018 with $48.4 million of cash and cash equivalents and $7.7 million of restricted cash; Torstar has no bank indebtedness.

• Our net loss attributable to equity shareholders was $18.8 million ($0.23 per share) in the third quarter of 2018. This compares to a net loss of $6.6 million ($0.08 per share) in the third quarter of 2017.

• Adjusted loss per share was $0.22 in the third quarter of 2018. This compares to an adjusted loss per share of $0.08 in the third quarter of 2017.

• Our segmented adjusted EBITDA was $1.4 million in the third quarter of 2018, down $9.8 million from the third quarter of 2017. Segmented adjusted EBITDA loss in the Daily Brands segment was $3.9 million in the third quarter, compared to adjusted EBITDA of $1.1 million in the third quarter of 2017. Segmented adjusted EBITDA in the Community Brands segment was $2.2 million, down $3.4 million relative to the comparable period in 2017 while segmented adjusted EBITDA in the Digital Ventures segment was $5.7 million, down $1.5 million relative to the third quarter of 2017, $0.4 million of which was related to the sale of in early April.

• Segmented revenue was $143.2 million in the third quarter of 2018, down $21.4 million (13%) from $164.6 million in the third quarter of 2017 and included revenue growth of $0.8 million or 7% (3% growth in USD) from VerticalScope. On a same store basis, segmented revenue was down $11.4 million (8%) in the third quarter of 2018.

“The quarter saw a number of notable events unfold along our transformation path. The acquisition and addition of iPolitics to our content portfolio, the launch of a mobile app for thestar.com in Vancouver, Calgary, Edmonton and Halifax and most importantly, the introduction of our digital subscription offerings on thestar.com in all regions across the country. We also began the roll-out of user registration across our Torstar digital brands as a critical step in adding

-1- value to our digital audience, through first party data. We are making very good progress on many fronts.” said John Boynton, President and CEO of Torstar. “Results in the quarter, however, were more challenging with segmented adjusted EBITDA of $1.4 million, down $9.8 million as print advertising revenue trends were more difficult compared to our experience in recent quarters. On a positive note, we continue to be pleased with the relative stability of subscriber revenue which is a large and more resilient part of our business, as well as the moderate declines experienced in flyer distribution revenues. Our results also benefited from synergies associated with the purchase and sale of a number of daily and community papers in late 2017, as well as efforts on costs which continues to be an important area of focus.” The following chart provides a continuity of earnings per share from the third quarter and first nine months of 2017 to the third quarter and first nine months of 2018:

Three months ended September 30 Nine months ended September 30

Adjusted Adjusted Earnings (Loss) Earnings (Loss) Earnings (Loss) Earnings (Loss) Per Share Per Share** Per Share Per Share**

Loss per share from continuing operations attributable to equity ($0.08) ($0.08) ($0.48) ($0.31) shareholders in 2017 Changes

• Adjusted EBITDA* (0.12) (0.12)

• Amortization and depreciation* (0.03) (0.03)

• Operating earnings (loss)* (0.23) (0.23) (0.48) (0.31)

• Restructuring and other charges* (0.01) (0.02)

• Impairment of assets* 0.04

• Operating loss* (0.24) (0.23) (0.46) (0.31)

• Interest and financing costs (0.01) (0.01)

• Non-cash foreign exchange (0.01) (0.02)

• Loss from associated businesses (excluding VerticalScope) 0.01 0.01

• Other income 0.01 0.01

• Other 0.05 0.06

Loss per share from continuing operations attributable to equity ($0.23) ($0.22) ($0.43) ($0.26) shareholders in 2018

Earnings per share from discontinued operations attributable to equity $0.08 shareholders in 2018

Loss per share attributable to equity shareholders in 2018 ($0.23) ($0.22) ($0.35) ($0.26) *Includes proportionately consolidated share of joint venture and VerticalScope's operations. These include Non-IFRS or additional IFRS measures. ** Refer to discussion of "Non-IFRS measures" including definition of adjusted earnings (loss) per share.

OPERATING RESULTS –THIRD QUARTER 2018

The following tables set out, in $000’s, the segmented results for the three months ended September 30, 2018 and 2017:

Three months ended September 30, 2018 Total Per Adjustments Consolidated Digital Total & Statement (in $000’s) Communities Dailies Ventures Corporate Segmented* Eliminations1 Loss Operating revenue $60,717 $67,037 $15,409 $143,163 ($16,775) $126,388 Salaries and benefits (30,829) (27,777) (4,826) ($1,613) (65,045) 5,214 (59,831) Other operating costs (27,662) (43,190) (4,888) (988) (76,728) 5,324 (71,404) Adjusted EBITDA** 2,226 (3,930) 5,695 (2,601) 1,390 (6,237) (4,847) Amortization & depreciation (3,157) (3,100) (11,317) (17,574) 10,752 (6,822) Share based compensation (91) (29) (374) (234) (728) 728 Operating earnings (loss)** (1,022) (7,059) (5,996) (2,835) (16,912) 5,243 (11,669) Restructuring and other charges (103) (1,644) (245) (114) (2,106) 245 (1,861) Operating loss** ($1,125) ($8,703) ($6,241) ($2,949) ($19,018) $5,488 ($13,530) Net loss ($18,777)

