NEWS FOR SHAREHOLDERS JANUARY 2014

INFOACTION

despite fierce opposition to the project, numerous representations and the reasonable offer made to the government, the canadian government has decided to press ahead withplans to gradually phase out the federal tax credit for contributions to labour-sponsored funds by 5% per year, beginning in 2015, until the credit is completely eliminated in 2017.

about the federal tax credit phase-out

For more information: Shareholder Services: 1 800 253-6665 WWW.FONDACTION.COM

This investment is made by way of a prospectus. The prospectus contains important, detailed information on the securities offered. A copy of the prospectus can be obtained from Fondaction’s offices or its website. Investors are advised to read the prospectus before making an investment decision.

GIVING MONEY MEANING Follow us on

lump-sum contributionsaccepted again startingjune 1, 2014

As of January 13, 2014, Fondaction is unable to accept any further lump-sum contributions for its 2013-2014 fiscal year.

If you would like to be informed by email when Fondaction starts collecting lump-sumcontributions again, add your name to our electronic mailing list on the website: particulier / gérer votre compte / cotisation (in French).

Fondaction is authorized to collect $200 millionin capital for the 2013-2014 fiscal year. For the2014-2015 fiscal year, the authorized amount will be $225 million.

three ways to contribute

From now until June 1, 2014, you can still subscribe to Fondation, either by preauthorizeddebit or online payments, for a total monthlyamount of $416.

Or you can have your employer deduct your contributions directly from your pay. Find out if this option is offered in your workplace.

Simplify your life by choosing to make automatic contributions to Fondaction. You’ll save effortlessly and obtain 40% tax credits exclusive to Fondaction.

a 3.0% return for the first half ofthe 2013-2014 fiscal year and 4.3%for 12 months

fondaction posted a positive non-annualized return of 3.0% for the first six months of its 2013-2014 fiscal year ended november 30, 2013. for the last 12-month period, the return stands at 4.3%.

these results are net of expenses and do not include the supplement from tax credits granted to shareholders.

share value rises to $9.71

The share value has increased from $9.44 to $9.71, up $0.27 from the figure announced on July 10, 2013.

“The results of unlisted companies and specialized funds as well as the performance of listed securities have led to a slightly higher return for the portfolio of development capital investments inQuébec SMEs. These investments are at the heart of Fondaction’smission and generate positive spin-offs for Québec, particularly byhelping to maintain and create jobs,” explained Léopold Beaulieu, President and Chief Executive Officer of Fondaction.

positive returns

Development capital investments in Québec SMEs produced a 6.1% return for the six-month period. For investments in the financialmarkets, the return was 2.7%; Fondaction has continued to applyboth active and prudent management in response to market fluctuations.

a few figures for the six-month period

During the six-month period, Fondaction’s net assets rose 11.2%,to $1.15 billion. The amounts subscribed during the period increased by 10.8%. As at November 30, 2013, development capitalinvestments totalled $658.3 million. Fondaction had 124,103 shareholders.

what will happen?

40% tax credits until 2015

no changes will be made before 2015. the federal tax credit will remain at 15% for 2013 and 2014. Moreover, the tax credit granted by the Québec government remains untouched. You will continue to obtain income tax credits totalling 40% until March 2015.

the value of your investments will not be affected

The tax credits have no impact on the Fund’s share value, which is established on the basis of the value of its investments in companies and in the financial markets.

Eliminating the federal tax credit will not affect the value of your savings or Fondaction’s ability to uphold all its obligations toward its current and future shareholders.

an investment that remains attractive

In spite of the federal tax credit phase-out, which will begin in 2015, subscribing to Fondaction will remain an attractive investment option. You will still receive tax credits from the Québec government and the RRSP deduction. Fondaction will continue to invest your savings in order to create and maintain jobs in Québec.

Fondaction has always strived to improve its results and will continue to do so, while maintaining its mission to promote sustainable development in Québec.

InfoactionANG-JANVIER2014corr2_InfoactionANG-JANVIER2014corr2 14-01-29 16:16 Page1

Estimates based on a marginal tax rate of 38.37%, which corresponds to a taxable income of $43,953 to $82,985, and 40% tax credits, for total income tax savings of 78.37%, under the tax rules applicable as at January 1, 2014.

preauthorized debit and online payments: save at your own pace

You decide how often your contributions are withdrawn from your bank account. Available to everyone, preauthorized debit or online payments also represent excellent, trouble-free savings methods.

want to contribute to your rrsp by payroll deduction or preauthorized debit?

