J.P. Morgan Global High Yield & Leveraged Finance Conference

February 25, 2015 Forward Looking Statements

This presentation may include certain information that is “forward-looking information” under applicable Canadian securities laws and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.

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. Forward-looking statements in this presentation include statements with respect to the acquisition of certain publications, the review of the transaction by the Competition Bureau, the proposed debt and equity financing for the transaction and the anticipated benefits to Postmedia from the transaction and financings, including improved financial strength, free cash flow, leverage ratios and synergies. Any "financial outlook" in this presentation, as defined by applicable securities legislation, has been approved by management of Postmedia and is included for the purpose of illustrating the materiality of the acquisition of the assets of QMI’s English language publications, and for no other purpose. 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, among others: the possibility that the transaction, including the related financings, will not close (including, without limitation, as a result of the failure to gain regulatory approvals); the risks associated with the possible failure to realize the anticipated synergies in integrating the operations of the Sun Media publications with the operations of Postmedia; competition from digital and other forms of media; the effect of economic conditions and structural changes in the industry on advertising revenue; the ability of the Company to build out its digital media and online businesses; the failure to maintain 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 labor disruptions; possible environmental liabilities, litigation and pension plan obligations; fluctuations in foreign exchange rates and the prices of newsprint and other commodities.

For a complete list of our risk factors please refer to the section entitled “Risk Factors” contained in the final short form prospectus dated February 5, 2015 and our annual management’s discussion & analysis for the year ended August 31, 2014, both of which can be found on SEDAR at www.sedar.com or on the SEC’s website at www.sec.gov. 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. Other than as required by law, the Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements.

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

2 Our English-language paid daily newspapers have, in total, the highest weekly print readership when compared to other media organizations in Canada, reaching 3.9 million Canadians each week(1)

Digital properties with 9.7 million average monthly unique visitors(2), including newspaper sites ranked #1 in Canada that reach 41% of Canadian newspaper site visitors(2)

(1) Source: NADbank 2013, 10 owned Postmedia daily newspapers. Weekly print readership includes print or pdf replica (2) Source: comScore, Multi-Platform Total Digital Population (Web + Mobile), Total Canada, All Locations, Q1F’15 (3 month Average Sept/Oct/Nov ‘14)

3 Business Strategy

Mission: to be Canada’s premier destination for news, information and insights – and advertisers’ preeminent source for engaged, high value audiences – across multiple platforms, every day

Capitalize on audience-selling capabilities and leverage audience engagement through extension of digital media platform, in order to build Monetize profitable relationships between advertisers and their targets, and drive All Access and Digital Access offerings with consumers.

Create distinctive and differentiated products across four platforms (print, web, tablet & smartphone) leveraging their unique features and uses to deliver personalized experiences to specific audiences, with a strong Differentiate focus on local content. Launch new products across our markets through Postmedia Reimagined product strategy.

Leverage differentiated products and advanced audience analytics capabilities to that of loyal Engage create experiences exceed the expectations subscribers, deepen relationships with engaged users, and create a following among urban Canadians.

4 NEW iPAD APP NEW WEBSITE • News and current affairs • New responsive design adapts magazine app available to all screen sizes Monday to Friday at 6 • Colour-coded for easier p.m. navigation • Unique content created • Optimized for faster loading time specifically for the tablet • Improved search functionality • Designed for a touch • More entertainment, sports, and explore experience opinion and multimedia • Interactive and visually journalism from your respected engaging with audio and source video • Free* download on iTunes

NEW PRINT EDITION NEW SMARTPHONE APP • New masthead unifies our print, web, smartphone and tablet platforms • Live stream of local news and information • New Index on A2 with enhanced listings • Specific content for the mobile audience • Great local coverage of news, business, arts, • Crafted for a skim, share, follow experience culture, food, fitness, fashion and more • Designed for news on the go • Colour comics every day • Free* download on iTunes and Google Play

5 Smartphones & Tablets are Changing Canadian consumption 18.0M Smartphone and Tablet Owners Smartphones 20,000

18,000

16,000 +12% since

14,000 June 2013

12,000

10,000 7.8M Tablets 8,000

6,000

4,000 +37% since 2,000 Jun 2013 0

Source: comScore, Inc., MobiLens, CA & US, Persons: 13+, Mar 2011 – March 2014 6 Postmedia Multi-Platform Web* 6,293,000 UVs

