FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2017 UNAUDITED

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1 Management Report of Fund Performance For the Six Month Period Ended June 30, 2015 August 27, 2014 MANAGEMENT S RESPONSIBILITY FOR FINANCIAL REPORTING FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2017 UNAUDITED Financial Statements Page 1

2 MANAGEMENT S RESPONSIBILITY FOR FINANCIAL REPORTING To the Limited Partners of Priviti Oil & Gas Opportunities Limited Partnership 2013 (the Fund) The financial statements of Priviti Oil & Gas Opportunities Limited Partnership 2013 (the Fund ) have been prepared by Priviti Capital Corporation (the Manager ). The Manager of the Fund is responsible for the information and representations contained in these financial statements. These statements have been prepared in compliance with International Financial Reporting Standards ( IFRS ) as published by the International Accounting Standards Board. These financial statements include certain estimates that reflect the Manager s best estimates and judgments. The Manager has ensured that careful judgment has been made and that these estimates are reasonable based on all information known at the time the estimate is made. The Manager is responsible for maintaining a system of internal controls designed to provide reasonable assurance that all transactions are properly authorized and recorded, that the financial statements realistically report the Fund s financial position and performance, and that the Fund s assets are safeguarded. The Manager has effective disclosure controls and procedures to ensure timely and accurate disclosure of material information relating to the Fund. The Board of Directors of Priviti Oil & Gas Opportunities 2013 General Partner Corp., the general partner of the Fund, is responsible for ensuring that the Manager fulfills its responsibilities for financial reporting and has reviewed and approved these financial statements. Ward Mallabone President and Chief Executive Officer Priviti Capital Corporation Robert Vargo Chief Operating Officer Priviti Capital Corporation August 24, 2017 Financial Statements Page 1

3 STATEMENTS OF FINANCIAL POSITION As at (All amounts in thousands except per unit amounts) STATEMENTS OF FINANCIAL POSITION Note June June Assets Current assets Investments 3 $ 7,289 $ 8,264 Cash Sales proceeds receivable - - Dividends receivable 1 1 7,440 8,315 Liabilities Current liabilities Accounts payable and accrued liabilities Net assets attributable to unitholders $ 7,427 $ 8,283 Net assets attributable to unitholders Class A $ 6,161 $ 6,888 Class F $ 1,266 $ 1,395 Units issued and outstanding Class A 8 1,484,369 1,484,369 Class F 8 280, ,150 Net assets attributable to unitholders per unit Class A $ 4.15 $ 4.64 Class F $ 4.52 $ 4.98 The accompanying notes are an integral part of these financial statements. Approved by the Board of Priviti Oil & Gas Opportunities 2013 General Partner Corp., as General Partner Ward Mallabone President and Chief Executive Officer, Director Financial Statements Page 2

4 STATEMENTS OF COMPREHENSIVE INCOME For the six months ended June 30 (All amounts in thousands except per unit amounts) STATEMENTS OF COMPREHENSIVE INCOME Note Income Dividend income $ 5 $ 3 Other changes in fair value of investments Net realized loss on sale of investments (790) (943) Change in unrealized appreciation (depreciation) (732) 1,823 Total income (net) (1,517) 883 Expenses Management fees Service fees Administrative Brokerage commissions Independent review committee fees Unitholder reporting costs - 12 Sales tax 4 5 Legal fees Audit fees 9 9 Transfer agency fees 3 3 Custodial fees Expenses absorbed by Manager 9 (14) (11) Total expenses Increase (decrease) in net assets attributable to unitholders $ (1,685) $ 693 Increase (decrease) in net assets attributable to unitholders Class A $ (1,420) $ 580 Class F $ (265) $ 113 Increase (decrease) in net assets attributable to unitholders per unit Class A 8 $ (0.96) $ 0.39 Class F 8 $ (0.94) $ 0.40 The accompanying notes are an integral part of these financial statements. Financial Statements Page 3