To modify your contributions or opt for another contribution method, visitwww.fondaction.com, click on particulier / gérer votre compte / cotisation(in French) and fill out a “request for change” form today. You can also contactShareholder Services at 1 800 253-6665. We’ll be pleased to help you determinewhich contribution method is right for you.

set your own savings objectives, contributeat your own pace and simplify your lifewith automatic contributions

payroll deduction: income tax savings at each pay period

Your employer deducts your contributions directly from your pay. And if you like, you can obtain immediate income tax savings. This means your wages are reduced by only a fraction of the chosen amount. You put aside savings regularly without feeling the pinch.

RRSP investment amount $3,000.00 $5,000.00

Tax savings:

w 40% tax credits $1,200.00 $2,000.00

w RRSP deduction $1,151.10 $1,918.50

Net annual cost $648.90 $1,081.50

Net cost per pay (26 pay periods) $24.96 $41.60

payroll deductionoffered in over2,200 workplaces

payroll deduction is offered at over 2,200 establishments across québec. This contribution method is a simple retirement savings solution that allowsyou to save regularly without breaking your budget.

more than 500 fondaction representatives are active in various workplaces. Find out if this savingsmethod is offered by your employer.

If it is not available, feel free to call us. We will be happy to contact your employer to explain the advantages of the Fondaction RRSP. Payroll deduction is easy to set up and it’s free of charge.

If implementing payroll deduction in your workplace is not feasible, you can opt for preauthorized debit or onlinepayments. These methods also allow your to regularly put aside savings in your Fondaction RRSP.

Moreover, in the event of limiting measures, Fondaction reserves shares for participants who contribute throughpayroll deduction and other automaticsavings methods.

If you file your tax returns via the Internet, you are not required to submit your Relevé 10 slips.What’s more, unlike the Canada Revenue Agency,Revenue Québec no longer requires Relevé 10slips to be attached to tax returns submitted bymail. You must be sure to retain these tax slips,however, in case your returns are audited.

2013 income tax

If you subscribed to Fondaction last year or if you plan to make a contribution by March 3, your Relevé 10 slips will be mailed as per the following schedule:

contribution mailing dates forperiod relevé 10 slips

for all March 2 to December 31, 2013 mid-January 2014contributions

January 1 to March 3, 2014 mid-March 2014

Fondaction has joined forces withthe financial partners of la coopfédérée, a leader in Québec’s economy. Founded in 1922, La Coop fédérée is the largest agri-food company in Québec and ranks among the 100 largestcooperatives and mutual societiesin the world, in all sectors. Including its affiliated cooperatives,La Coop fédérée’s network employsclose to 15,500 persons and has aconsolidated sales figure of $7.8 billion.

dupray manufactures and distributes steam cleaners, a cleaning solution that’s quick, efficient and environmentally safe.The Montréal-based company hasobtained financial support fromFondaction, which will help to grow its presence in the NorthAmerican market.

Fondaction has invested in cycle capital fund iii lp, which targets sectors involving energy efficiency, industrial applications, transportation, clean energy and fuels, and waste upgrading and transformation. The new fund isan integral part of the Cycle Capital Management platform, founded by Fondaction and other partners.

your fondaction rrspinvested in more than850 québec smes

Through its investments or commitments,either directly or by way of partner or specialized funds, Fondaction supports the development of more than 850 québec smes, many of which represent different components of the social economy. By saving with Fondaction, you help to create and maintain quality jobs in Québec and support a stronger, greener and more equitable economy.

Fondaction participated in a financialpackage aimed at strengthening theshare ownership and fueling the growth of agenco, a Montréal-based furniture manufacturer specialized in the design and manufacture of custom-made furniture and cabinetry for commercial and industrial spaces.The company, founded over 40 yearsago, provides 70 jobs in Montréal.

Located in St. Ambroise, in the Saguenay–Lac-Saint-Jean region,récupère sol specializes in the remediation of contaminated soil. Fondaction was involved in providingfunding to enable its director to repurchase the company from an Ontario company, and thereby helpedto return its ownership to Québec.

Fondaction has invested in fanboxto help it expand its clientele in the North American market. This innovative company, based in Boucherville, has developed a unique technological platform that allows retailers to managetheir customer loyalty programs by integrating different communications methods.

