FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP.

Transcription

1 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. Norrep II Class Norrep Income Growth Class Norrep US Dividend Plus Class Norrep Energy Plus Class Norrep Entrepreneurs Class Norrep Global Income Growth Class Norrep Tactical Opportunities Class For the year ended October 31, 2017

2 KPMG LLP 205 5th Avenue SW Suite 3100 Calgary AB T2P 4B9 Telephone (403) Fax (403) INDEPENDENT AUDITORS' REPORT To the Shareholders of Norrep Opportunities Corp. being: Norrep II Class Norrep Income Growth Class Norrep US Dividend Plus Class Norrep Energy Plus Class (formerly Norrep Energy Class) Norrep Entrepreneurs Class Norrep Global Income Growth Class Norrep Tactical Opportunities Class We have audited the accompanying financial statements of Norrep Opportunities Corp., which comprise the statements of financial position of Norrep II Class, Norrep Income Growth Class, Norrep US Dividend Plus Class, Norrep Energy Plus Class, Norrep Entrepreneurs Class, Norrep Global Income Growth Class and Norrep Tactical Opportunities Class as at October 31, 2017 and October 31, 2016, the statements of comprehensive income (loss), changes in net assets attributable to holders of redeemable shares and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. KPMG Canada provides services to KPMG LLP.

3 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Norrep II Class, Norrep Income Growth Class, Norrep US Dividend Plus Class, Norrep Energy Plus Class, Norrep Entrepreneurs Class, Norrep Global Income Growth Class and Norrep Tactical Opportunities Class as at October 31, 2017 and October 31, 2016, and their financial performance and their cash flows for the years then ended in accordance with International Financial Reporting Standards. Chartered Professional Accountants December 14, 2017 Calgary, Canada 2

4 NORREP II CLASS Statements of Financial Position (in Canadian dollars, except shares outstanding) As at October 31 October Assets Cash and cash equivalents 5,792,977 9,100,852 Dividends and interest receivable 106, ,915 Shares issued 24,900 6,900 Investments, at fair value through profit or loss 115,925, ,438,864 Total assets 121,849, ,663,531 Liabilities Accrued expenses (note 8) 242, ,200 Dividends payable 60,261 Shares redeemed 115, ,887 Total liabilities (excluding net assets attributable to holders of redeemable shares) 417, ,087 Net assets attributable to holders of redeemable shares 121,432, ,246,444 Net assets attributable to holders of redeemable shares: Series A 78,137,349 91,149,868 Series F 27,801,201 24,855,896 Series I 15,493,510 14,240,680 Redeemable shares outstanding (note 7): Series A 1,841,623 2,342,926 Series F 573, ,468 Series I 304, ,093 Net assets attributable to holders of redeemable shares per share: Series A Series F Series I See accompanying notes to financial statements. On behalf of the Board of Directors of Norrep Capital Management Ltd.: Keith Leslie Alex Sasso 1 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

5 NORREP II CLASS Statements of Comprehensive Income (in Canadian dollars) Dividend income 2,203,130 2,703,640 Interest for distribution purposes 95, ,048 Net gain (loss) on investments at fair value through profit or loss Net realized gain (loss) on investments 13,684,802 8,099,035 Net change in unrealized appreciation (depreciation) in fair value of investments (982,020) (868,385) Total investment revenue (loss) 15,001,048 10,041,338 Management fees (note 8) 1,917,922 2,175,219 Transaction costs 214, ,578 HST/GST 182, ,512 Administrative fees (note 8) 162, ,062 Custodian and record keeping fees 87,763 87,780 Audit and tax fees 45,592 54,028 Computer services 40,914 47,592 Legal and filing fees 27,928 35,577 Other 27,466 32,528 Independent review committee 15,452 13,778 Performance bonus recovery (note 8) (1,021,035) Total operating expenses 2,722,092 1,992,619 Increase (decrease) in net assets attributable to holders of redeemable shares 12,278,956 8,048,719 Change in net assets attributable to holders of redeemable shares (note 7): Series A 7,880,259 5,740,439 Series F 2,699,665 1,222,665 Series I 1,699,032 1,085,615 Change in net assets attributable to holders of redeemable shares per share (note 7): : Series A Series F Series I See accompanying notes to financial statements. 2 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

6 NORREP II CLASS Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares (in Canadian dollars) All Series Series A Series F Series I Net assets attributable to holders of redeemable shares, beginning of year 130,246, ,266,509 91,149, ,626,877 24,855,896 16,195,703 14,240,680 13,443,929 Increase (decrease) in net assets, attributable to holders of redeemable shares 12,278,956 8,048,719 7,880,259 5,740,439 2,699,665 1,222,665 1,699,032 1,085,615 Transactions attributable to holders of redeemable shares: Issuance of shares 6,746,773 13,720, ,524 2,155,889 6,370,249 11,564, Reinvestment of dividends 945, , , ,326 Amounts paid on redemptions (27,779,852) (29,789,148) (21,251,638) (25,373,337) (6,099,074) (4,126,931) (429,140) (288,880) (20,087,717) (16,068,784) (20,246,092) (23,217,448) 476,189 7,437,528 (317,814) (288,864) Dividends declared: From net realized gains on investments (1,005,623) (646,686) (230,549) (128,388) (1,005,623) (646,686) (230,549) (128,388) Net assets attributable to holders of redeemable shares, end of year 121,432, ,246,444 78,137,349 91,149,868 27,801,201 24,855,896 15,493,510 14,240,680 Dividends per share to holders of redeemable shares: From net realized gains on investments See accompanying notes to financial statements. 3 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

7 NORREP II CLASS Statements of Cash Flows (in Canadian dollars) Cash flows from (used in) operating activities Increase (decrease) in net assets attributable to holders of redeemable shares 12,278,956 8,048,719 Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss (13,684,802) (8,099,035) Net change in unrealized (appreciation) depreciation of investments at fair value through profit or loss 982, ,385 Purchase of investments (40,256,986) (55,610,392) Proceeds from the sale of investments 58,473,119 58,430,677 Dividends and interest receivable 10,591 17,797 Accrued expenses (32,200) (13,000) Dividends payable on investments sold short (3,600) Performance bonus payable (1,105,168) Net cash from (used in) operating activities 17,770,698 2,534,383 Cash flows from (used in) financing activities Proceeds from the issuance of redeemable shares 6,728,773 13,713,464 Amounts paid on redemption of redeemable shares (27,807,606) (30,627,300) Net cash from (used in) financing activities (21,078,833) (16,913,836) Net increase (decrease) in cash and cash equivalents (3,308,135) (14,379,453) Effect of exchange rates on cash and cash equivalents Cash and cash equivalents at beginning of year 9,100,852 23,479,577 Cash and cash equivalents at end of year 5,792,977 9,100,852 Dividends received, net of withholding tax paid 2,213,817 2,721,117 Interest received 95, ,368 Dividend expenses on investments sold short 3,600 See accompanying notes to financial statements. 4 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

8 NORREP II CLASS Schedule of Investment Portfolio As at October 31, 2017 (in Canadian dollars) Description Number of Shares Cost ($) Fair Value ($) % of Net Assets CANADIAN EQUITIES Consumer Discretionary EnerCare Inc. 181,000 3,304,034 3,639,910 Gildan Activewear Inc. 75,400 2,650,409 2,976,792 Reitmans (Canada) Ltd. 10,400 56,368 47,424 Reitmans (Canada) Ltd., Class 'A' 336,400 2,060,108 1,560,896 Sleep Country Canada Holdings Inc. 123,000 2,353,228 4,707,210 Uni-Select Inc. 96,000 2,814,435 2,676,480 13,238,582 15,608, % Energy Enerflex Ltd. 177,000 2,726,620 3,106,350 Kelt Exploration Ltd. 390,100 2,546,689 2,758,007 North American Energy Partners Inc. 331,000 1,955,686 1,721,200 Parex Resources Inc. 231,500 3,817,009 3,972,540 Parkland Fuel Corp. 208,000 5,860,416 5,449,600 Peyto Exploration & Development Corp. 114,700 2,941,861 2,018,720 Precision Drilling Corp. 683,000 3,254,141 2,643,210 Raging River Exploration Inc. 376,000 1,793,826 2,861,360 Whitecap Resources Inc. 431,900 4,742,312 3,999,394 29,638,560 28,530, % Industrials Air Canada 184,000 1,743,183 4,703,040 Badger Daylighting Ltd. 78,000 2,165,441 2,290,860 CAE Inc. 163,400 2,698,362 3,735,324 Chorus Aviation Inc. 560,000 3,449,740 5,112,800 Russel Metals Inc. 74,600 1,830,170 2,151,464 Transcontinental Inc., Class 'A' 94,400 1,860,860 2,703,616 13,747,756 20,697, % Information Technology Avigilon Corp. 204,300 3,174,427 3,908,259 Celestica Inc. 167,000 2,600,750 2,162,650 Descartes Systems Group Inc. (The) 128,400 1,107,934 4,802,160 6,883,111 10,873, % Materials BMO Junior Gold Index ETF 357,900 3,240,447 3,156,678 Chemtrade Logistics Income Fund 217,000 4,120,997 4,244,520 Detour Gold Corp. 163,200 2,254,007 2,244,000 Hudbay Minerals Inc. 331,900 2,911,957 3,182,921 Intertape Polymer Group Inc. 137,800 1,791,800 2,623,712 Lundin Mining Corp. 641,200 2,962,989 6,309,408 Major Drilling Group International Inc. 702,100 4,239,988 4,851,511 21,522,185 26,612, % Real Estate Altus Group Ltd. 132,000 2,834,200 4,650,360 FirstService Corp. 59,000 1,206,616 5,298,790 4,040,816 9,949, % Utilities Superior Plus Corp. 281,300 3,350,962 3,654, % 3,350,962 3,654,087 TOTAL EQUITIES 92,421, ,925, % Less: Transaction costs included in average cost (225,657) TOTAL INVESTMENTS 92,196, ,925, % Other assets, less liabilities 5,506, % TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES 121,432, % 5 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

9 NORREP INCOME GROWTH CLASS Statements of Financial Position (in Canadian dollars, except shares outstanding) As at October 31 October Assets Cash and cash equivalents 1,564,796 7,624,509 Dividends and interest receivable 337, ,064 Shares issued 70, ,387 Investments, at fair value through profit or loss 97,486, ,714,950 Total assets 99,459, ,878,910 Liabilities Accrued expenses (note 8) 208, ,000 Dividends payable 99, ,170 Shares redeemed 521, ,891 Unrealized loss on derivative instruments 211, ,947 Total liabilities (excluding net assets attributable to holders of redeemable shares) 1,040,317 1,355,008 Net assets attributable to holders of redeemable shares 98,418, ,523,902 Net assets attributable to holders of redeemable shares: Series A 24,616,075 29,261,390 Series F 32,451,779 28,131,186 Series I 3,722,225 4,801,328 Series B 37,628,866 48,329,998 Redeemable shares outstanding (note 7): Series A 1,807,043 2,194,535 Series F 2,167,442 1,932,238 Series I 234, ,867 Series B 2,840,084 3,711,692 Net assets attributable to holders of redeemable shares per share: Series A Series F Series I Series B See accompanying notes to financial statements. On behalf of the Board of Directors of Norrep Capital Management Ltd.: Keith Leslie Alex Sasso 6 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

10 NORREP INCOME GROWTH CLASS Statements of Comprehensive Income (in Canadian dollars) Dividend income 3,538,709 3,878,601 Interest for distribution purposes 1,090,352 1,587,804 Net gain (loss) on investments at fair value through profit or loss Net realized gain (loss) on investments 6,142,277 7,474,097 Net realized gain (loss) on derivative instruments 479,986 (669,301) Net change in unrealized appreciation (depreciation) in fair value of investments (965,986) 2,658,597 Net change in unrealized appreciation (depreciation) on derivative instruments 11,995 (74,197) Total investment revenue (loss) 10,297,333 14,855,601 Management fees (note 8) 1,626,926 1,823,687 HST/GST 179, ,864 Administrative fees (note 8) 140, ,215 Transaction costs 105, ,022 Custodian and record keeping fees 85,778 86,951 Audit and tax fees 39,461 46,520 Legal and filing fees 36,018 35,301 Computer services 35,486 42,625 Other 28,235 33,063 Independent review committee 13,100 12,380 Risk management fees 309 Total operating expenses 2,290,075 2,672,937 Increase (decrease) in net assets attributable to holders of redeemable shares before tax 8,007,258 12,182,664 Withholding tax expense 8,678 Increase (decrease) in net assets attributable to holders of redeemable shares 8,007,258 12,173,986 Change in net assets attributable to holders of redeemable shares (note 7): Series A 1,965,871 3,190,692 Series F 2,590,564 3,229,300 Series I 396, ,575 Series B 3,054,775 5,123,419 Change in net assets attributable to holders of redeemable shares per share (note 7): Series A Series F Series I Series B See accompanying notes to financial statements. 7 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

11 NORREP INCOME GROWTH CLASS Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares (in Canadian dollars) All Series Series A Series F Series I Series B Net assets attributable to holders of redeemable shares, beginning of year 110,523, ,057,418 29,261,390 34,760,901 28,131,186 32,356,001 4,801,328 6,138,771 48,329,998 57,801,745 Increase (decrease) in net assets, attributable to holders of redeemable shares 8,007,258 12,173,986 1,965,871 3,190,692 2,590,564 3,229, , ,575 3,054,775 5,123,419 Transactions attributable to holders of redeemable shares: Issuance of shares 17,079,818 16,189, ,770 74,317 12,092,227 8,177, , ,846 4,370,720 7,297,720 Reinvestment of dividends 4,426,897 4,974,692 1,110,543 1,344,811 1,263,494 1,222, , ,583 1,877,612 2,188,858 Amounts paid on redemptions (35,906,117) (47,278,731) (6,817,538) (8,372,822) (9,919,084) (15,167,221) (1,534,457) (2,543,058) (17,635,038) (21,195,630) (14,399,402) (26,114,492) (5,196,225) (6,953,694) 3,436,637 (5,767,117) (1,253,108) (1,684,629) (11,386,706) (11,709,052) Dividends declared: From dividend income (4,382,624) (6,593,010) (1,086,964) (1,736,509) (1,280,012) (1,686,998) (173,871) (283,389) (1,841,777) (2,886,114) From net realized gains on investments (1,330,189) (327,997) (426,596) (48,172) (527,424) (5,712,813) (6,593,010) (1,414,961) (1,736,509) (1,706,608) (1,686,998) (222,043) (283,389) (2,369,201) (2,886,114) Net assets attributable to holders of redeemable shares, end of year 98,418, ,523,902 24,616,075 29,261,390 32,451,779 28,131,186 3,722,225 4,801,328 37,628,866 48,329,998 Dividends per share to holders of redeemable shares: From dividend income From net realized gains on investments See accompanying notes to financial statements. 8 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

12 NORREP INCOME GROWTH CLASS Statements of Cash Flows (in Canadian dollars) Cash flows from (used in) operating activities Increase (decrease) in net assets attributable to holders of redeemable shares 8,007,258 12,173,986 Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss (6,142,277) (7,474,097) Net change in unrealized (appreciation) depreciation of investments at fair value through profit or loss 965,986 (2,658,597) Net change in unrealized (appreciation) depreciation on derivative instruments (11,995) 74,197 Purchase of investments (24,287,767) (54,163,017) Proceeds from the sale and maturity of investments 36,120,352 83,271,780 Dividends and interest receivable 43, ,839 Accrued expenses (28,000) (30,000) Net cash from (used in) operating activities 14,667,301 31,334,091 Cash flows from (used in) financing activities Proceeds from the issuance of redeemable shares 17,167,492 16,031,460 Amounts paid on redemption of redeemable shares (36,167,710) (46,708,457) Dividends to holders of redeemable shares, net of reinvestments (1,299,018) (1,668,497) Net cash from (used in) financing activities (20,299,236) (32,345,494) Net Increase (decrease) in cash and cash equivalents (5,631,935) (1,011,403) Effect of exchange rates on cash and cash equivalents (427,778) 408,518 Cash and cash equivalents at beginning of year 7,624,509 8,227,394 Cash and cash equivalents at end of year 1,564,796 7,624,509 Dividends received, net of withholding tax paid 3,563,721 3,957,135 Interest received 1,109,084 1,645,506 See accompanying notes to financial statements. 9 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

