Bank of America Merrill Lynch Leveraged Finance Conference

December 5, 2012

Forward-Looking Statements

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This presentation may include certain information that is “forward-looking information” under applicable Canadian securities laws and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.

By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others, competition from other newspapers and alternative forms of media; the effect of economic conditions on advertising revenue; the ability of the Company to build out its digital media and online businesses; the failure to maintain current print and online newspaper readership and circulation levels; the realization of anticipated cost savings; possible damage to the reputation of the Company’s brands or trademarks; possible labour disruptions; possible environmental liabilities, litigation and pension plan obligations; fluctuations in foreign exchange rates and the prices of newsprint and other commodities. For a complete list of our risk factors please refer to the section entitled “Risk Factors” contained in our annual management’s discussion & analysis for the year ended August 31, 2012, which can be found on the Company’s website at www.postmedia.com, on SEDAR at www.sedar.com or on the SEC’s website at www.sec.gov. Although the Company bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates may differ materially from any such information and statements in this presentation.

Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. Other than as required by law, the Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements.

Unless otherwise noted, all references to “$” are to Canadian dollars.

Company Highlights

Our English-language paid daily newspapers have, in total, the highest weekly print readership when compared to other media organizations in Canada, reaching 4.3 million Canadians each week(1)

Digital properties with 6.6 million average monthly unique visitors(2), including newspaper sites ranked #1 in Canada that reach 32% of Canadian newspaper site visitors(2)

(1) Source: NADbank 2011(2) Source: comScore, MediaMetrix, Total Canada, All Locations, Fiscal Year 2012 ending August 31, 2012

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• Multiple cost reduction initiatives successfully completed in 2010 and 2011• Three-year transformation program initiated in Q3 of F2012 with target of reducing 15% to 20% of

operating costs • As of August 31, 2012 initiatives implemented will result in $37million of annualized costs savings • Shifting cost structure for higher margin digital environment

• #1 English news source in its key markets provides strong value proposition to advertisers for local, regional, and national reach

• Four platform strategy driving conversion from legacy printing business into a content engine offering customized bundles to both readers and advertisers

• Reinvesting in local news content within its markets and its already extensive portfolio of premium digital media, online and mobile assets

• Robust, enterprise-wide audience data analytics will drive sales approach

Company Highlights

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• Attractive margins and modest capital expenditures drive strong free cash flow• LTM free cash flow(1) to total indebtedness above 25% per annum since 2010• Over $191 million of debt repaid from July 2010 to August 2012, excluding repayments made on

refinancing• First-lien debt reduced by $23.2 million from net proceeds of the Toronto Head Office in November

2012

(1) Free cash flow defined as Operating Income before Depreciation, Amortization and Restructuring less Capital Expenditures

Transformation into leading multi-platform

content provider

Significant cost savings opportunities

Strong free cash flow with track record of

debt repayment

• Management and Board of Directors have extensive industry experience• CEO Paul Godfrey is a respected figure in Canadian media with long-standing relationships with key

advertisers in major sectors such as auto and financial

Company Highlights

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• Canadian newspapers have outperformed U.S. newspapers in revenue growth (-10% vs. -30% from Q4’07 to Q4’10) (1)

• Better newspaper industry penetration in Canada (73% vs. 53%)(2)

• Newspaper readership in Canada continues to grow (top 19 markets have grown 3.4% since 2007)(3)

• Significant tangible asset base of owned real estate• Currently own approximately 1.4 million sq. ft. total, including seven facilities in excess of 100,000 sq. ft.• Potential for additional asset sales to accelerate debt repayment

Substantial ownedreal estate value

Canadian newspaper fundamentals superior

to U.S.

Strong, well-respected management team

(1) Company Filings. Canadian Newspapers consist of reported newspaper segments of Postmedia, Quebecor, FP Newspapers, Glacier Media and Torstar (Star and Metroland). U.S. Newspapers consist of reported newspaper segments of Gannett, The New York Times, McClatchy, Lee Enterprises, The Washington Post and Media General.

(2) eMarketer, Global Media Intelligence Report: 2012(3) NADbank

Well-Established and Trusted Brands

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#1100% M.S.(1)

#2(2)

100% M.S.(1)

#1100% M.S.

#1100% M.S.#1

82% M.S.

#169% M.S.

#177% M.S.

#3(3)

100% M.S.

#1100% M.S.