NEW INVESTMENTS

(max)

InfoactionANG-JANVIER2014corr2_InfoactionANG-JANVIER2014corr2 14-01-29 16:16 Page2

Estimates based on a marginal tax rate of 38.37%, which corresponds to a taxable income of $43,953 to $82,985, and 40% tax credits, for total income tax savings of 78.37%, under the tax rules applicable as at January 1, 2014.

preauthorized debit and online payments: save at your own pace

You decide how often your contributions are withdrawn from your bank account. Available to everyone, preauthorized debit or online payments also represent excellent, trouble-free savings methods.

want to contribute to your rrsp by payroll deduction or preauthorized debit?

To modify your contributions or opt for another contribution method, visitwww.fondaction.com, click on particulier / gérer votre compte / cotisation(in French) and fill out a “request for change” form today. You can also contactShareholder Services at 1 800 253-6665. We’ll be pleased to help you determinewhich contribution method is right for you.

set your own savings objectives, contributeat your own pace and simplify your lifewith automatic contributions

payroll deduction: income tax savings at each pay period

Your employer deducts your contributions directly from your pay. And if you like, you can obtain immediate income tax savings. This means your wages are reduced by only a fraction of the chosen amount. You put aside savings regularly without feeling the pinch.

RRSP investment amount $3,000.00 $5,000.00

Tax savings:

w 40% tax credits $1,200.00 $2,000.00

w RRSP deduction $1,151.10 $1,918.50

Net annual cost $648.90 $1,081.50

Net cost per pay (26 pay periods) $24.96 $41.60

payroll deductionoffered in over2,200 workplaces

payroll deduction is offered at over 2,200 establishments across québec. This contribution method is a simple retirement savings solution that allowsyou to save regularly without breaking your budget.

more than 500 fondaction representatives are active in various workplaces. Find out if this savingsmethod is offered by your employer.

If it is not available, feel free to call us. We will be happy to contact your employer to explain the advantages of the Fondaction RRSP. Payroll deduction is easy to set up and it’s free of charge.

If implementing payroll deduction in your workplace is not feasible, you can opt for preauthorized debit or onlinepayments. These methods also allow your to regularly put aside savings in your Fondaction RRSP.

Moreover, in the event of limiting measures, Fondaction reserves shares for participants who contribute throughpayroll deduction and other automaticsavings methods.

If you file your tax returns via the Internet, you are not required to submit your Relevé 10 slips.What’s more, unlike the Canada Revenue Agency,Revenue Québec no longer requires Relevé 10slips to be attached to tax returns submitted bymail. You must be sure to retain these tax slips,however, in case your returns are audited.

2013 income tax

If you subscribed to Fondaction last year or if you plan to make a contribution by March 3, your Relevé 10 slips will be mailed as per the following schedule:

contribution mailing dates forperiod relevé 10 slips

for all March 2 to December 31, 2013 mid-January 2014contributions

January 1 to March 3, 2014 mid-March 2014

Fondaction has joined forces withthe financial partners of la coopfédérée, a leader in Québec’s economy. Founded in 1922, La Coop fédérée is the largest agri-food company in Québec and ranks among the 100 largestcooperatives and mutual societiesin the world, in all sectors. Including its affiliated cooperatives,La Coop fédérée’s network employsclose to 15,500 persons and has aconsolidated sales figure of $7.8 billion.

dupray manufactures and distributes steam cleaners, a cleaning solution that’s quick, efficient and environmentally safe.The Montréal-based company hasobtained financial support fromFondaction, which will help to grow its presence in the NorthAmerican market.

Fondaction has invested in cycle capital fund iii lp, which targets sectors involving energy efficiency, industrial applications, transportation, clean energy and fuels, and waste upgrading and transformation. The new fund isan integral part of the Cycle Capital Management platform, founded by Fondaction and other partners.

your fondaction rrspinvested in more than850 québec smes

Through its investments or commitments,either directly or by way of partner or specialized funds, Fondaction supports the development of more than 850 québec smes, many of which represent different components of the social economy. By saving with Fondaction, you help to create and maintain quality jobs in Québec and support a stronger, greener and more equitable economy.

Fondaction participated in a financialpackage aimed at strengthening theshare ownership and fueling the growth of agenco, a Montréal-based furniture manufacturer specialized in the design and manufacture of custom-made furniture and cabinetry for commercial and industrial spaces.The company, founded over 40 yearsago, provides 70 jobs in Montréal.

Located in St. Ambroise, in the Saguenay–Lac-Saint-Jean region,récupère sol specializes in the remediation of contaminated soil. Fondaction was involved in providingfunding to enable its director to repurchase the company from an Ontario company, and thereby helpedto return its ownership to Québec.

