Investor Presentation

Home , Calgary Sun, Edmonton Sun, Financial Post, Nanaimo Daily News, National Post, Ottawa Sun

Paul Godfrey - President & CEO Douglas Lamb - Executive Vice President & CFO November, 2011 Forward-Looking Statements

This presentation includes information intended or deemed to be “forward-looking information” including in respect of the Company’s digital first strategy and initiatives and expected incremental annual revenue as a result thereof, and transformation projects and related annual savings as a result thereof. By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, but are not limited to, competition from other newspapers and alternative forms of media; the effect of economic conditions on advertising revenue; the ability of the Company to build out its digital media and online businesses; the continuation of current print and online newspaper readership and circulation levels; the realization of anticipated cost savings; possible damage to the reputation of the Company’s brands or trademarks; possible labour disruptions; possible environmental liabilities, litigation and pension plan obligations; and fluctuations in foreign exchange rates and the prices of newsprint and other commodities. A full description of these and other risks and uncertainties are set forth in the Company’s Management’s Discussion and Analysis for the year ended August 31, 2011 and period ended August 31, 2010 dated October 27, 2011 under the section “Risk factors”, which can be found on SEDAR at www.sedar.com and which section is incorporated by reference herein. Although the Company bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates may differ materially from any such information and statements in this presentation. Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. The Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly an nounce the results of any revisions to any such information or statements.

Non-GAAP Measures The financial statements of Postmedia and the Limited Partnership have been prepared in accordance with Canadian Generally Accepted Accounting Principles (“GAAP”). In certain aspects US Generally Accepted Accounting Principles as applied in the United States (“US GAAP”) differ from Canadian GAAP. For a discussion of the significant differences affecting Postmedia, see note 20 of the Company’s audited consolidated financial statements for the year ending August 31, 2011 and period ended August 31, 2010 which can be found on SEDAR at www.sedar.com.

This discussion also makes reference to free cash flow and to operating profit before amortization, restructuring and other items, which are non-GAAP financial measures, to assist in assessing our financial performance. Non-GAAP financial measures do not have any standard meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. For a reconciliation of operating profit before amortization, restructuring and other items, see “Reconciliation of Non-GAAP Financial Measures” in the Company’s Management’s Discussion and Analysis which can be found on SEDAR at www.sedar.com.

Unless otherwise noted, all references to “$” are to Canadian dollars.

2 Postmedia Network

• Newspaper brands that reach as far back as 1778 • Daily newspapers, weekly community publications, magazines • Multiplatform content delivery – web, smartphone, tablet • 50+ destination websites – news, sports, entertainment, business • National News Service – approximately 1,000 journalists • Editorial services operation – pagination, sports agate, comics • Media monitoring B2B subscription service • Print and digital sales representation • Flyer distribution operations • Daily Deals Website

3 Postmedia Network – Key Company Highlights

• Largest publisher of English-language paid daily newspapers by circulation in Leading English news Canada with marquee brands source in its key markets • Postmedia’s metro daily newspapers are #1 English-language dailies in terms of reach and revenue in each of the markets they serve

Large and growing • Extensive portfolio of premium digital media and online assets digital media and online • Number of unique visitors to daily newspaper websites continues to grow business

Significant cost-savings • Multiple cost reduction initiatives successfully completed in 2010 and 2011 opportunities • On-track to implement additional cost-saving opportunities in 2012

• Attractive margins and reduced capital expenditures drive strong free cash flow Strong free cash flow (1) • Enhanced stability through geographically diverse revenue base

• Continued focus on online revenue growth and Digital First strategy Positioned for future • Cost initiatives position Postmedia to drive growth in profitability with economic growth recovery

Strong, well-respected • Strong management team of experienced industry veterans management team • Board of Directors with extensive experience in the media sector

4 Well-Established and Trusted Brands

• Postmedia’s newspaper brands are woven into the fabric of the communities they serve, some for over a century • 9 daily metropolitan newspapers, which are each #1 in the markets they serve » Brands include the Calgary Herald, Montreal Gazette and Vancouver Sun • The National Post, one of Canada’s two daily national newspapers, focused on key urban markets • 5 community mastheads, serving areas of Southwestern Ontario