13 NORREP INCOME GROWTH CLASS Schedule of Investment Portfolio As at October 31, 2017 (in Canadian dollars) Description Number of Shares / Par Value Cost ($) Fair Value ($)% of Net Assets CANADIAN EQUITIES Consumer Discretionary EnerCare Inc. 186,000 3,509,312 3,740,460 Imvescor Restaurant Group Inc. 1,027,600 2,960,890 4,059,020 SIR Royalty Income Fund 266,800 2,789,296 3,975,320 Sleep Country Canada Holdings Inc. 76,300 1,578,956 2,920,001 Uni-Select Inc. 82,000 2,715,973 2,286,160 13,554,427 16,980, % Consumer Staples Liquor Stores NA Ltd. 261,000 2,712,134 2,560,410 2,712,134 2,560, % Energy Ensign Energy Services Inc. 376,200 2,579,986 2,497,968 Gibson Energy Inc. 188,000 3,320,563 3,297,520 Parkland Fuel Corp. 167,000 3,740,180 4,375,400 Peyto Exploration & Development Corp. 94,000 2,275,528 1,654,400 Whitecap Resources Inc. 291,000 2,830,053 2,694,660 ZCL Composites Inc. 263,000 2,887,391 3,576,800 17,633,701 18,096, % Financials Royal Bank of Canada 30,000 2,372,274 3,026,100 Toronto-Dominion Bank (The) 42,600 2,488,737 3,124,284 4,861,011 6,150, % Industrials CAE Inc. 106,400 1,652,775 2,432,304 Chorus Aviation Inc. 443,000 2,820,137 4,044,590 Hardwoods Distribution Inc. 187,000 2,940,206 4,097,170 Morneau Shepell Inc. 142,000 2,447,608 3,051,580 Russel Metals Inc. 64,400 1,578,597 1,857,296 WSP Global Inc. 46,000 1,382,327 2,659,720 12,821,650 18,142, % Materials Chemtrade Logistics Income Fund 216,000 3,417,474 4,224,960 Intertape Polymer Group Inc. 119,100 2,197,131 2,267,664 Labrador Iron Ore Royalty Corp. 127,000 2,162,558 2,651,760 Lundin Mining Corp. 228,000 1,946,607 2,243,520 Supremex Inc. 727,500 3,809,511 2,895,450 13,533,281 14,283, % Real Estate Altus Group Ltd. 98,000 2,091,314 3,452,540 FirstService Corp. 42,000 1,419,271 3,772,020 Information Services Corp., Class 'A' 134,300 2,443,736 2,370,395 5,954,321 9,594, % TOTAL EQUITIES 71,070,525 85,809, % CANADIAN BONDS (Par Value in CAD except as otherwise stated) Canada Other Corporate CES Energy Solutions Corp., Callable, 6.375%, 2024/10/21 1,300,000 1,300,000 1,328,708 Clearwater Seafoods Inc., Callable, 6.875%, 2025/05/01 (Par Value in USD) 1,000,000 1,402,383 1,362,837 Gibson Energy Inc., Callable, 5.250%, 2024/07/15 250, , ,250 Gibson Energy Inc., Callable, 5.250%, 2024/07/15 750, , ,625 Mattamy Group Corp., Callable, 6.875%, 2023/12/15 (Par Value in USD) 1,000,000 1,346,197 1,363,223 Parkland Fuel Corp., Restricted, Callable, 5.625%, 2025/05/09 1,000,000 1,007,500 1,008,125 River Cree Enterprises Ltd., Callable, %, 2021/01/20 1,500,000 1,455,000 1,558,125 7,511,080 7,627, % TOTAL CANADIAN BONDS 7,511,080 7,627, % 10 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

14 NORREP INCOME GROWTH CLASS Schedule of Investment Portfolio (Continued) As at October 31, 2017 (in Canadian dollars) Description Number of Shares / Par Value Cost ($) Fair Value ($)% of Net Assets UNITED STATES BONDS (Par Value in USD) Real Alloy Holding Inc., Callable, %, 2019/01/15 1,000,000 1,342,423 1,198,863 1,342,423 1,198, % TOTAL UNITED STATES BONDS 1,342,423 1,198, % TOTAL BONDS 8,853,503 8,826, % UNITED STATES TERM LOANS (Par Value in USD) Berlin Packaging LLC, Term Loans, 7.990%, 2022/09/30 1,200,000 1,343,633 1,561,105 Flexera Software LLC, Term Loans, 8.330%, 2021/04/02 1,000,000 1,100,892 1,289,100 2,444,525 2,850, % TOTAL UNITED STATES TERM LOANS 2,444,525 2,850, % Less: Transaction costs included in average cost (130,441) TOTAL INVESTMENTS 82,238,112 97,486, % Derivative Liabilities (211,951) -0.2% Other assets, less liabilities 1,144, % TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES 98,418, % 11 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

15 NORREP INCOME GROWTH CLASS Schedule of Derivative Investments - Forward Foreign Currency Contracts As at October 31, 2017 Counterparty Credit Rating Settlement Date Currency to be Delivered Fair Value in Cdn Dollars Currency to be Received Contract Price Unrealized Loss Bank of Nova Scotia A-1 November 15, ,361,600 USD 6,910,895 6,698,944 CAD (211,951) Net Unrealized Loss (211,951) 12 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

16 NORREP US DIVIDEND PLUS CLASS Statements of Financial Position (in Canadian dollars, except shares outstanding) As at October 31 October Assets Cash and cash equivalents 17,942,422 10,583,139 Dividends and interest receivable 40,689 32,886 Portfolio assets sold 70 Shares issued 76,620 7,224 Investments, at fair value through profit or loss 31,053,249 24,909,221 Total assets 49,113,050 35,532,470 Liabilities Accrued expenses (note 8) 110,000 87,800 Dividends payable 16,242 9,582 Portfolio assets purchased 70 1,884,702 Shares redeemed 230, ,127 Unrealized loss on derivative instruments 811, ,291 Investments - short, at fair value through profit or loss 654, ,723 Total liabilities (excluding net assets attributable to holders of redeemable shares) 1,823,181 2,844,225 Net assets attributable to holders of redeemable shares 47,289,869 32,688,245 Net assets attributable to holders of redeemable shares: Series A 25,648,576 18,422,853 Series F 20,220,136 13,811,373 Series I 1,421, ,019 Redeemable shares outstanding (note 7): Series A 1,482,432 1,081,154 Series F 1,033, ,695 Series I 70,493 23,370 Net assets attributable to holders of redeemable shares per share: Series A Series F Series I See accompanying notes to financial statements. On behalf of the Board of Directors of Norrep Capital Management Ltd.: Keith Leslie Alex Sasso 13 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

17 NORREP US DIVIDEND PLUS CLASS Statements of Comprehensive Income (in Canadian dollars) Dividend income 741, ,133 Interest for distribution purposes 73, Net gain (loss) on investments at fair value through profit or loss Net realized gain (loss) on investments 1,328,437 1,356,607 Net realized gain (loss) on derivative instruments 4,441,313 2,499,308 Net change in unrealized appreciation (depreciation) in fair value of investments (4,216,235) 456,293 Net change in unrealized appreciation (depreciation) on derivative instruments (313,973) (294,291) Total investment revenue (loss) 2,054,584 4,952,091 Management fees (note 8) 681, ,352 Transaction costs 114,615 86,249 HST/GST 90,710 78,649 Administrative fees (note 8) 58,810 38,500 Custodian and record keeping fees 47,564 37,434 Audit and tax fees 23,148 15,294 Legal and filing fees 22,346 24,024 Computer services 14,413 10,585 Other 11,979 9,268 Independent review committee 5,651 3,294 Dividend expense on investments sold short 2,360 3,383 Risk management fees 1, Performance bonus (note 8) 102,183 Total operating expenses 1,075, ,892 Increase (decrease) in net assets attributable to holders of redeemable shares before tax 979,546 4,044,199 Withholding tax expense 96, ,499 Increase (decrease) in net assets attributable to holders of redeemable shares 883,433 3,920,700 Change in net assets attributable to holders of redeemable shares (note 7): Series A 441,823 2,313,316 Series F 474,652 1,536,217 Series I (33,042) 71,167 Change in net assets attributable to holders of redeemable shares per share (note 7): Series A Series F Series I (0.73) 2.64 See accompanying notes to financial statements. 14 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

18 NORREP US DIVIDEND PLUS CLASS Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares (in Canadian dollars) All Series Series A Series F Series I Net assets attributable to holders of redeemable shares, beginning of year 32,688,245 26,656,254 18,422,853 18,342,217 13,811,373 7,812, , ,931 Increase (decrease) in net assets, attributable to holders of redeemable shares 883,433 3,920, ,823 2,313, ,652 1,536,217 (33,042) 71,167 Transactions attributable to holders of redeemable shares: Issuance of shares 25,121,486 10,510,533 12,884,980 4,831,159 10,442,844 5,679,374 1,793,662 Reinvestment of dividends 880, , , , , ,477 21,176 11,205 Amounts paid on redemptions (11,234,891) (8,293,706) (6,027,626) (7,006,523) (4,415,151) (1,169,292) (792,114) (117,891) 14,767,104 2,920,857 7,361,989 (1,734,016) 6,382,391 4,761,559 1,022,724 (106,686) Dividends declared: From dividend income (761,414) (809,566) (421,022) (498,664) (327,017) (298,509) (13,375) (12,393) From net realized gains on investments (287,499) (157,067) (121,263) (9,169) (1,048,913) (809,566) (578,089) (498,664) (448,280) (298,509) (22,544) (12,393) Net assets attributable to holders of redeemable shares, end of year 47,289,869 32,688,245 25,648,576 18,422,853 20,220,136 13,811,373 1,421, ,019 Dividends per share to holders of redeemable shares: From dividend income From net realized gains on investments See accompanying notes to financial statements. 15 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

19 NORREP US DIVIDEND PLUS CLASS Statements of Cash Flows (in Canadian dollars) Cash flows from (used in) operating activities Increase (decrease) in net assets attributable to holders of redeemable shares 883,433 3,920,700 Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss (1,328,437) (1,356,607) Net realized (gain) loss on sale of options (2,999,034) (1,697,483) Net change in unrealized (appreciation) depreciation of investments at fair value through profit or loss 4,216,235 (456,293) Net change in unrealized (appreciation) depreciation on derivative instruments 313, ,291 Purchase of investments (57,595,986) (24,134,162) Purchase of derivatives (13,389) (53,677) Proceeds from the sale of investments 47,943,540 26,025,299 Proceeds from the sale of derivatives 3,215,815 1,751,160 Dividends and interest receivable (7,803) (12,547) Accrued expenses 22,200 27,600 Net cash from (used in) operating activities (5,349,453) 4,308,281 Cash flows from (used in) financing activities Proceeds from the issuance of redeemable shares 25,052,090 10,607,854 Amounts paid on redemption of redeemable shares (11,225,410) (8,083,380) Dividends to holders of redeemable shares, net of reinvestments (161,744) (102,441) Net cash from (used in) financing activities 13,664,936 2,422,033 Net increase (decrease) in cash and cash equivalents 8,315,483 6,730,314 Effect of exchange rates on cash and cash equivalents (956,200) 368,350 Cash and cash equivalents at beginning of year 10,583,139 3,484,475 Cash and cash equivalents at end of year 17,942,422 10,583,139 Dividends received, net of withholding tax paid 637, ,885 Interest received 73, Dividend expenses on investments sold short 2,360 3,383 See accompanying notes to financial statements. 16 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

20 NORREP US DIVIDEND PLUS CLASS Schedule of Investment Portfolio As at October 31, 2017 (in Canadian dollars) Description Number of Shares Cost ($) Fair Value ($) % of Net Assets UNITED STATES EQUITIES - Long Consumer Discretionary Bed Bath & Beyond Inc. 21,000 1,138, ,715 Cheesecake Factory Inc. (The) 14, , ,441 Dick's Sporting Goods Inc. 38,000 1,945,731 1,198,683 Dillard's Inc., Class 'A' 8, , ,890 Harley-Davidson Inc. 10, , ,260 L Brands Inc. 8, , ,604 Viacom Inc., Class 'B' 23,200 1,368, ,668 Whirlpool Corp. 3, , ,231 7,958,301 5,545, % Consumer Staples CVS Health Corp. 16,000 1,702,764 1,413,472 Dean Foods Co. 68, , ,444 General Mills Inc. 9, , ,608 J.M. Smucker Co. (The) 7,000 1,148, ,964 Kroger Co. (The) 30, , ,531 SUPERVALU Inc. 22, , ,472 6,193,260 5,170, % Energy Schlumberger Ltd. 9, , , , , % Financials State Street Corp. 6, , ,022 Wells Fargo & Co. 6, , , ,936 1,193, % Health Care Cardinal Health Inc. 11,400 1,128, ,666 HCA Healthcare Inc. 20,000 2,111,169 1,950,408 MEDNAX Inc. 25,000 1,974,354 1,411,242 Owens & Minor Inc. 25,000 1,072, ,830 6,286,535 5,063, % Industrials Fluor Corp. 15, , ,093 Stericycle Inc. 10,500 1,130, ,994 2,050,566 1,831, % Information Technology Convergys Corp. 28, , ,719 International Business Machines Corp. 5, , ,994 Oracle Corp. 18,600 1,014,465 1,220,443 Wayside Technology Group Inc. 40, , ,161 Xerox Corp. 22, , ,551 4,572,300 4,717, % Materials Eastman Chemical Co. 9, ,449 1,112, ,449 1,112, % Real Estate Whitestone REIT, Class 'B' 66,900 1,154,224 1,152,177 1,154,224 1,152, % Telecommunication Services CenturyLink Inc. 25, , , FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

21 NORREP US DIVIDEND PLUS CLASS Schedule of Investment Portfolio (Continued) As at October 31, 2017 (in Canadian dollars) Description Number of Shares Cost ($) Fair Value ($) % of Net Assets Telecommunication Services (contd.) Verizon Communications Inc. 30,100 1,991,102 1,857,448 2,684,684 2,469, % TOTAL UNITED STATES EQUITIES - Long 33,553,433 28,997, % CANADIAN EQUITIES - Long Energy Vermilion Energy Inc. 32,000 1,475,807 1,407,903 1,475,807 1,407, % Information Technology Celestica Inc. 50, , , , , % TOTAL CANADIAN EQUITIES - Long 2,222,166 2,055, % TOTAL EQUITIES - Long 35,775,599 31,053, % Description Number of Shares Proceeds ($) Fair Value ($) % of Net Assets UNITED STATES EQUITIES - Short Industrials Rush Enterprises Inc., Class 'A' (10,000) (450,586) (654,605) (450,586) (654,605) -1.4% TOTAL UNITED STATES EQUITIES - Short (450,586) (654,605) -1.4% Less: Transaction costs included in average cost (23,012) TOTAL INVESTMENTS 35,302,001 30,398, % Derivative Liabilities (811,656) -1.7% Other assets, less liabilities 17,702, % TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES 47,289, % 18 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

22 NORREP US DIVIDEND PLUS CLASS Schedule of Derivative Investments - Forward Foreign Currency Contracts As at October 31, 2017 Counterparty Credit Rating Settlement Date Currency to be Delivered Fair Value in Cdn Dollars Currency to be Received Contract Price Unrealized Loss Bank of Nova Scotia A-1 November 15, ,304,000 USD 19,726,265 19,121,277 CAD (604,988) Net Unrealized Loss (604,988) 19 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