Web (desktop/laptop)

Multi-Platform 9,709,000 UVs

Total Digital Total Mobile* (Web / Mobile) 4,875,000 UVs

Tablet 25%

Smartphone 75%

*Note: Duplication exists between Web and Mobile. Source: comScore Multi-Platform Nov 2014 (3-month average Sep/Oct/Nov’14). comScore MobileMetrix Nov 2014,, (3-month average Sep/Oct/Nov’14)

7 Recent Developments

New Products Completed “reimagined” product roll outs in , Montreal, and with new print, web, tablet, and smartphone offerings from these three brands.

Legacy Cost Savings On target to complete 3-year operating cost savings of 15% to 20% by end of fiscal 2015 as announced in July 2012.

As of Q1-F15 have implemented cost savings Real Estate Sales initiatives that are expected to deliver Reached agreements for the sale of approximately $112 million in annualized real estate holdings in Montreal and savings, or approximately 16% of operating Surrey, BC. costs, since the time the program was announced. $112,000,000

8 Recent Postmedia Performance

Recent Performance and Activities EBITDA(1) Bridge

• Print advertising revenues have continued to decline. F2013 EBITDA: $129.9 • Circulation volume declines have been Print Adv. Revenue: ($70.1) partially offset by price increases. Print Circ Revenue: ($1.7) • Digital revenues declined slightly in F2014 Digital & Other driven by reductions in online classified Revenue: ($5.5) revenue. Compensation Savings: $40.1 o Digital still viewed as focus area and Other Expense Savings: $16.8 showed modest growth in Q1 F’15. F2014 EBITDA: $109.5 • Business Transformation Program continues to reduce cost structure. Print Advertising Revenue: ($23.5) Print Circulation Revenue: ($2.2) o Streamlining and centralization of operating functions. Digital and Other Revenue: $1.2 o Outsourcing of printing and other functions. Digital Media Tax Credit: $13.8 o General staff reductions and buyouts. Compensation Savings: $6.0 o Exit of selected businesses and Other Expense Savings: $4.3 reduction in publishing days of certain LTM EBITDA (Nov 30, 2014): $109.1 newspapers. o Real estate sales for debt repayment.

(1) Operating income before depreciation, amortization, impairment and restructuring.

9 SUN MEDIA ACQUISITION Acquisition of Sun Media

• On October 6, 2014 Inc. announced has entered into an agreement with Quebecor Media Inc. to Transaction acquire its Sun Media’s English language newspaper assets, associated digital properties, as well as its Overview printing facility (collectively “Sun Media”)

• 173 publications, including: o 6 major market urban daily newspapers o 27 daily newspapers in smaller communities largely in 138 weekly community newspapers and specialty publications across Canada Sun Media o The free “commuter” papers in Toronto and Acquisition o • Sun Media’s associated digital properties (Sun chain of dailies), including the English portions of the Canoe Network and Autonet, as well as yourlifemoments.ca, classifiedextra.ca, homes-extra.ca and autodealersolutions.com • Real estate assets with >1mm ft2 and an estimated value of $50-$60 million

• $306 million; 100% cash consideration Purchase Includes working capital, but subject to customary working capital adjustment Price o • 3.5x acquisition multiple on LTM (June 30, 2014) adjusted EBITDA of $87 million (excl. synergies)

• $140 million add-on to Postmedia’s first lien 8.25% Notes due 2017 o Fully committed from existing investor via subscription agreement • Equity Rights Offering - ~$173.5 million Financing o Fully backstopped by GoldenTree Asset Management o Final prospectus filed February 5, 2015 o Rights offering expected to be completed March 17, 2015

• Transaction remains subject to regulatory and competition approval Timing o Decision is expected in the first quarter or early in the second quarter of 2015

11 Transaction Rationale

• #1 English language print and online newspaper source in its key urban areas, with additional urban/community papers from Sun Media. • Provides significant enhancement to Postmedia digital media platform, improving competitive position Leading Multi-Platform against foreign-based digital giants. English News Provider • Provides strong value proposition to advertisers for local, regional, and national reach. • Four platform strategy driving conversion from legacy printing business into a content engine offering customized bundles to both readers and advertisers. • Robust, enterprise-wide data analytics driving sales approach.

