Canada Research Published by Raymond James Ltd.

Best Picks 2014

December 9, 2013

Raymond James Ltd.’s Best Picks for 2014 are: AIMIA (AIM-TSX) Allied Properties REIT (AP.UN-TSX) B2Gold Corp. (BTO-TSX) Brookfield Infrastructure Partners L.P. (BIP-NYSE | BIP.UN-TSX) Cenovus Energy (CVE-TSX | CVE-NYSE) Delphi Energy Corp. (DEE-TSX) Eldorado Gold Corp. (EGO-NYSE | ELD-TSX) Gildan Activewear (GIL-NYSE | GIL-TSX) Husky Energy Inc. (HSE-TSX) International Forest Products Ltd. (IFP.A-TSX) Whitecap Resources Inc. (WCP-TSX)

Company AIMIA Allied Properties REIT B2Gold Corp. Brookfield Infrastructure Partners L.P. Cenovus Energy Delphi Energy Corp. Eldorado Gold Corp. Gildan Activewear Husky Energy Inc. International Forest Products Ltd. Whitecap Resources Inc.

Ticker(s) Primary Secondary AIM-TSX AP.UN-TSX BTO-TSX BIP-NYSE CVE-TSX DEE-TSX EGO-NYSE GIL-NYSE HSE-TSX IFP.A-TSX WCP-TSX

BIP.UN-TSX CVE-NYSE ELD-TSX GIL-TSX

Current Price C$18.80 C$31.75 C$2.06 US$37.41 C$31.21 C$1.70 US$5.52 US$48.93 C$30.50 C$12.49 C$12.70

Target Price (6-12 mths) C$22.00 C$36.00 C$4.00 US$44.00 C$38.50 C$2.70 US$10.50 US$55.00 C$38.00 C$16.00 C$13.00

Div. Yield

Total Return

Suitability

4% 4% 0% 5% 3% 0% 2% 1% 4% 0%

20% 15% 94% 22% 26% 59% 90% 13% 29% 28% 7%

Growth Total Return Aggressive Growth Total Return Growth High Risk High Risk Growth Growth High Risk Growth

Rating Outperform 2 Outperform 2 Outperform 2 Outperform 2 Outperform 2 Strong Buy 1 Outperform 2 Outperform 2 Outperform 2 Strong Buy 1 Strong Buy 1

Raymond James Ltd.

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Analyst KT KA CT FB CC KM PR KT CC DS LM

Canada Research | Page 2 of 29

Best Picks 2014

Dear Valued Clients, We are pleased to present our Raymond James Ltd. Canadian Analysts’ 2014 Best Picks. The Raymond James Canadian research team is proud of our stock picking record with the annual best picks list delivering a simple average holding period return of 15.5% over the past 10 years, outpacing the S&P/TSX Small Cap index by 7.0% on the same basis (see Exhibit 1). Amid improving macro conditions 2013 was no exception with the average holding period return from December 5, 2012 to December 5, 2013 coming in at 6.8% compared to 4.8% for the S&P/TSX Small Cap Index. Of the 14 stocks on the list, all but six outperformed the relevant benchmark. While mining selections generally posted negative returns, other sectors outperformed with notable returns of 65.3% for Canfor Corp, 62.6% for Open Text Corp., and 50.8% for Aecon Group (see Exhibit 2). Our analysts have provided a fresh list of 11 stocks for 2014. One of the stocks remains unchanged although investment highlights have been refreshed to address developments over the past 12 months (see Exhibit 3 for details on the changes to the list). These stocks represent a current snapshot of our analysts’ best ideas; however, we continue to encourage investors to focus on risk adjusted returns and appropriate asset allocation while investing over the long term. With appreciation, Daryl Swetlishoff Head of Research (Canada)

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Best Picks 2014

Canada Research | Page 3 of 29

About Raymond James Ltd. Raymond James Ltd. is a wholly owned subsidiary of U.S.-based Raymond James Financial Inc. (RJF-NYSE), and is a prominent, independent, full-service investment dealer in Canada. Raymond James Ltd. has Private Client offices across Canada and Equity Capital Markets offices in Toronto, Vancouver, Calgary and Montreal. The firm is a member of the Toronto Stock Exchange, the Montreal Exchange, and the TSX Venture Exchange as well as the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. For more information about Raymond James Ltd., please visit our website at: www.raymondjames.ca. Exhibit 1: Best Picks’ Historical Performance Best Picks S&P/TSX Year List SmallCap Index 2003 11.6% 35.9% 2004 19.0% 4.1% 2005 33.2% 11.6% 2006 15.4% 7.8% 2007 13.9% -3.5% 2008 -59.6% -55.4% 2009 145.2% 86.7% 2010 22.0% 23.3% 2011 -34.1% -11.8% 2012 -2.5% -10.1% 2013 6.8% 4.8% Average 15.5% 8.5%

Exhibit 2: RJL Canadian Analysts’ 2013 Best Picks Canadian Analysts Best Picks for 2013 Aecon Group Inc. Alamos Gold Inc. B2Gold Corp. Black Diamond Group Limited Cameco Corporation Canfor Corp. Canfor Pulp Products Inc. Copper Mountain Mining Corporation Endeavour Mining Corporation HudBay Minerals, Inc. Open Text Corporation Potash Corp. of Saskatchewan, Inc. Savanna Energy Services Corp. Shoppers Drug Mart Corp. Average

Symbol TSX:ARE TSX:AGI TSX:BTO TSX:BDI TSX:CCO TSX:CFP TSX:CFX TSX:CUM TSX:EDV TSX:HBM NASDAQ:OTEX NYSE:POT TSX:SVY TSX:SC

Current 6-12 Month Target ($)