Note: Market shares represent local market share of paid daily newspapers(1) Includes The Vancouver Sun and The Province(2) Second to The Vancouver Sun which is also operated by the company(3) Number one among English-language paid daily newspapers, number three overall among paid daily newspapers

• Postmedia’s newspaper brands are woven into the fabric of the communities they serve, some for over a century• Each of the Corporation’s 9 daily metropolitan newspapers has the highest circulation and readership among

English-language newspapers in the market that it serves (except for The Province, which is second in its market to another of Postmedia’s newspapers, The Vancouver Sun)

• Brands include the Calgary Herald, Montreal Gazette and Vancouver Sun– 100% market share of paid daily English language newspapers in 5 of 9 markets

• The National Post, one of Canada’s two daily national newspapers• 5 community newspapers, serving areas in Southwestern Ontario

Portfolio of Premium Digital Assets

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Postmedia Network Sites6.6 million UVs

Ranks #6 in News & Information category

Infomart.caApproximately 1,000 subscribers

3rd Party Sites Managed & Exclusive Ad Agreements

1.7 million UVs(1)

Newspaper sites5.3 million monthly UVs

canada.com (site)

• Electronic resource of Canadian news and business information products

• Same-day and archival access to approximately 6,625 full-text newspapers, magazines, newswires, transcripts and blogs(2)

• Postmedia owns and represents 28 destination websites and has exclusive advertising representation agreements with high-profile third party sites

• Postmedia Network sites audience of 6.6 million average monthly unique visitors (“UVs”) combined with third party sites of 1.7 million UVs for a net total of 7.0 million UVs

canada.com classifieds

(1) Source: comScore, MediaMetrix, Total Canada, All Locations, Fiscal Year 2012 ending August 31, 2012(2) Source: based on 1000 subscribers as of July 31, 2012

• Ability to offer comprehensive suite of advertising solutions across network

Note: Numbers above represent Postmedia Network audiences

Unparalleled Reach

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4.3mWeekly Readers(NADbank 2011)

6.6mMonthly UVs

(comScore 12mth Avg.ending Aug.31, 2012

3.7mMonthly UVs

(Omniture 12mth Avg. ending Aug.31,2012

• Postmedia daily newspapers reach 4.3 million Canadian adults each week

Toronto Star Network: Toronto Star, KW Record, Guelph Mercury and Hamilton SpectatorSun Media: Calgary Sun, Edmonton Sun, Winnipeg Sun, Toronto Sun and Ottawa Sun Metro Network: Metro - Vancouver, Calgary, Edmonton, Toronto, Ottawa and Halifax 24 Hours Network: 24 Hours - Vancouver, Calgary, Edmonton, Toronto and OttawaPostmedia Network owned properties: National Post, Vancouver Sun, The Province, Calgary Herald, Edmonton Journal, Regina Leader Post, Saskatoon Star Phoenix, Windsor Star, Ottawa Citizen, Montreal Gazette

(1) Source: NADbank 2011; For comparative purposes, Networks based on English language readership. Weekly Readership = 6/7 day cumulative (cume) Postmedia, Sun Media, TorStar, Globe and Mail; 5-day cume Metro and 24 Hours Base:, Postmedia Network owned properties , Sun Media (5 markets + 15 markets for Toronto Sun), Torstar (19 markets), Globe and Mail (48 markets), Metro (6 markets), 24 Hours (5 markets).

(2) Source: Newspapers Canada 2011 Circulation Data Report; Postmedia includes disposed properties

Weekly Readership(1) – Adults 18+

The Postmedia Network Advantage

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% Share of Total Paid Daily Circulation(2)

Other

4.3 Million

3.0 Million 2.8 Million2.6 Million

2.3 Million

1.8 Million

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32% Reach

Source: comScore, MediaMetrix, Total Canada, All Locations, Fiscal Year 2012 ending August 31, 2012.

Postmedia Newspapers reach 32% of all Canadians

who visit newspaperwebsites

Postmedia is #1 in the Newspaper Website Category

Newspaper Website CategoryUnique Visitors (000) –F’12

32% Reach

Postmedia Digital Newspapers have more than doubled in size since 2008

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• Audiences have grown consistently over time• Postmedia Newspaper sites have reached over 5.3 million average monthly

unique visitors in 2012

Source: comScore, MediaMetrix, Total Canada, All Locations, Postmedia Digital Newspapers, Unique Visitor Trends Fiscal 2008 to Fiscal 2012

+129% Since 2008

+32%

+32%

+19%+8%

New Comprehensive Strategic Plan

• Four-platform product strategy– Launch of targeted, differentiated products and services by platform, brand – Rollout of ‘all access’ subscription strategy

• Audience-based sales strategy– Shift of sales focus from traditional sale of “impressions” to selling audience

and results– Development of deep audience database with full data analytics– Aggressive digital growth through local client penetration, behavioral targeting

segments, real-time bidding, etc.