Fondaction has invested in fanboxto help it expand its clientele in the North American market. This innovative company, based in Boucherville, has developed a unique technological platform that allows retailers to managetheir customer loyalty programs by integrating different communications methods.

NEW INVESTMENTS

(max)

InfoactionANG-JANVIER2014corr2_InfoactionANG-JANVIER2014corr2 14-01-29 16:16 Page2

NEWS FOR SHAREHOLDERS JANUARY 2014

INFOACTION

despite fierce opposition to the project, numerous representations and the reasonable offer made to the government, the canadian government has decided to press ahead withplans to gradually phase out the federal tax credit for contributions to labour-sponsored funds by 5% per year, beginning in 2015, until the credit is completely eliminated in 2017.

about the federal tax credit phase-out

For more information: Shareholder Services: 1 800 253-6665 WWW.FONDACTION.COM

This investment is made by way of a prospectus. The prospectus contains important, detailed information on the securities offered. A copy of the prospectus can be obtained from Fondaction’s offices or its website. Investors are advised to read the prospectus before making an investment decision.

GIVING MONEY MEANING Follow us on

lump-sum contributionsaccepted again startingjune 1, 2014

As of January 13, 2014, Fondaction is unable to accept any further lump-sum contributions for its 2013-2014 fiscal year.

If you would like to be informed by email when Fondaction starts collecting lump-sumcontributions again, add your name to our electronic mailing list on the website: particulier / gérer votre compte / cotisation (in French).

Fondaction is authorized to collect $200 millionin capital for the 2013-2014 fiscal year. For the2014-2015 fiscal year, the authorized amount will be $225 million.

three ways to contribute

From now until June 1, 2014, you can still subscribe to Fondation, either by preauthorizeddebit or online payments, for a total monthlyamount of $416.

Or you can have your employer deduct your contributions directly from your pay. Find out if this option is offered in your workplace.

Simplify your life by choosing to make automatic contributions to Fondaction. You’ll save effortlessly and obtain 40% tax credits exclusive to Fondaction.

a 3.0% return for the first half ofthe 2013-2014 fiscal year and 4.3%for 12 months

fondaction posted a positive non-annualized return of 3.0% for the first six months of its 2013-2014 fiscal year ended november 30, 2013. for the last 12-month period, the return stands at 4.3%.

these results are net of expenses and do not include the supplement from tax credits granted to shareholders.

share value rises to $9.71

The share value has increased from $9.44 to $9.71, up $0.27 from the figure announced on July 10, 2013.

“The results of unlisted companies and specialized funds as well as the performance of listed securities have led to a slightly higher return for the portfolio of development capital investments inQuébec SMEs. These investments are at the heart of Fondaction’smission and generate positive spin-offs for Québec, particularly byhelping to maintain and create jobs,” explained Léopold Beaulieu, President and Chief Executive Officer of Fondaction.

positive returns

Development capital investments in Québec SMEs produced a 6.1% return for the six-month period. For investments in the financialmarkets, the return was 2.7%; Fondaction has continued to applyboth active and prudent management in response to market fluctuations.

a few figures for the six-month period

During the six-month period, Fondaction’s net assets rose 11.2%,to $1.15 billion. The amounts subscribed during the period increased by 10.8%. As at November 30, 2013, development capitalinvestments totalled $658.3 million. Fondaction had 124,103 shareholders.

what will happen?

40% tax credits until 2015

no changes will be made before 2015. the federal tax credit will remain at 15% for 2013 and 2014. Moreover, the tax credit granted by the Québec government remains untouched. You will continue to obtain income tax credits totalling 40% until March 2015.

the value of your investments will not be affected

The tax credits have no impact on the Fund’s share value, which is established on the basis of the value of its investments in companies and in the financial markets.

Eliminating the federal tax credit will not affect the value of your savings or Fondaction’s ability to uphold all its obligations toward its current and future shareholders.

an investment that remains attractive

In spite of the federal tax credit phase-out, which will begin in 2015, subscribing to Fondaction will remain an attractive investment option. You will still receive tax credits from the Québec government and the RRSP deduction. Fondaction will continue to invest your savings in order to create and maintain jobs in Québec.

Fondaction has always strived to improve its results and will continue to do so, while maintaining its mission to promote sustainable development in Québec.

InfoactionANG-JANVIER2014corr2_InfoactionANG-JANVIER2014corr2 14-01-29 16:16 Page1