Current Rating

Analyst

2 3 2 2 2 2 2 2 2 3 2 3 2 3

FB PR* CT AB DSa DS DS AL PR* AT SL SH AB KT

18.00 17.25 4.00 30.00 25.00 27.00 14.00 3.25 2.50 9.00 91.00 30.00 9.00 62.00

Price ($) 5-Dec-12

Price ($) 5-Dec-13

Holding Period Return (%)**

10.41 17.37 3.31 20.4 18.45 14.65 8.72 3.67 2.05 9.96 55.41 39.59 6.94 41.92

15.38 12.38 2.06 28.20 21.32 24.21 11.30 1.55 0.54 7.70 88.88 31.81 7.99 58.86

50.8% -27.5% -37.8% 42.6% 17.7% 65.3% 31.9% -57.8% -73.7% -22.5% 62.6% -19.7% 20.3% 43.1% 6.8%

12,157.3 565.8

13,200.4 592.7

8.6% 4.8%

Benchmarking Indicies S&P TSX Index S&P TSX SmallCap Index

IQ2671800 IQ2671811

Notes: *Alamos Gold was added to the list under previous analyst Gary Baschuk, and Endeavour Mining Corp. under Brad Humphrey; **Holding period return includes dividends

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Canada Research | Page 4 of 29

Best Picks 2014

Exhibit 3: RJL Canadian Analysts’ 2014 Best Pick Additions and Deletions Company Name No Change B2Gold Corp. Additions AIMIA Allied Properties REIT Brookfield Infrastructure Partners L.P. Cenovus Energy Delphi Energy Corp. Eldorado Gold Corp. Gildan Activewear Husky Energy Inc. International Forest Products Ltd. Whitecap Resources Inc.

Symbol

Recent Price ($)

Current Target ($)

Current Rating

TSX:BTO

2.06

4.00

Outperform 2

TSX:AIM TSX:AP-U NYSE:BIP TSX:CVE TSX:DEE NYSE:EGO NYSE:GIL TSX:HSE TSX:IFP.A TSX:WCP

18.80 31.75 37.41 31.21 1.70 5.52 48.93 30.50 12.49 12.70

22.00 36.00 44.00 38.50 2.70 10.50 55.00 38.00 16.00 13.00

Outperform 2 Outperform 2 Outperform 2 Outperform 2 Strong Buy 1 Outperform 2 Outperform 2 Outperform 2 Strong Buy 1 Strong Buy 1

15.38

18.00 17.25 30.00 25.00 27.00 14.00 3.25 2.50 9.00 91.00 30.00 9.00 62.00

Outperform 2 Market Perform 3 Outperform 2 Outperform 2 Outperform 2 Outperform 2 Outperform 2 Outperform 2 Market Perform 3 Outperform 2 Market Perform 3 Outperform 2 Market Perform 3

Deletions Aecon Group TSX:ARE Alamos Gold Inc. TSX:AGI Black Diamond Group Limited TSX:BDI Cameco Corporation TSX:CCO Canfor Corp. TSX:CFP Canfor Pulp Products Inc. TSX:CFX Copper Mountain Mining Corporation TSX:CUM Endeavour Mining Corporation TSX:EDV HudBay Minerals, Inc. TSX:HBM Open Text Corporation NASDAQ:OTEX Potash Corp. of Saskatchewan, Inc. NYSE:POT Savanna Energy Services Corp. TSX:SVY Shoppers Drug Mart Corp. TSX:SC

12.38

28.20 21.32 24.21 11.30 1.55 0.54 7.70 88.88 31.81 7.99 58.86

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Best Picks 2014

Canada Research | Page 5 of 29

Canada Research Published by Raymond James Ltd.

AIMIA

December 9, 2013

AIM-TSX Kenric S. Tyghe MBA | 416.777.7188 | [email protected] Krisztina Katai (Associate) | 416.777.7060 | [email protected]

Rating & Target Outperform 2 Target Price (6-12 mos): Old: C$20.00 New: C$22.00 Current Price ( Dec-05-13 ) C$18.80 Total Return to Target 20% 52-Week Range C$19.00 - C$13.62

Consumer & Retail

Best Picks 2014 Investment Rationale Despite the marked and pointed marketing initiatives of key competitors, the Aerogold card (and Aeroplan loyalty program) is again proving out its mettle. We believe our estimates are overly conservative based on (i) the better than expected continued traction of the program leading into the 2014E reset, (ii) a better than expected Jan-01-14 baseline (on the card’s continued traction) dovetailing with increased share of wallet on the materially improved value proposition, and (iii) the acceleration of the macro recovery (most notably in the UK and Italy). As such, our F2014E adjusted EBITDA increases from $353.8 mln to $372.2 mln on our revised outlook for Canadian segment dynamics and an acceleration of the macro recovery in Europe.  Economics – The changes in the program economics and value proposition under the new TD and CIBC agreements are material, as is the launch of Distinction (the new tiered recognition program). We believe the materiality of the impact on the competitive landscape is not fully appreciated.  Exclusivity – Concurrent with its 3Q13 earnings release, AIMIA announced the renewal of its AMEX partnership. AMEX will be the only product in the market with the critical 1:1 conversion option from AMEX Membership Rewards to Aeroplan Miles, as the CIBC Aventura card loses its conversion ability at midnight on Dec-31-13.  Value Proposition – While the investment in the value proposition is material (we are modeling a 251 bp gross margin compression to 38.6% in F2014E), what matters more than the absolute margin compression is the relative increase in share of wallet the investment drives. We believe that the share gains will not only be greater than imputed by our initial (and current consensus) estimates, but that AIMIA will again prove its mettle in effectively managing both the burn ratio (most notably in 1H14E) and spread (through F2014E).

Suitability Growth Market Data Market Capitalization (mln) Current Net Debt (mln) Enterprise Value (mln) Shares Outstanding (mln, f.d.) 10 Day Avg Daily Volume (000s) Dividend/Yield Key Financial Metrics 2012A EV/EBITDA 9.5x

Our new $22.00 target price applies an (unchanged) 11.5x multiple to our 2014E new adjusted EBITDA of $372.2 mln. We believe that on a normalized basis AIMIA, as the only global loyalty player, warrants a premium to its loyalty and transaction processing peer group average of 10.8x. The inflection point that is the reset of Aeroplan’s relative value proposition further reinforces our belief that a premium valuation relative to peers is well supported. 1Q Mar C$89 83A 83A 77 84

2Q Jun C$97 100A 100A 92 95

3Q Sep C$95 86A 86A 91 97

4Q Dec C$118 89 89 93 97

Full Year C$399 357 357 354 372

Revenue (mln) C$2,249 2,357 2,357 2,654 2,666

Adj. EPS C$1.48 1.59 1.59 1.73 1.78

Source: Raymond James Ltd., Thomson One

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

2013E

2014E

10.7x

10.2x

Company Description AIMIA is a global leader in loyalty management offering a full suite of services including Coalition Loyalty (Aeroplan and Nectar), Proprietary Loyalty and Loyalty Analytics.