-2- Three months ended September 30, 2017

Total Per Adjustments Consolidated Digital Total & Statement of (in $000’s) Communities Dailies Ventures Corporate Segmented* Eliminations1 Loss Operating revenue $73,461 $73,282 $17,845 $164,588 ($18,675) $145,913 Salaries and benefits (34,895) (27,368) (5,174) ($1,509) (68,946) 5,603 (63,343) Other operating costs (32,929) (44,785) (5,502) (1,200) (84,416) 5,494 (78,922) Adjusted EBITDA** 5,637 1,129 7,169 (2,709) 11,226 (7,578) 3,648 Amortization & depreciation (3,357) (3,675) (8,006) (15,038) 7,467 (7,571) Share based compensation (126) (91) (484) 88 (613) 613 Operating earnings (loss)** 2,154 (2,637) (1,321) (2,621) (4,425) 502 (3,923) Restructuring and other charges (771) (379) (575) (1,725) 678 (1,047) Operating profit (loss)** $1,383 ($3,016) ($1,896) ($2,621) ($6,150) $1,180 ($4,970) Net loss ($6,589) 1Reflects adjustments and eliminations of proportionately consolidated results of, and transactions with joint ventures and VerticalScope Holdings Inc. ("VerticalScope"). * Includes proportionately consolidated share of joint venture operations and VerticalScope . ** These are non-IFRS or additional IFRS measures, see “Non-IFRS measures”.

Revenue In November 2017, we completed a transaction with Inc. (“Postmedia”), in which we purchased and sold a number of daily and community newspapers. As part of the transaction, we acquired eight weekly community publications, seven paid daily newspapers and two free daily newspapers from Postmedia. In addition, we sold 22 weekly community newspapers in eastern and southern Ontario and the Metro Winnipeg and Metro Ottawa free daily publications to Postmedia. Readers and advertisers of certain publications we acquired and subsequently closed are now being serviced by one or more of our other Community properties while we continue to operate four daily newspapers acquired from Postmedia now included in our Daily Brands segment. Refer to Section 12 of our MD&A for the three and nine months ended September 30, 2018 as well as Section 16 of our annual MD&A for further discussion. As a result of publications sold and acquired, revenues in the Community Brands segment were estimated to be $6.3 million lower in the third quarter of 2018, while revenues in the Daily Brands segment were $1.9 million higher in the third quarter of 2018. Revenues in the third quarter of 2018 were also impacted by the sale of Workopolis in April 2018 and wagjag.com in October 2017. When we refer to "same store basis" in this press release, the comparisons have been adjusted to exclude these properties.

Segmented revenue was $143.2 million, down $21.4 million or 13% in the third quarter of 2018 and included revenue growth of $0.8 million (7%) from VerticalScope (3% in USD). On a same store basis, segmented revenue was down $11.4 million (8%) in the third quarter of 2018.

Operating revenue (excluding our proportionate share of revenues from our joint ventures and our 56% interest in VerticalScope) was down $19.5 million or 13% in the third quarter of 2018.

On a same store basis for the third quarter, subscriber revenues were down 1% from prior year, print advertising revenues were down 20% and flyer distribution revenues were down 4%.

On a same store basis, digital revenues in the third quarter were comparable to the prior year reflecting continued solid growth in local digital advertising within the community websites and growth at thestar.com as well as growth at VerticalScope. Gains in these areas were offset by declines in properties in other digital verticals. On a reported basis, digital revenues were 20% of total revenue in the third quarter of 2018 compared to 19% in the third quarter of 2017.

-3- The following charts provide a breakdown of total segmented operating revenue:

Communities Dailies Digital Ventures Total Three months ended September 30, 2018 $ % $ % $ % $ % Print advertising $23,387 39% $23,522 35% $46,909 33% Digital advertising 6,248 10% 6,415 10% $15,409 100% 28,072 20% Distribution 22,330 37% 4,935 7% 27,265 19% Subscriber 111 —% 29,688 44% 29,799 21% Other 8,641 14% 2,477 4% 11,118 7% Total $60,717 100% $67,037 100% $15,409 100% $143,163 100%

Communities Dailies Digital Ventures Total Three months ended September 30, 2017 $ % $ % $ % $ % Print advertising $30,523 42% $31,365 43% $61,888 38% Digital advertising 7,684 10% 5,890 8% $17,845 100% 31,419 19% Distribution 26,594 36% 4,688 6% 31,282 19% Subscriber 176 —% 29,139 40% 29,315 18% Other 8,484 12% 2,200 3% 10,684 6% Total $73,461 100% $73,282 100% $17,845 100% $164,588 100%

Salaries and benefits Segmented salaries and benefits costs were down $3.9 million (6%) in the third quarter of 2018. The decrease reflects $1.8 million of lower costs associated with the Postmedia transaction as well as the benefit of savings from restructuring initiatives. These reductions were partially offset by the impact of higher minimum wage in Ontario, additional staffing related to our transformation activities as well as increased salary and benefit costs associated with acquisition related growth at VerticalScope.