5 Sale of Times Colonist and BC Community Papers

• On October 18, 2011 Postmedia announced a definitive agreement to sell daily newspapers the Times Colonist, Nanaimo Daily News and Alberni Valley Times and its community newspaper properties in British Columbia to affiliates of Glacier Media Inc. for gross proceeds of $86.5 million. • Transaction is expected to close November 30, 2011. • Excluding allocation of shared service costs related to finance, IT, national sales, digital and Postmedia news content, sold businesses achieved combined operating profit before amortization, restructuring and other items of $16.9 million in fiscal 2011. • Loss of operating profit expected to be partially offset by resulting cost savings and provision of services to purchaser totaling approximately $2.0 to $2.5 million on an annualized basis. • Application of net proceeds to debt repayment expected to result in annual interest savings of approximately $5.4 million.

6 Postmedia Network – A brief history

July 13, 2010 Newly formed Postmedia Network completes acquisition of Canwest Publishing print and online assets

September 22 , 2010 Record high online audiences in first month of operation – 7.9 million UVs

September 30 , 2010 College Printers facility in B.C. closed – reduction of 91 FTEs

October 30 , 2010 Reduction of 261 FTEs through voluntary & involuntary departures

October 31, 2010 Subscriber/customer service call centre outsourced to Dominican Republic – reduction of 126 FTEs

December 2, 2010 Launch of SwarmJam – group buying website

December 7, 2010 iPad apps launched for 10 metro dailies

December 23 , 2010 National Post reader app launched for iPad, iPhone and iPod touch

January 20 , 2011 Financial Post Magazine comes to iPad

February 1, 2011 Digital Advisory Board Announced March 15, 2011 Postmedia Network Files Preliminary Non -Offering Prospectus April 4, 2011 Postmedia Network Canada Corp. Announces Repricing of Term Loan Facility

April 26, 2011 Postmedia Network Launches 11 Newspaper Apps for BlackBerry PlayBook June 1, 2011 Christie Blatchford Appointed National Columnist June 14, 2011 Postmedia Network Begins Trading on the TSX July 12, 2011 Wayne Parrish Named Chief Transformation & Revenue Officer July 20, 2011 First Canadian Publisher to launch Apps on HP TouchPad September 16, 2011 Android Smartphone Apps for Local Newspapers launched October 3, 2011 Sprouter Inc. acquired

October 18, 2011 Sale of Times Colonist and BC-based community newspapers to Glacier Media Inc. announced

7 Our Reach

• Along with our properties, Postmedia provides sales representation for other newspapers, community publications and online brands

5.3 Million 7.2 Million 3.2 Million 851,000 1.5 Million Weekly Readers Monthly UV’s Weekly Readers Monthly Readers Monthly UV’s (NADbank 2010) (comScore avg. (ComBase 08/09 & (PMB 2011S) (Omniture June 2011) Jun- Aug 2011) internal estimates)

Note: numbers above represent Postmedia Network audiences and third party properties represented through advertising sales agreements

8 Industry and Competition Canada/US Media Penetration Trends

• Almost 3 out of 4 Canadian Adults 18+ read a daily newspaper each week while the U.S. have 57% reading a daily each week • Internet penetration is similar for both countries reaching 7 out 10 Adults • Two-thirds of Canadians own a mobile phone while three-quarters of Americans own mobile phones

Media Penetration Trends

Canada US

Medium 2000 2005 2011 2000 2005 2011 Television** 97.9% 97.8% 95.1% 93.0% 94.0% 93.0% Radio** 89.2% 87.6% 82.2% 83.0% 84.0% 82.2% Magazine** 81.0% 79.0% 76.4% 91.0% 90.0% 89.0% Internet** 30.1% 55.1% 71.2% n/a 61.9% 72.2% Newspaper* - 78.0% 73.1% 69.0% 66.0% 56.6% Mobile Phones** 26.4% 46.5% 66.6% 38.0% 63.0% 75.0%

Source: eMarketer, Global Media Intelligence Report: North America, October 2011 •Canadian Weekly newspaper penetration as per NADbank 2005, 2010 •** Based on PMB 2000, 2005, 2011