Valuation

Adj. EBITDA (mln) 2012A Old 2013E New 2013E Old 2014E New 2014E

C$3,244 C$563 C$3,806 173.0 329 C$0.68/3.6%

Canada Research | Page 6 of 29

Best Picks 2014

Global Research Published by Raymond James & Associates

Allied Properties REIT

December 9, 2013

(AP.UN:TSX) Ken Avalos, RJA, (727) 567-1756, [email protected] Johann Rodrigues, (Associate), RJL, 416.777.7189, [email protected]

Rating _________________________________ Outperform 2 Real Estate: Office/Diversified ___________________________________________

Best Picks 2014 Investment Rationale The sharp move higher in interest rates that began in May has pressured real estate valuations sector wide. Most REITs, irrespective of property focus, are trading at a sizable discount to private market valuations and NAV estimates. We understand investors’ interest rate concerns but we also think the housing and consumer data has slowed at the margin and economic data will remain volatile. With that in mind, we think investors should have a market weight allocation to REITs in high-quality names that can grow NOI/NAV and have strong balance sheets. Should interest rates rise, there are two primary ways to mitigate the effects of cap rate expansion/lower multiples. First, companies can drive NAV accretive internal growth either from the same-property portfolio or through value creation vis-à-vis redevelopment and intensification. Second, with a well-capitalized and flexible balance sheet, management can exploit potential investment opportunities in more capital-constrained environments. Given this, Allied Properties remains our best pick in the space:

♦

♦

♦

Allied has delivered sector-leading same-asset NOI growth through each quarter of 2013, through a combination of lease-up, rent increases and value creation. In fact, Allied has two upgrade and five redevelopment properties expected to be delivered over the next 12 months that could add an incremental ~$27 million of annual NOI. We believe the REIT has the ability to drive 5%–8% same-asset NOI growth in 2014, which equates to 7%–11% NAV growth. This should more than offset a 50 basis point increase in cap rates while mitigating a 75 basis point move. Allied’s balance sheet continues to be one of the strongest in the sector, with interest coverage at 3.1x and debt to EBITDA 6.3x. Its D/GBV is at 34% and the REIT has $150 million in liquidity and an unencumbered pool of $400 million. Debt metrics should continue to improve organically as the REIT completes its value creation projects over the next 18 months. With a strong and flexible balance sheet, its stellar management team should be able to execute on its current strategy without raising ‘costly’ equity. Allied recently increased its distribution (effective Jan-15) by 4% to $1.41 annually ($1.36 currently), equating to a 4.3% yield. We believe that, given an AFFO payout ratio that we expect to be in the mid-60%s next year, the Board should be able to push through a similar increase a year from now, which would be the third such increase in a 24-month period.

Valuation: Allied currently trades at 19.6x and 16.8x our 2013 and 2014 AFFO estimates. This compares to the Canadian office REIT average of 16.3x and 14.7x consensus 2013E and 2014E AFFO (excluding BPO). We reiterate our Outperform rating and our $36.00 target price is based on units trading at 18.5x our 2014 AFFO estimate. FFO 2012A Old 2013E New 2013E Old 2014E New 2014E

Q1 Mar C$0.44 0.45A 0.45A 0.53 0.53

Q2 Jun C$0.44 0.48A 0.48A 0.55 0.55

Q3 Sep C$0.46 0.50A 0.50A 0.57 0.57

Q4 Dec C$0.45 0.51 0.51 0.57 0.57

Full Year C$1.79 1.94 1.94 2.22 2.22

NOI (mln) C$149.7 178.2 178.2 215.4 215.4

Current and Target Price __________________ Target Price (6-12 mos): C$36.00 Current Price (Dec-05-13) C$31.75 52-Week Range C$35.45 - C$29.28 Suitability Total Return Market Data ____________________________ Market Capitalization (mln) C$2,234 Current Net Debt (mln) C$1,150 Enterprise Value (mln) C$3,384 Units Outstanding (mln, f.d.) 68.6 Average Daily Volume 79,554 Distribution/Yield C$1.41/4.3% Implied Cap Rate 6.20% Market Value per Sq. Ft. C$325 D/TEV 34% D/EBITDA 6.3x Earnings & Valuation Metrics ______________ 2012A 2013E 2014E NAV Old C$33.19 New C$33.19 Prem./Disc. to NAV -1.9% P/FFO 18.5x 16.8x 14.7x FFO Payout Old 74% 70% 64% New 74% 70% 64% AFFO Old C$1.43 C$1.66 C$1.94 New C$1.43 C$1.66 C$1.94 P/AFFO 23.1x 19.6x 16.8x AFFO Payout Old 92% 82% 73% New 92% 82% 73% Company Description_____________________ Allied Properties Real Estate Investment Trust operates as an unincorporated closed-end real estate investment trust in Canada. The company owns Class I office space in the urban Canadian cities.

Source: Raymond James & Associates, Thomson One

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Best Picks 2014

Canada Research | Page 7 of 29

Canada Research Published by Raymond James Ltd.

B2Gold Corp.

December 9, 2013

BTO-TSX Chris Thompson M.Sc. (Eng), P.Geo | 604.659.8439 | [email protected] Brian Martin (Associate) | 604.654.1236 | [email protected]

Rating & Target

Mining | Precious Metals - Gold

Target Price (6-12 mos): Current Price ( Dec-05-13 ) Total Return to Target 52-Week Range

Best Picks 2014 Investment Rationale We view BTO as a go-to name in the gold space, given its robust growth profile (Otjikoto set to come on-line in early 2015E), low cost structure (all-in sustaining costs ~1,000/oz in 2014E), history of brownfield exploration success, and proven operating team (consistently meeting or exceeding guidance). 