23 NORREP US DIVIDEND PLUS CLASS Schedule of Derivative Investments - Options As at October 31, 2017 Security Expiry Date Strike Price Number of Options Underlying Interest on Equity Options Proceeds ($) Fair Value ($) Written Put Options Amgen Inc. 2017/11/25 $ USD (34) (3,400) (5,695) (4,536) Carnival Corp. 2017/11/25 $62.50 USD (79) (7,900) (5,808) (3,564) Cinemark Holdings Inc. 2017/11/18 $35.00 USD (100) (10,000) (14,334) (13,536) Eastman Chemical Co. 2017/11/18 $85.00 USD (40) (4,000) (3,743) (773) ebay Inc. 2017/11/25 $36.00 USD (142) (14,200) (8,847) (3,661) General Mills Inc. 2017/11/18 $50.00 USD (30) (3,000) (1,722) (890) Jabil Inc. 2017/12/02 $26.00 USD (100) (10,000) (3,080) (2,901) Jabil Inc. 2017/11/25 $25.00 USD (100) (10,000) (2,367) (1,289) Medtronic PLC 2017/11/25 $78.00 USD (55) (5,500) (7,487) (2,801) Omnicom Group Inc. 2017/11/18 $72.50 USD (78) (7,800) (7,535) (53,291) Quest Diagnostics Inc. 2017/11/18 $90.00 USD (51) (5,100) (5,906) (4,766) Schlumberger Ltd. 2017/11/25 $62.50 USD (30) (3,000) (4,211) (2,243) State Street Corp. 2017/11/18 $92.50 USD (30) (3,000) (2,957) (6,922) Verizon Communications Inc. 2017/11/25 $48.00 USD (50) (5,000) (3,358) (5,221) Wells Fargo & Co. 2017/12/02 $55.00 USD (60) (6,000) (7,700) (5,917) WESCO International Inc. 2017/11/18 $55.00 USD (100) (10,000) (7,460) (1,611) WestRock Co. 2017/11/18 $57.50 USD (100) (10,000) (7,928) (6,768) (100,138) (120,690) Total Written Put Options (100,138) (120,690) Written Call Options Cardinal Health Inc. 2017/12/02 $63.50 USD (20) (2,000) (4,210) (4,190) CVS Health Corp. 2017/11/25 $81.50 USD (80) (8,000) (7,283) (722) Dean Foods Co. 2017/11/18 $11.00 USD (344) (34,400) (8,265) (4,434) Fluor Corp. 2017/11/25 $44.00 USD (50) (5,000) (5,413) (6,284) Fluor Corp. 2017/12/02 $43.50 USD (40) (4,000) (5,596) (6,574) General Mills Inc. 2017/11/18 $52.50 USD (99) (9,900) (9,358) (6,892) Harley-Davidson Inc. 2017/11/25 $49.00 USD (100) (10,000) (9,666) (7,864) HCA Healthcare Inc. 2017/12/02 $77.00 USD (100) (10,000) (26,824) (22,237) HCA Healthcare Inc. 2017/11/25 $82.00 USD (50) (5,000) (5,233) (1,128) HCA Healthcare Inc. 2017/11/25 $81.00 USD (50) (5,000) (6,538) (1,773) Kroger Co. (The) 2017/12/02 $21.00 USD (40) (4,000) (3,542) (3,609) MEDNAX Inc. 2017/11/18 $45.00 USD (50) (5,000) (8,348) (16,919) Vermilion Energy Inc. 2017/11/18 $35.00 USD (80) (8,000) (2,978) (3,352) (103,254) (85,978) Total Written Call Options (103,254) (85,978) Derivative Assets and Liabilitities - Options (203,392) (206,668) 20 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

24 NORREP ENERGY PLUS CLASS Statements of Financial Position (in Canadian dollars, except shares outstanding) As at October 31 October Assets Cash and cash equivalents 375, ,713 Dividends and interest receivable 31,597 65,047 Shares issued 2,000 Investments, at fair value through profit or loss 26,280,523 43,590,530 Total assets 26,687,275 44,072,290 Liabilities Accrued expenses (note 8) 58,000 95,500 Dividends payable 6,607 Shares redeemed 51,021 74,206 Total liabilities (excluding net assets attributable to holders of redeemable shares) 115, ,706 Net assets attributable to holders of redeemable shares 26,571,647 43,902,584 Net assets attributable to holders of redeemable shares: Series A 15,235,253 26,808,816 Series F 3,240,864 6,945,500 Series I 8,095,530 10,148,268 Redeemable shares outstanding (note 7): Series A 1,966,624 2,718,747 Series F 378, ,968 Series I 879, ,488 Net assets attributable to holders of redeemable shares per share: Series A Series F Series I See accompanying notes to financial statements. On behalf of the Board of Directors of Norrep Capital Management Ltd.: Keith Leslie Alex Sasso 21 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

25 NORREP ENERGY PLUS CLASS Statements of Comprehensive Income (in Canadian dollars) Dividend income 607, ,040 Interest for distribution purposes 1,980 26,209 Net gain (loss) on investments at fair value through profit or loss Net realized gain (loss) on investments (1,334,811) (10,845,299) Net change in unrealized appreciation (depreciation) in fair value of investments (6,581,962) 12,214,907 Total investment revenue (loss) (7,307,756) 2,172,857 Management fees (note 8) 471, ,883 Transaction costs 82, ,692 Custodian and record keeping fees 55,587 57,669 HST/GST 48,768 60,940 Administrative fees (note 8) 46,894 55,313 Legal and filing fees 19,928 27,553 Audit and tax fees 14,872 20,835 Other 12,368 13,732 Computer services 12,223 15,198 Independent review committee 4,245 4,388 Risk management fees 8,703 Total operating expenses 768, ,906 Increase (decrease) in net assets attributable to holders of redeemable shares: (8,076,300) 1,186,951 Change in net assets attributable to holders of redeemable shares (note 7): Series A (5,134,748) 663,031 Series F (1,085,203) 76,930 Series I (1,856,349) 446,990 Change in net assets attributable to holders of redeemable shares per share (note 7): Series A (2.21) 0.23 Series F (2.07) 0.18 Series I (2.11) 0.48 See accompanying notes to financial statements. 22 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

26 NORREP ENERGY PLUS CLASS Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares (in Canadian dollars) All Series Series A Series F Series I Net assets attributable to holders of redeemable shares, beginning of year 43,902,584 40,018,973 26,808,816 26,324,360 6,945,500 3,303,497 10,148,268 10,391,116 Increase (decrease) in net assets, attributable to holders of redeemable shares (8,076,300) 1,186,951 (5,134,748) 663,031 (1,085,203) 76,930 (1,856,349) 446,990 Transactions attributable to holders of redeemable shares: Issuance of redeemable shares in exchange for net assets held by Flow Through Limited Partnerships (note 4) 7,712,167 11,981,190 7,712,167 11,981,190 Issuance of shares 2,996,095 6,647, ,646 1,370,164 2,498,735 4,277, ,714 1,000,021 Reinvestment of dividends 262, ,145 28,296 81,861 Amounts paid on redemptions (19,956,292) (15,932,048) (14,447,744) (13,529,929) (5,113,445) (712,260) (395,103) (1,689,859) (8,985,728) 2,696,660 (6,284,786) (178,575) (2,586,414) 3,565,073 (114,528) (689,838) Dividends declared: From net realized gains on investments (268,909) (154,029) (33,019) (81,861) (268,909) (154,029) (33,019) (81,861) Net assets attributable to holders of redeemable shares, end of year 26,571,647 43,902,584 15,235,253 26,808,816 3,240,864 6,945,500 8,095,530 10,148,268 Dividends per share to holders of redeemable shares: From net realized gains on investments See accompanying notes to financial statements. 23 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

27 NORREP ENERGY PLUS CLASS Statements of Cash Flows (in Canadian dollars) Cash flows from (used in) operating activities Increase (decrease) in net assets attributable to holders of redeemable shares (8,076,300) 1,186,951 Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss 1,334,811 10,845,299 Net change in unrealized (appreciation) depreciation of investments at fair value through profit or loss 6,581,962 (12,214,907) Purchase of investments (14,080,708) (16,384,544) Proceeds from the sale and maturity of investments 28,747,329 16,336,861 Dividends and interest receivable 33,450 (7,789) Accrued expenses (37,500) 15,200 Net cash from (used in) operating activities 14,503,044 (222,929) Cash flows from (used in) financing activities Proceeds from asset transferred in (note 4) 2,438,780 2,485,702 Proceeds from the issuance of redeemable shares 2,998,095 6,645,518 Amounts paid on redemption of redeemable shares (19,979,477) (15,871,383) Net cash from (used in) financing activities (14,542,602) (6,740,163) Net increase (decrease) in cash and cash equivalents (39,558) (6,963,092) Cash and cash equivalents at beginning of year 414,713 7,377,805 Cash and cash equivalents at end of year 375, ,713 Dividends received, net of withholding tax paid 640, ,170 Interest received 1,980 26,373 See accompanying notes to financial statements. 24 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

28 NORREP ENERGY PLUS CLASS Schedule of Investment Portfolio As at October 31, 2017 (in Canadian dollars) Number of Shares / Warrants Cost ($) Fair Value ($) % of Net Assets Description CANADIAN EQUITIES Energy Advantage Oil & Gas Ltd. 155,000 1,026,332 1,058,650 AltaGas Ltd. 30, , ,300 Birchcliff Energy Ltd. 300,000 2,844,989 1,575,000 Canacol Energy Ltd. 400,000 1,213,385 1,640,000 Canadian Natural Resources Ltd. 40,000 1,530,140 1,800,800 Cequence Energy Ltd. 4,266,900 1,152, ,363 Enerflex Ltd. 60,500 1,111,197 1,061,775 Enerplus Corp. 127,000 1,442,532 1,502,410 Gear Energy Ltd. 1,776,500 1,727,689 1,421,200 InPlay Oil Corp. 43,880 89,954 68,014 Kelt Exploration Ltd. 350,000 2,141,186 2,474,500 Painted Pony Energy Ltd. 300,000 1,357, ,000 Parex Resources Inc. 150,000 1,471,939 2,574,000 Peyto Exploration & Development Corp. 70,000 2,302,283 1,232,000 Point Loma Resources Ltd. 586, , ,220 Prairie Provident Resources Inc., Warrants, 2019/03/16 223,900 11,195 Raging River Exploration Inc. 220, ,967 1,679,679 Secure Energy Services Inc. 155,000 1,501,517 1,303,550 TORC Oil & Gas Ltd. 154,000 1,158,598 1,045,660 Traverse Energy Ltd. 515, , ,665 Vermilion Energy Inc. 24,000 1,449,025 1,056,720 Whitecap Resources Inc. 196,700 2,157,518 1,821,442 28,034,598 25,935, % Utilities Northland Power Inc. 14, , , , , % TOTAL EQUITIES 28,361,549 26,280, % Less: Transaction costs included in average cost (36,509) TOTAL INVESTMENTS 28,325,040 26,280, % Other assets, less liabilities 291, % TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES 26,571, % 25 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

29 NORREP ENTREPRENEURS CLASS Statements of Financial Position (in Canadian dollars, except shares outstanding) As at October 31 October Assets Cash and cash equivalents 17,203,508 6,241,538 Dividends and interest receivable 4,422 9,111 Shares issued 1,585, ,866 Investments, at fair value through profit or loss 51,522,262 32,576,146 Total assets 70,315,408 38,989,661 Liabilities Accrued expenses (note 8) 137,500 83,000 Dividends payable 44,353 Performance bonus (note 8) 32, ,316 Portfolio assets purchased 321,500 Shares redeemed 237, ,477 Total liabilities (excluding net assets attributable to holders of redeemable shares) 451, ,293 Net assets attributable to holders of redeemable shares 69,863,582 38,243,368 Net assets attributable to holders of redeemable shares: Series A 36,472,991 23,541,229 Series F 29,181,386 11,348,800 Series I 4,209,205 3,353,339 Redeemable shares outstanding (note 7): Series A 1,214, ,900 Series F 900, ,866 Series I 121, ,685 Net assets attributable to holders of redeemable shares per share: Series A Series F Series I See accompanying notes to financial statements. On behalf of the Board of Directors of Norrep Capital Management Ltd.: Keith Leslie Alex Sasso 26 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

30 NORREP ENTREPRENEURS CLASS Statements of Comprehensive Income (in Canadian dollars) Dividend income 805, ,291 Interest for distribution purposes 66,263 16,652 Net gain (loss) on investments at fair value through profit or loss Net realized gain (loss) on investments 6,976, ,949 Net change in unrealized appreciation (depreciation) in fair value of investments 250,002 5,159,145 Total investment revenue (loss) 8,098,514 6,313,037 Performance bonus (note 8) 809, ,518 Management fees (note 8) 769, ,192 HST/GST 150,761 71,632 Transaction costs 143, ,507 Administrative fees (note 8) 67,712 35,368 Custodian and record keeping fees 53,270 37,731 Audit and tax fees 28,218 15,702 Legal and filing fees 22,634 23,600 Computer services 16,149 9,680 Other 13,100 8,675 Independent review committee 6,583 2,804 Total operating expenses 2,080, ,409 Increase (decrease) in net assets attributable to holders of redeemable shares before tax 6,018,470 5,335,628 Withholding tax expense 9,672 4,235 Increase (decrease) in net assets attributable to holders of redeemable shares 6,008,798 5,331,393 Change in net assets attributable to holders of redeemable shares (note 7): Series A 3,256,212 3,206,980 Series F 2,262,680 1,490,334 Series I 489, ,079 Change in net assets attributable to holders of redeemable shares per share (note 7): Series A Series F Series I See accompanying notes to financial statements. 27 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

31 NORREP ENTREPRENEURS CLASS Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares (in Canadian dollars) All Series Series A Series F Series I Net assets attributable to holders of redeemable shares, beginning of year 38,243,368 24,291,436 23,541,229 15,157,979 11,348,800 5,868,193 3,353,339 3,265,264 Increase (decrease) in net assets, attributable to holders of redeemable shares 6,008,798 5,331,393 3,256,212 3,206,980 2,262,680 1,490, , ,079 Transactions attributable to holders of redeemable shares: Issuance of shares 34,577,541 13,801,901 15,196,323 8,142,960 18,784,219 5,639, ,999 19,008 Reinvestment of dividends 327, , ,433 20,163 Amounts paid on redemptions (8,921,772) (5,181,362) (5,498,216) (2,966,690) (3,195,162) (1,649,660) (228,394) (565,012) 25,982,950 8,620,539 9,872,692 5,176,270 15,721,490 3,990, ,768 (546,004) Dividends declared: From net realized gains on investments (371,534) (197,142) (151,584) (22,808) (371,534) (197,142) (151,584) (22,808) Net assets attributable to holders of redeemable shares, end of year 69,863,582 38,243,368 36,472,991 23,541,229 29,181,386 11,348,800 4,209,205 3,353,339 Dividends per share to holders of redeemable shares: From net realized gains on investments See accompanying notes to financial statements. 28 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

32 NORREP ENTREPRENEURS CLASS Statements of Cash Flows (in Canadian dollars) Cash flows from (used in) operating activities Increase (decrease) in net assets attributable to holders of redeemable shares 6,008,798 5,331,393 Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss (6,976,629) (393,949) Net change in unrealized (appreciation) depreciation of investments at fair value through profit or loss (250,002) (5,159,145) Purchase of investments (31,858,672) (15,918,570) Proceeds from the sale of investments 19,817,625 8,657,809 Dividends and interest receivable 4, Accrued Expenses 54,500 32,200 Performance bonus payable (141,561) (29,659) Net cash from (used in) operating activities (13,341,252) (7,479,485) Cash flows from (used in) financing activities Proceeds from the issuance of redeemable shares 33,155,191 13,741,273 Amounts paid on redemption of redeemable shares (8,852,031) (5,269,278) Net cash from (used in) financing activities 24,303,160 8,471,995 Net increase (decrease) in cash and cash equivalents 10,961, ,510 Effect of exchange rates on cash and cash equivalents Cash and cash equivalents at beginning of year 6,241,538 5,248,930 Cash and cash equivalents at end of year 17,203,508 6,241,538 Dividends received, net of withholding tax paid 800, ,504 Interest received 65,902 16,699 See accompanying notes to financial statements. 29 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