Other operating costs Segmented other operating costs primarily include newspaper circulation and flyer distribution costs, newspaper production costs and newsprint costs, which represented 41%, 14% and 10%, respectively, of segmented other operating costs for the third quarter of 2018.

Segmented other operating costs were down $7.7 million (9%) in the third quarter of 2018, largely as a result of $3.7 million of lower costs associated with the sale of publications to Postmedia as well as lower print volumes and the impact of other cost reductions, partially offset by additional costs related to our transformation activities.

Adjusted EBITDA Our segmented adjusted EBITDA was $1.4 million in the third quarter of 2018, down $9.8 million from the third quarter of 2017. Segmented adjusted EBITDA loss in the Daily Brands segment was $3.9 million in the third quarter, compared to adjusted EBITDA of $1.1 million in the third quarter of 2017. Segmented adjusted EBITDA in the Community Brands segment was $2.2 million, down $3.4 million relative to the comparable period in 2017 while segmented adjusted EBITDA in the Digital Ventures segment was $5.7 million, down $1.5 million relative to the third quarter of 2017, $0.4 million of which was related to the sale of Workopolis in early April.

The third quarter of 2018 included an incremental $1.1 million in segmented adjusted EBITDA resulting from synergies associated with the Postmedia transaction, as well as $6.4 million of savings related to restructuring initiatives offset by $3.6 million of costs related to our transformation activities.

Our transformation efforts through the end of the third quarter have been concentrated on the launch of digital subscriptions on thestar.com, a major national digital expansion, an exclusive deal with the Wall Street Journal, the roll out of user registrations to add value to our audiences through the enhanced collection and use of data, an increased

-4- investment in investigative journalism, hyper-local and local content, development of our data infrastructure, advanced analytics capability and customer life cycle management capabilities.

Amortization and depreciation Total segmented amortization and depreciation of $17.6 million in the third quarter of 2018 increased $2.6 million relative to the comparable period in 2017. The increase in the third quarter was primarily the result of higher amortization related to acquisitions made at VerticalScope partially offset by lower amortization associated with our Daily and Community Brands segments.

Operating earnings (loss) Segmented operating loss was $16.9 million in the third quarter of 2018 compared to $4.4 million in the third quarter of 2017, largely the result of lower adjusted EBITDA and higher amortization and depreciation.

Restructuring and other charges Total segmented restructuring and other charges were $2.1 million in the third quarter of 2018 compared to $1.7 million in the third quarter of 2017. Restructuring initiatives undertaken through the end of the third quarter of 2018 are expected to result in annualized net savings of $12.8 million and have resulted in the reduction of approximately 250 positions with $8.6 million of the savings expected to be realized in 2018 (including $5.4 million in the first nine months).

Operating profit (loss) Segmented operating loss was $19.0 million in the third quarter of 2018, compared to an operating loss of $6.2 million in the third quarter of 2017 reflecting lower adjusted EBITDA, higher amortization and depreciation expense and higher restructuring and other charges.

Our operating loss excluding our proportionate share of operating profit (loss) from VerticalScope and our joint ventures was $8.5 million higher in the third quarter of 2018.

Income (loss) from joint ventures Our income from joint ventures was $0.2 million in the third quarter of 2018 compared to a loss of less than $0.1 million in the third quarter of 2017. The results of our joint ventures are included in our discussions of segmented revenue and segmented adjusted EBITDA above.

Loss from associated businesses Our loss from associated businesses was $5.6 million in the third quarter of 2018 compared to a loss of $2.3 million in the third quarter of 2017. The loss from associated businesses was heavily influenced by amortization and depreciation expense related to acquisitions activity at VerticalScope where U.S. $9.1 million of acquisitions were completed in the third quarter of 2018.

The loss in the third quarter of 2018 included income of $0.1 million from offset by a loss of $5.4 million from VerticalScope, $0.2 million from Blue Ant and $0.1 million from Nest Wealth. The loss from VerticalScope included $10.6 million of non-cash amortization and depreciation expense primarily related to acquisition activity. The loss in the third quarter of 2017 included losses of $0.5 million from Blue Ant, $0.3 million from Black Press and $1.5 million from VerticalScope which included $7.3 million of amortization and depreciation expense.