Proven and Consistent Performer – Year after year, BTO continues to deliver on its annual production and cost guidance. 2013 is no different; we expect BTO to meet its production and recently revised lower cash cost guidance. In today’s low metal price environment, operational consistency is paramount in maintaining market confidence, and premium valuations. Masbate Becoming a BTO Mine – We continue to be impressed with the quarter-over-quarter operational improvements at Masbate. Grade, throughput, and recoveries have all improved since BTO acquired the mine. With 3.3 mln oz in reserves, we expect results from an expansion study in early 2014. Otjikoto Growth Engine Comes On-Line late 2014 – 2014 is a key growth year for BTO as construction at Otjikoto nears completion, with commissioning expected in 4Q14 and commercial production in 2015. We forecast 136 k oz of production in 2015 at Otjikoto, and 544 k oz on a consolidated basis, moving BTO into upper mid-tier gold producer status. Exploration Success Always Key – Underpinning our investment thesis on BTO is the company’s history of brownfield exploration success, as evidenced by high-grade discoveries at La Libertad (Jabali), and Otjikoto (Wolfshag) – both of which we expect to have a meaningful impact on future production. We expect increased deliveries of high-grade Jabali ore (delivered to the La Libertad mill) and a maiden inferred resource estimate at Wolfshag (Otjikoto) in early 2014.

Suitability Aggressive Growth Market Data Market Capitalization (mln) Current Net Debt (mln) Enterprise Value (mln) Shares Outstanding (mln, f.d.) 10 Day Avg Daily Volume (000s) Dividend/Yield Key Financial Metrics 2012A P/CFPS 6.8x P/NAV

2014E

9.5x

6.5x

0.7x Au Price (US$/oz) US$1,669 US$1,420 Attributable Au Production (oz's) 157,885 362,488 Au Total Cash Cost (US$/oz) US$640 US$734 EPS US$0.13 US$0.09

NA

Old New Old New

Full Year US$0.29 0.21 0.21 0.30 0.30

Revenue (mln) US$259 537 537 571 571

NAVPS

C$3.02 C$3.02 NA NA

Source: Raymond James Ltd., Thomson One.

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

US$1,400 411,574 US$738 US$0.18

Company Description B2Gold is an emerging mid-tier gold producer with a robust growth profile from existing operations, a development stage project pipeline and an attractive portfolio of exploration joint ventures.

Our $4.00 target price is derived by applying a 10.0x multiple to our 2014 CFPS estimate plus an additional $0.76 in value for development-stage assets (notably Otjikoto). We believe our valuation is justified given BTO’s consistent operating history, robust growth profile, and low-cost structure. 1Q 2Q 3Q 4Q Mar Jun Sep Dec 2012A US$0.07 US$0.07 US$0.07 US$0.08 2013E 0.07A 0.05A 0.05A 0.06 2013E 0.07A 0.05A 0.05A 0.06 2014E 0.07 0.08 0.08 0.08 2014E 0.07 0.08 0.08 0.08

C$1,477 US$35 C$1,512 717.0 3,712 C$0.00/0.0% 2013E

Valuation

CFPS

Outperform 2 C$4.00 C$2.06 94% C$4.02 - C$1.87

Canada Research | Page 8 of 29

Best Picks 2014

Canada Research Published by Raymond James Ltd.

Brookfield Infrastructure Partners L.P.

December 9, 2013

BIP-NYSE | BIP.UN-TSX Frederic Bastien CFA | 604.659.8232 | [email protected] Brian Hikisch (Associate) | 604.659.8470 | [email protected]

Rating & Target

Infrastructure & Construction | Asset Ownership & Management

Best Picks 2014 Investment Rationale We encourage investors to purchase units of Brookfield Infrastructure Partners (BIP) as we believe they offer what traditional debt instruments and equities cannot on their own—adequate current income and growth potential. We also view the partnership as an attractive way to gain exposure to the global infrastructure markets, without assuming the risks inherent in investing in the more cyclical sectors that make up our Infrastructure & Construction coverage universe.







Outperform 2 US$44.00 US$37.41 22% US$41.50 - US$33.29

Target Price (6-12 mos): Current Price ( Dec-05-13 ) Total Return to Target 52-Week Range

Premier Player in a Growing Asset Class. BIP’s infrastructure assets are vital to the global economy and enjoy strong competitive positions. They also form part of a relatively new asset class that continues to gain acceptance among institutional investors. We believe this growing appetite is primarily attributed to the recognition that infrastructure assets are benefitting from powerful long-term secular trends—combined with their ability to provide stable cash flows throughout the economic cycle. Focus Shifting from Capital Recycling Back to Capital Deployment. In 2013 management successfully achieved two strategic goals—it freed up cash through the sale of non-core assets and capitalized on the low interest rate environment to improve debt terms. Now, with an estimated $2.4 bln in corporate liquidity and access to over $4.0 bln through Brookfield Asset Management’s latest infrastructure fund, BIP can shift its focus back to capital deployment. Accordingly, we believe it is only a matter of time before investors are presented with a game-changing transaction. Proven Record of Distribution Increases. The partnership has grown cash distributions at a CAGR of 10% since 2009—above BIP’s targeted annual range of 5% to 9%—proving it can deliver strong results even during periods of tepid economic growth. It is our belief that management can meet the bulk of its CDPU growth goal organically over our forecast horizon. Supporting this view is BIP’s ability to capture inflationary price increases, benefit from greater asset utilization and reinvest internally generated cash flows into high-return expansionary projects.