• and Wayne Parrish have significant knowledge of Sun Media. o Paul Godfrey spent 16 years with the company including as President and CEO. Strong Integration and o Wayne Parrish was formerly President and CEO of Canoe, and General Manager and Executive Editor Synergy Potential of the , and VP-Strategic Development for Sun Media Corporation. • Identifiable cost saving synergies of $6 to 10 million per annum expected within 24 months. • Combined entity can accelerate the realization of existing tax losses from prior years.

• De-leveraging event that meaningfully improves Postmedia’s capital structure. Significant De-Risking • Reduction in leverage ratio and injection of significant new equity. of Capital Structure • Further potential de-leveraging through monetization of Sun Media’s real estate portfolio.

Enhances Free Cash • Sun Media produces significant free cash flow that will improve the credit profile and financial strength of the Flow Profile combined entity.

12 Sun Media Overview

• Broad range of paid and free urban daily newspapers reach ~4

million readers each week across Ontario and Western Canada(1) • Includes 138 Newspapers properties in smaller communities where it is often the only newspaper + weekly community and specialty publications located in Ontario and • Digital network Western Canada

averages more than 4 million unique monthly visitors, including Digital newspaper websites (2) and related sites Printing

(1) Source: NADbank 2013; Weekly Print/PDF (Sun Media English and 24H two markets) (2) Source: comScore Media Metrix Audience Duplication, All Persons ex. Quebec, Canoe Network/Sun Media English Urban Newspaper Titles, Nov 2014 3month Average (Sep/Oct/Nov)

13 Canada’s Leading English News Source

• The transaction enhances Postmedia’s leading English language urban daily newspaper coverage with secondary urban dailies in key urban areas and strong coverage of smaller communities

Other Manitoba Publications Other Sun Central Ontario Publications

Community Weekly (10) Community Daily (25) Other Specialty Publications (1) Community Weekly (54) BC Farming Publication (6) Other Specialty Publications (30) AB SK MB

Other Postmedia OntarioQC Publications

ON Community Weekly (6)

Edmonton Calgary Saskatoon NS Vancouver Regina Winnipeg Montreal

Ottawa Other Saskatchewan Publications Toronto Community Weekly (3) London Other Publications

Community Daily (2) Windsor Community Weekly (34)

Daily Paid and Free Publications

14 Sun Media Diversifies Revenue Profile

• Postmedia’s properties will contribute just Revenue Contribution by Property under 60% of revenue. Sun Other Sun • Remaining revenue split ~50/50 between 3% Community community and urban daily newspapers. Papers 20% • Postmedia has significantly higher level of national advertising compared to Sun Media given Postmedia’s national sales force and

national footprint of leading urban dailies. Postmedia Sun Urban Properties Dailies 59% 18%

Advertising Revenue by Type Revenue by Type

Sun Media’s relatively lower mix of national advertising will increase pro Overall revenue mix is largely the same following the transaction, although forma mix to include more retail/local ad revenue advertising and printing revenue increase slightly

Postmedia Pro Forma Postmedia Pro Forma

4% 3% 2% 5% 17% 13% 10% 20% 23% 35%

15% 57% 26% 15% 28% 59%

38% 30%

Retail National Classified Inserts Other Advertising Advertising Circulation Digital Printing & Other

Postmedia charts based on LTM at May 31, 2014 Pro forma charts estimated LTM at May 31, 2014 using Sun financials LTM at June 30, 2014 15 Leading Digital News & Information Sites Sun Media has a number of pure digital properties supplementing its newspaper websites. Its flagship Canoe network is the #2 network of sites for unique monthly visitors in the News & Information category and the combination of its English language audience with the Postmedia Network is anticipated to create Canada’s #1 News & Information digital network.