10 Quarterly Revenue Trends

• Compared to their U.S. counterparts, Canadian newspapers experienced more moderate revenue declines during the downturn and have seen positive revenue growth in the last four quarters • From Q4 ’07 to Q4 ’10, aggregate U.S. newspaper revenues faced a cumulative drop of ~30%, whereas aggregate Canadian newspaper revenues fell by ~5% over the same period

Canadian & U.S. Newspaper YoY Revenue Growth

15.0% 11.0%

5.8% 6.4% 1.6% 3.7% 2.6% 5.0% 1.8% (2.0%)

(5.0%) (2.0%) (1.6%) (3.4%) (9.9%) (10.4%) (3.0%) (5.0%) (7.6%) (13.5%) (10.9%) (12.1%) (15.0%) (11.9%) (14.9%) AverageAverage RevenueRevenue Growth Growth

(21.9%) (21.6%) (20.8%) (25.0%) Q1 '08A Q2 '08A Q3 '08A Q4 '08A Q1 '09A Q2 '09A Q3 '09A Q4 '09A Q1 '10A Q2 '10A Q3 '10A Q4 '10A Canadian Newspapers U.S. Newspapers

Source: Company filings. Note: Canadian Newspapers consist of reported newspaper segments of Quebecor, FP Newspapers, Glacier Media and Torstar (Star and Metroland). U.S. Newspapers consist of reported newspaper segments of Gannett, The New York Times, McClatchy, Lee Enterprises, The Washington Post and Media General.

11 The Postmedia Network Advantage

• Postmedia daily newspapers reach 4.3 million Canadian Adults each week – almost one million more readers than any other daily newspaper network!

Weekly Readership* – Adults 18+

4.3 Million 3.4 Million 2.5 Million 2.5 Million 2.2 Million 1.6 Million

Toronto Star Network : Toronto Star, KW Record, Guelph Mercury and Hamilton Spectator Sun Media : Calgary Sun, Edmonton Sun, Winnipeg Sun, Toronto Sun and Ottawa Sun Metro Network : Metro - Vancouver, Calgary, Edmonton, Toronto, Ottawa and Halifax 24 Hours Network : 24 Hours - Vancouver, Calgary, Edmonton, Toronto and Ottawa

*For comparative purposes, Networks based on English language readership. Weekly Readership = 6/7 day cumulative (cume) Postmedia, Sun Media, TorStar, Globe and Mail; 5-day cume Metro and 24 Hours Source: NADbank 2010. Base: Postmedia Network owned properties (32 National Post markets + Sask/Reg), Sun Media (5 markets + 15 markets for Toronto Sun), Torstar (19 markets), Globe and Mail (48 markets), Metro (6 markets), 24 Hours (5 markets).

12 Q4 F’11 Postmedia Network Online Audience

• Includes Postmedia owned and represented properties • Ranks fifth overall in the news and information category • Source: comScore Canada Inc., Total Canada, All Locations, 3-month Average Unique Visitors Jun/Jul/Aug 2011 versus Jun/Jul/Aug 2010

Q4 F'11 Unique Change Change Category News and Information (cateogry) Visitors Rank Uvs (000s) Rank (000s) 1 flat The Weather Network Meteomedia 9,728 1,088 2 flat Canoe 8,776 173 3 flat New York Times Digital 7,342 -467 4 +1 CBC-Radio Canada Sites 7,284 254

5 -1 Postmedia Network (5) 7,187 151 6 flat Yahoo! News Network (1) 6,169 -89 7 flat Torstar Digital (3) 5,819 752 8 flat CNN Network (2) 4,766 603 9 na HPMG News (6) 3,918 na 10 na The Globe and Mail 3,726 na

1 Prior to August 2010 only Yahoo! News was reported in the category. Yahoo! News Network now includes Yahoo! News, Sports, Finance, and omg! 2 CNN was renamed CNN Network in May 2010 3 Wagjag.com was added to Torstar Digital in November 2010 with 1,582,000 Unique Visitors 5 As of April 2011 Postmedia Network no longer includes Shaw Media sites. Note: All Shaw Media Uvs have been manually removed from this chart 6 HPMG -- Huffington Post Media Group as of May 2011 includes AOL-related sites