5 STATEMENTS OF CHANGES IN NET ASSETS For the six months ended June 30 (All amounts in thousands) STATEMENTS OF CHANGES IN NET ASSETS 2017 Note Class A $ Class F $ Total $ Net assets attributable to unitholders, beginning of year 7,581 1,531 9,112 Decrease in net assets attributable to unitholders (1,420) (265) (1,685) Net assets attributable to unitholders, end of period 6,161 1,266 7, Note Class A $ Class F $ Total $ Net assets attributable to unitholders, beginning of year 6,308 1,282 7,590 Increase in net assets attributable to unitholders Net assets attributable to unitholders, end of period 6,888 1,395 8,283 The accompanying notes are an integral part of these financial statements. Financial Statements Page 4

6 STATEMENTS OF CASH FLOWS For the six months ended June 30 (All amounts in thousands) STATEMENTS OF CASH FLOWS Note Cash flow from operating activities Increase (decrease) in net assets attributable to unitholders $ (1,685) $ 693 Adjustments for: Purchase of investments - (1,210) Net realized loss on sale of investments Proceeds from sale of investments Net change in unrealized (appreciation) depreciation of investments 732 (1,823) Net change in non-cash working capital items (9) (43) Net cash from operating activities $ 38 $ (465) Cash, beginning of period $ 112 $ 515 Cash, end of period $ 150 $ 50 Supplementary Information Operating activities Dividends received $ 5 $ 3 The accompanying notes are an integral part of these financial statements. Financial Statements Page 5

7 SCHEDULE OF INVESTMENT PORTFOLIO As at June 30, 2016 SCHEDULE OF INVESTMENT PORTFOLIO Number of Shares / Par Value Cost $ Carrying Value $ Equities Private companies Avalon Oil & Gas Ltd. 1,000,000 1,000, ,000 Blackspur Oil Corp. 1,000, , ,000 Certarus Ltd. 250, ,000 1,125,000 ConleyMax Inc. 300, , ,000 Rolling Hills Energy Ltd. 215, , ,750 Steppe Resources Inc. 1,200,000 1,200, ,000 Total private companies 4,015,000 3,145,750 Public companies Advantage Oil & Gas Ltd. 57, , ,275 Leucrotta Exploration Inc. 270, , ,200 Nuvista Energy Ltd. 75, , ,250 Painted Pony Petroleum Ltd. 80, , ,400 Pine Cliff Energy Ltd. 475, , ,750 Spartan Energy Corp 65, , ,798 Storm Resources Ltd. 100, , ,000 Tamarack Valley Energy Ltd. 172, , ,675 Torc Oil & Gas 72, , ,825 Whitecap Resources Inc. 35, , ,415 Total public companies 4,596,528 4,143,588 Total investments 8,611,528 7,289,338 The accompanying notes are an integral part of these financial statements. Financial Statements Page 6

8 NOTES T O TH E FIN ANC IAL ST ATEM ENT S 1. General information Priviti Oil & Gas Opportunities Limited Partnership 2013 (the "Fund") is a non-redeemable investment fund formed as a limited partnership under the Partnership Act (Alberta) on January 25, The Fund does not include the personal assets of the partners. The address of the Fund s registered office is 850, th Ave. SW, Calgary, Alberta T2P 2T8. Priviti Oil & Gas Opportunities 2013 General Partner Corp. (the "General Partner"), the general partner of the Fund, is a private corporation formed under the laws of the Province of Alberta. The General Partner is a wholly-owned subsidiary of Priviti Capital Corporation, a private corporation formed under the laws of the Province of Alberta. Priviti Capital Corporation (the Manager ) has been retained by the General Partner to act as Investment Fund Manager and Portfolio Manager of the Fund. CIBC Mellon is the custodian of the Fund s assets. The Fund invests in a portfolio of securities of private and public companies that operate in the Canadian oil and gas sector. The term of the Fund continues until June 28, 2018, unless the General Partner, in its sole discretion, extends the termination date for up to two extensions of one year each. 2. Basis of presentation and adoption of IFRS These financial statements have been prepared in compliance with International Financial Reporting Standards ( IFRS ) as published by the International Accounting Standards Board. The Fund adopted this basis of accounting in 2014 as required by Canadian securities legislation and the Canadian Accounting Standards Board. These financial statements are presented in Canadian dollars the Fund s functional currency. These financial statements were authorized for issue by the Board of Directors of the General Partner on August 24, Summary of significant accounting policies Financial instruments The Fund recognizes financial instruments at fair value upon initial recognition, plus transaction costs in the case of financial instruments measured at amortized cost. Regular way purchases and sales of financial assets are recognized at their trade date. The Fund s investments, including certain investments in debt securities, are measured at fair value through profit or loss ( FVTPL ). All other financial assets and liabilities are measured at amortized cost. Under this method, financial assets and liabilities reflect the amount required to be received or paid, discounted, when appropriate, at the contract s effective interest rate. The Fund s accounting policies for measuring the fair value of its investments are identical to those used in measuring its net asset value ( NAV ) for transactions with unitholders. Interest income from government guaranteed investments are recognized at the effective interest rate The Fund does not amortize premiums paid or discounts received on the purchase of fixed income securities. Dividend income is recorded on the ex-distribution date and income is accrued as earned. Dividends are recognized as income on the ex-dividend date. The cost of investments is determined using the average cost method. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial assets traded in active markets (such as publicly traded securities) are based on quoted market prices at the close of trading on the reporting date. The Fund uses the last traded market price for financial assets where the last traded price falls within that day s bid-ask spread. In circumstances where the last traded price is not within Financial Statements Page 7