Suitability Total Return Market Data Market Capitalization (mln) Net Debt (mln) Enterprise Value (mln) Units Outstanding (mln) 10 Day Avg Daily Volume (000s) Distribution/Yield Key Financial Metrics 2012A P/FFO 15.5x EV/EBITDA 17.4x Distribution Per Unit (CDPU) US$1.50 Payout Ratio (%) 62% Utilities EBITDA (mln) US$469 Transport EBITDA (mln) US$275 Energy EBITDA (mln) US$144 Timber EBITDA (mln) US$48 Debt to total capitalization Book Value per Unit

US$7,848 US$6,745 US$14,593 209.9 253 US$1.72/4.6% 2013E

2014E

11.1x

10.4x

13.1x

12.1x

US$1.72

US$2.08

55%

64%

US$554

US$592

US$494

US$584

US$141

US$149

US$36

NM 51.0% US$24.09

Company Description Brookfield Infrastructure Partners L.P. owns and operates premier utilities, transport and energy assets in North and South America, Australasia, and Europe.

Valuation Our valuation reflects a target yield of 4.75% to our 2014 CDPU estimate of $2.08, which approximates the unit’s trading average over the past three years. FFO/Unit

Old New Old New

1Q 2Q 3Q 4Q Mar Jun Sep Dec 2012A US$0.58 US$0.60 US$0.58 US$0.65 2013E 0.80A 0.88A 0.80A 0.89 2013E 0.80A 0.88A 0.80A 0.89 2014E 0.91 0.89 0.87 0.91 2014E 0.91 0.89 0.87 0.91

Full Year US$2.41 3.36 3.36 3.58 3.58

Revenues (mln) US$2,004 2,083 2,083 2,386 2,386

EBITDA (mln) US$841 1,117 1,117 1,203 1,203

Source: Raymond James Ltd., Thomson One.

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Best Picks 2014

Canada Research | Page 9 of 29

Canada Research Published by Raymond James Ltd.

Cenovus Energy

December 9, 2013

CVE-TSX | CVE-NYSE Chris Cox CFA | 403.509.0523 | [email protected]

Senior Oil & Gas Producers

Rating & Target

Best Picks 2014

Target Price (6-12 mos): Current Price ( Dec-05-13 ) Total Return to Target 52-Week Range

Investment Rationale We recently resumed coverage of the Canadian large cap energy space with our Dec-03-13 report “Resuming Coverage: Framing Up the Canadian Large Cap Energy Space from a Global Perspective”. Within that report we outlined a generally bullish outlook for the Canadian large cap energy names, predicated on what we believe to be a compelling overall growth profile, improving returns and an encouraging free cash flow outlook. Among the Canadian large caps, we believe Cenovus is one name that stands out:  



Top-tier growth – we estimate a 6% CAGR in overall production for the remainder of the decade, driven by 10% CAGR in oil production; Top-tier assets driving growth – growth is driven from low-risk expansions to the Christina Lake and Foster Creek projects which not only generate leading returns in the oil sands, but some of the highest returns within the broader North American crude complex (supply costs of $40-$50/bbl WTI); Compelling current dividend with room to grow – while the current yield of 3.1% is meaningful, we believe the company’s oil sands business unit will transition to a self-funded entity following the Phase F expansion at Foster Creek later in 2014, freeing up free cash flow from the refining and conventional segments to be used toward higher dividend payments.

We believe the current share price represents a particularly attractive buying opportunity resulting from concerns regarding recent deterioration in the operational performance of the Foster Creek project. We recently published an in-depth report that looks into the issues afflicting the Foster Creek project and outlined our belief that many of the concerns are overblown, and at the very least, priced into the stock. For our detailed discussion of the issues afflicting the Foster Creek project, please see our Report “Taking a Deeper Dive Into Recent Foster Creek Performance” (Dec-03-13, price: $30.93).

Valuation Our $38.50 target price is based on a 50/50 weighting to our $38.59/share NAV estimate for Cenovus and an 8.0x EV/EBITDA multiple applied to our 2014 EBITDA estimate of $4,204 mln. We derive our target multiple based on a number of economic fundamental indicators of the company. EBITDA 1Q (mln) Mar 2012A C$1,067 Old 2013E 826A New 2013E 826A Old 2014E 970 New 2014E 970 Old 2015E 1,077 New 2015E 1,077

2Q Jun C$1,085 841A 841A 971 971 1,055 1,055

3Q Sep C$952 1,089A 1,089A 1,170 1,170 1,165 1,165

4Q Dec C$551 1,081 1,081 1,093 1,093 1,203 1,203

Full Year C$3,655 3,837 3,837 4,204 4,204 4,499 4,499

Revenue (mln) C$17,512 19,281 19,281 18,680 18,680 19,650 19,650

Suitability Growth Market Data Market Capitalization (mln) Current Net Debt (mln) Enterprise Value (mln) Shares Outstanding (mln, f.d.) 10 Day Avg Daily Volume (000s) Dividend/Yield

C$23,469 C$3,600 C$27,069 757.3 1,421 C$0.97/3.1%

Key Financial Metrics 2012A 2013E 2014E EV/EBITDA 7.3x 7.0x 6.5x P/NAV NA 0.8x Hhub (US$/mmbtu) US$2.83 US$3.70 US$3.75 WTI (US$/bbl) US$94.18 US$98.64 US$95.00 Production: Light Oil & NGLs (mbbl/d) 37.0 37.0 39.0 Production: Natural Gas (mmcf/d) 594.0 528.0 479.0 Production: Heavy Oil (mbbl/d) 128.0 143.0 168.0 Production: Total (mboe/d) 264.0 267.0 286.0 Free Cash Flow (mln) C$201 C$325 C$603 Net Debt/Trailing EBITDA 0.9x 1.0x 1.0x

2015E 6.2x NA US$3.75 US$95.00 45.0 461.0 191.0 312.0 C$659 1.1x

Company Description Cenovus Energy, Inc. is an integrated oil and gas company with upstream operations focused in the Athabasca oil sands region of Alberta and a 50% interest in the U.S. Borger and Wood River refineries.

NAV

NA NA C$38.59 C$38.59 NA NA

Source: Raymond James Ltd., Thomson One

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Outperform 2 C$38.50 C$31.21 26% C$34.15 - C$28.32

Canada Research | Page 10 of 29

Best Picks 2014

Canada Research Published by Raymond James Ltd.

Delphi Energy Corp.