33 NORREP ENTREPRENEURS CLASS Schedule of Investment Portfolio As at October 31, 2017 (in Canadian dollars) Description Number of Shares Cost ($) Fair Value ($) % of Net Assets CANADIAN EQUITIES Consumer Discretionary Imvescor Restaurant Group Inc. 535,000 1,541,734 2,113,250 Indigo Books & Music Inc. 230,800 3,696,246 4,269,800 Park Lawn Corp. 105,000 1,508,792 2,089,500 Pollard Banknote Ltd. 200,000 1,214,437 2,978,000 SIR Royalty Income Fund 100,000 1,302,420 1,490,000 9,263,629 12,940, % Consumer Staples Liquor Stores NA Ltd. 215,000 2,254,888 2,109,150 2,254,888 2,109, % Energy AKITA Drilling Ltd., Class 'A' 290,000 2,612,933 2,015,500 Hyduke Energy Services Inc. 1,470, , ,059 North American Energy Partners Inc. 136, , ,200 Xtreme Drilling Corp. 922,300 2,022,588 1,936,830 ZCL Composites Inc. 219,000 2,354,135 2,978,400 8,063,311 8,034, % Finanicals Redishred Capital Corp. 396, , , , , % Health Care Cipher Pharmaceuticals Inc. 22, ,439 98,291 Nuvo Pharmaceuticals Inc. 469,000 2,262,325 1,876,000 2,388,764 1,974, % Industrials Hardwoods Distribution Inc. 94,000 1,351,301 2,059,540 Inscape Corp., Class 'B' 539,300 1,576,217 1,887,550 PFB Corp. 377,900 2,551,092 3,333,078 Questor Technology Inc. 1,156,800 1,574,671 2,232,624 Velan Inc. 120,400 2,069,350 2,137,100 9,122,631 11,649, % Information Technology Firan Technology Group Corp. 851,700 2,702,091 3,185,358 2,702,091 3,185, % Materials ADF Group Inc. 873,400 2,181,978 2,288,308 Orbit Garant Drilling Inc. 1,389,600 1,940,469 2,445,696 Supremex Inc. 585,000 2,901,084 2,328,300 7,023,531 7,062, % Utilities Global Water Resources Inc. 175,000 1,291,601 2,100,000 1,291,601 2,100, % TOTAL CANADIAN EQUITIES 42,364,881 49,294, % UNITED STATES EQUITIES Financials Currency Exchange International Corp. 15, , , , , % TOTAL UNITED STATES EQUITIES 380, , % INTERNATIONAL EQUITIES Ghana Geodrill Ltd. 860,000 1,869,930 1,823,200 1,869,930 1,823, % TOTAL INTERNATIONAL EQUITIES 1,869,930 1,823, % TOTAL EQUITIES 44,614,954 51,522, % Less: Transaction costs included in average cost (131,114) TOTAL INVESTMENTS 44,483,840 51,522, % Other assets, less liabilities 18,341, % TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES 69,863, % 30 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

34 NORREP GLOBAL INCOME GROWTH CLASS Statements of Financial Position (in Canadian dollars, except shares outstanding) As at October 31 October Assets Cash and cash equivalents 4,676,035 5,397,431 Dividends and interest receivable 793, ,102 Portfolio assets sold 54,022 20,000 Shares issued 425, ,473 Unrealized gain on derivative instruments 497,472 Investments, at fair value through profit or loss 146,167, ,154,302 Total assets 152,116, ,892,780 Liabilities Accrued expenses (note 8) 277, ,500 Dividends payable 183,484 86,407 Shares redeemed 264, ,921 Unrealized loss on derivative instruments 3,210,655 1,444,947 Total liabilities (excluding net assets attributable to holders of redeemable shares) 3,935,803 1,913,775 Net assets attributable to holders of redeemable shares 148,180, ,979,005 Net assets attributable to holders of redeemable shares: Series A 84,558,600 80,470,003 Series F 44,158,999 38,436,435 Series I 19,463,389 30,072,567 Redeemable shares outstanding (note 7): Series A 6,032,178 6,504,875 Series F 2,952,465 2,939,399 Series I 1,219,355 2,174,971 Net assets attributable to holders of redeemable shares per share: Series A Series F Series I See accompanying notes to financial statements. On behalf of the Board of Directors of Norrep Capital Management Ltd.: Keith Leslie Alex Sasso 31 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

35 NORREP GLOBAL INCOME GROWTH CLASS Statements of Comprehensive Income (in Canadian dollars) Dividend income 3,340,856 3,349,014 Interest for distribution purposes 1,329,693 1,472,262 Net gain (loss) on investments at fair value through profit or loss Net realized gain (loss) on investments 5,661,503 6,919,192 Net realized gain (loss) on derivative instruments 7,327,177 1,159,150 Net change in unrealized appreciation (depreciation) in fair value of investments 12,568,417 (1,242,978) Net change in unrealized appreciation (depreciation) on derivative instruments (2,263,180) (1,462,333) Total investment revenue (loss) 27,964,466 10,194,307 Management fees (note 8) 2,015,103 1,797,305 Administrative fees (note 8) 193, ,355 HST/GST 154, ,817 Transaction costs 110, ,455 Custodian and record keeping fees 78,318 88,578 Audit and tax fees 55,672 57,576 Computer services 48,349 49,134 Legal and filing fees 39,219 36,928 Other 33,778 32,074 Independent review committee 18,756 14,328 Performance bonus (note 8) 1,153,511 Total operating expenses 2,748,539 3,729,061 Increase (decrease) in net assets attributable to holders of redeemable shares before tax 25,215,927 6,465,246 Withholding tax expense 364, ,466 Increase (decrease) in net assets attributable to holders of redeemable shares 24,851,520 6,038,780 Change in net assets attributable to holders of redeemable shares (note 7): Series A 13,379,127 2,994,619 Series F 6,709,950 1,411,969 Series I 4,762,443 1,632,192 Change in net assets attributable to holders of redeemable shares per share (note 7): Series A Series F Series I See accompanying notes to financial statements. 32 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

36 NORREP GLOBAL INCOME GROWTH CLASS Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares (in Canadian dollars) All Series Series A Series F Series I Net assets attributable to holders of redeemable shares, beginning of year 148,979, ,249,043 80,470,003 67,983,465 38,436,435 25,268,530 30,072,567 30,997,048 Increase in net assets, attributable to holders of redeemable shares 24,851,520 6,038,780 13,379,127 2,994,619 6,709,950 1,411,969 4,762,443 1,632,192 Transactions attributable to holders of redeemable shares: Issuance of redeemable shares in exchange for net assets held by Norrep Global Class of Norrep Opportunities Corp. (note 4) - 28,332,460-17,909,356-5,406,097-5,017,007 Issuance of shares 31,159,958 30,211,161 10,456,875 11,810,200 15,325,306 18,310,950 5,377,777 90,011 Reinvestment of dividends 4,666,187 4,143,675 2,594,213 2,139,635 1,185, , ,505 1,005,230 Amounts paid on redemptions (55,672,752) (38,765,966) (19,108,512) (19,515,451) (15,940,170) (11,710,755) (20,624,070) (7,539,760) (19,846,607) 23,921,330 (6,057,424) 12,343, ,605 13,005,102 (14,359,788) (1,427,512) Dividends declared: From dividend income (3,991,073) (5,230,148) (2,209,072) (2,851,821) (1,031,472) (1,249,166) (750,529) (1,129,161) From net realized gains on investments (1,811,857) (1,024,034) (526,519) (261,304) (5,802,930) (5,230,148) (3,233,106) (2,851,821) (1,557,991) (1,249,166) (1,011,833) (1,129,161) Net assets attributable to holders of redeemable shares, end of year 148,180, ,979,005 84,558,600 80,470,003 44,158,999 38,436,435 19,463,389 30,072,567 Dividends per share to holders of redeemable shares: From dividend income From net realized gains on investments See accompanying notes to financial statements. 33 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

37 NORREP GLOBAL INCOME GROWTH CLASS Statements of Cash Flows (in Canadian dollars) Cash flows from (used in) operating activities Increase (decrease) in net assets attributable to holders of redeemable shares 24,851,520 6,038,780 Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss (5,661,503) (6,919,192) Net change in unrealized (appreciation) depreciation of investments at fair value through profit or loss (12,568,417) 1,242,978 Net change in unrealized (appreciation) depreciation on derivative instruments 2,263,180 1,462,333 Purchase of investments (38,458,146) (40,064,555) Proceeds from the sale and maturity of investments 56,732,959 42,157,388 Dividends and interest receivable (77,619) (60,440) Accrued expenses 9,500 13,900 Performance bonus payable (65,371) Net cash from (used in) operating activities 27,091,474 3,805,821 Cash flows from (used in) financing activities Proceeds from asset transferred in (note 4) - 3,591,677 Proceeds from the issuance of redeemable shares 30,842,130 30,522,532 Amounts paid on redemption of redeemable shares (55,523,009) (38,774,923) Dividends to holders of redeemable shares, net of reinvestments (1,039,666) (1,080,630) Net cash from (used in) financing activities (25,720,545) (5,741,344) Net increase (decrease) in cash and cash equivalents 1,370,929 (1,935,523) Effect of exchange rates on cash and cash equivalents (2,092,325) 212,450 Cash and cash equivalents at beginning of year 5,397,431 7,120,504 Cash and cash equivalents at end of year 4,676,035 5,397,431 Dividends received, net of withholding tax paid 2,846,624 2,804,969 Interest received 1,381,899 1,376,506 See accompanying notes to financial statements. 34 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

38 NORREP GLOBAL INCOME GROWTH CLASS Schedule of Investment Portfolio As at October 31, 2017 (in Canadian dollars) Number of Shares / Par Value Cost ($) Fair Value ($) % of Net Assets Description CANADIAN EQUITIES Financials Royal Bank of Canada 24,300 1,955,892 2,451,141 Toronto-Dominion Bank (The) 34,900 1,922,420 2,559,566 3,878,312 5,010, % TOTAL CANADIAN EQUITIES 3,878,312 5,010, % UNITED STATES EQUITIES Consumer Discretionary Carnival Corp. 50,500 3,103,493 4,321,959 Hanesbrands Inc. 49,000 1,451,427 1,421,233 4,554,920 5,743, % Consumer Staples Anheuser-Busch InBev NV, ADR 20,700 2,458,530 3,276,307 Costco Wholesale Corp. 6,600 1,428,902 1,370,478 General Mills Inc. 28,500 2,476,800 1,907,507 6,364,232 6,554, % Financials Ares Capital Corp. 75,844 1,403,774 1,572,150 Brighthouse Financial Inc. 1,600 89, ,250 First Republic Bank 35,300 3,403,523 4,432,209 JPMorgan Chase & Co. 42,000 2,435,920 5,447,247 MetLife Inc. 17, ,608 1,208,725 Wells Fargo & Co. 47,900 2,423,655 3,466,526 10,534,745 16,255, % Health Care Johnson & Johnson 21,900 2,240,891 3,935,724 Medtronic PLC 30,800 3,331,617 3,196,989 PerkinElmer Inc. 19,000 1,302,403 1,771,326 6,874,911 8,904, % Industrials Eaton Corp. PLC 34,400 2,450,733 3,548,490 Stanley Black & Decker Inc. 18,400 1,879,080 3,831,876 United Technologies Corp. 28,300 3,223,946 4,369,028 7,553,759 11,749, % Information Technology Alphabet Inc., Class 'A' 1,200 1,362,969 1,598,030 Match Group Inc. 55,200 1,406,493 1,902,774 Oracle Corp. 72,000 3,232,690 4,724,294 6,002,152 8,225, % Materials DowDuPont Inc. 36,900 1,656,191 3,439,627 Sealed Air Corp. 42,400 1,542,871 2,417,516 3,199,062 5,857, % TOTAL UNITED STATES EQUITIES 45,083,781 63,288, % 35 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

39 NORREP GLOBAL INCOME GROWTH CLASS Schedule of Investment Portfolio (Continued) As at October 31, 2017 (in Canadian dollars) Number of Shares / Par Value Cost ($) Fair Value ($) % of Net Assets Description INTERNATIONAL EQUITIES Denmark Alm. Brand AS 259,000 1,427,458 3,449,790 Danske Bank AS 64,900 2,621,284 3,191,899 DSV AS 49,000 2,861,659 4,885,083 Royal Unibrew A/S 33,570 1,167,299 2,491,793 Topdanmark AS 61,900 2,935,884 3,280,456 11,013,584 17,299, % Finland Kone OYJ, Class 'B' 30,900 1,858,340 2,156,379 1,858,340 2,156, % France BNP Paribas SA 21,900 1,673,351 2,204,814 Total SA 20,700 1,355,537 1,488,085 Valeo SA 31,900 1,300,150 2,783,304 4,329,038 6,476, % Indonesia PT Bank Central Asia TBK 1,960,000 2,686,056 3,893,581 2,686,056 3,893, % Ireland CRH PLC 38,300 1,196,899 1,858,091 1,196,899 1,858, % Japan Hoya Corp. 24,600 1,245,918 1,713,272 Nitto Denko Corp. 14,500 1,263,958 1,728,055 2,509,876 3,441, % Netherlands Grandvision NV 92,600 2,951,450 2,980,074 Hal Trust 9,700 1,448,796 2,318,751 Heineken NV 29,300 3,496,705 3,681,115 Koninklijke KPN NV 380,100 1,621,433 1,691,882 9,518,384 10,671, % Norway Atea ASA 105,500 1,173,203 1,712,072 1,173,203 1,712, % Portugal Galp Energia, Class 'B' 112,700 1,976,118 2,701,162 1,976,118 2,701, % Sweden Cloetta AB 307,200 1,417,340 1,338,676 1,417,340 1,338, % Switzerland Novartis AG, Registered 26,500 2,265,781 2,817,061 2,265,781 2,817, % United Kingdom British American Tobacco PLC 20,700 1,306,530 1,726,064 Howden Joinery Group PLC 217,900 1,337,561 1,529,732 Unilever PLC 24,500 1,041,939 1,790,653 3,686,030 5,046, % TOTAL INTERNATIONAL EQUITIES 43,630,649 59,411, % TOTAL EQUITIES 92,592, ,710, % 36 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

40 NORREP GLOBAL INCOME GROWTH CLASS Schedule of Investment Portfolio (Continued) As at October 31, 2017 (in Canadian dollars) Number of Shares / Par Value Cost ($) Fair Value ($) % of Net Assets Description Canada Other Corporate AGT Food and Ingredients Inc., Callable, 5.875%, 2021/12/21 1,000,000 1,016,250 1,031,667 Canadian Energy Services & Technology Corp., Callable, 7.375%, 2020/04/17 500, , ,687 CES Energy Solutions Corp., Callable, 6.375%, 2024/10/21 1,200,000 1,200,000 1,226,500 Clearwater Seafoods Inc., Callable, 6.875%, 2025/05/01 (Par Value in USD) 1,000,000 1,402,383 1,362,837 Gateway Casinos & Entertainment Ltd., Callable, 8.250%, 2024/03/01 (Par Value in USD) 1,000,000 1,342,439 1,372,891 Gibson Energy Inc., Callable, 5.250%, 2024/07/15 250, , ,250 Gibson Energy Inc., Callable, 5.250%, 2024/07/15 750, , ,625 Mattamy Group Corp., Callable, 6.875%, 2023/12/15 (Par Value in USD) 1,250,000 1,688,668 1,704,029 MEG Energy Corp., Callable, 7.000%, 2024/03/31 (Par Value in USD) 1,000,000 1,110,865 1,174,460 Parkland Fuel Corp., Restricted, Callable, 5.625%, 2025/05/09 1,000,000 1,007,500 1,008,125 River Cree Enterprises Ltd., Callable, %, 2021/01/20 1,349,000 1,414,779 1,401,274 Superior Plus L.P., Restricted, Callable, 5.250%, 2024/02/27 500, , ,500 12,196,152 12,320, % TOTAL CANADIAN BONDS 12,196,152 12,320, % UNITED STATES BONDS - LONG (Par Value in USD) HRG Group Inc., Callable, 7.750%, 2022/01/15 1,500,000 2,102,648 2,030,332 Mueller Industries Inc., Callable, 6.000%, 2027/03/01 1,000,000 1,342,429 1,330,996 Real Alloy Holding Inc., Callable, %, 2019/01/15 1,000,000 1,342,423 1,198,863 4,787,500 4,560, % TOTAL UNITED STATES BONDS 4,787,500 4,560, % TOTAL CANADIAN BONDS - LONG 16,983,652 16,881, % UNITED STATES TERM LOANS (Par Value in USD) Berlin Packaging LLC, Term Loans, 7.990%, 2022/09/30 600, , ,553 Blue Ribbon LLC, Term Loans, 5.332%, 2021/11/15 623, , ,307 1,473,279 1,575, % TOTAL UNITED STATES TERM LOANS 1,473,279 1,575, % Less: Transaction costs included in average cost (124,616) TOTAL INVESTMENTS 110,925, ,167, % Derivative Liabilities (3,210,655) -2.2% Other assets, less liabilities 5,223, % TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES 148,180, % 37 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