9 the bid-ask spread, the Manager determines the point within the bid-ask spread that is most representative of fair value based on the specific facts and circumstances. The Fund s policy is to recognize transfers into and out of the fair value hierarchy levels as of the date of the event or change in circumstances giving rise to the transfer. The fair value of financial assets and liabilities not traded in an active market is determined using valuation techniques. The Manager uses a variety of methods and makes assumptions that are based on market conditions existing at each reporting date. Valuation techniques include the use of comparable recent arm s length transactions, reference to other instruments that are substantially the same and others commonly used by market participants and which make the maximum use of observable inputs. Given the focus of the Fund s investment strategy on the Canadian energy sector, the NAV valuation technique is the primary technique utilized for valuing private equity securities when an arm s length transaction is not available. This technique, commonly used in the oil and gas industry, derives fair value for a security based on a build-up of the current fair value of a company s assets and liabilities. The Manager, however, may utilize other valuation techniques if, in the Manager s opinion, the NAV valuation technique is not the most appropriate technique given the particular security under the circumstances. Refer to Note 6 for further information about the Fund s fair value measurements. Impairment of financial assets At each reporting date, the Fund assesses whether there is objective evidence that a financial asset at amortized cost is impaired. If such evidence exists, the Fund recognizes an impairment loss as the difference between the amortized cost of the financial asset and the present value of the estimated future cash flows, discounted using the instrument s original effective interest rate. Impairment losses on financial assets at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized. Cash Cash is comprised of deposits with financial institutions with original terms to maturity of 3 months or less. Increase (decrease) in net assets attributable to unitholders per unit The increase (decrease) in net assets attributable to unitholders per unit is calculated by dividing the increase (decrease) in net assets attributable to unitholders by the weighted average units outstanding during the period. As the number of units has not changed during the period, the weighted average units outstanding is equal to the total of 1,484,369 and 280,150 units outstanding for Class A and F respectively. Taxation For each unit held at the end of a fiscal year, unitholders will be allocated 99.99% of the income (or loss) of the Fund for the fiscal year (before deduction of management fees and the performance fees, if any, and the amount of the Fund 's deductions under paragraph 20(1)(e) of the Income Tax Act (Canada) (the Variable Expense )) divided by the number of units then outstanding less, in the case of Class A units, the total of the Variable Expense attributable to the Class A units divided by the number of Class A units, and, in the case of the Class F units, the total of the Variable Expense attributable to the Class F units divided by the number of Class F units. The Variable Expense relates to the terms of the Agency Agreement, for every unit placed an agent is entitled to $0.575 per Class A Unit (5.75%) and $0.225 per Class F Unit (2.25%), which will be paid by the Partnership from the proceeds of the Offering. At the end of each fiscal year of the Fund, the General Partner will be allocated 0.01% of the income (or loss) of the Fund for each fiscal year of the Fund. The Fund is not itself a taxable entity. Accordingly, no provision for income tax is required. Sales tax The Fund is not eligible to claim input tax credits for goods and services tax ( GST ), harmonized sales tax ( HST ) or any provincial sales tax ( PST ) paid, and therefore such amounts are included as a cost of Financial Statements Page 8