December 9, 2013

DEE-TSX Kurt Molnar | 403.221.0414 | [email protected] Gordon Steppan CFA (Associate) | 403.221.0411 | [email protected]

Rating & Target

Junior Oil & Gas Producers

Strong Buy 1 C$2.70 C$1.70 59% C$1.76 - C$0.95

Target Price (6-12 mos): Current Price ( Dec-05-13 ) Total Return to Target 52-Week Range

Best Picks 2014 Investment Rationale The equity prospects of an E&P company are the product of the strength of its core projects’ marginal economics and the size of its drilling inventory. Delphi frankly stands out as an exceptional potential opportunity in this regard. Its liquids-rich Montney program at East Bigstone has delivered outstanding results while we believe there remains room for still more improvement in marginal results. The un-booked potential upside from this project alone could measure as much as $1.6 billion relative to a current market capitalization of less than $300 million. Equally importantly, invested capital on this project is recycled very rapidly with a time to payout on new wells coming in at 12 months, despite the very low current gas price environment. Direction & Magnitude. East Bigstone is located at a point in the Deep Basin that allows Delphi to drill two mile laterals, rather than the more typical one mile lateral. This means Delphi can drain a spacing unit on two sections of land with only one wellbore instead of two. This saves roughly $5 million of capital in the cost of developing a spacing unit over two sections and contributes $1.2 million of incremental drilling credits from one long lateral rather than two shorter ones. Thus, the development of two sections of land in this manner reduces costs incurred by $6.2 million per long lateral such that each of these long laterals is suggestive of $20-$25 million NPVs from $9-$9.5 million of capital cost. Capital efficiency is a chief differentiator for superior E&P equities and East Bigstone is a stand-out in this regard. The other means of differentiating gas projects is in netbacks. In early-stage development, this is easiest to accomplish with high liquids content, while mid-term incremental success comes from driving operating costs lower. East Bigstone is one of the most liquids/condensate rich gas projects in Western Canada and Delphi’s ownership of gas infrastructure allows for future meaningful reductions in operating costs. Both these factors maximize netbacks in the near and midterm. West Bigstone “Call Option”. East Bigstone is already a stand-out project on relative size and marginal economics/velocity of money. This asset can drive growth for well beyond five years. West Bigstone is a less defined opportunity that has the potential for greater leverage to liquids and a potential size in the order of another $1 billion, where invested capital there may recycle more rapidly than East Bigstone. This is less than certain, but an industry major is currently drilling a new Montney well immediately offsetting Delphi lands.

Suitability High Risk Market Data Market Capitalization (mln) Current Net Debt (mln) Enterprise Value (mil.) Shares Outstanding (mln, f.d.) 10 Day Avg Daily Volume (000s) Dividend/Yield Key Financial Metrics 2012A P/CFPS 7.1x WTI (US$/bbl) US$94.19 AECO Gas (C$/mcf) C$2.31 Exchange Rate (US$/C$) 1.00 Production (boe/d) 8,276 Natural Gas % 76% Debt/Cash Flow 2.9x EV/EBITDA 12.5x

C$260 C$137 C$397 153.1 1,014 C$0.00/0.0% 2013E

2014E

6.8x

4.4x

US$98.61

US$95.00

C$3.11

C$3.30

0.97

0.96

8,210

10,000

73%

69%

3.5x

2.4x

8.1x

5.7x

Company Description Delphi is a Calgary based oil and natural gas producer with an asset base focused in the Deep Basin of Alberta.

Valuation We use our standard sum-of-parts valuation approach to derive a $2.70 target price for Delphi that derives an investor recycle ratio of 2.2x under our assumptions considering East Bigstone alone. (Please see our Appendix page.) CFPS

Old New Old New

2012A 2013E 2013E 2014E 2014E

1Q Mar C$0.08 0.06A 0.06A 0.09 0.09

2Q Jun C$0.05 0.05A 0.05A 0.09 0.09

3Q Sep C$0.06 0.06A 0.06A 0.09 0.09

4Q Dec C$0.04 0.07 0.07 0.11 0.11

Full Year C$0.24 0.25 0.25 0.38 0.38

Revenue (mln) C$89 103 103 137 137

-

Source: Raymond James Ltd., Thomson One

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Best Picks 2014

Canada Research | Page 11 of 29

Canada Research Published by Raymond James Ltd.

Eldorado Gold Corp.

December 9, 2013

EGO-NYSE | ELD-TSX Phil Russo | 416.777.7084 | [email protected] Luc Troiani (Associate) | 416.777.7098 | [email protected]

Rating & Target

Mining | Precious Metals - Gold

Target Price (6-12 mos): Current Price ( Dec-05-13 ) Total Return to Target 52-Week Range

Best Picks 2014 Investment Rationale Eldorado has demonstrated a stable, predictable operating base that has delivered results either in-line, or ahead of our estimates, in essentially every quarter since the beginning of 2011. We believe this is a reflection of a disciplined and focused management team with momentum set to continue into 2014. Investors to date have chosen to focus on outstanding permitting approvals on several of its development projects, which while relatively insignificant to its overall valuation, carry a seemingly symbolic meaning to the market. We expect this focus to begin to dissipate as the strong execution continues and approvals come to hand in 2014. Coupled with the company’s depressed valuation versus its peer group, we believe the gap will narrow during 2014 as its operations step into the limelight, its balance sheet strength continues, and an asset base weighted towards the low end of the cost curve comes to the fore.  News on the Permitting Front? – In the market’s eyes, Eldorado has three key outstanding permitting requirements: 1) Its Perama Hill asset awaits final signatory approval from the Minister of the Environment – Perama Hill makes up ~6% of our NAV; its other Greek projects (25% of NAV) are permitted and advancing through development; 2) Its Eastern Dragon asset awaits final approval to complete outstanding civil and earthmoving activities (~4 months of work) and is worth 8% of NAV, meanwhile the company continues to operate successfully in the country (with its exposure declining over time); and, 3) Approval for its Kisladag expansion phase in Turkey is due late 2013/early 2014 – we ascribe no value to this phase currently but it offers additional upside to our numbers once a development decision is defined.  Balance Sheet Capable of Weathering Low Metal Prices – Eldorado’s balance sheet is strong, with cash & equivalents of $725 mln in addition to $375 mln of available credit. This flexibility, combined with its industryleading cost profile of ~$550/oz and a moderated development profile that spreads its capital plans over several years, affords Eldorado the ability to maintain its spending estimates in a prolonged gold price environment as low as $1,100/oz.