During the third quarter of 2018, VerticalScope generated U.S. $1.3 million in cash from operations and made acquisitions totalling U.S. $9.1 million. VerticalScope's debt, net of cash, increased U.S. $38.5 million from U.S. $87.1 million at December 31, 2017 to U.S. $125.6 million at September 30, 2018.

Other income During the third quarter of 2018, we recorded other income of $0.3 million primarily related to a gain on the sale of a real estate property.

Income and other taxes We recorded tax recoveries of $0.3 million in the third quarter of 2018, and recoveries of $0.1 million in the third quarter of 2017. We have not recognized the benefit of deferred income tax assets in income tax expense recorded in the third quarter of 2018.

-5- Net loss attributable to equity shareholders Our net loss was $18.8 million ($0.23 per share) in the third quarter of 2018. This compares to a net loss of $6.6 million ($0.08 per share) in the third quarter of 2017.

OUTLOOK In the third quarter of 2018, the Community Brands and the Daily Brands segments continued to face a challenging print advertising market resulting from ongoing shifts in spending by advertisers. While these trends have continued early into the fourth quarter, it is difficult to predict if these trends will improve or worsen in the balance of the year. On a same store basis, flyer distribution revenues declined 5% through the end of the third quarter and we expect this trend to continue in the balance of the year. On a same store and comparable timing basis, subscriber revenues declined 1% through the end of the third quarter, and we expect this trend will worsen marginally in the balance of 2018 as we continue to increase focus on subscriber profitability. Overall digital revenue at the Community Brands and Daily Brands is expected to grow modestly in the fourth quarter of 2018, benefiting from growth in local digital advertising at the community sites and in growth at thestar.com partially offset by expected continued declines in other digital verticals. In addition, revenue in the fourth quarter will be negatively impacted by the loss of one week in the publishing calendar which is a reversal of the one extra publishing week included in our first quarter 2018 results. We estimated that this extra publishing week had a favourable revenue impact of $3.4 million in the first quarter of 2018 (Community Brands Segment - $2.6 million, Daily Brands Segment - $0.8 million).

We expect the transaction with Postmedia in November 2017 to continue to have a positive effect on earnings due to anticipated synergies, but a negative effect on revenue, as we experienced in the first nine months of 2018. We continue to expect that synergies from this transaction will contribute to an improvement in operating earnings in the range of $6 million to $7 million for the full year ($5.3 million in the first nine months of 2018).

Within the Digital Ventures segment, management at VerticalScope is working to remedy organic growth which has been negatively affected in the quarter and first nine months of 2018 by the reductions in search related traffic volumes. Revenue growth experienced in the third quarter of 2018 is expected to increase slightly in the balance of the year. This will be partially offset by declines resulting from the sale of Workopolis.com and related assets on April 12, 2018. Segmented revenue and adjusted EBITDA in respect of Workopolis was $2.3 million and $0.5 million respectively, in the fourth quarter of 2017. The revenue trends experienced at eyeReturn through the end of the third quarter of 2018 are expected to continue through the balance of the year.

In the first nine months of 2018, we have incurred an incremental $8.4 million of operating costs and $1.5 million of capital investment related to our transformation efforts. Our transformation efforts through the end of the third quarter have been concentrated on the launch of digital subscriptions on thestar.com, a major national digital expansion, an exclusive deal with the Wall Street Journal, the roll out of user registrations to add value to our audiences through the enhanced collection and use of data, an increased investment in investigative journalism, hyper-local and local content, development of our data infrastructure, advanced analytics capability and customer life cycle management capabilities. We anticipate that we will incur an approximate $13 - 14 million of incremental operating expenses in support of these efforts for the full year in 2018.

We expect these incremental operating costs will be more than offset by $18.4 million of full year savings related to restructuring initiatives undertaken through the end of the third quarter of 2018 ($9.1 million in the Community Brands segment and $9.3 million in the Daily Brands segment), $14.8 million of this benefit was realized in the first nine months of 2018. In addition, restructuring activities undertaken through the end of the third quarter of 2018 are expected to result in $4.1 million of savings in 2019 and we also expect to continue to identify additional cost savings in the balance of the year.

We anticipate that capital expenditures for the full year 2018 will be in the range of $13 - $14 million, including approximately $5 million of capital spending related to technology platforms in connection with our transformation activities.

On September 27, 2018, we received approval from the members of the Torstar Plans to proceed with the merger of the Torstar Plans with the CAAT Plan effective October 1st, 2018, with Torstar and certain of its subsidiaries becoming participating employers under the CAAT Plan. The merger remains subject to the consent of the Superintendent of Financial Services (Ontario), which is not expected to occur prior to the second half of 2019.