1313 Company Overview Leading Market Share Driven by Strong Brands

• Well-established brands are a Trusted Brands Across Canada

part of local communities – Local some for more than a century Market Market Publication Market Position (1) Share (1) • Postmedia’s metro daily Vancouver 1 100% (4)

newspaper brands maintain the Vancouver 2 (2) 100% (4) leading share among English- Montreal 1 (3) 100% language newspapers in their respective markets Ottawa 1 74% • 24/7 newsrooms provide Edmonton 1 70%

unique, award winning content Calgary 1 74% across multiple delivery channels Windsor 1 100% Saskatoon 1 100% • The National Post, one of Canada’s two daily national Regina 1 100% newspapers, focuses on key urban markets Source: CNA 2010 Circulation Data Report. (1) As measured by paid daily circulation among English-language newspapers. (2) Second to The Vancouver Sun, which is also operated by the Company. (3) Number one English-language newspaper; number three overall among paid dailies. (4) Includes The Vancouver Sun and The Province.

15 Postmedia Network Online Audience

• Postmedia Network owns and operates over 50 destination websites and has exclusive advertising representation agreements with many high-profile third- party websites (eg. CBC, divine.ca, GasBuddy.com)

• Combined audience of owned and represented websites puts Postmedia Network #5 in the News and Information category by comScore , with 7.2 Million monthly unique visitors

• Of the total Postmedia Network online audience, 4.9 Million of those unique visitors go to our newspaper websites

• Collectively, Postmedia Newspapers rank #1 in the Newspapers category

Source: comScore, Inc., Total Canada, All Locations; Average UVs Mar/Apr/May 2011

16 Strategic Priorities

Digital First • Accelerate new product development, developing new products that drive audience growth, increase community engagement and grow revenue • Integrate print and digital resources and eliminate historic print-only silos • Shift investment priority to digital

Business Transformation • Develop new internal work processes • Consolidate operations where possible • Outsource operations where appropriate

Repayment of Debt • Optional and principal repayments totaling approximately $82 million since completing transaction in July 2010. • Debt repayment remains a top priority.

17 F2012 Strategic Focus

Audience Development Attracting high value audiences to all of our platforms. Developing insights abut our audiences that informs our product development and client offerings.

Customer Development Working in collaboration with our advertisers to offer smarter solutions that leverage all of our current and developing platforms.

Product/Content Development Quality content is a key driver of audiences to our online, print and mobile products – we must deliver exceptional quality across our brands. Our product development must focus on delivering relevant audiences that advertisers want, products that engage and grow our audiences and products that deliver significant ROI.

People Development Celebrate and recognize a culture of collaboration, innovation and transformation.

18 Digital First Focus

Revenue sharing Wherever, whenever

B2B Media monitoring, competitive intelligence, licensing Exclusive Canadian partner Group Buying Site

Journalists with video cameras Innovation & Entrepreneurship Exclusive ad repping agreements

Postmedia Network is successfully executing on key digital initiatives today

19 Digital First Strategic Imperatives

• Build on success to date to accelerate development of new products that drive audience growth, increase community engagement and grow revenue – Postmedia Business Ventures – iPad Apps – Paid Content – Mobile

• Align print and digital, eliminating historical silos – Community newsroom initiatives – Shift newsroom culture from once-a-day print deadlines to multiple platform, 24/7 content development – New tools and training including video cameras for journalists

• Shift investment priorities from legacy assets to digital growth areas

Expect strategic initiatives to drive digital revenue to 20% of total revenue within four years

20 Business Transformation Program

Wayne Parrish Chief Transformation and Revenue Officer

Core Transformation Team

CEO Weekly Meetings

Transformation Committee Transformation Working Group Bi-weekly Meetings

• Includes Local Transformation Leads from every division Board of Directors Quarterly Meetings • Transformation Leads liaise with publishers, senior management and staff of all levels to identify challenges, clear hurdles, provide interactive, two-way communication and evangelize entire process

Designed to transform Postmedia into a flexible, nimble, aggressive media company, focused on delivering its content seamlessly across print and digital platforms

21 Restructuring Update

• Restructuring efforts continue however largest reductions have now been completed. • Reductions achieved by variety of initiatives including: outsourcing, centralization, voluntary and involuntary buyouts. • Transformation initiatives implemented to August 31, 2011 are expected to yield net annualized cost savings in the range of $50 to $52 million. • Associated cost savings realized in fiscal 2011 were the in range of $34 million (1) . • Recorded expenses relating to restructuring and other items of $54 million since completion of transaction in July.