Suitability High Risk Market Data Market Capitalization (mln) Current Net Debt (mln) Enterprise Value (mln) Shares Outstanding (mln, f.d.) 10 Day Avg Daily Volume (000s) Dividend/Yield Key Financial Metrics 2012A P/E 12.3x P/NAV

2014E

14.8x

11.7x

0.7x Au Price (US$/oz) US$1,669 US$1,420 Au Prod'n (000 oz, EGO share) 624.0 734.0 Au Total Cash Cost (US$/oz) US$550 US$547 CFPS US$0.66 US$0.59 P/CFPS 8.4x 9.3x

NA

Old New Old New

Full Year US$0.45 0.37 0.37 0.47 0.47

Revenue (mln) US$1,148 1,171 1,171 1,191 1,191

NAV

US$7.75 US$7.75 NA NA

Source: Raymond James Ltd., Thomson One

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

US$1,400 802.0 US$578 US$0.64 8.7x

Company Description Eldorado is an intermediate gold producer with its flagship assets located in Turkey, Greece and China. Eldorado is well positioned as one of the higher quality companies in the sector.

Eldorado is currently trading at 0.7x P/NAV versus its gold producer peer group at 1.1x. We believe Eldorado warrants a premium multiple given its low operating costs, strong balance sheet, and proven track record. Our US$10.50 target price is based on a 1.3x multiple. 1Q 2Q 3Q 4Q Mar Jun Sep Dec 2012A US$0.14 US$0.07 US$0.11 US$0.13 2013E 0.13A 0.07A 0.08A 0.09 2013E 0.13A 0.07A 0.08A 0.09 2014E 0.12 0.12 0.12 0.12 2014E 0.12 0.12 0.12 0.12

US$3,948 -US$85 US$3,864 715.0 5,757 US$0.13/2.3% 2013E

Valuation

EPS

Outperform 2 US$10.50 US$5.52 90% US$14.03 - US$5.45

Canada Research | Page 12 of 29

Best Picks 2014

Canada Research Published by Raymond James Ltd.

Gildan Activewear

December 9, 2013

GIL-NYSE | GIL-TSX Kenric S. Tyghe MBA | 416.777.7188 | [email protected] Krisztina Katai (Associate) | 416.777.7060 | [email protected]

Rating & Target

Consumer & Retail

Target Price (6-12 mos): Current Price ( Dec-05-13 ) Total Return to Target 52-Week Range

Best Pick 2014 Investment Rationale We believe that Gildan is particularly well positioned (in absolute and relative terms) through our forecast window given the ramp of RN1, the planned new hub in either Nicaragua or Costa Rica (we believe Nicaragua is the more probable location), the impressive depth of management experience (and expertise), and other key strategic imperatives (yarn spinning and biomass). Gildan’s ongoing cost-reduction initiatives continue to facilitate a widening of its relative value proposition, which combined with its speed to market and supply chain (and security of supply), is resonating with Retailers.  Strong Organic Growth Opportunities – The distributor channel, which Gildan dominates, is an estimated $1.5 bln segment of a $4.0 bln market (National Accounts represent $1.0 bln and Fashion Basics / Sports Shirts $1.5 bln). With an addressable US Basic Apparel Retail market opportunity of approximately $20.3 bln of which Mass Market is an estimated $10.2 bln (Wal-Mart $6.1 bln and Target $2.3 bln), National Chains $5.4 bln and Department Stores $3.5 bln, the runway is not an issue.  Significant Acquisition Option Value – Not only do we expect the brand story to accelerate in F2014E with acquisitions which, in our opinion, will likely centre on driving a step change in Gildan’s position in the (very attractive) women’s underwear market, but we also believe that the scale (and timing) of potential acquisitions is not appropriately discounted. We believe that the management team is well positioned to successfully integrate any acquisitions in a timely manner.  Cotton and Capacity – The cotton tailwind in F2H14E and the favourable cotton pricing environment into F2015E (as imputed by current ICE futures), combined with material strategic (cost and quality) advantages of current yarn-spinning initiatives, are incremental positives. While capacity was constrained in F4Q13 (a nice problem to have in the context of the market), the ramp of RN1 will alleviate the short-term pressures while a build of a new complex in (we believe) Nicaragua supports longer term requirements.

Outperform 2 US$55.00 US$48.93 13% US$50.44 - US$34.53

Suitability Growth Market Data Market Capitalization (mln) Current Net Debt (mln) Enterprise Value (mln) Shares Outstanding (mln, f.d.) 10 Day Avg Daily Volume (000s) Dividend/Yield Key Financial Metrics 2013A P/E 17.5x EV/EBITDA 12.9x

US$6,015 -US$97 US$5,918 123.0 176 US$0.41/0.8% 2014E

2015E

15.5x

13.6x

11.5x

9.8x

Company Description Gildan is a leading supplier of quality branded (Gildan®, Gold Toe®, Anvil®) and licensed (New Balance®, Under Armour®) basic family apparel, incl. T-shirts, fleece, sport shirts, socks and underwear.

Valuation Our US$55.00 target price is based on EV/EBITDA and P/E multiples of 13.0x and 18.0x our F2014E estimates. Our target multiples are slightly above Gildan’s 3-year averages of 12.1x and 16.8x, respectively, which we believe is appropriate given the traction in Gildan’s Retail strategy and the improving US macro backdrop. EPS

Old New Old New

1Q Dec 2013A US$0.32 2014E 0.36 2014E 0.36 2015E 0.42 2015E 0.42

2Q Mar US$0.65 0.72 0.72 0.82 0.82

3Q Jun US$1.00 1.11 1.11 1.21 1.21

4Q Sep US$0.83 0.97 0.97 1.16 1.16

Full Year US$2.80 3.16 3.16 3.61 3.61

Revenue (mln) US$2,184 2,374 2,374 2,598 2,598

EBITDA (mln) US$460 513 513 601 601

Source: Raymond James Ltd., Thomson One

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Best Picks 2014

Canada Research | Page 13 of 29

Canada Research Published by Raymond James Ltd.