-6- Following the consent of the Superintendent of Financial Services (Ontario), the liabilities for all past benefits under the Torstar Plans will be transferred to the CAAT Plan together with the assets of the Torstar Plans, and the CAAT Plan will assume responsibility for all pension benefit payments to members of the Torstar Plans going forward. No additional cash funding related to the transferred liabilities is expected to be required from Torstar in connection with the merger. Effective October 1, 2018, members of the Torstar Plans began accruing benefits under the new DBplus provisions of the CAAT Plan. Funding related to registered defined benefit obligations for the full year 2018 is expected to continue to be in the range of $7 to $8 million, roughly in line with the expected expense included in our operating earnings in 2018.

DIVIDEND On October 30, 2018, Torstar declared a quarterly dividend of 2.5 cents per share on its Class A shares and Class B non-voting shares, payable on December 31, 2018, to shareholders of record at the close of business on December 10, 2018. Torstar advises that, for the purposes of the Income Tax Act, and for any relevant provincial tax legislation, this dividend is designated as an eligible dividend.

ADDITIONAL INFORMATION For additional information, please refer to Torstar’s condensed consolidated financial statements for the period ended September 30, 2018 (the "Condensed Consolidated Financial Statements") and the Interim Management’s Discussion and Analysis (“MD&A”). Both documents will be filed today on SEDAR and are available on Torstar’s corporate website www.torstar.com.

CONFERENCE CALL Torstar has scheduled a conference call for October 31, 2018 at 8:15 a.m. to discuss its third quarter results. The dial- in number is 647-427-7450 or 888-231-8191. A live broadcast of the conference call will be available over the internet on the Presentations, Events and Conference Calls page (Investor Relations) on Torstar’s website www.torstar.com. A recording of the conference call will be available for 9 days at 855-859-2056 reservation number 1889565. An online archive of the broadcast will be available shortly after the completion of the call and will be accessible by visiting the Presentations, Events and Conference Calls (Investor Relations) page on Torstar’s website www.torstar.com.

About Torstar Corporation Torstar Corporation is a broadly based media company listed on the Toronto Stock Exchange (TS.B). Its businesses include the Toronto Star, Canada’s largest daily newspaper, six regional daily newspapers in Ontario including ; English-language StarMetro newspapers in several Canadian cities; more than 80 weekly community newspapers in Ontario; flyer distribution services; and digital properties including thestar.com, wheels.ca, save.ca, toronto.com, a number of regional online sites and eyeReturn Marketing. Torstar also holds a majority interest in VerticalScope, a North American vertically-focused digital media company.

Non-IFRS measures In addition to operating profit (loss), an additional IFRS measure, as presented in the consolidated statement of income (loss), management uses segmented revenue, adjusted EBITDA (and where applicable segmented adjusted EBITDA), operating earnings (loss) (and where applicable segmented operating earnings (loss)), and adjusted earnings (loss) per share as measures to assess the consolidated performance and the performance of the reporting units and business segments. Please refer to Section 11 of Torstar’s MD&A for the three and nine months ended September 30, 2018 for a reconciliation of adjusted EBITDA and operating earnings (loss) (and segmented adjusted EBITDA/segmented operating earnings (loss) – as applicable) with operating profit (loss) (segmented operating profit (loss) – as applicable) and adjusted earnings (loss) per share to earnings (loss) per share.

Segmented revenue Segmented revenue is calculated in the same manner as operating revenue in the Condensed Consolidated Financial Statements, except that it is calculated using total segment results which includes our proportionately consolidated share of revenues from joint ventures and our 56% interest in VerticalScope. Management of each segment is accountable for the revenues, including the proportionately consolidated share of revenues from joint venture operations. We believe that segmented revenue is a useful measure for investors as it is a measure of the revenues for which management of each segment is accountable. The intent of segmented revenue is to provide additional useful information to investors, analysts and readers of our financial statements. The measure does not have any standardized meaning under IFRS and accordingly may not be comparable to measures used by other companies.

Adjusted EBITDA (Segmented Adjusted EBITDA) Management believes that adjusted EBITDA is an important proxy for the amount of cash generated by our ongoing operations (or by a reporting unit or business segment) to generate liquidity to fund future capital needs and we use this metric for this purpose. Adjusted EBITDA is not the actual cash provided by operating activities and is not a recognized measure of financial performance under IFRS. We calculate adjusted EBITDA as operating revenue, less salaries and benefits and other operating costs, as presented on the consolidated statement of income (loss), and exclude restructuring and other charges, share based compensation and impairment of assets. Share based compensation is eliminated as it is a non-cash expense that fluctuates significantly from period to period, in particular for VerticalScope as a result of industry compensation practices. Restructuring and other charges and impairment of assets are eliminated as these activities are not related to ongoing operations as of the end of the period. The exclusion of impairment of assets also eliminates the non-cash impact. Adjusted EBITDA is also used by investors and analysts for valuation purposes. The intent of adjusted EBITDA is to provide additional useful information to investors, analysts and readers of our financial statements. The measure does not have any standardized meaning under IFRS and accordingly may not be comparable to measures used by other companies

-7- (including calculating EBITDA on an adjusted basis to exclude restructuring and other charges, share based compensation and impairment of assets). Segmented adjusted EBITDA is calculated in the same manner described above, except that it is calculated using total segment results including our proportionately consolidated results for joint ventures and our 56% interest in VerticalScope for which management is accountable.