• Ongoing reduction of print-related infrastructure– ‘One newsroom’ concept (centralize editorial and news production processes)– Continued pursuit of operational efficiencies through outsourcing,

centralization, benchmarking and other process improvements– Accelerates ability to monetize real estate portfolio

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Focused Strategic Approach

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Optimize near-term revenue while strategically repositioning the Company for mid- and long-term revenue and operating income growth

Build a high performance organization with a winning culture, exceptional people, and systems that demand excellence

Optimize print and aggressively grow digital revenues

Reduce costs by proactively managing print costs, redefining the organizational structure, and continuing ongoing cost reductions

Create deep data-based audience

intelligence

Create a highly engaged user base

Grow complementary

digital businesses

Be an “audience first” organization and deliver the most relevant news, information and services across the four platforms of print, web, tablet and smartphoneBuild a consultative, multi-platform sales approach in order to cost-effectively drive results for our advertisers by reaching the most relevant audience at scale

ENABLERS:

STRATEGIC IMPERATIVES:

Comprehensive Four Platform Strategy

• Focused development of differentiated products targeted by platform, integrated by brand

• Permits shift to 'all access' bundled subscription strategy• Integration of robust data analytics to drive 'audience-based' sales approach

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Boomers (48-66)

Gen Y (18-32)Gen X (33-47)

Digital Hub (all)

Business Transformation Initiatives

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$0

$200

$400

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$800

$1,000

$1,200

F2008 F2009 F2010 F2011 F2012

Ope

ratin

g C

osts

Discontinued Operations Continuing Operations

• Successfully implemented over $50 million of operating cost reductions by fiscal-end 2011• Recently initiated the first phase of a three-year transformation program with target of

eliminating 15% to 20% of operating costs • As of August 31, 2012 we have implemented initiatives which will result in net annualized

operating cost savings of $37 million

Com

plet

ed F

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• Cancellation of certain Sunday/Monday editions• Streamlining senior executive reporting structure• Centralization of marketing function• Monetization of B.C. Papers and related debt repayment• Elimination of breaking-news wire service and contracting with Canadian Press

for “commodity news”• Consolidation of editorial production functions in Hamilton• General staff reductions through voluntary and involuntary buyout programs• Elimination of unprofitable circulation outside of primary market zone

In P

roce

ss • Streamlining of advertising flyer inserting operations• Introduction of common pages for international/national news and national

features• Outsourcing of business processes• Real estate efficiencies – sale/sublet of surplus real estate

Track Record of Cost Reduction(1)Initiative

(1) Financial information for periods prior to July 13, 2010 relate to Canwest Limited Partnership and for periods subsequent to July 13, 2010 relate to Postmedia Network Canada Corp. (“Postmedia” or the “Company”). Postmedia adopted IFRS on September 1, 2011. As a result, financial information for periods prior to F2011 have been prepared in accordance with Canadian GAAP - Part V and financial information for periods subsequent to F2010 have been prepared in accordance with IFRS. For a full discussion of the impact of the transition to IFRS see the audited consolidated financial statements and MD&A for the years ended August 31, 2012 and 2011.

(2) On November 30, 2011, the Company completed the sale of the Victoria Times Colonist, Vancouver Island Newspaper Group and certain community newspapers in British Columbia (the “Disposed Properties”) to affiliates of Glacier Media Inc. As a result of the sale, the Company has presented the results of the Disposed Properties as discontinued operations and as such the F2011 financial information has been revised to reflect this change in presentation. F2008, F2009, and F2010 results have not been revised to present the results of the Disposed Properties as discontinued operations.

(2)

Surrey, BCProduction208,047 sq. ft.

Calgary, ABCombined Facilities383,000 sq. ft.

Edmonton, ABProduction187,000 sq. ft. Saskatoon, SK

Combined Facilities110,000 sq. ft.

Regina, SKCombined Facilities103,946 sq. ft.

Ottawa, ONCombined Facilities190,000 sq. ft.

Montreal, QCProduction165,000 sq. ft.

Owned Properties(1)

City Sq.ft.