Notes: (1) Fiscal 2011 cost savings were partially offset by other cost increases due to increased stock-based compensation, reduction of net cost recoveries from formerly affiliated Canwest companies and other normal course inflationary increases.

22 Financial Overview Recent Revenue Performance

LTM Consolidated Revenue (C$ millions)

$1,300

$1,100

$900

$700

$500

$300

$100 Q1 F09 Q2 F09 Q3 F09 Q4 F09 Q1 F10 Q2 F10 Q3 F10 Q4 F10 Q1 F11 Q2 F11 Q3 F11 Q4 F11

• LTM revenue has stabilized since Q2 Fiscal 2010. • Priority is to accelerate growth in digital revenue.

Note: The above chart is based on the LTM operating results of Canwest Limited Partnership for the periods ended Q1-F09 to Q3-F10. The LTM operating results for the period ended Q4-F10 are based on the combined operating results of Canwest Limited Partnership from September 1, 2010 to July 12, 2010 and Postmedia Network Canada Corp. from July 13, 2010 to August 31, 2010. The LTM operating results for the period ended Q1-F11 are based on the operating results of Canwest Limited Partnership from December 1, 2009 to July 12, 2010 and of Postmedia Network Canada Corp. from July 13, 2010 to November 30, 2010. The LTM operating results for the period ended Q2-F11 are based on the operating results of Canwest Limited Partnership from March 1, 2010 to July 12, 2010 and of Postmedia Network Canada Corp. from July 13, 2010 to February 28,2011. The LTM operating results for the period ended Q3-F11 are based on the operating results of Canwest Limited Partnership from June 1, 2010 to July 12, 2010 and of Postmedia Network Canada Corp. from July 13, 2010 to May 31, 2011. The LTM operating results for the period ended Q4-F11 are based on the operating results of Postmedia Network Canada Corp.

24 Operating Profit Trends

LTM Operating Profit before Amortization and Restructuring (1) (C$ millions)

$300

$250

$200

$150

$100

$50

$0 Q1 F09 Q2 F09 Q3 F09 Q4 F09 Q1 F10 Q2 F10 Q3 F10 Q4 F10 Q1 F11 Q2 F11 Q3 F11 Q4 F11 • Operating profit rebound due to stabilizing revenue and impact of cost reduction initiatives • Strong focus on cost reduction continues Note: The above chart is based on the LTM operating results of Canwest Limited Partnership for the periods ended Q1-F09 to Q3-F10. The LTM operating results for the period ended Q4-F10 are based on the combined operating results of Canwest Limited Partnership from September 1, 2010 to July 12, 2010 and Postmedia Network Canada Corp. from July 13, 2010 to August 31, 2010. The LTM operating results for the period ended Q1-F11 are based on the operating results of Canwest Limited Partnership from December 1, 2009 to July 12, 2010 and of Postmedia Network Canada Corp. from July 13, 2010 to November 30, 2010. The LTM operating results for the period ended Q2-F11 are based on the operating results of Canwest Limited Partnership from March 1, 2010 to July 12, 2010 and of Postmedia Network Canada Corp. from July 13, 2010 to February 28, 2011. The LTM operating results for the period ended Q3-F11 are based on the operating results of Canwest Limited Partnership from June 1, 2010 to July 12, 2010 and of Postmedia Network Canada Corp. from July 13, 2010 to May 31, 2011. The LTM operating results for the period ended Q4-F11 are based on the operating results of Postmedia Network Canada Corp.