41 NORREP GLOBAL INCOME GROWTH CLASS Schedule of Derivative Investments - Forward Foreign Currency Contracts As at October 31, 2017 Currency to be Fair Value in Currency to be Contract Unrealized Counterparty Credit Rating Settlement Date Delivered Cdn Dollars Received Price Loss Bank of Nova Scotia A-1 December 15, ,158,400 CHF 1,502,095 1,472,293 CAD (29,802) Bank of Nova Scotia A-1 December 15, ,086,700 DKK 7,703,794 7,461,397 CAD (242,397) Bank of Nova Scotia A-1 December 15, ,162,300 EUR 10,778,441 10,435,471 CAD (342,970) Bank of Nova Scotia A-1 December 15, ,120,000 GBP 3,632,556 3,426,980 CAD (205,576) Bank of Nova Scotia A-1 December 15, ,775,800 JPY 1,736,211 1,690,559 CAD (45,652) Bank of Nova Scotia A-1 December 15, ,975,900 NOK 942, ,048 CAD (17,152) Bank of Nova Scotia A-1 December 15, ,992,000 SEK 770, ,626 CAD (8,795) Bank of Nova Scotia A-1 December 15, ,644,900 USD 75,591,008 73,272,697 CAD (2,318,311) Net Unrealized Loss (3,210,655) 38 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

42 NORREP TACTICAL OPPORTUNITIES CLASS Statements of Financial Position (in Canadian dollars, except shares outstanding) As at October 31 October Assets Cash and cash equivalents 476, ,291 Dividends and interest receivable 32,745 48,094 Portfolio assets sold 483,150 Shares issued 878 Investments, at fair value through profit or loss 13,532,909 23,676,640 Total assets 14,041,698 25,007,053 Liabilities Accrued expenses (note 8) 42,000 70,300 Dividends payable 18,086 29,936 Shares redeemed 120, ,917 Unrealized loss on derivative instruments 92,646 92,519 Investments - short, at fair value through profit or loss 375,255 Total liabilities (excluding net assets attributable to holders of redeemable shares) 272, ,927 Net assets attributable to holders of redeemable shares 13,768,888 24,335,126 Net assets attributable to holders of redeemable shares: Series A 10,039,175 19,517,334 Series F 2,406,680 3,038,281 Series I 1,323,033 1,779,511 Redeemable shares outstanding (note 7): Series A 954,766 1,991,692 Series F 214, ,124 Series I 110, ,709 Net assets attributable to holders of redeemable shares per share: Series A Series F Series I See accompanying notes to financial statements. On behalf of the Board of Directors of Norrep Capital Management Ltd.: Keith Leslie Alex Sasso 39 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

43 NORREP TACTICAL OPPORTUNITIES CLASS Statements of Comprehensive Income (in Canadian dollars) Dividend income 464, ,363 Interest for distribution purposes 38, ,961 Net gain (loss) on investments at fair value through profit or loss Net realized gain (loss) on investments 2,039,523 (6,889,041) Net realized gain (loss) on derivative instruments 228,006 (431,104) Net change in unrealized appreciation (depreciation) in fair value of investments (242,495) 6,577,153 Net change in unrealized appreciation (depreciation) on derivative instruments (127) (19,501) Total investment revenue (loss) 2,528, ,831 Management fees (note 8) 302, ,913 Custodian and record keeping fees 43,078 49,889 HST/GST 42,881 76,580 Transaction costs 33, ,876 Administrative fees (note 8) 23,605 41,933 Legal and filing fees 18,980 23,098 Audit and tax fees 10,823 13,074 Other 8,313 10,828 Computer services 6,247 12,136 Independent review committee 2,209 3,351 Dividend expense on investments sold short 1,953 14,548 Risk management fees 514 1,587 Total operating expenses 494, ,813 Increase (decrease) in net assets attributable to holders of redeemable shares before tax 2,033,673 (614,982) Withholding tax expense 12,787 28,311 Increase (decrease) in net assets attributable to holders of redeemable shares 2,020,886 (643,293) Change in net assets attributable to holders of redeemable shares (note 7): Series A 1,512,605 (562,673) Series F 313,858 (98,340) Series I 194,423 17,720 Change in net assets attributable to holders of redeemable shares per share (note7): Series A 1.11 (0.21) Series F 1.32 (0.23) Series I See accompanying notes to financial statements. 40 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

44 NORREP TACTICAL OPPORTUNITIES CLASS Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares (in Canadian dollars) All Series Series A Series F Series I Net assets attributable to holders of redeemable shares, beginning of year 24,335,126 47,914,669 19,517,334 37,109,014 3,038,281 7,221,326 1,779,511 3,584,329 Increase (decrease) in net assets, attributable to holders of redeemable shares 2,020,886 (643,293) 1,512,605 (562,673) 313,858 (98,340) 194,423 17,720 Transactions attributable to holders of redeemable shares: Issuance of shares 436, ,080 27, , , ,005 Reinvestment of dividends 572,204 1,067, , ,862 80, ,760 57,109 90,148 Amounts paid on redemptions (12,935,543) (23,660,462) (10,947,754) (17,055,439) (1,336,888) (4,782,485) (650,901) (1,822,538) (11,926,753) (21,739,612) (10,486,240) (16,078,502) (846,721) (3,928,720) (593,792) (1,732,390) Dividends declared: From dividend income (525,155) (1,196,638) (405,803) (950,505) (75,147) (155,985) (44,205) (90,148) From net realized gains on investments (135,216) (98,721) (23,591) (12,904) (660,371) (1,196,638) (504,524) (950,505) (98,738) (155,985) (57,109) (90,148) Net assets attributable to holders of redeemable shares, end of year 13,768,888 24,335,126 10,039,175 19,517,334 2,406,680 3,038,281 1,323,033 1,779,511 Dividends per share to holders of redeemable shares: From dividend income From net realized gains on investments See accompanying notes to financial statements. 41 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCOTBER 31, 2017

45 NORREP TACTICAL OPPORTUNITIES CLASS Statements of Cash Flows (in Canadian dollars) Cash flows from (used in) operating activities Increase (decrease) in net assets attributable to holders of redeemable shares 2,020,886 (643,293) Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss (2,039,523) 6,889,041 Net change in unrealized (appreciation) depreciation of investments at fair value through profit or loss 242,495 (6,577,153) Net change in unrealized (appreciation) depreciation on derivative instruments ,501 Purchase of investments (7,313,060) (27,516,757) Proceeds from the sale and maturity of investments 19,433,474 49,576,473 Dividends and interest receivable 15, ,784 Accrued expenses (28,300) (46,800) Net cash from (used in) operating activities 12,331,448 21,903,796 Cash flows from (used in) financing activities Proceeds from the issuance of redeemable shares 437, ,802 Amounts paid on redemption of redeemable shares (12,919,382) (23,832,813) Dividends to holders of redeemable shares, net of reinvestments (100,017) (151,210) Net cash from (used in) financing activities (12,581,935) (23,131,221) Net increase (decrease) in cash and cash equivalents (250,487) (1,227,425) Effect of exchange rates on cash and cash equivalents (71,760) 95,764 Cash and cash equivalents at beginning of year 798,291 1,929,952 Cash and cash equivalents at end of year 476, ,291 Dividends received, net of withholding tax paid 467, ,000 Interest received 25, ,463 Dividend expenses on investments sold short 1,953 14,548 See accompanying notes to financial statements. 42 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

46 NORREP TACTICAL OPPORTUNITIES CLASS Schedule of Investment Portfolio As at October 31, 2017 (in Canadian dollars) Description Number of Shares Cost ($) Fair Value ($)% of Net Assets Mutual Fund Shares Norrep High Income Fund, Series I 129,539 3,238,484 3,249,476 3,238,484 3,249, % Total Mutual Fund Shares 3,238,484 3,249, % CANADIAN EQUITIES Consumer Discretionary EnerCare Inc. 27, , ,970 Gildan Activewear Inc. 11, , , , , % Energy Birchcliff Energy Ltd. 71, , ,425 Parex Resources Inc. 37, , ,216 1,050,102 1,021, % Financials GMP Capital Inc. 103, , , , , % Industrials Air Canada 26, , ,560 CAE Inc. 26, , ,362 Chorus Aviation Inc. 35, , ,941 Hardwoods Distribution Inc. 29, , ,390 Maxar Technologies Ltd. 3, , ,635 1,631,877 2,521, % Materials ADF Group Inc. 122, , ,640 Chemtrade Logistics Income Fund 28, , ,328 Fortress Paper Ltd., Class 'A' 30, , ,326 Hudbay Minerals Inc. 33, , ,306 Intertape Polymer Group Inc. 16, , ,872 Lundin Mining Corp. 28, , ,520 1,866,876 1,926, % Real Estate FirstService Corp. 6, , , , , % TOTAL CANADIAN EQUITIES 6,097,409 7,275, % UNITED STATES EQUITIES Consumer Discretionary Carnival Corp. 4, , , , , % Consumer Staples Anheuser-Busch InBev NV, ADR 1, , ,724 Costco Wholesale Corp , , , , % Financials First Republic Bank 3, , ,454 Wells Fargo & Co. 4, , , , , % Health Care Johnson & Johnson 3, , ,140 PerkinElmer Inc. 2, , , , , % Information Technology Alphabet Inc., Class 'A' , , , , % Telecommunication Services Verizon Communications Inc. 6, , , , , % 43 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

47 NORREP TACTICAL OPPORTUNITIES CLASS Schedule of Investment Portfolio (Continued) As at October 31, 2017 (in Canadian dollars) Description Number of Shares Cost ($) Fair Value ($)% of Net Assets TOTAL UNITED STATES EQUITIES 2,474,063 3,007, % TOTAL EQUITIES 8,571,472 10,283, % Less: Transaction costs included in average cost (10,680) TOTAL INVESTMENTS 11,799,276 13,532, % Derivative Liabilities (92,646) -0.7% Other assets, less liabilities 328, % TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES 13,768, % 44 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

48 Norrep Tactical Opportunities Class Schedule of Derivative Investments - Forward Foreign Currency Contracts As at October 31, 2017 Counterparty Credit Rating Settlement Date Currency to be Delivered Fair Value in Cdn Dollars Currency to be Received Contract Price Unrealized Loss Bank of Nova Scotia A-1 November 15, ,343,600 USD 3,020,810 2,928,164 CAD (92,646) Net Unrealized Loss (92,646) 45 FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

49 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 1. Reporting Entity: Norrep Opportunities Corp. (the Corporation ) is incorporated under the laws of the Province of Alberta and consists of Norrep II Class, Norrep Income Growth Class, Norrep US Dividend Plus Class, Norrep Energy Plus Class, Norrep Entrepreneurs Class, Norrep Global Income Growth Class, and Norrep Tactical Opportunities Class (the Funds and each, a Fund ). On September 12, 2017, Norrep High Yield Class of Norrep Opportunities Corp. ( Corporation ) merged into Norrep High Income Fund. Please see details of the merger in note 4. On June 16, 2016 Norrep Canadian Equity Class transferred its net assets to Norrep Core Canadian of Norrep Core Portfolios Ltd., at fair market value, in exchange for shares. Norrep Canadian Equity Class then paid a dividend in kind to its shareholders, so that the shareholders held the respective Series of Norrep Core Canadian of Norrep Core Portfolios Ltd. Norrep Canadian Equity Class was subsequently eliminated from the Corporation. The Corporation may issue an unlimited number of common shares and special shares in multiple series. Each special share represents an equal undivided interest in the net assets of its Fund. CIBC Mellon Trust Company is custodian of each Fund, Scotia Capital Inc. is the Prime Broker (where applicable) and Norrep Investment Management Group Inc. is the Promoter of each Fund. On June 29, 2017, MF Series was renamed as Series A. Additionally, Norrep Energy Class was renamed as Norrep Energy Plus Class. Norrep Capital Management Ltd. ( Norrep ) is the Manager and Portfolio Manager for each of the Funds in the Corporation. As Manager, it provides overall management and direction for the Funds, as well as, manages the day to day operation of the Funds. As Portfolio Manager, it provides investment management services to the Funds (see note 8). 2. Basis of preparation: (a) Statement of compliance: These financial statements have been prepared in accordance with International Financial Reporting Standards ( IFRS ) as issued by the International Accounting Standards Board ( IASB ). The Funds significant accounting policies under IFRS are presented in note 3. These policies have been applied consistently to all periods presented. The financial statements of the Funds were approved and were authorized for issue by the Funds Board of Directors on December 14, (b) Basis of measurement: The financial statements have been prepared on the historical cost basis, except for investments and derivatives at fair value through profit or loss which are measured at fair value. (c) Functional and presentation currency: The financial statements are presented in Canadian dollars, which is the Funds functional currency, and all values are rounded to the nearest dollar except where otherwise indicated. 1 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

50 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 2. Basis of preparation (continued): (d) Use of judgements and estimates: These financial statements include estimates and assumptions made by management that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses, and gains and losses during the reporting period. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively. Significant estimates include the valuation of investments and the unrealized gains/losses from investments. 3. Significant accounting policies: The Funds have consistently applied the following accounting policies to all periods presented in these financial statements. (a) Financial assets and financial liabilities: (i) Recognition and initial measurement Financial assets and financial liabilities at fair value through profit or loss are initially recognized on the trade date, which is the date on which the Fund becomes a party to the contractual provisions of the instrument. Other financial assets and financial liabilities are recognized on the date on which they are originated. Financial assets and financial liabilities at fair value through profit or loss are initially recognized at fair value, with transaction costs recognized in profit or loss. (ii) Classification The Funds classify financial assets and financial liabilities into the following categories. Financial assets at fair value through profit or loss: Held for trading: derivatives Designated at fair value through profit and loss: all investments Financial assets at amortized cost: Loans and receivables: cash and cash equivalents and receivables Financial liabilities at amortised cost: Other liabilities: all liabilities other than unrealized loss on derivative instruments and redeemable shares A financial instrument is classified as held for trading if: it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term; on initial recognition, it is part of a portfolio that is managed together and for which there is evidence of a recent pattern of short term profit taking; or it is a derivative, other than a designated and effective hedging instrument. 2 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

51 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 3. Significant accounting policies (continued): (a) Financial assets and financial liabilities (continued): (ii) Classification (continued) The Funds designate all investments at fair value through profit or loss on initial recognition because it manages these securities on a fair value basis in accordance with its documented investment strategy. Internal reporting and performance measurement of these securities is on a fair value basis. (iii) 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 in the principal or, in its absence, the most advantageous market to which the Fund has access at that date. The fair value of a liability reflects its non performance risk. When available, the Funds measure fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The Funds measure instruments quoted in an active market at last traded price. For securities where market quotes are not available, the Corporation values the initial investment at the amount paid. After initial investment, the Corporation uses estimation techniques to determine fair value including observable market data, discounted cash flows and internal models that compare the investments to its peer group. Fair value of investments in restricted shares is determined using an economic model taking into account various factors including risk free rate of interest, volatility, market value and length of the restriction. Fair value of investments in share purchase warrants is determined using a recognized economic model taking into account various factors including risk free rate of interest, dividend rates, volatility, market value and trading volume of the underlying stock. Fair value of subscription receipts is determined using a recognized economic model taking into account various factors including risk free interest rate, volatility, price of underlying security, expiry date and purchase price. Fair value of investments in bonds, asset backed securities and secured loans represents a price that may fall between the last bid and ask price provided by an independent security pricing service, depending on which service provider is used. There is no difference between pricing NAV and accounting NAV. (iv) Amortized cost measurement The amortized cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at recognition, minus principal repayments (if applicable), plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount recognized and the maturity amount (if applicable), minus any reduction for impairment (if applicable). 3 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

