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H A M PT O N F IN A N C IA L C O RPO RA T IO N June 2018 Ticker: CVE: HFC Shareso/s: 29MM Price: $0.41 Mcap: $11.6MM 2 DISCLAIMER This presentation provides a summary description of Hampton Financial Corporation (HFC) and its

  1. H A M PT O N F IN A N C IA L C O RPO RA T IO N June 2018 Ticker: CVE: HFC Shareso/s: 29MM Price: $0.41 Mcap: $11.6MM

  2. 2 DISCLAIMER This presentation provides a summary description of Hampton Financial Corporation (“HFC”) and its business, but does not purport to be complete. Prospective investors are encouraged to obtain independent legal advice concerning any investment in securities of HFC and should not base their decision on whether to invest in HFC upon material provided herein. There are no representations or warranties made herein by HFC or any financial advisors and agents of HFC (the “Agents”). There are certain risks inherent in an investment in the securities of HFC which prospective investors should carefully consider before investing. This presentation is not, and under no circumstances is it to be construed as, an advertisement or a public offering of securities of HFC. No securities regulatory authority or similar authority has reviewed or in any way passed upon the presentation or the merits of these securities and any representation to the contrary is anoffence. This presentation hasbeen prepared for discussion purposes only and is confidential. No representation, warranty ,or undertaking, express or implied, is made and no responsibility or liability is accepted by HFC or any of its Agents as to the accuracyorcompleteness of the information contained herein. Neither this presentation or any of its contents may be disclosed or used without the prior written consent of HFC. This is not an Offering Memorandum.

  3. 3 Hampton Financial Corporation owns and operates a full service IIROC regulated wealth management firm with a 20 year history. Our systems, processes, and credit arrangements provide the optimal platform for tax efficient yieldgeneration.

  4. Hampton Securities Timeline 4 1996 COMPANY FOUNDATION Started as a small family office with $150 million AUA and 4employees 2007 GROWTH Continued to grow AUA and # of advisors and associates 2008 GLOBAL FINANCIALCRISIS While many of our competitors closed their doors, we kept moving forward

  5. 5 2014 PRIVATE PLACEMENTFINANCING Raised $4 million in equity capital to prepare for next phase of growth and role out proprietary investment operations 2016 PUBLICLISTING Raised additional $3 millionand began trading on the TSX Venture Exchange (CVE:HFC ) TODAY ACQUSITIONS AND CAPITALRAISING With approx. $900 million in AUM/A and 50+ advisors and associates, we are evaluating potential acquisitions and preparing to expand our capital base for our proprietary investmentstrategy

  6. Management & Directors 6 PETER M.DEEB CHAIRMAN &CEO As founder and Chairman of Hampton Securities, Mr. Deeb has spent the last 20 years growing and operating Hampton Securities into a leading investment dealer. He has built a career developing proprietary investment strategies for individual and institutional clients. He brings with him a wealth of international markets experience and operational skills derived from years spent as an entrepreneur in a number of industries, including energy, shipping, real-estate, and finance. ROBERTSHERMAN VICECHAIRMAN Mr. Sherman is a Senior Vice-President and investment advisor of Hampton Securities with over 25 years in the investment industry. Prior to entering the investment industry, Mr. Sherman was employed in the treasury and finance departments for a group of Canadian mining companies JOHN H.SUNUNU DIRECTOR Governor Sununu is a graduate of the Massachusetts Institute of Technology and has a Ph.D. in mechanical engineering. He served three terms as Governor of New Hampshire before being commissioned Chief of Staff to President George H.W. Bush, serving in the White House until March 1, 1992. DR. STEVEN SMALL DIRECTOR Dr. Small has decades of experience as an entrepreneur, investor and founder/co-founder of several public and private companies across many sectors. Dr. Small was an initial investor and co-founder of Element Financial Corp and Newcourt Credit Group.