1 Calgary, AB 383,000

2 Surrey, BC 208,047

3 Ottawa, ON 190,000

4 Edmonton, AB 187,000

5 Montreal, QC 165,000

6 Saskatoon, SK 110,000

7 Regina, SK 103,946

8 Windsor, ON 60,000

Total Owned 1,406,993

9 Edmonton, AB(1) 133,250(1)

Other Leased 417,535

Total 1,957,778

1

4

35

9

Edmonton, ABOffice133,250 sq. ft.

2

7

6

Significant Value in Real Estate

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(3)

Summary of Facilities

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Windsor, ONProduction60,000 sq. ft.

(1) Edmonton, Alberta office is subject to a sale leaseback agreement, whereby Postmedia owns the land and space above and can repurchase the building in 2041.

Financial Highlights

LTM Operating Income before Depreciation, Amortization and Restructuring(1)

(C$ millions)

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Revenue and Operating Income Performance

LTM Consolidated Revenue(1) (C$ millions)

(1) Financial information for periods prior to July 13, 2010 relates to Canwest Limited Partnership and for periods subsequent to July 13, 2010 relates to Postmedia Network Canada Corp. (“Postmedia” or the “Company”). Postmedia adopted IFRS on September 1, 2011. As a result, financial information for periods prior to Q1 F11 have been prepared in accordance with Canadian GAAP - Part V and financial information for periods subsequent to Q4 F10 have been prepared in accordance with IFRS. For a full discussion of the impact of the transition to IFRS see the consolidated financial statements and MD&A of Postmedia for the years ended August 31, 2012 and 2011.

(2) Fiscal 2011 adjusted financial information is based on actual fiscal 2011 results adjusted to exclude the Disposed Properties (Times-Colonist, Vancouver Island Newspaper Group, and BC community newspapers), but information for prior periods has not been adjusted.

(2)

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$1,200

Q1F10

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Q3F10

Q4F10

Q1F11

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Q4F12

Continuing Operations Discontinued Operations

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Continuing Operations Discontinued Operations(2)

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July13,

2010

Q4F10

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Q4F12

Consolidated Debt (C$ millions)

Debt Repayment Record and FCF Generation

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$0

$50

$100

$150

$200

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Q2F10

Q3F10

Q4F10

Q1F11

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Q4F11

Q1F12

Q2F12

Q3F12

Q4F12

Continuing Operations Discontinued Operations

LTM Free Cash Flow(1,4) (C$ millions)

(1) Financial information for periods prior to July 13, 2010 relate to Canwest Limited Partnership and for periods subsequent to July 13, 2010 relate to Postmedia Network Canada Corp. (“Postmedia” or the “Company”). Postmedia adopted IFRS on September 1, 2011. As a result, financial information for periods prior to Q1 F11 have been prepared in accordance with Canadian GAAP - Part V and financial information for periods subsequent to Q4 F10 have been prepared in accordance with IFRS. For a full discussion of the impact of the transition to IFRS see the consolidated financial statements and MD&A for the years ended August 31, 2012 and 2011.

(2) Represents a non-IFRS financial measure. Postmedia believes this measure is beneficial from the perspective of assessing the Company’s financial performance. However, non-IFRS financial measures do not have any standard definition prescribed under IFRS and as such may not be comparable to similar measures used by other companies.

(3) On November 30, 2011, the Company completed the sale of the Victoria Times Colonist , Vancouver Island Newspaper Group and certain community newspapers in British Columbia (the “Disposed Properties”) to affiliates of Glacier Media Inc. As a result of the sale, the Company has presented the results of the Disposed Properties as discontinued operations and as such F11 LTM Free Cash Flow has been revised to reflect this change in presentation, but prior periods have not been revised.

(4) Free cash flow defined as LTM Operating Income before Depreciation, Amortization and Restructuring less Capital Expenditures.(5) Q4 F12 pro forma $23.2 million debt repayment from sale of head office, and $2.2 million additional lease-back expense.

(3)

• Top priority for free cash flow(2,4) is debt reduction• Approximately $191 million paid from July 2010 to August 2012, excluding

repayments on refinancing– $23.2 million repayment with net proceeds of head office sale in Q1 2013

• $86.5 million of debt was repaid following the sale of BC newspaper assets in November 2011

(5)

(5)

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Q1F11

Q2F11

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Q4F11

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Q2F12

Q3F12

Q4F12

Capital Expenditures (C$ millions)

Low Capital Expenditures Requirements

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• Priorities for capital investments include:

– Updated sales productivity technology(CRM)

– Development of new digital products to support 4-platform strategy (print/web/tablet/smartphone)

– Development of integrated audience database analysis and targeting capabilities

– Technology infrastructure to support centralization efforts

• Continued reduction of capex related to legacy print business

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