52 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 3. Significant accounting policies (continued): (a) Financial assets and financial liabilities (continued): (v) Specific instruments Cash and cash equivalents Cash and cash equivalents comprise deposits with banks and highly liquid financial assets with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value and are used by the Funds in the management of short term commitments, other than cash collateral provided in respect of derivatives and securities borrowing transactions. Redeemable shares The Funds classify financial instruments issued as financial liabilities or equity instruments in accordance with the substance of the contractual terms of the instruments. The Funds have multiple series of redeemable shares that do not have identical features and therefore, do not qualify as equity under IAS 32, Financial Instruments. The redeemable shares, which are classified as financial liabilities and measured at redemption amount, provide investors with the right to require redemption, subject to available liquidity, for cash at a share price based on the Funds valuation policies at each redemption date. The shares represent the residual interest in the Funds. The value at which mutual fund shares are issued or redeemed is determined by dividing the net assets at fair value based on last traded price of each class by the total number of mutual fund shares outstanding by the class on the valuation date. (b) Interest for distribution purposes: The interest for distribution purposes shown on the statements of comprehensive income represents the coupon interest received by the Funds accounted for on an accrual basis and is recognized through profit or loss. The Funds do not amortize premiums paid or discounts received on the purchase of fixed income securities. (c) Dividend income and dividend expense: Dividend income and dividend expenses are recognized in profit or loss on the date on which the right to receive or make payment is established. This is usually the ex dividend date. (d) Dividends to holders of redeemable shares: Dividends per share is calculated as the total amount of dividends attributable to a series divided by the number of shares at the date of distribution. (e) Net gain (loss) from financial instruments at fair value through profit or loss: Net unrealized/realized gain/loss from financial instruments at fair value through profit or loss is calculated using the average cost method. Average cost does not include amortization of premiums or discounts on fixed income securities. 4 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

53 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 3. Significant accounting policies (continued): (f) Income tax: The Corporation qualifies as a "mutual fund corporation" under the Income Tax Act (Canada) and the Alberta Corporate Tax Act. Interest and foreign dividends received, less applicable expenses, are taxed at Federal and Provincial corporate rates less applicable credits for any foreign taxes paid. Taxable dividends received from taxable Canadian corporations are subject to taxes that are fully refundable upon payment of sufficient taxable dividends to shareholders. The Corporation is also subject to tax at full corporate rates on 50% of capital gains realized, less allowable capital losses claimed. This tax is generally refundable to the extent that the Corporation distributes its capital gains to shareholders by way of a capital gains dividend, or through the redemption of its shares. Temporary differences between the tax basis of assets and liabilities and their carrying amounts may be either taxable or deductible. Taxable temporary differences give rise to deferred income tax liabilities and deductible temporary differences give rise to deferred income tax assets. When the fair value of investments is greater than the related tax basis, a deferred income tax liability arises and the deferred tax liability is offset by refundable taxes generated by future payments of capital gains dividends. When the fair value of investments is less than the related tax basis, a deferred income tax asset arises and due to the uncertainty of such deferred income tax assets ultimately being realized, the temporary differences are not recognized. Any unused capital and non capital losses represent deferred tax assets to the Corporation for which the temporary differences are not recognized as it is uncertain if they will be realized in the future. Income that would give rise to current income tax liabilities are distributed out to shareholders. (g) Increase (decrease) in net assets attributable to holders of redeemable shares: Change in net assets attributable to shareholders per share is calculated as increase (decrease) in net assets attributable to shareholders, divided by the weighted average shares outstanding during the period. (h) Translation of foreign currency: Foreign currency amounts are expressed in Canadian dollars as follows: (i) fair value of investments and accrued receivables and payables and other assets and liabilities at the rate of exchange at the end of the period; and (ii) purchases and sales of investments and dividend and interest income at the rate of exchange prevailing on the respective dates of such transactions. Foreign currency differences are recognized as a component of net gain/loss from financial instruments at fair value through profit or loss. 5 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

54 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 3. Significant accounting policies (continued): (i) Derivative financial instruments: The Funds may use derivative financial instruments to reduce their exposure to fluctuations in foreign currency exchange rates. Derivative financial instruments are recorded at mark to market with changes in fair value recorded in the statement of comprehensive income. Options are contracts entitling the holder to purchase or sell a specified item at a specified price, during a specified period or on a specified date. Options purchased are recorded as investments; options written (sold) are recorded as liabilities. Any gain or loss resulting from revaluation is included in change in unrealized gain (loss) on derivative instruments on the statements of comprehensive income. Upon closing of an option, other than by exercise, which results in a cash settlement, the difference between the premium (original option value) and the settlement proceeds is included in net realized gain (loss) on derivative instruments on the statements of comprehensive income. When securities are acquired or delivered upon exercise of an option, the acquisition cost or sale proceeds are adjusted by the amount of the premium. When an option is closed, the difference between the premium and the cost to close the position is included in net realized gain (loss) on derivatives on the statements of comprehensive income. When an option expires, the premium for options written or purchased is reflected in the statement of operations as net realized gain (loss) on derivative instruments. The risks include the possibility there may be an illiquid options market or the inability of the counterparties to fulfill their obligations under the contract. Writing options involves, to varying degrees, elements of market risk in excess of the amount recognized in the statement of financial position. (j) Short selling: A Fund may make short sales whereby a security that it does not own is sold in anticipation of a decline in the fair value of the security. Securities that are sold short are valued at the last close price reported by the principal securities exchange on which the security is traded on the financial statement date. To enter into a short sale, the Fund must borrow the security for delivery to the buyer. Also, while the transaction is open, the Fund will incur a liability for any paid dividends or interest that is due to the lender of the security. Selling securities short may present elements of market risk in excess of the amount recognized in the statement of financial position. (k) Future accounting pronouncements: IFRS 9 Financial Instruments introduces new requirements for the classification and measurement of financial assets. The standard contains two primary measurement categories for financial assets: amortized cost and fair value. IFRS 9 also introduces new requirements to address the impairment of financial assets. The mandatory effective date of IFRS 9 for the funds is the fiscal year beginning November 1, The Manager has reviewed the standard and believes that there will not be a material impact on the funds. 6 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

55 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 4. Asset transfers: The Norrep High Income Fund ( HIF ) acquired the net assets of the Norrep High Yield Class ( Class ) and Shareholders of the Class became unitholders of the HIF. The HIF consolidated the units using an exchange ratio of for Series A, for Series F and for Series I. As a result of the merger, 2,162,069 Series A shares of the Class were redeemed for 633,218 Series A units of the HIF, 1,161,909 Series F shares of the Class were redeemed for 365,792 Series F units of the HIF, and 1,465,560 Series I shares of the Class were redeemed for 495,899 Series I units of the HIF. The assets transferred were as follows: (in Canadian dollars) September 12, 2017 Cash and cash equivalents 5,651,032 Other assets - net of liabilities 318,964 Investments, at fair value 31,402,732 Value of assets received and mutual fund shares issued 37,372,728 On April 10, 2017, Norrep Short Duration 2016 Flow Through Limited Partnership transferred certain assets of the partnership to Norrep Opportunities Corp. in exchange for 788,082 Norrep Energy Plus Class Series A shares with a value of $7,712,167. The assets transferred were as follows: (in Canadian dollars) April 10, 2017 Cash and cash equivalents 2,438,780 Investments, at fair value 5,273,387 Value of assets received and mutual fund shares issued 7,712,167 On June 27, 2016 the Norrep Global Class of Norrep Opportunities Corp. transferred its nets assets, at fair market value to Norrep Global Income Growth Class of Norrep Opportunities Corp. in exchange for 1,544,762 Norrep Global Income Growth Class Series A shares, 442,553 Norrep Global Income Growth Class Series F shares, and 389,664 Norrep Global Income Growth Class Series I shares with a value of $28,332,460. The assets transferred were as follows: (in Canadian dollars) June 27, 2016 Cash and cash equivalents 3,591,677 Other assets - net of liabilities 67,726 Investments, at fair value 24,673,057 Value of assets received and mutual fund shares issued 28,332,460 7 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

56 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 4. Asset transfers (continued): On April 25, 2016, Norrep Short Duration 2015 Flow-Through Limited Partnership transferred certain assets of the partnership to Norrep Opportunities Corp. in exchange for 1,177,772 Norrep Energy Plus Class Series A shares with a value of $11,981,190. The assets transferred were as follows: (in Canadian dollars) April 25, 2016 Cash and cash equivalents 2,485,702 Investments, at fair value 9,495,488 Value of assets received and mutual fund shares issued 11,981, Fair value measurement: (a) Investments: The fair values of financial assets and financial liabilities that are traded on active markets are based on quoted market prices. For all other financial instruments, the Corporation determines fair values using other valuation techniques. For financial instruments that trade infrequently and have little price transparency, fair value is less objective, and requires varying degrees of judgment depending on liquidity, uncertainty of market factors, pricing assumptions and other risks affecting the specific instrument. A three tier hierarchy is used as a framework for disclosing fair value based on inputs used to value the Fund s investments. The hierarchy of inputs is summarized below: Inputs that are quoted prices (unadjusted) in active markets for identical instruments (Level 1); Inputs other than quoted prices included in Level 1 that are observable for instruments, either directly (i.e., as prices) or indirectly (i.e., derived from prices) (Level 2). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data; and Inputs for the instruments that are not based on observable market data (unobservable inputs) (Level 3). This category includes all instruments for which the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument s valuation. This category includes instruments that are valued based on the quoted prices for similar instruments but for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments. Changes in valuation methods may result in transfers into or out of an investment s assigned level. The Funds recognize transfers between levels of the fair value hierarchy as at the end of the reporting period during which the change occurred. 8 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

57 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 5. Fair value measurement (continued): (b) Fair value hierarchy Financial instruments measured at fair value: The tables below analyze investments measured at fair value at October 31, 2017 and October 31, 2016 by the level in the fair value hierarchy into which the fair value measurement is categorized. The amounts are based on the values recognized in the statement of financial position. (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep II Class - October 31, 2017 Public securities Equities - long 115,925, ,925,253 Total Investments 115,925, ,925,253 (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep II Class - October 31, 2016 Public securities Equities - long 121,111, , ,438,864 Total Investments 121,111, , ,438,864 (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep Income Growth Class - October 31, 2017 Public securities Equities - long 85,809,472 85,809,472 Bonds - long 11,676,961 11,676,961 Unrealized loss on derivative instruments (211,951) (211,951) Total Investments 85,809,472 11,465,010 97,274,482 (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep Income Growth Class - October 31, 2016 Public securities Equities - long 87,829,837 87,829,837 Bonds - long 15,885,113 15,885,113 Unrealized loss on derivative instruments (223,947) (223,947) Total Investments 87,829,837 15,661, ,491,003 (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep US Dividend Plus Class - October 31, 2017 Public securities Equities - long 31,053,249 31,053,249 Equities - short (654,605) (654,605) Unrealized loss on derivative instruments (123,145) (688,511) (811,656) Total Investments 30,275,499 (688,511) 29,586,988 9 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

58 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 5. Fair value measurement (continued): (b) Fair value hierarchy Financial instruments measured at fair value (continued): (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep US Dividend Plus Class - October 31, 2016 Public securities Equities - long 24,909,221 24,909,221 Equities - short (346,723) (346,723) Unrealized loss on derivative instruments (294,291) (294,291) Total Investments 24,562,498 (294,291) 24,268,207 (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep Energy Plus Class - October 31, 2017 Public securities Equities - long 26,269,328 26,269,328 Warrants - long 11,195 11,195 Total Investments 26,280,523 26,280,523 (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep Energy Plus Class - October 31, 2016 Public securities Equities - long 43,590,530 43,590,530 Total Investments 43,590,530 43,590,530 (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep Entrepreneurs Class - October 31, 2017 Public securities Equities - long 43,036,416 8,485,846 51,522,262 Total Investments 43,036,416 8,485,846 51,522,262 (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep Entrepreneurs Class - October 31, 2016 Public securities Equities - long 29,189,946 3,386,200 32,576,146 Total Investments 29,189,946 3,386,200 32,576,146 (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep Global Income Growth Class - October 31, 2017 Public securities Equities - long 127,710, ,710,816 Bonds - long 18,456,896 18,456,896 Unrealized loss on derivative instruments (3,210,655) (3,210,655) Total Investments 127,710,816 15,246, ,957, NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

59 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 5. Fair value measurement (continued): (b) Fair value hierarchy Financial instruments measured at fair value (continued): (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep Global Income Growth Class - October 31, 2016 Public securities Equities - long 123,570, ,570,563 Bonds - long 20,415, ,640 20,583,739 Unrealized gain on derivative instruments 497, ,472 Unrealized loss on derivative instruments (1,444,947) (1,444,947) Total Investments 123,570,563 19,467, , ,206,827 (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep Tactical Opportunities Class - October 31, 2017 Public securities Equities - long 10,283,433 10,283,433 Unrealized loss on derivative instruments (92,646) (92,646) Underlying Funds 3,249,476 3,249,476 Total Investments 13,532,909 (92,646) 13,440,263 (in Canadian dollars) Level 1 Level 2 Level 3 Total Norrep Tactical Opportunities Class - October 31, 2016 Public securities Equities - long 20,020,500 20,020,500 Equities - short (375,255) (375,255) Unrealized loss on derivative instruments (92,519) (92,519) Underlying Funds 3,656,140 3,656,140 Total Investments 23,301,385 (92,519) 23,208,866 AKITA Drilling Ltd., Class A, Inscape Corp., Class B, Orbit Garant Drilling Inc. and Velan Inc., held in the Norrep Entrepreneurs Class, were transferred from a level 1 security at October 31, 2016 to a level 2 security at October 31, 2017 due to no traded close price available. PFB Corp. was transferred from a level 2 security at October 31, 2016 to a level 1 security level due to an available traded close price at October 31, 2017, also held in the Norrep Entrepreneurs Class. During the year ended October 31, 2017 and the year ended October 31, 2016 (where applicable) the following tables reconcile opening balances to closing balances for fair value measurements in Level 3 of the fair value hierarchy: 11 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

60 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 5. Fair value measurement (continued): (b) Fair value hierarchy Financial instruments measured at fair value (continued): Norrep Global Income Growth Class Corporate Private in Canadian dollars Bonds Securities Total Beginning balance, October 31, , ,640 Sales (106,080) (106,080) Realized gains (471,920) (471,920) Change in unrealized appreciation 409, ,360 Ending balance, October 31, 2017 Norrep Global Income Growth Class Corporate Private in Canadian dollars Bonds Securities Total Beginning balance, October 31, 2015 Transfers into level 3 168, ,640 Ending balance, October 31, , ,640 (c) Financial instruments not measured at fair value: The carrying values of cash and cash equivalents, dividends and interest receivable, accrued expenses, and other receivables and payables approximate their fair values due to their short term nature. 6. Financial instruments and associated risks: Each Fund s activities expose it to a variety of risks associated with financial instruments as follows: credit risk, liquidity risk and market risk (including currency risk, interest rate risk and price risk). Each Fund s overall risk management program seeks to maximize the returns for the level of risk to which the Fund is exposed and seeks to minimize potential adverse effects on the Funds financial performance. All investments result in a risk of loss of capital. Credit risk: Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Funds. The fair value of debt securities includes consideration of the credit worthiness of the debt issuer. The carrying amount of bonds and secured loans as presented on the schedules of investment portfolios represent the maximum credit risk exposure. This also applies to cash and cash equivalents and receivables as they have a short term settlement. A portion of each Fund s portfolio may consist of instruments that have a credit quality rated below investment grade by internationally recognized credit rating organizations or may be unrated. These securities involve significant risk exposure as there is uncertainty regarding the issuer's capacity to pay interest and repay principal in accordance with the terms of the obligations. Low rated and unrated debt instruments generally offer a higher current yield than that available from higher grade issuers, but typically involve greater risk. As at October 31, 2017 and October 31, 2016, the Funds were invested in debt securities with the following credit ratings: 12 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