10 related expenses. Accounting standards issued but not yet adopted The final version of IFRS 9, Financial Instruments ( IFRS 9 ), was issued by the IASB in July 2014 and will replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 introduces a model for classification and measurement, a single, forward-looking expected loss impairment model and a substantially reformed approach to hedge accounting. The new single, principle based approach for determining the classification of financial assets is driven by cash flow characteristics and the business model in which an asset is held. The new model also results in a single impairment model being applied to all financial instruments, which will require more timely recognition of expected credit losses. It also includes changes in respect of own credit risk in measuring liabilities elected to be measured at fair value, so that gains caused by the deterioration of an entity s own credit risk on such liabilities are no longer recognized in profit or loss. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, however is available for early adoption. In addition, the own credit changes can be early applied in isolation without otherwise changing the accounting for financial instruments. The Fund is in the process of assessing the impact of IFRS 9 and has not yet determined when it will adopt the new standard. 4. Critical accounting estimates and judgments The preparation of financial statements requires management to use judgment in applying its accounting policies and to make estimates and assumptions about the future. The following discusses the most significant accounting judgments and estimates that the Fund has made in preparing the financial statements. Fair value measurement of securities not quoted in an active market The Fund holds financial instruments that are not quoted in an active market. Fair values of such instruments are determined using valuation techniques and may be determined using reputable pricing sources (such as pricing agencies) or indicative prices from market makers. Broker quotes as obtained from pricing sources may be indicative and not executable or binding. Where no market data is available, the Fund may value positions using its own models which are usually based on valuation methods and techniques generally recognized as standard within the industry. The models used to determine fair values are validated and periodically reviewed by experienced personnel of the Manager, independent of the party that created them. The models used for private equity securities are based mainly on the NAV valuation technique adjusted for minority and liquidity discounts as appropriate. Models use observable data, to the extent practicable. However, areas such as liquidity discounts, commodity prices, estimated reserves, etc., require the Manager to make estimates. Changes in assumptions about these factors could affect the reported fair values of financial instruments. The Fund considers observable data to be market data that is readily available, regularly distributed and updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. Refer to Note 6 for further information about the fair value measurement of the Fund s financial instruments. Classification of non-redeemable units issued by the Fund Under IFRS, IAS 32, Financial Instruments: Presentation, requires that units of an entity which include a contractual obligation for the issuer to redeem them for cash or another financial asset on liquidation of the fund to be classified as a financial liability. The Fund has liability features including the Fund s fixed life and non-identical contractual obligation to deliver a pro-rata share of its net assets on liquidation. As such, in accordance with the standard, the units have been classified as a financial liability. The units are carried at the value calculated as the residual of the assets and non-unit related liabilities. Classification and measurement of investments and application of the fair value option In classifying and measuring financial instruments held by the Fund, the Manager is required to make significant judgments about whether or not the business of the Fund is to invest on a total return basis for Financial Statements Page 9

11 the purpose of applying the fair value option for financial assets under IAS 39. The most significant judgments made include the determination that certain investments are held-for-trading (e.g. including derivatives, and investments that are acquired with an intention to resell within a period of three days or less), and that the fair value option can be applied to those which are not. Investment entity The most significant judgment that the Fund has made in determining that it meets the definition of an investment entity is that the objectives and business purposes are to generate investment income, and that fair value is the primary measurement attribute to measure and evaluate the performance of substantially all of its investments. As a result, the Fund measures subsidiaries, other than those which provide services to the Funds, at FVTPL. 5. Risk Management The Portfolio Manager of the Fund follows a disciplined, fundamental approach in its investment selection and Management style, which consists of a rigorous and ongoing process of investment opportunities of natural resource companies. The Portfolio Manager purchases and holds securities for the medium to longterm. The Fund s investment activities expose it to a variety of financial risks. Significant risks relevant to the Fund are described below. Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk is comprised of interest rate risk, foreign currency risk and other price risk. Portfolio investments held by the Fund are subject to normal market fluctuations and the risks inherent in investments in the Canadian energy sector. The Fund invests with a medium to long-term outlook while focusing on quality businesses that consistently deliver strong returns for unitholders. As a significant number of the Fund s investments will be made in private entities, additional market price risk exists as there is no actively traded market that enables the private investments to be valued on a daily basis as exists for publicly traded entities. Therefore, future cash flows may be impacted by the differences between the fair values determined for those entities and the value at which they are ultimately disposed. Private companies are valued in accordance with the accounting policy as described in Note 3. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. At June 30, 2017 all of the Fund s assets and liabilities are non-interest bearing, therefore the Fund is not exposed to significant interest rate risk. The Fund is also exposed to risks related to the effects of fluctuations in the prevailing levels of market interest rates on the value of its investments which may impact the cash amount realized upon disposition; however this exposure is considered to be minimal. Foreign currency risk All of the Fund s assets and liabilities are denominated in Canadian dollars, therefore its exposure to foreign currency risk is minimal. Other price risk Other price risk is the risk that the fair value of future cash flows of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk) whether those changes are caused by factors specific to the individual financial instrument, its issuer or factors affecting all similar financial instruments in the market or a market segment. Exposure to other price risk is mainly in equities. As at June 30, 2017, approximately 98% of the Fund s net assets were exposed to other price risk. If prices Financial Statements Page 10