Operating earnings (loss)/Segmented operating earnings (loss) Operating earnings (loss) is used by management to represent the results of ongoing operations inclusive of amortization and depreciation. We use operating earnings (loss) as a measure of the amount of income generated by our ongoing operations (or by a reporting unit or business segment) after giving effect to amortization and depreciation. We believe this metric is also useful for investors for this purpose. We calculate operating earnings (loss) as operating revenue less salaries and benefits, other operating costs, share based compensation and amortization and depreciation. Operating earnings (loss) excludes restructuring and other charges and impairment of assets. Restructuring and other charges and impairment of assets are eliminated as these activities are not related to ongoing operations as of the end of the period. Our method of calculating operating earnings (including calculating operating earnings (loss) on an adjusted basis to exclude restructuring and other charges and impairment of assets) may differ from other companies and accordingly may not be comparable to measures used by other companies. The intent of operating earnings (loss) is to provide additional useful information to investors, analysts and readers of our financial statements. The measure does not have any standardized meaning under IFRS, is not a recognized measure of financial performance under IFRS, and accordingly may not be comparable to measures used by other companies. Segmented operating earnings (loss) is calculated in the same manner described above, except that it is calculated using total segment results including proportionately consolidated operating earnings (loss) for our joint ventures and our 56% interest in VerticalScope for which management is accountable.

Adjusted earnings (loss) per share Adjusted earnings (loss) per share is used by management to represent the per share earnings (loss) of results of our ongoing operations (or by a reporting unit or business segment) and is not a recognized measure of financial performance under IFRS. We believe this metric is also useful for investors for this purpose. We calculate adjusted earnings (loss) per share as earnings (loss) per share from continuing operations less the per share effect of restructuring and other charges, impairment of assets, non-cash foreign exchange, other income (expense) and change in deferred taxes. Restructuring and other charges and impairment of assets are eliminated as these activities are not related to ongoing operations as of the end of the period. Non-cash foreign exchange, other income (expense) and changes in deferred taxes are eliminated as these are not related to routine operating activities. The intent of presenting adjusted earnings (loss) per share is to provide additional useful information to investors, analysts and readers of our financial statements. Our method of calculating adjusted earnings (loss) per share may differ from other companies and accordingly may not be comparable to measures used by other companies. The measure does not have any standardized meaning under IFRS, is not a recognized measure of financial performance under IFRS, and accordingly may not be comparable to measures used by other companies.

Operating profit (loss)/Segmented operating profit (loss) Operating profit (loss) is an additional IFRS measure. Management uses operating profit (loss) to measure the results of operations inclusive of impairments and restructuring and other charges. Operating profit (loss) appears in our consolidated statement of income (loss). We believe that operating profit (loss) provides additional useful information to investors, analysts and readers of our financial statements. The measure does not have any standardized meaning under IFRS and accordingly may not be comparable to measures used by other companies. Our method of calculating operating profit (loss) may differ from other companies and accordingly may not be comparable to measures used by other companies. Segmented operating profit (loss) is calculated in the same manner described above, except that it is calculated using total segment results including proportionately consolidated results for our joint ventures and our 56% interest in VerticalScope for which management is accountable.

Forward-looking statements Certain statements in this press release and in Torstar’s oral and written public communications may constitute forward-looking statements that reflect management’s expectations regarding Torstar’s future growth, financial performance and business prospects and opportunities as of the date of this press release. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “forecast”, “expect”, “estimate”, "assume", "predict", “intend”, “would”, “could”, “if”, “may” and similar expressions.