(1) Represents a non-GAAP financial measure. Postmedia believes this measure is beneficial from the perspective of assessing the Company’s financial performance. However, non-GAAP financial measures do not have any standard definition prescribed under GAAP and as such may not be comparable to similar measures used by other companies. A reconciliation to the most closely comparable GAAP measure is available in the section “Reconciliation of Non- GAAP Financial Measures” in the MD&A posted on the Company’s website Company’s website at www.postmedia.com, on SEDAR at www.sedar.com or on the SEC’s website at www.sec.gov.

25 Strong Cash Flow

LTM Operating Profit before Amortization and Restructuring (1) less Capital Expenditures (C$ millions)

$250

$200

$150

$100

$50

$0 Q1 F09 Q2 F09 Q3 F09 Q4 F09 Q1 F10 Q2 F10 Q3 F10 Q4 F10 Q1 F11 Q2 F11 Q3 F11 Q4 F11

• Attractive margins and relatively low capital expenditures drive strong operating cash flow • Top priority for free cash flow (1) is debt reduction

Note: The above chart is based on the LTM operating results of Canwest Limited Partnership for the periods ended Q1-F09 to Q3-F10. The LTM operating results for the period ended Q4-F10 are based on the combined operating results of Canwest Limited Partnership from September 1, 2010 to July 12, 2010 and Postmedia Network Canada Corp. from July 13, 2010 to August 31, 2010. The LTM operating results for the period ended Q1-F11 are based on the operating results of Canwest Limited Partnership from December 1, 2009 to July 12, 2010 and of Postmedia Network Canada Corp. from July 13, 2010 to November 30,2010. The LTM operating results for the period ended Q2-F11 are based on the operating results of Canwest Limited Partnership from March 1, 2010 to July 12, 2010 and of Postmedia Network Canada Corp. from July 13, 2010 to February 28,2011. The LTM operating results for the period ended Q3-F11 are based on the operating results of Canwest Limited Partnership from June 1, 2010 to July 12, 2010 and of Postmedia Network Canada Corp. from July 13, 2010 to May 31,2011. The LTM operating results for the period ended Q4-F11 are based on the operating results of Postmedia Network Canada Corp.

26 Credit Facilities

• Completed refinancing of term loan facility on April 4, 2011. • Credit facilities at August 31, 2011: – C$60 million revolver undrawn as at August 31, 2011. – US$340 million 1 st lien term facility at LIBOR (1.25% floor) plus 5%. – US$275 million 12.5% second lien notes. • Currency swaps covering US$180.0 million of term loan and US$275 million notes at exchange rate of US$1:C$1.035. • On June 20, 2011 we entered into an additional US$50.0 million currency swap related to the term loan at an exchange rate of US$1:0.9845. Notional amount outstanding at August 31, 2011 of US$48.1 million. • Debt repayments total C$82 million for period from July 13, 2010 to August 31, 2011. • Debt repayment remains high priority for free cash flow.

27 Liquidity and Maintenance Covenants

• Cash of $10.5 million at August 31, 2011. • Revolver remains undrawn. • Covenants revised effective April 4, 2011 upon completion of term loan refinancing:

Maintenance Covenant Actual at Permitted by Term Loan August 31, 2011 Credit Agreement up to after Nov 29, 2012 1 Nov 29, 2012 1

Consolidated Interest Coverage Ratio 2.97 > 2.00 > 2.00

Consolidated Total Leverage Ratio 3.07 < 4.50 < 4.00

Consolidated First Lien Indebtedness Leverage Ratio 1.68 < 3.00 < 2.50

Note 1 - Financial maintenance covenants as set out in first amendment to Term Loan Credit Agreement which became effective April 4, 2011.

28 Q4 Fiscal 2011 Results

• Revenue decline in Q4 Fiscal 2011 of 4.6% vs. Q4 Fiscal 2010. • Approximately 26% of revenue decline in Q4 Fiscal 2011 is related to loss of Globe & Mail commercial printing contract. • Cost reductions tracking ahead of plan. • Operating profit in Q4 Fiscal 2011 before restructuring and amortization showed a 12.5% improvement over Q4 Fiscal 2010. • Optional U.S. term loan repayment in fourth quarter of US$6.0 million.