12 of these investments had decreased or increased by 5%, with all other variables being held constant, net assets of the Fund would have decreased or increased respectively by approximately $365. In practice, actual results will differ from this sensitivity analysis and the difference could be material. Liquidity risk Liquidity risk is the risk that the Fund will encounter difficulties in meeting its financial liability obligations. A significant portion of the Fund s assets are investments in private companies, and consequently there is no market to readily liquidate these investments. The Fund s Limited Partners cannot redeem their positions in the Fund, which thereby reduces the need for highly liquid assets. The Fund s objective is to have sufficient liquidity to meet its liabilities when they come due. The Fund monitors its cash balances and cash flows generated from operations to meet its requirements. All of the Fund s obligations at June 30, 2017, are due within one year from that date. Sufficient cash balances are maintained to cover daily operating expenses, or are provided by the General Partner, to the extent that the timing of cash inflows are not aligned with immediate cash requirements. As at June 30, 2017, the Fund s liquid assets of 151 exceeds its contractual liabilities of $13. As at June 30, 2017 Financial liabilities On demand Less than 3 months Total Accounts payable and accrued liabilities $ - $ 13 $ 13 As at June 30, 2016 Financial liabilities On demand Less than 3 months Total Accounts payable and accrued liabilities $ - $ 32 $ 32 Credit risk Credit risk is the risk that the counterparty to a financial asset will default resulting in a financial loss. All of the Fund s cash and cash equivalents are held by its custodian or in deposits with a Canadian chartered bank. All transactions in listed securities are settled upon delivery using reputable brokers. Securities sold are delivered once payment has been received by the broker and securities purchased are paid for once the securities have been received by the broker, therefore the risk of default is considered minimal. Trades will fail if either party fails to meet its obligation. Concentration risk Concentration risk is the risk that the Fund is over-weighted in any one investment type, geographical location or business line or industry. Since the Fund will invest primarily in securities issued by firms engaged in the oil and gas business, in Canada, the net asset value may be more volatile than portfolios with a more diversified investment focus. Also, the net asset value may fluctuate with underlying market prices for commodities produced by those sectors of the economy. 6. Fair value measurement The Fund classifies fair value measurements within a hierarchy which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are: Level 1 Level 2 Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly or indirectly; and Financial Statements Page 11