61 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 6. Financial instruments and associated risks (continued): Credit risk (continued): Norrep Income Growth Class Debt Security by Credit Rating % of Assets Under Management in each category October 31, 2017 October 31, 2016 BB 3.4% 2.3% B 5.6% 6.0% CCC 2.9% 6.1% Norrep Global Income Growth Class Debt Security by Credit Rating % of Assets Under Management in each category October 31, 2017 October 31, 2016 BB 2.9% 4.5% B 7.2% 7.8% CCC 1.5% 1.4% Unrated and Exchange Traded Funds 0.9% 0.1% Credit risk arising on transactions for shares purchased and portfolio assets sold relates to transactions awaiting settlement, also known as settlement risk. Settlement risk is the risk of loss due to the failure of an entity to honour its obligations to deliver cash, securities or other assets as contractually agreed. Credit risk relating to unsettled transactions is considered small due to the short settlement period involved and the high credit quality of the brokers used. For the majority of the transactions, the Funds mitigate this risk by conducting settlements through a broker to ensure that a trade is settled only when both parties have fulfilled their contractual settlement obligations. Also, legal entitlement will not pass until all monies have been received for the units purchased or the portfolio assets sold. If either party does not meet its obligation then the transaction will fail. The majority of the assets of the Funds are held by CIBC Mellon, the custodian, with some assets held at Scotia Capital Inc., the prime broker. Bankruptcy or insolvency of the custodian may cause the Funds rights with respect to securities held by the custodian to be delayed or limited. The Funds monitor their risk by monitoring the credit quality and credit rating and financial position of the custodian the Funds use. If the credit quality or the financial position deteriorates significantly then the Portfolio Manager will move the cash holdings to another financial institution. The Portfolio Manager analyzes credit concentration based on the counterparty, industry and geographical location of the financial assets that the Funds hold. Other than outlined above there were no significant concentrations of credit risk to counterparties at October 31, 2017 and October 31, No individual investments exceeded twenty-four percent of the net assets attributable to holders of redeemable shares at October 31, 2017 (October 31, %) in each Fund. Liquidity risk: Liquidity risk is the risk that a Fund will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or other financial assets. The Funds are exposed to daily cash redemptions of redeemable shares. Investments in small, mid capitalization and micro capitalization companies may involve greater risks than in larger, more established 13 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

62 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 6. Financial instruments and associated risks (continued): Liquidity risk (continued): companies since such companies may have more limited markets and financial resources and their securities may be more sensitive to market changes. As well, the liquidity of the securities may be limited. Consequently, in order to fund redemptions, the Funds may have to liquidate shareholdings in the more liquid large and medium sized companies. To the extent that the liquidity is limited, the Funds ability to realize profits and/or minimize losses may be limited, which could adversely affect the net asset value of the Fund. Also, the Funds investments may include unlisted equity instruments, which are not traded on an organized public market and which may be illiquid. As a result, a Fund may not be able to quickly liquidate some of its investments in these instruments at an amount close to their fair value in order to meet its liquidity requirements. The Funds believe they maintain sufficient cash and cash equivalent positions to maintain liquidity. The Funds liquidity risk is managed on a daily basis by the Portfolio Manager. Minimum cash and cash equivalent balances will be required to be maintained in the Fund at the discretion of the Portfolio Manager to allow for monies to cover redemptions. The Funds redemption policy allows for redemptions at any time during any given month. The Funds are subject to regulatory requirements whereby the Fund shall not purchase an illiquid asset if, immediately after the purchase, more than ten percent of the net assets of the Fund, taken at market value at the time of purchase, would consist of illiquid assets. Residual contractual maturities of financial liabilities are all due on demand with the exception of the performance bonus. The performance bonus may be due anywhere from two months to an unknown date. The terms of the performance bonus are explained in note 8(a). Market risk: Market risk embodies the potential for both losses and gains and includes currency risk, interest rate risk and price risk. The Funds strategies on the management of investment risk are driven by the Funds investment objectives. Norrep II Class is designed to achieve long term capital appreciation by investing in small and mid capitalization equities. Norrep Income Growth Class is designed to achieve long term capital appreciation and distributions by investing in small and mid capitalization high yield securities. Norrep US Dividend Plus Class is designed to provide long term capital growth and current income by investing primarily in U.S. equity securities. Norrep Energy Plus Class is designed to achieve long term capital appreciation by investing in both Canadian and foreign resource companies. Norrep Entrepreneurs Class is designed to achieve long term capital appreciation by investing in smaller capitalization equities both in Canada and globally. Norrep Global Income Growth Class is designed to achieve long term capital appreciation and distributions by investing in small, mid and large capitalization high yield securities. Norrep Tactical Opportunities Class is designed to achieve long term capital appreciation and distributions by investing in equity and debt securities of all market capitalizations around the globe. 14 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

63 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 6. Financial instruments and associated risks (continued): Market risk (continued): Norrep II Class and Norrep Income Growth Class may consist of all types of equity and debt obligations of issuers in Canada and the United States that may or may not be listed for trading upon the facilities of stock exchanges or other organized and regulated trading facilities in Canada and the United States. Norrep US Dividend Plus Class may consist of all types of equity and debt obligations of issuers, primarily in the United States. Norrep Global Income Growth Class, Norrep Energy Plus Class, Norrep Entrepreneurs Class and Norrep Tactical Opportunities Class portfolios may consist of all types of equity and debt obligations of issuers across the globe that may or may not be listed for trading upon the facilities of stock exchanges or other organized and regulated trading facilities. Assets of the Funds may also be invested in debt obligations or held in cash and cash equivalents to the extent that economic, market or other conditions make it appropriate. Covered call options may be used to generate income from a security in a portfolio. The Fund benefits if the price of the security stays below the strike price plus the premium of the written call option. If the price of the security rises above the strike price plus the premium of the written call option, the strategy will have underperformed the price return of the security; however, the overall return on the position will still be positive. Cash covered put options may be written in an attempt to purchase a security below the current market price and/or to generate income. If the price of the security falls to the strike price of the put option, the Fund may be assigned to purchase the security at the strike price. If the price of the security is below the strike price less the premium of the put option, the Fund will have a loss on the position; however, will have upside profit potential if the purchased security is held. Cash covered means that there are sufficient funds available to purchase the security at the strike price. No material change in the investment objectives, policies or restrictions of the Funds may be made without the approval of a two thirds majority of the votes cast by shareholders at a meeting of the Fund duly called for that purpose. The Funds market risk is managed on a daily basis by the Portfolio Manager in accordance with the policies and procedures in place. Details of the nature of the Fund s investment portfolio at October 31, 2017 are disclosed in the schedule of investment portfolio. (a) Currency risk: The Funds may invest in financial instruments and enter into transactions denominated in currencies other than the Canadian dollar. Consequently, the Funds are exposed to risks that the exchange rate of the Canadian dollar to other foreign currencies may fluctuate. The Funds may use derivatives to hedge the Funds foreign currency exposure. Such permitted derivatives may include exchange traded options, futures contracts and options on futures, over the counter options, and forward contracts. At October 31, 2017 and October 31, 2016, the Funds had the following foreign currency exposure as a percentage of the net asset value, including the impact of outstanding derivative instruments: 15 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

64 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 6. Financial instruments and associated risks (continued): Market risk (continued): (a) Currency risk (continued): Norrep Income Growth Class U.S. Dollar (0.2)% Norrep US Dividend Plus Class U.S. Dollar 59.4% 50.3% Norrep Global Income Growth Class Euro 7.7% 7.6% Danish Kroner 6.6% 3.3% Indonesian Rupiah 2.6% 1.9% British Pound 2.2% 2.1% Japanese Yen 1.2% 1.1% Swiss Franc 0.9% 0.9% U.S. Dollar 0.6% 0.5% Norwegian Krone 0.6% Swedish Kroner 0.4% 0.6% Norrep Tactical Opportunities Class U.S. Dollar 0.1% (1.3)% Sensitivity Analysis: At October 31, 2017 and October 31, 2016, had the Canadian dollar strengthened or weakened by 1% in relation to all currencies, with all other variables held constant, including the impact of outstanding derivative instruments, net assets attributable to the holders of redeemable shares and the change in net assets attributable to holders of redeemable shares would have increased or decreased by the amounts shown below. In practice, the actual trading results may differ from this sensitivity analysis and the difference could be material. Norrep Income Growth Class (in Canadian dollars) U.S. Dollar 14 (1,756) Total 14 (1,756) 16 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

65 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 6. Financial instruments and associated risks (continued): Market risk (continued): (a) Currency risk (continued): Norrep US Dividend Plus Class (in Canadian dollars) U.S. Dollar 280, ,290 Total 280, ,290 Norrep Global Income Growth Class (in Canadian dollars) Euro 113, ,043 Danish Kroner 97,357 49,289 Indonesian Rupiah 38,936 28,725 British Pound 32,854 31,544 Japanese Yen 17,234 16,103 Swiss Franc 13,912 12,846 U.S. Dollar 9,521 7,457 Norwegian Krone 8,239 Swedish Kroner 5,683 8,338 Total 337, ,345 Norrep Tactical Opportunities Class (in Canadian dollars) U.S. Dollar 109 (3,102) Total 109 (3,102) (b) Interest rate risk: Interest rate risk arises on interest bearing financial instruments. The majority of the Funds assets are non interest bearing, with the exception of Norrep Income Growth Class, Norrep Global Income Growth Class and Norrep Tactical Opportunities Class. As a result, the Funds are subject to limited exposure to interest rate risks due to fluctuations in the prevailing levels of market interest rates. Norrep Income Growth Class, Norrep Global Income Growth Class and Norrep Tactical Opportunities own interest bearing assets in the form of senior secured loans and bonds. Senior secured loans are priced with a floating rate of interest which typically resets quarterly and results in minimal exposure to interest rate risk. Government bonds and investment grade bonds are fixed rate securities and have exposure to interest rate risk. This exposure can be estimated by the bond s duration. High yield corporate bonds are also fixed rate securities but have less exposure to interest rate risk. The value of these securities is impacted more by credit fundamentals such as cash flow, profitability and debt servicing ability than by prevailing interest rates. The table below summarizes the Funds exposure to interest rate risks at October 31, It includes the Funds assets at fair values, categorized by the maturity dates. 17 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

66 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 6. Financial instruments and associated risks (continued): Market risk (continued): (b) Interest rate risk (continued): Norrep Income Growth Class - October 31, 2017 Less than 1 year 1 to 3 years 3 to 5 years >5 years All amounts stated in Canadian dollars Corporate bonds/secured loans 1,198,863 4,408,330 6,069,768 Norrep Income Growth Class - October 31, 2016 Less than 1 year 1 to 3 years 3 to 5 years >5 years All amounts stated in Canadian dollars Corporate bonds/secured loans 1,360,354 7,538,269 6,986,490 Norrep Global Income Growth Class - October 31, 2017 Less than 1 year 1 to 3 years 3 to 5 years >5 years All amounts stated in Canadian dollars Corporate bonds/secured loans 1,718,550 6,039,133 10,699,213 Norrep Global Income Growth Class - October 31, 2016 Less than 1 year 1 to 3 years 3 to 5 years >5 years All amounts stated in Canadian dollars Corporate bonds/secured loans 1,363,704 4,437,282 8,077,022 6,705,731 (c) Other price risk: Other price risk is the risk that the value of the instrument will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk), whether caused by factors specific to an individual investment or its issuer, or factors affecting all instruments traded in the market. All securities present a risk of loss of capital. However, the Funds which hold short positions are subject to certain inherent risks. The ultimate cost to the Funds to acquire these securities may exceed the liability reflected in these financial statements. Price risk is managed by the Fund s Portfolio Manager by constructing a diverse portfolio of securities. The price of a security is affected by individual company developments and by general economic and financial conditions in those industries and countries where the issuer of the security is located, does business or where the security, if applicable, is listed for trading. Certain securities are not listed on any prescribed stock exchange and thus a liquid market for resale may not exist. 18 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

67 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 6. Financial instruments and associated risks (continued): Market risk (continued): (c) Other price risk (continued): The Portfolio Manager will monitor these factors daily and make decisions regarding the portfolio based on their knowledge of the market conditions and diversify the portfolio of investments accordingly. The maximum price risk resulting from financial instruments is equivalent to their fair value. Sensitivity analysis: A 1% increase or decrease on the following indexes at October 31, 2017 and October 31, 2016 would have impacted the net assets attributable to holders of redeemable shares and the changes in net assets attributable to holders of the redeemable shares by: Total Return Index (In Canadian dollars) Change in Net Assets Norrep II Class BMO Small Cap Equity Only Weighted 1,159,253 1,214,389 Norrep Income Growth Class 75% S&P/TSX; 20% FTSE TMX Canada Universe Bond Index 974,864 1,037,149 Norrep US Dividend Plus Class S&P , ,625 Norrep Energy Plus Class S&P/TSX - Capped Energy 262, ,905 Norrep Entrepreneurs Class 100% BMO Small Cap Equity Only Weighted 515, ,761 Norrep Global Income Growth Class 75% MSCI World (net); 25% FTSE TMX Canada Universe Bond Index 1,461,677 1,441,543 Norrep Tactical Opportunities Class 60% S&P/TSX; 20% Russell 3000 Index in USD; 20% FTSE TMX Canada Universe Bond Index 135, ,014 The Funds financial assets exposed to other price risk were concentrated in the following industries at October 31, 2017 and October 31, 2016: Norrep II Class Energy 24.5% 18.7% Basic Materials 22.9% 28.2% Industrials 17.9% 19.7% Consumer Discretionary 13.5% 14.5% Information Technology 9.4% 8.6% Utilities 3.2% Real Estate 8.6% 10.3% Total 100.0% 100.0% 19 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

68 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 6. Financial instruments and associated risks (continued): Market risk (continued): (c) Other price risk (continued): Norrep Income Growth Class Energy 18.6% 17.8% Basic Materials 14.7% 13.9% Industrials 18.6% 18.9% Consumer Discretionary 17.4% 20.6% Consumer Staples 2.6% Financials 6.3% 4.0% Real Estate 9.8% 9.5% Bonds and Secured Loans 12.0% 15.3% Total 100.0% 100.0% Norrep US Dividend Plus Class Energy 7.2% Basic Materials 3.7% 10.8% Industrials 3.8% 8.2% Consumer Discretionary 18.2% 18.4% Consumer Staples 17.0% Health Care 16.7% 10.4% Financials 3.9% 20.6% Information Technology 17.6% 17.2% Telecommunication Services 8.1% 7.0% Real Estate 3.8% 7.4% Total 100.0% 100.0% Norrep Energy Plus Class Energy 98.7% 98.0% Industrials 2.0% Utilities 1.3% Total 100.0% 100.0% Norrep Entrepreneurs Class Energy 15.6% 13.1% Basic Materials 17.2% 14.8% Industrials 22.6% 27.1% Consumer Discretionary 25.1% 30.4% Consumer Staples 4.1% Health Care 3.8% Financials 1.3% 4.2% Information Technology 6.2% 4.5% Utilities 4.1% 5.9% Total 100.0% 100.0% 20 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

69 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 6. Financial instruments and associated risks (continued): Market risk (continued): (c) Other price risk (continued): Norrep Global Income Growth Class Energy 2.8% 2.6% Basic Materials 6.5% 5.7% Industrials 14.0% 15.9% Consumer Discretionary 7.8% 9.9% Consumer Staples 12.0% 10.6% Health Care 9.2% 11.6% Financials 27.1% 23.0% Information Technology 6.8% 3.5% Telecommunication Services 1.2% 1.9% Real Estate 1.0% Bonds and Secured Loans 12.6% 14.3% Total 100.0% 100.0% Norrep Tactical Opportunities Class Energy 7.6% 9.8% Basic Materials 14.2% 17.5% Industrials 18.6% 13.1% Consumer Discretionary 10.3% 14.0% Consumer Staples 3.1% 2.9% Health Care 5.7% 4.0% Financials 7.7% 13.7% Information Technology 2.0% Telecommunication Services 2.7% 3.8% Real Estate 4.1% 5.5% Mutual Funds 24.0% 15.7% Total 100.0% 100.0% 7. Redeemable shares: The authorized capital of each Fund consists of an unlimited number of special shares, each issuable in series. Currently there are primarily three series outstanding, Series A, Series F and Series I. However, the Norrep Income Growth Class has four series outstanding, Series A, Series F, Series I and Series B. Each series ranks equally with respect to dividends and return of capital in the event of liquidation, dissolution or winding up based on their respective series net asset values. Each series pays its own fees and expenses. Series A and Series B are sold through one of two sales charge options. Under the front end sales charge option, a commission ranging from 0 to 5% is paid by the investor to the dealer with a 2% redemption fee being charged if the shares are redeemed in the first 90 days. Under the low load deferred sales charge option, a 2.25% commission is paid by Norrep to the dealer. Redemption fees are 3.0% in the first year, 2.5% in the second year and 2.0% in the third year; however, investors can redeem up to 10% of their shares without paying redemption fees. The Series F is sold without commission provided the purchaser is enrolled in a fee for service or wrap program with the dealer. Series I are sold without commission. A 2% redemption fee is charged if the Series F or Series I are redeemed in the first 90 days. Series I shares are available to certain investors at the Portfolio Manager s discretion. 21 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