This press release includes, among others, forward-looking statements regarding Torstar's estimates and expectations regarding our transformation efforts including our efforts to obtain digital subscription revenue, add value to our audiences and collect and use data, expectations related to the merger of our defined benefit pension plans with the CAAT jointly sponsored defined benefit pension plan (including the expected benefits of the transaction, the anticipated obtaining and timing of regulatory consent and expected funding for registered defined benefit obligations), expected savings including savings from restructuring initiatives and other cost reductions, estimates and expectations related to contingent liabilities, and Torstar's outlook for the balance of 2018, including anticipated revenue trends within the Daily and Community Brands segments, the expected effects of the Postmedia transaction on Torstar’s earnings and revenue, anticipated revenue trends within the Digital Ventures segment, operating expenses, capital expenditures and transformation efforts and related costs. All such statements are made pursuant to the “safe harbour” provisions of applicable Canadian securities legislation. These statements reflect current expectations of management regarding future events and operating performance, and speak only as of the date of this press release. In addition, forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

By their very nature, forward-looking statements require management to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that management’s assumptions may not be accurate and that actual results, performance or achievements may differ significantly from such predictions, forecasts, conclusions or projections expressed or implied by such forward-looking statements. We caution readers not to place undue reliance on the forward-looking statements in this press release as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, outlooks, expectations, goals, estimates or intentions expressed in the forward-looking statements.

These factors include, but are not limited to: Torstar’s ability to operate in highly competitive changing industries; Torstar’s ability to compete with digital media, other newspapers and other forms of media; Torstar’s ability to respond to the shift to digital media and the shift by advertisers to other digital platforms; Torstar’s ability to attract, grow and retain its digital audience and profitably develop its digital platforms; Torstar’s ability to attract and retain advertisers and customers; Torstar’s ability to build and maintain adequate circulation/subscription levels; Torstar’s ability to attract and retain readers and traffic; Torstar’s ability to integrate the technology associated with new digital platforms; general economic conditions and customer prospects in the principal markets in which Torstar operates; Torstar’s ability to reduce costs; loss of reputation; dependence on third party

-8- suppliers and service providers; reliance on technology and information systems; cybersecurity and risks of security breaches; Torstar’s ability to execute appropriate strategic growth initiatives including acquisitions; changes in employee future benefit obligations; unexpected costs or liabilities related to acquisitions and dispositions; investments in other businesses; reliance on printing operations; labour disruptions; newsprint costs; privacy, anti-spam, communications, competition, e-commerce, data use and environmental laws, health and safety regulations and other laws and regulations applicable generally to Torstar’s businesses; litigation; foreign exchange fluctuations and foreign operations; dependence on key personnel; availability of insurance; intellectual property rights and other content risks; credit risk; availability of capital and restrictions imposed by credit facilities; income tax and other taxes; dividend policy; controls over financial reporting, results of impairment tests and uncertainties associated with critical accounting estimates; holding company structure; control of Torstar by the Voting Trust; and the ultimate outcome of the transaction with CAAT, including the ability to obtain regulatory consent on a timely basis.

Torstar cautions that the foregoing list is not exhaustive of all possible factors, as other factors could adversely affect our results.

In addition, a number of assumptions, including those assumptions specifically identified throughout this press release, were applied in making the forward-looking statements set forth in this press release. Some of the key assumptions include, without limitation, assumptions regarding the performance of the North American economies; tax laws; continued availability of printing operations; availability of financing on appropriate terms; exchange rates; market conditions and competition; rates of return and discount rates relating to pension expense and pension plan obligations; discount rates and tends in health care costs relating to post employment benefits; expected future revenues; expected future liabilities; expected future cash flows and discount rates relating to valuation of intangible assets; successful development and launch of strategic initiatives and new products; and expected benefits from the proposed transaction with CAAT. There is a risk that some or all of these assumptions may prove to be incorrect. There is no assurance regarding the amount and timing of future dividends. When relying on our forward-looking statements to make decisions with respect to Torstar and its securities, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Torstar does not intend, and disclaims any obligation, to update any forward-looking statements, whether written or oral, or whether as a result of new information or otherwise, except as may be required by law.

For more information, please see the discussion of risks affecting Torstar and its businesses in Torstar’s 2017 Management’s Discussion & Analysis, and the Management’s Discussion & Analysis for the three and nine months ended September 30, 2018, which have been filed on www.sedar.com and are available on Torstar’s corporate website www.torstar.com.

Torstar’s news releases are available on the Internet at www.torstar.com.

For more information please contact:

L. DeMarchi Executive Vice-President and Chief Financial Officer Torstar Corporation (416) 869-4776

-9- Torstar Corporation Consolidated Statement of Financial Position (Thousands of Canadian Dollars) (Unaudited) As at As at September 30, 2018 December 31, 2017 Assets Current: Cash and cash equivalents $48,379 $71,377 Restricted cash 7,692 9,056 Receivables 109,687 112,946 Inventories 4,172 4,326 Derivative financial instruments 57 Prepaid expenses 7,499 4,373 Prepaid and recoverable income taxes 536 1,000 Total current assets 177,965 203,135 Investments in joint ventures 24,545 23,420 Investments in associated businesses 131,152 142,769 Property, plant and equipment 49,928 55,259 Intangible assets 31,212 40,217 Other assets 10,965 12,967 Deferred income tax assets 118 3,460 Total assets $425,885 $481,227 Liabilities and Equity Current: Accounts payable and accrued liabilities $62,883 $72,962 Deferred revenue 15,540 16,170 Derivative financial instruments 547 Provisions 11,432 18,113 Income tax payable 709 6,781 Total current liabilities 91,111 114,026 Provisions 5,531 6,714 Other liabilities 6,139 6,599 Employee benefits 66,127 104,716 Deferred income tax liabilities 3,342 Equity: Share capital 403,401 403,040 Contributed surplus 21,699 21,322 Accumulated deficit (166,652) (176,180) Other components of equity (1,245) (2,207) Total equity attributable to equity shareholders 257,203 245,975 Minority interests (226) (145) Total equity 256,977 245,830 Total liabilities and equity $425,885 $481,227 Torstar Corporation Consolidated Statement of Loss (Thousands of Canadian Dollars except per share amounts) (Unaudited) Three months ended Nine months ended September 30 September 30 2018 2017 2018 2017

Operating revenue $126,388 $145,913 $398,531 $446,346

Salaries and benefits (59,831) (63,343) (168,402) (194,542) Other operating costs (71,404) (78,922) (218,113) (242,239) Amortization and depreciation (6,822) (7,571) (20,036) (30,053) Restructuring and other charges (1,861) (1,047) (11,649) (11,600) Operating loss (13,530) (4,970) (19,669) (32,088) Interest and financing costs (755) (571) (2,229) (1,708) Foreign exchange 330 1,182 (349) 1,340 Income (loss) from joint ventures 206 (31) 2,439 (2,480) Loss from associated businesses (5,620) (2,307) (15,383) (4,804) Other income 292 8 303 55 Net loss before tax from continuing operations (19,077) (6,689) (34,888) (39,685) Income taxes recovery 300 100 100 1,200 Net loss from continuing operations (18,777) (6,589) (34,788) (38,485) Income from discontinued operations 6,300 500 Net loss ($18,777) ($6,589) ($28,488) ($37,985) Attributable to: Equity shareholders ($18,753) ($6,557) ($28,407) ($37,823) Minority interests ($24) ($32) ($81) ($162)

Net income (loss) attributable to equity shareholders per Class A (voting) and Class B (non-voting) share: Basic and Diluted: From continuing operations ($0.23) ($0.08) ($0.43) ($0.48) From discontinued operations $0.08 $0.01 ($0.23) ($0.08) ($0.35) ($0.47) Torstar Corporation Consolidated Statement of Cash Flows (Thousands of Canadian Dollars) (Unaudited) Three months ended Nine months ended September 30 September 30 2018 2017 2018 2017 Cash was provided by (used in) Operating activities ($3,218) $9,668 ($14,725) ($8,166) Investing activities 4,143 (4,660) (2,469) (9,774) Financing activities (1,935) (1,940) (5,804) (5,987) Increase (decrease) in cash (1,010) 3,068 (22,998) (23,927) Cash, beginning of period 49,389 48,379 71,377 75,374 Cash, end of period $48,379 $51,447 $48,379 $51,447 Operating activities: Net loss from continuing operations ($18,777) ($6,589) ($34,788) ($38,485) Amortization and depreciation 6,822 7,571 20,036 30,053 Deferred income taxes (300) (300) Loss (income) from joint ventures (206) 31 (2,439) 2,480 Distributions from joint ventures 126 1,314 1,940 Loss from associated businesses 5,620 2,307 15,383 4,804 Dividend from associated businesses 194 Non-cash employee benefit expense 3,668 3,895 11,002 11,677 Employee benefits funding (2,819) (3,580) (10,401) (15,609) Gain on sale of assets (292) (292) Other (524) (1,852) (504) (5,817) (6,808) 1,909 (989) (8,763) Decrease in restricted cash 1,364 2,791 Decrease (increase) in non-cash working capital 3,590 7,759 (15,100) (2,194) Cash provided by (used in) operating activities ($3,218) $9,668 ($14,725) ($8,166) Investing activities: Additions to property, plant and equipment and intangible assets ($2,312) ($3,938) ($7,972) ($8,990) Received from associated businesses 63 Acquisitions and portfolio investments (748) (1,125) (873) Proceeds from sale of assets 6,443 6,443 Other 12 26 185 26 Cash provided by (used in) investing activities $4,143 ($4,660) ($2,469) ($9,774) Financing activities: Dividends paid ($1,989) ($1,996) ($5,954) ($5,965) Other 54 56 150 (22) Cash used in financing activities ($1,935) ($1,940) ($5,804) ($5,987) Cash represented by: Attributed to continuing operations: Cash $12,904 $16,138 $12,904 $16,138 Cash equivalents – short-term deposits 35,475 35,309 35,475 35,309 Net cash, end of period $48,379 $51,447 $48,379 $51,447