Digital Properties News & Information Category – Q1 F2015(1) (unique visitors 000’s) (1) (Unique Visitors 000s) (1)

CBC-Radio Canada Sites 9,073

Canoe 29% reach 7,178

Pelmorex Media Inc Weather 6,317 4,013(2) Postmedia Network 26% reach 6,233

Torstar Digital 6,139 Canoe Newspaper Sites HPMG News 5,976 3,318(2) Yahoo-ABC News Network 5,840

About 5,759 266 CTV 5,013

CNN Network 4,678

The Globe And Mail 4,617 202 Canoe Network (excl. Quebec Visitors) 16% reach 4,013 (2)

(1) Source: comScore, MediaMetrix, Total Canada, All Locations, 3month average, Q1 = Sep/Oct/Nov 2014 (2) Canoe Network excluding Quebec visitors

16 Pro Forma Financials and Credit Metrics

• Pro forma credit statistics would improve meaningfully post transaction • Pro forma debt(4)/Adjusted EBITDA(2) would decrease from 4.9x to 3.5x

Pro Forma Financials(1) (C$ millions) Credit Metrics

Adjusted Revenue(3) Adj. EBITDA(2) Debt(4) / Adj. EBITDA(2) Adj. EBITDA(2) / Cash Interest

2.8x 4.9x 1,153 1,117 1.9x 3.5x 197 195

Fiscal 2014 LTM Fiscal 2014 LTM Current Pro Forma Current Pro Forma

Postmedia Sun Media

(1) Figures for Postmedia are based on 12 months ending August 31, 2014 for ‘Fiscal 2014’ and November 30, 2014 for ‘LTM’; Figures for Sun Media are based on 12 months ending June 30, 2014 for ‘Fiscal 2014’ and September 30, 2014 for ‘LTM’ (2) Operating income before depreciation, amortization, impairment and restructuring and excluding Sun Media non-recurring items totaling $8.6 million (as disclosed on page 42 of the final short form prospectus dated February 5, 2015). EBITDA used for Credit Metrics is Pro Forma LTM Adj. EBITDA of $195 million. (3) Excludes revenue between Postmedia and the acquired businesses. (4) Debt is based on outstanding debt at November 30, 2014 with US denominated debt converted to CAD$ at exchange rate of US$1 = CAD$1.25

17 Enhances Postmedia’s Strategy

Complements Postmedia’s mission to be Canada’s premier destination for news, information and insights – and advertisers’ preeminent source for engaged, high value audiences – across multiple platforms, every day

• Postmedia’s Strategy: Capitalize on audience-selling capabilities and leverage audience engagement through extension of digital media platform, in order to build profitable relationships between advertisers and their targets, and drive All Access and Digital Access offerings with consumers. • Sun Media ELN Acquisition: Monetize o Leverage Postmedia’s national sales force and re-invest in local sales to sell Sun’s audience to advertisers. o Deepens audience database, enhances data analytics, and strengthens audience-based selling strategy. o Extend current Postmedia audience and digital selling capabilities and strategies to Sun assets. o Significantly grow national digital audience, especially under comScore's Multi-Platform measurement. system, to better compete with pure plays foreign-based digital giants.

• Postmedia’s Strategy: Create distinctive and differentiated products across four platforms (print, web, tablet & smartphone) leveraging their unique features and uses to deliver personalized experiences to specific audiences, with a strong focus on local content. Differentiate • Sun Media Acquisition: o Combine Sun content, brands, and audience with Postmedia design, product technology, and multi-platform capabilities. o Expand differentiation strategy and mobile audience by matching Sun brands and strengths to newly- developed mobile technologies and platforms.

• Postmedia’s Strategy: Leverage differentiated products and advanced audience analytics capabilities to create experiences that exceed the expectations of loyal subscribers, deepen relationships with engaged users, and create a following among urban Canadians.

Engage • Sun Media Acquisition: o Utilize Postmedia’s expertise and four platform product capabilities, and rebuild content expertise at selected community papers to drive higher engagement at Sun and strengthen audience connection. o Leverage deeper, wider audience database to extend and expand digital roster of audience segments.

18 Thank you www.postmedia.com

facebook.com/Postmedia

@postmedianet

linkedin.com/company/postmedia-network-inc.