  7. Management & Directors 7 RICHARD CARL,CFA DIRECTOR Mr. Carl has a wide breadth of expertise and experience in a number of industries including capital markets, financial services, oil and gas, mining, asset management and real estate. His previous roles included the President of Credit Suisse First Boston Canada and Senior Vice President and Director of Equity Sales and Trading for BMO Nesbitt Burns. WILLIAMTHOMSON DIRECTOR Mr. Thomson is the Managing Partner of Mercana Growth Partners, a merchant banking business focused on providing strategic advice, operational experience and financial acumen to develop and execute business plans and attract capital to enable entrepreneurial businesses to succeed. Mr. Thomson has 35 years’ experience in completing business turnarounds and sourcing private equity for emerging growth companies and management consulting. JOEPAVAO PRESIDENT & CHIEF OPERATING OFFICER Mr. Pavao has served in executive positions in the financial community for more than 25 years. Most recently he served as President of Solium Financial (SUM/TSX), and as Chief Strategy Officer at JitneyTrade Inc. Prior to this he has served in senior executive capacities at TD Greenline, CT Securities, ETrade and Sunlife Securities. JASON MACKEY CHIEF FINANCIAL OFFICER Mr. Mackey began his career at the public accounting firm, KPMG. He was a senior manager in the firm’s Investment Dealer Practice, performing assurance and advisory services. In 2000, Mr. Mackey left KPMG to aid in the start-up and registration of MGI Securities Inc., a full service investment dealer as its Chief Financial Officer. In 2003, he became the Chief Financial Officer of Jovian Capital Corporation, a publicly traded investment holding company, where he was made responsible for the accounting and reporting process of the Jovian Group of Companies.

  8. 8 Strategic Overview Economies of Scale Industry upheaval has created a highly fragmented marketplace with deeply discounted valuations resulting in attractive acquisition and advisor recruitment opportunities Drive margin expansion and improve profitability * Cash FlowGeneration Our proprietary investment strategy focuses on our substantial spread between cost of funds and market yields togenerate predictable cash flow * Create earnings stability and fund a return of capital to our shareholders

  9. 9 Investment Highlights Hampton is offering up to $20 million of convertible debentures to expand its proprietary investment strategy: Maturity & Coupon Safety Upside 5 Year term Low volatility, income 9% coupon paidsemi annually Convertible at$0.60/share generating investments. toshareholders with additional warrantat Redeemable at investor’s $0.60 for 5years discretion after 3years

  10. 10 Flow of Funds Investors 9% coupon paid to 5 1 $20MM inConvertible investors quarterly. Debentures issued byPubco Principal repaid at maturity Hampton Financial (Pubco) Pubco invests 9% coupon paid 2 4 $20MM via semi annually to subordinated Pubco from 100% note receivable Dealer from Dealer Hampton Securities (IIROC Dealer) $20MM invested in proprietary 3 portfolio to generate tax free yield

  11. 11 PROPRIETARY INVESTING Our proprietary investment strategy aims to leverage low-cost borrowing rates and provide stable cash flows in an uncertain economic environment; HFC will invest in dividend-paying securities with low volatility and risk of default

  12. 12 Key SuccessFactors CASH FLOW Predictable cash flows from preferred shares with proven trackrecords LEVERAGE Conservative use of leverage coupled with low borrowing costs to maximize interest spread PLATFORM Capitalize on Hampton Securities’ systems, staff, and licensing

  13. HAMPTON FINANCI AL 40 PREFERRED INCOME STRATEGY

  14. 14 BCE.Z MFC.H BPO.R CPX.A RY.Q FFH.C BAM.X BPO.N DFN.A BNS.O BCE.Q RY.Z CPX.C BMO.K MFC.O DF.A BCE.C PIC.A BCE.K BRF.A DGS.A BCE.R BCE.F FFN.A SLF .I AIM.A ENB.A CPX.E FTN.A BAM.Z BAM.T BNS.N LCS.A LFE.B GMP.B BMO.L BNS.Q BCE.O BCE.T BCE.A Our top40 picksfromFinancialServices,Telecomm, CharteredBanks,Energy, Split Share Corporations, andInsurance

  15. 15 Preferred Shares The Sensible Choice for Income 01 YIELD Averaging 8%, these instruments have priority RISK/RETURN over common share dividends We select preferred shares with BETA the highest Sharpe ratios, a 02 measure of excess return per Much less volatile than the market ortheir unit of risk. The moderate common share counterparts yields of these instruments DIVERSITY combined with their relatively low betas gives them very A portfolio of over 40 securities balanced across 03 an array of sectors attractive risk/return profiles for conservativeinvestors. STABILITY The current low interest rate environment means 04 minimal rate-reset risk or risk of default

  16. 16 Our PlatformAdvantage Type II Introducer status with IIROC allows for margin at the call loan rate (currently 1%) on firm inventories Up to 4:1 leverage available on portfolio securities Dividend income generated from the portfolio is tax free to Hampton Securities Limited

  17. 17 Cost of Funds 3.45% 2.26% 1.25% 1.00% CDN Prime NBCN Call-loanRate 1 Year CDN Gov’t 1 . Year LIBOR

  18. 18 Interest Spread TARGET YIELD 8% NET INTERESTSPREAD Less 3% Blended Cost of Funds 5%

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