PWC Capital Inc. Announces Election to Pay December 31, 2014 Interest on Series C Notes by Way of Transfer of Common Shares of Pacific & Western Bank of Canada

PWC Capital Inc. (TSX Symbol: PWC) announces that it has elected, pursuant to and in accordance with the trust indenture governing the Series C Notes, as amended (the "Trust Indenture"), to make the December 31, 2014 interest payment in respect of the 9.00% Series C Notes of PWC due October 16, 2018 (the "Series C Notes") (TSX Symbol: PWC.NT.C) through the delivery to noteholders of common shares in the capital of Pacific & Western Bank of Canada ("PWB Shares") (TSX Symbol: PWB) held by PWC ("PWB Interest Shares") rather than cash (the "Election").

The aggregate number of PWB Interest Shares to be delivered to noteholders pursuant to the Election will be calculated by dividing the aggregate December 31, 2014 interest payable in cash, being $2,776,725, less the amount of any tax withheld in accordance with the terms of the Trust Indenture (the "PWB Common Share Interest Payment Election Amount"), by the volume weighted average trading price of the PWB Common Shares on the TSX for the five consecutive trading days ending on December 30, 2014, subject to and as determined in accordance with the rules of the TSX. Each noteholder will be entitled to its pro rata share of such number of PWB Interest Shares, determined in accordance with the Trust Indenture. No fractional PWB Interest Shares will be delivered in satisfaction of fractional interest, but in lieu thereof PWC will satisfy the fractional interest by a cash payment determined in accordance with the Trust Indenture.

The date used by PWC to determine the noteholders of Series C Notes for the purposes of the Election is December 8, 2014, and noteholders are directed to the PWB Common Share Interest Payment Election Notice dated December 5, 2014 mailed to registered holders on December 8, 2014 by Computershare Trust Company of Canada ("Computershare"), being the trustee in respect of the Series C Notes, for further information.

PWC has the right, by delivering written notice to Computershare, at any time prior to December 31, 2014, to withdraw the Election, whereupon PWC would be obliged to pay in cash the December 31, 2014 interest obligation on the Series C Notes.

Provided that PWC does not withdraw the Election, PWC plans to issue a further news release confirming the aggregate number of PWB Interest Shares delivered to noteholders pursuant to the Election, once such information becomes available to PWC.

The ability of PWC to make the Election was approved pursuant to a fifth supplemental indenture governing the Series C Notes effective as of August 27, 2013 (the "Fifth Supplement"), which was approved by way of extraordinary resolution of noteholders at a meeting of noteholders held on March 7, 2013. The Trust Indenture, including the Fifth Supplement, is available on SEDAR at www.sedar.com under PWC's profile.

No securities regulatory authority has either approved or disapproved of the contents of this news release. This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

Not for distribution to U.S. news wire services or dissemination in the U.S.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information contained in this news release, including statements relating to the Election and any other statements regarding PWC's future expectations, beliefs, goals or prospects constitute forward-looking information within the meaning of applicable securities legislation (collectively, "forward-looking statements"). All statements in this news release that are not statements of historical fact (including statements containing the words "expects", "does not expect", "plans", "proposed", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions) should be considered forward-looking statements. By their very nature, forward-looking statements involve numerous factors and assumptions, including, without limitation, the expectations and beliefs of management and PWC not deciding to withdraw the Election. Although PWC considers these factors and assumptions to be reasonable based on information currently available, such factors and assumptions are not exhaustive and may prove to be incorrect.

All such forward-looking statements are subject to known and unknown risks, uncertainties and other factors, many of which are beyond PWC's ability to control or predict. A number of important factors could cause actual results or events to differ materially from those indicated or implied by such forward-looking statements, including without limitation, a decision by PWC to withdraw the Election.

PWC does not assume any obligation to update the information in this communication, except as otherwise required by law. Additional information identifying risks and uncertainties is contained in PWC's filings with the various provincial securities regulatory authorities available online at www.sedar.com. Forward-looking statements are provided for the purpose of providing information about the current expectations, beliefs and plans of the management of PWC. Readers are cautioned that such statements may not be appropriate for other purposes. Readers are also cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date hereof.

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