70 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 7. Redeemable shares (continued): In addition, the Corporation is authorized to issue an unlimited number of common shares. The Funds special shares have priority over the common shares with respect to the payment of dividends and the distribution of assets or return of capital in the event of liquidation, dissolution on winding up of the Corporation. 20 common shares were issued on incorporation for $20. The rights attached to the redeemable shares are as follows: the shares may be redeemed daily at the net asset value per share of the respective series; redeemable shares carry a right to receive notice of, attend and vote at meetings; and the holders of redeemable shares are entitled to receive all dividends declared by the Fund. Each series will rank equally with respect to the distributions based on their respective series net asset values. Dividends paid in cash will be paid in the currency in which the investor bought the units. The analysis of movements in the number of redeemable shares and net assets attributable to holders of redeemable shares during the period was as follows: Norrep II Class Series A Balance, opening 2,342,926 2,957,747 Issued on dividends reinvested 14,825 Issued for cash 9,412 58,403 Redeemed for cash (525,540) (673,224) Balance, October 31 1,841,623 2,342,926 Norrep II Class - Series F Balance, opening 564, ,672 Issued on dividends reinvested 4,227 Issued for cash 137, ,299 Redeemed for cash (132,525) (98,503) Balance, October , ,468 Norrep II Class - Series I Balance, opening 311, ,534 Issued on dividends reinvested 2,186 Redeemed for cash (9,002) (6,441) Balance, October , , NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

71 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 7. Redeemable shares (continued): Norrep Income Growth Class - Series A Balance, opening 2,194,535 2,742,521 Issued on dividends reinvested 82, ,254 Issued for cash 38,006 5,660 Redeemed for cash (508,272) (658,900) Balance, October 31 1,807,043 2,194,535 Norrep Income Growth Class - Series F Balance, opening 1,932,238 2,353,081 Issued on dividends reinvested 85,940 87,896 Issued for cash 824, ,352 Redeemed for cash (675,214) (1,099,091) Balance, October 31 2,167,442 1,932,238 Norrep Income Growth Class - Series I Balance, opening 313, ,400 Issued on dividends reinvested 11,283 15,049 Issued for cash 6,922 46,769 Redeemed for cash (98,012) (177,351) Balance, October , ,867 Norrep Income Growth Class - Series B Balance, opening 3,711,692 4,651,287 Issued on dividends reinvested 143, ,094 Issued for cash 332, ,012 Redeemed for cash (1,348,152) (1,700,701) Balance, October 31 2,840,084 3,711,692 Norrep US Dividend Plus Class Series A Balance, opening 1,081,154 1,184,372 Issued on dividends reinvested 28,069 27,273 Issued for cash 708, ,852 Redeemed for cash (335,183) (435,343) Balance, October 31 1,482,432 1,081,154 Norrep US Dividend Plus Class - Series F Balance, opening 724, ,455 Issued on dividends reinvested 17,523 13,849 Issued for cash 510, ,194 Redeemed for cash (218,575) (64,803) Balance, October 31 1,033, ,695 Norrep US Dividend Plus Class - Series I Balance, opening 23,370 29,003 Issued on dividends reinvested 1, Issued for cash 84,982 Redeemed for cash (38,888) (6,246) Balance, October 31 70,493 23, NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

72 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 7. Redeemable shares (continued): Norrep Energy Plus Class Series A Balance, opening 2,718,747 2,760,524 Issued on dividends reinvested 19,639 Issued in exchange for assets transferred (note 4) 788,082 1,177,722 Issued for cash 32, ,683 Redeemed for cash (1,592,087) (1,366,182) Balance, October 31 1,966,624 2,718,747 Norrep Energy Plus Class - Series F Balance, opening 645, ,036 Issued on dividends reinvested 3,305 Issued for cash 243, ,234 Redeemed for cash (514,491) (68,302) Balance, October , ,968 Norrep Energy Plus Class - Series I Balance, opening 890, ,818 Issued on dividends reinvested 8,896 Issued for cash 18,034 88,591 Redeemed for cash (37,664) (160,921) Balance, October , ,488 Norrep Entrepreneurs Class Series A Balance, opening 872, ,877 Issued on dividends reinvested 5,814 Issued for cash 526, ,942 Redeemed for cash (190,925) (124,919) Balance, October 31 1,214, ,900 Norrep Entrepreneurs Class - Series F Balance, opening 393, ,302 Issued on dividends reinvested 4,088 Issued for cash 604, ,323 Redeemed for cash (102,149) (66,759) Balance, October , ,866 Norrep Entrepreneurs Class - Series I Balance, opening 109, ,850 Issued on dividends reinvested 581 Issued for cash 18, Redeemed for cash (7,020) (20,953) Balance, October , , NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

73 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 7. Redeemable shares (continued): Norrep Global Income Growth Class Series A Balance, opening 6,504,875 5,406,834 Issued on dividends reinvested 194, ,660 Issued, in exchange for assets transferred in (note 4) - 1,544,762 Issued for cash 773, ,670 Redeemed for cash (1,440,826) (1,574,051) Balance, October 31 6,032,178 6,504,875 Norrep Global Income Growth Class - Series F Balance, opening 2,939,399 1,922,314 Issued on dividends reinvested 83,469 76,692 Issued, in exchange for assets transferred in (note 4) - 442,553 Issued for cash 1,068,171 1,404,959 Redeemed for cash (1,138,574) (907,119) Balance, October 31 2,952,465 2,939,399 Norrep Global Income Growth Class - Series I Balance, opening 2,174,971 2,254,494 Issued on dividends reinvested 59,005 73,368 Issued, in exchange for assets transferred in (note 4) - 389,664 Issued for cash 374,949 6,703 Redeemed for cash (1,389,570) (549,258) Balance, October 31 1,219,355 2,174,971 Norrep Tactical Opportunities Class Series A Balance, opening 1,991,692 3,662,460 Issued on dividends reinvested 42,704 87,796 Issued for cash 2,682 13,833 Redeemed for cash (1,082,312) (1,772,397) Balance, October ,766 1,991,692 Norrep Tactical Opportunities Class - Series F Balance, opening 293, ,582 Issued on dividends reinvested 7,426 13,835 Issued for cash 37,868 72,657 Redeemed for cash (124,227) (474,950) Balance, October , ,124 Norrep Tactical Opportunities Class - Series I Balance, opening 162, ,349 Issued on dividends reinvested 4,958 8,528 Redeemed for cash (57,238) (170,168) Balance, October , ,709 The calculation of the increase (decrease) in net assets attributable to holders of redeemable shares per share is presented below. Due to rounding, numbers presented may not calculate precisely and not reflect the absolute figures. 25 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

74 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 7. Redeemable shares (continued): Norrep II Class - October 31, 2017 Series A Series F Series I Increase in net assets attributable to holders of redeemable shares $7,880,259 $2,699,665 $1,699,032 Average shares outstanding during the year 2,059, , ,338 Increase in net assets attributable to holders of redeemable shares per share $3.83 $4.96 $5.58 Norrep II Class - October 31, 2016 Series A Series F Series I Increase in net assets attributable to holders of redeemable shares $5,740,439 $1,222,665 $1,085,615 Average shares outstanding during the year 2,683, , ,016 Increase in net assets attributable to holders of redeemable shares per share $2.14 $2.96 $3.45 Norrep Income Growth Class - October 31, 2017 Series A Series F Series I Series B Increase in net assets attributable to holders of redeemable shares $1,965,871 $2,590,564 $396,048 $3,054,775 Average shares outstanding during the year 1,983,084 2,156, ,573 3,330,205 Increase in net assets attributable to holders of redeemable shares per share $0.99 $1.20 $1.45 $0.92 Norrep Income Growth Class - October 31, 2016 Series A Series F Series I Series B Increase in net assets attributable to holders of redeemable shares $3,190,692 $3,229,300 $630,575 $5,123,419 Average shares outstanding during the year 2,438,734 2,178, ,931 4,052,506 Increase in net assets attributable to holders of redeemable shares per share $1.31 $1.48 $1.79 $1.26 Norrep US Dividend Plus Class - October 31, 2017 Series A Series F Series I Increase (decrease) in net assets attributable to holders of redeemable shares $441,823 $474,652 $(33,042) Average shares outstanding during the year 1,363, ,293 45,363 Increase (decrease) in net assets attributable to holders of redeemable shares per share $0.32 $0.50 $(0.73) Norrep US Dividend Plus Class - October 31, 2016 Series A Series F Series I Increase in net assets attributable to holders of redeemable shares $2,313,316 $1,536,217 $71,167 Average shares outstanding during the year 1,194, ,561 26,919 Increase in net assets attributable to holders of redeemable shares per share $1.94 $2.44 $ NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

75 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 7. Redeemable shares (continued): Norrep Energy Plus Class - October 31, 2017 Series A Series F Series I Decrease in net assets attributable to holders of redeemable shares $(5,134,748) $(1,085,203) $(1,856,349) Average shares outstanding during the year 2,322, , ,251 Decrease in net assets attributable to holders of redeemable shares per share $(2.21) $(2.07) $(2.11) Norrep Energy Plus Class - October 31, 2016 Series A Series F Series I Increase in net assets attributable to holders of redeemable shares $663,031 $76,930 $446,990 Average shares outstanding during the year 2,884, , ,990 Increase in net assets attributable to holders of redeemable shares per share $0.23 $0.18 $0.48 Norrep Entrepreneurs Class - October 31, 2017 Series A Series F Series I Increase in net assets attributable to holders of redeemable shares $3,256,212 $2,262,680 $489,906 Average shares outstanding during the year 1,017, , ,520 Increase in net assets attributable to holders of redeemable shares per share $3.20 $3.76 $4.35 Norrep Entrepreneurs Class - October 31, 2016 Series A Series F Series I Increase in net assets attributable to holders of redeemable shares $3,206,980 $1,490,334 $634,079 Average shares outstanding during the year 709, , ,371 Increase in net assets attributable to holders of redeemable shares per share $4.52 $5.30 $5.27 Norrep Global Income Growth Class - October 31, 2017 Series A Series F Series I Increase in net assets attributable to holders of redeemable shares $13,379,127 $6,709,950 $4,762,443 Average shares outstanding during the year 6,120,730 2,777,341 1,796,994 Increase in net assets attributable to holders of redeemable shares per share $2.19 $2.42 $2.65 Norrep Global Income Growth Class - October 31, 2016 Series A Series F Series I Increase in net assets attributable to holders of redeemable shares $2,994,619 $1,411,969 $1,632,192 Average shares outstanding during the year 5,979,631 2,455,072 2,170,411 Increase in net assets attributable to holders of redeemable shares per share $0.50 $0.58 $ NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

76 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 7. Redeemable shares (continued): Norrep Tactical Opportunities Class - October 31, 2017 Series A Series F Series I Increase in net assets attributable to holders of redeemable shares $1,512,605 $313,858 $194,423 Average shares outstanding during the year 1,368, , ,338 Increase in net assets attributable to holders of redeemable shares per share $1.11 $1.32 $1.47 Norrep Tactical Opportunities Class - October 31, 2016 Series A Series F Series I Increase (decrease) in net assets attributable to holders of redeemable shares $(562,673) $(98,340) $17,720 Average shares outstanding during the year 2,651, , ,094 Increase (decrease) in net assets attributable to holders of redeemable shares per share $(0.21) $(0.23) $ Management fees, expenses and key contracts: (a) Manager and management fees: The Series A and Series B shares paid an annual management fee to Norrep of 2% of the net asset value of each series with the exception of Series A of the Norrep Income Growth Class, which paid an annual management fee to Norrep of 1.65% of the net asset value of the series. Series F paid an annual management fee to Norrep of 1% of the net asset value of the series. The management fee is calculated and paid monthly. No management fee is charged to the Series I; instead, the investors will pay a management fee directly to Norrep, in an amount determined through negotiation. Accrued expenses include management fees payable as follows: (in Canadian dollars) October 31, 2017 October 31, 2016 Norrep II Class 151, ,628 Norrep Income Growth Class 122, ,629 Norrep US Dividend Plus Class 60,594 42,602 Norrep Energy Plus Class 28,768 54,852 Norrep Entrepreneurs Class 81,248 47,360 Norrep Global Income Growth Class 174, ,312 Norrep Tactical Opportunities Class 19,163 36,773 The Manager is also entitled to a performance bonus in respect of Norrep II Class, Norrep Energy Plus Class, Norrep Entrepreneurs Class, and Norrep Tactical Opportunities Class. Effective April 18, 2016, the entitlement to performance fees have been waived indefinitely for Norrep Income Growth Class, Norrep US Dividend Plus Class and Norrep Global Income Growth Class and were subsequently eliminated on June 30, The performance bonus is 20% of the excess return compared to the relevant index multiplied by the weighted average net asset value for the Fund. Each Fund has a unique index as follows: 28 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

77 NORREP OPPORTUNITIES CORP. Notes to Financial Statements 8. Management fees, expenses and key contracts (continued): (a) Manager and management fees (continued): Norrep II Class BMO Small Capitalization Equity Only Weighted Total Return Index Norrep Energy Plus Class S&P/TSX Capped Energy Total Return Index Norrep Entrepreneurs Class 100% BMO Small Capitalization Equity Only Weighted Total Return Index Norrep Tactical Opportunities Class 60% S&P/TSX Total Return Index; 20% Russell 3000 Index in Local Currency; 20% FTSE TMX Universe Bond Index Quarterly calculations, positive or negative, are cumulative until paid. The performance bonus is only payable at the end of a calendar quarter if the return of the series since the last performance bonus was paid is positive and if the return of the series exceeds the total change in the index for each Fund. (b) Expenses: All fees and expenses applicable to the administration and operation of each series, including record keeping and communication costs, custodian fees, legal and filing fees, audit, applicable taxes and bank charges, are payable by the Funds. Brokerage costs are expensed as incurred and included in transaction costs. Accrued expenses include administration services payable to Norrep as follows: (in Canadian dollars) October 31, 2017 October 31, 2016 Norrep II Class 12,845 13,849 Norrep Income Growth Class 10,603 11,501 Norrep US Dividend Plus Class 5,154 3,446 Norrep Energy Plus Class 2,986 4,779 Norrep Entrepreneurs Class 6,813 3,394 Norrep Global Income Growth Class 15,975 16,261 Norrep Tactical Opportunities Class 1,551 2, Brokerage commissions on securities transactions: The Funds paid brokerage commissions in connection with portfolio transactions during the years ended October 31, 2017 and 2016 amounting to: October 31, 2017 October 31, 2016 Norrep II Class 201, ,901 Norrep Income Growth Class 90, ,517 Norrep US Dividend Plus Class 91,033 23,449 Norrep Energy Plus Class 78, ,516 Norrep Entrepreneurs Class 127,721 86,915 Norrep Global Income Growth Class 88,655 91,237 Norrep Tactical Opportunities Class 27,912 97, Comparative Figures: Certain 2016 comparative figures have been reclassified to conform with the financial statement presentation adopted for the current year. 29 NOTES TO FINANCIAL STATEMENTS OF NORREP OPPORTUNITIES CORP. OCTOBER 31, 2017

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