13 Level 3 Inputs are unobservable for the asset or liability If inputs of different levels are used to measure an asset s or liability s fair value, the classification within the hierarchy is based on the lowest level input that is significant to the fair value measurement. The following table illustrates the classification of the Fund s assets and liabilities measured at fair value within the fair value hierarchy as at June 30, 2017, and June 30, 2016: As at June 30, 2017 Level 1 Level 2 Level 3 Total Equities $ 4,143 $ - $ 3,146 $ 7,289 As at June 30, 2016 Level 1 Level 2 Level 3 Total Equities $ 5,282 $ - $ 2,982 $ 8,264 All fair value measurements are recurring. The carrying values of cash, dividends receivable, and accrued liabilities approximate their fair values due to their short-term nature. Fair values are classified as Level 1 when the related security is actively traded and a quoted price is available. If an instrument classified as Level 1 subsequently ceases to be actively traded, it is transferred out of Level 1. In such cases, instruments are reclassified into Level 2, unless the measurement of its fair value requires the use of significant unobservable inputs, in which case it is classified as Level 3. The Manager is responsible for performing the fair value measurements included in the financial statements of the Fund, including Level 3 measurements. The Manager obtains pricing, where available, from a third party pricing vendor, which is monitored and reviewed by Management on each valuation date. At each financial reporting date, all Level 3 fair value measurements are reviewed and approved by two senior officers of the Manager. The Manager also has a valuation committee which includes senior officers of the Manager, as well as members of the portfolio management and compliance teams. The committee meets quarterly to perform detailed reviews of the valuation of investments held by the Fund. All Level 3 valuation results are discussed with the Audit Committee during its quarterly review. Equities The Fund s equity positions are classified as Level 1 when the security is actively traded and a reliable price is observable. Certain of the Fund s equities do not trade frequently and therefore observable prices may not be available. In such cases, fair value is determined using observable market data (e.g. transactions for similar securities of the same issuer) and the fair value is classified as Level 2, unless the determination of fair value requires significant unobservable data, in which case the measurement is classified as Level 3. For the portfolio investments Avalon Oil & Gas Ltd., BlackSpur Oil Corp., Certarus Ltd. and Rolling Hills Energy Ltd. the fair value is based upon grey market trades or company financings that have recently occurred. No other unobservable inputs were obtained that would change the estimated fair value. As of June 30, 2017, these investments represented approximately 30% of the Fund s net assets. If the prices of these investments had increased or decreased by 10%, with all other variables being held constant, net assets attributable to unitholders would have increased or decreased respectively by approximately $220. For the portfolio investments ConleyMax Inc. and Steppe Resources Inc. the fair value is based upon valuation techniques that are commonly used by market participants and are appropriate for each particular investment based on the nature, facts and circumstances of the investment. Standard valuation techniques such as NAV valuation technique, capitalized earnings and relative valuation based on recent market data, to the extent possible are used to estimate fair value. As of June 30, 2017, these investments represented approximately 13% of the Fund s net assets. Each internally developed model is based on inputs that were obtained as close to the reporting date as possible. Based on the unique characteristics of each Financial Statements Page 12

14 company, the Manager selects a key metric or multiple, such as estimated fair value of oil and gas reserves, to be used in NAV or capitalized earnings approaches. The valuation for each company is discounted for considerations such as liquidity and lack of control. The following table shows the sensitivities of the fair value calculated to a change in the unobservable metrics such as the key metric used to calculate the NAV, capitalized earnings and relative valuation, or any additional discounts that may have been applied to account for lack of control or illiquidity. A relative +/- 10% change has been applied on the key metrics and an absolute change of +/- 5% has been applied for specific company discounts. Unobservable inputs Reasonable possible shift +/- Change in valuation +/- Key metrics 10% $84/ ($84) Non-controlling interest / liquidity discount 5% ($49)/$49 There were no transfers of financial assets between Level 1 and 2 during the six months ended June 30, 2017 and The following table provides a reconciliation of fair value measurements using Level 3 inputs from December 31, 2016 to June 30, 2017, and December 31, 2015 to June 30, 2016: June 30, 2017 June 30, 2016 Balance, beginning of period $ 3,107 $ 3,702 Purchases Unrealized Gains (Losses) 39 (720) Balance, end of period $ 3,146 $ 2, Financial instruments by category The following table presents the carrying amounts of the Fund s financial assets by category as at June 30, All of the Fund s financial liabilities as at June 30, 2017, were carried at amortized cost. Financial assets at FVTPL designated at inception Financial assets at amortized cost Total Investments $ 7,289 $ - $ 7,289 Cash Dividends receivable Total $ 7,289 $ 151 $ 7,440 Financial Statements Page 13

15 The following table presents the carrying amounts of the Fund s financial assets by category as at June 30, All of the Fund s financial liabilities as at June 30, 2016, were carried at amortized cost. Financial assets at FVTPL designated at inception Financial assets at amortized cost Total Investments $ 8,264 $ - $ 8,264 Cash Sales proceeds receivable Total $ 8,264 $ 51 $ 8, Units The interests of unitholders in the Fund are divided into two classes of units, Class A units and Class F units. Each unit represents an undivided interest in the Fund. Each unit of a class entitles the unitholder to the same rights and obligations as a unitholder of such class and no unitholder of a class is entitled to any privilege, priority or preference in relation to any other unitholder of such class. Each unit entitles the unitholder to one vote at all meetings of all unitholders. Each unitholder of a class is entitled to participate equally with respect to any and all distributions to the class made by the Fund. On termination or liquidation of the Fund, the unitholders of record of a class are entitled to receive on a pro-rata basis all of the assets of the Fund allocated to that class remaining after payment of all debts, liabilities and liquidation expenses of the Fund allocated to that class. The Class F units are designed for fee-based accounts, which are a type of account that certain Unitholders have set up with their investment advisor and for which such unitholders pay a certain fee for that account. Class F units differ from the Class A units due to the lower offering costs paid on the issuance of Class F units and no service fee being paid to dealers in respect of the Class F units; this results in a difference between the net asset value of Class A units and the net asset value of Class F units. Net asset value will also reflect the performance fees, if any, allocated to each class of units. Issued units On January 25, 2013, the Fund issued 1,484,369 Class A units and 280,150 Class F units for proceeds (net of agents fees and issuance costs) of $13,768 and $2,696, respectively, under its initial public offering. No units have been issued or redeemed since that time. 9. Related party transactions Management fees and expenses The General Partner has delegated the management of the business affairs of the Fund to the Manager. The Manager is entitled to charge the following: a management fee of 2.0% annually of the net asset value of the Fund based on the quarter opening net asset value of the Fund calculated on the first business day of each quarter, payable in advance, plus an amount equal to the 0.75% annual service fee payable on Class A units to registered dealers, calculated and paid at the end of each calendar quarter commencing on March 31, 2016; a performance fee equal to 20% of any disposition proceeds after which the unitholders have received back 100% of the available proceeds, net of service fees, plus an 8% simple annual rate of return based on the return of capital contribution to the Limited Partner; and reimbursement for all ordinary expenses related to the operation of the Fund. Financial Statements Page 14

16 The General Partner is a related party to the Fund and retains a 0.01% interest in the Fund. All transactions are in the normal course of operations and are recorded at the exchange amount. The Fund has early adopted IAS 24, Related Party Disclosures amendments which provide additional disclosure requirements when key management personnel services are provided by a management entity. The Manager provides key management personnel to the Fund. Pursuant to the terms of a Management Agreement among the Fund, the General Partner, and the Manager, the Manager will provide management, administrative and other services to the Fund on behalf of the General Partner. All fees payable to the Manager in its capacity as Investment Fund Manager are the responsibility of the General Partner and not the Fund. Management fees totaled $86 ( $78) during the period. The Manager is also reimbursed for all expenses incurred on the Fund s behalf, including legal, audit, transfer agency, custodial, operating and administrative costs, unitholder reporting costs, and costs of financial and other reporting. All transactions are in the normal course of operations and are recorded at the exchange amount. The portion related to reimbursement is reflected in administrative expenses on the statement of comprehensive income; such expenses totaled $25 ( $23) for the period. The Manager, in its discretion, absorbed $14 ( $11) of operating expenses during the period. There is no obligation for the Manager to continue to absorb such expenses, nor is there a guarantee that these expenses will continue to be absorbed in the future. Included in accounts payable and accrued liabilities at June 30, 2017, is $12 ( $30) for the above items. Independent Review Committee The total remuneration paid to members of the Independent Review Committee during the six months ended June 30, 2017 was $13 ( $13) and consisted only of fixed fees. 10. Broker commission charges The brokerage commissions paid to dealers included $1 ( $14) that was available for paying to third party vendors. 11. Capital Management The Fund s capital structure consists of its partnership liability. Partnership liability comprises the net assets attributable to unitholders. The Manager has policies and procedures in place to manage the Fund s capital in accordance with its investment objectives, strategies and restrictions as detailed in the limited partnership agreement. The Fund has no specific capital requirements. Financial Statements Page 15