Husky Energy Inc.

December 9, 2013

HSE-TSX Chris Cox CFA | 403.509.0523 | [email protected] Matthew Murphy (Associate) | 403.509.0534 | [email protected]

Rating & Target

Senior Oil & Gas Producers

Target Price (6-12 mos): Current Price ( Dec-05-13 ) Total Return to Target 52-Week Range

Best Picks 2014 Investment Rationale We recently resumed coverage of the Canadian large cap energy names with our Dec-03-13 Report “Resuming Coverage: Framing Up the Canadian Large Cap Energy Space from a Global Perspective”. Within that report, we outlined a generally bullish outlook for the Canadian large cap energy space, predicated on what we believe to be a compelling overall growth profile, improving returns in the space, and an encouraging free cash flow outlook. Among the Canadian large caps, we believe Husky stands out for the following reasons: 







Successfully executing on its business transition – in our view, Husky is undergoing a remarkable transition in its business from a history of disappointing operational performance, lacklustre returns and limited, if any, growth to one of consistent operational execution with returns and a growth profile that can now compete with its industry peers; Positioned for a multiple re-rating – despite meaningfully outperforming the broader TSX Energy Index over the past 2 years (18.0% vs. -2.0%), we note that valuation hasn’t changed meaningfully, suggesting to us that the shares could be due for a re-rating by the market; Best-in-class near-term growth profile – we believe Husky will deliver the strongest exit-to-exit increase in production (2013-2014) within the Canadian large cap energy space at ~10%; Ansell likely to be the next growth driver – we believe a key focal point for Husky’s shares in 2014 will be the continued development of the Ansell property, which we believe is very analogous to the core Sundance region that has driven meaningful growth for Peyto in recent years. We suspect that growth from Husky’s Ansell property could mirror what investors have previously seen in Peyto.

Valuation Our $38.00 target price is based on a 50/50 weighting to our $36.10/share NAV estimate for Husky and a 6.5x EV/EBITDA multiple applied to our 2014 EBITDA estimate of $6,328 mln. We drive our target multiple based on a number of economic fundamental indicators for the company. EBITDA (mln) 2012A Old 2013E New 2013E Old 2014E New 2014E Old 2015E New 2015E

1Q Mar C$1,511 1,501A 1,501A 1,476 1,476 1,634 1,634

2Q Jun C$1,204 1,580A 1,580A 1,570 1,570 1,690 1,690

3Q Sep C$1,442 1,445A 1,445A 1,640 1,640 1,749 1,749

4Q Dec C$1,386 1,466 1,466 1,642 1,642 1,763 1,763

Full Year C$5,543 5,992 5,992 6,328 6,328 6,836 6,836

Revenues (mln) C$22,741 24,415 24,415 26,102 26,102 27,574 27,574

Suitability Growth Market Data Market Capitalization (mln) Current Net Debt (mln) Enterprise Value (mln) Shares Outstanding (mln, f.d.) 10 Day Avg Daily Volume (000s) Dividend/Yield

C$30,324 C$1,913 C$32,237 985.2 696 C$1.20/3.9%

Key Financial Metrics 2012A 2013E 2014E EV/EBITDA 5.7x 5.4x 5.0x P/NAV NA 0.9x HHub (US$/mmbtu) US$2.83 US$3.70 US$3.75 WTI (US$/bbl) US$94.18 US$98.64 US$95.00 Production: Light Oil & NGLs (mbbl/d) 173.0 179.0 172.0 Production: Natural Gas (mmcf/d) 554.0 503.0 619.0 Production: Heavy Oil (mbbl/d) 36.0 47.0 52.0 Production: Total (mboe/d) 302.0 310.0 327.0 Free Cash Flow (mln) C$294 C$853 C$1,552 Net Debt/Trailing EBITDA 0.3x 0.3x 0.2x

2015E 4.5x NA US$3.75 US$95.00 169.0 631.0 81.0 355.0 C$3,117 0.1x

Company Description Husky Energy Inc. is an international integrated energy company operating in three segments: upstream, midstream and downstream, with assets primarily focused in Western Canada.

NAV

NA NA C$36.10 C$36.10 NA NA

Source: Raymond James Ltd., Thomson One

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Outperform 2 C$38.00 C$30.50 29% C$32.34 - C$26.97

Canada Research | Page 14 of 29

Best Picks 2014

Canada Research Published by Raymond James Ltd.

International Forest Products Ltd.

December 9, 2013

IFP.A-TSX Daryl Swetlishoff CFA | 604.659.8246 | [email protected] David Quezada CFA (Associate) | 604.659.8257 | [email protected]

Rating & Target

Forest Products | Building Materials

Target Price (6-12 mos): Current Price ( Dec-05-13 ) Total Return to Target 52-Week Range

Best Picks 2014 Investment Rationale 



Company Specific and Macro Catalysts – Our bullish outlook on Interfor is largely based on the company’s strong accretive growth (both organic and through M&A – discussed below). We believe this plus other positive characteristics position the company extremely well for the evolving lumber super-cycle with rising production volumes coinciding with a protracted period of elevated lumber prices. Further accretive M&A anticipated – Relative to competitors we highlight Interfor’s considerable success in M&A over the past year (4 mills with 520 mln fbm capacity in the high margin US South representing a 30% increase in Interfor’s total capacity) as having added significant value for investors. As such, with cash from a recent equity offering sitting on the balance sheet we expect further such acquisitions to represent near term catalysts. Assuming the company spends $100 mln (the $86 mln equity raise plus a modest increase to net debt) on sawmill acquisitions over the coming year at recent transaction multiples we expect the company could add over 350 mln fbm of capacity with the potential to add ~$40 mln in EBITDA and ~$3 in theoretical equity value at our assumed target multiple.



Valuation catch-up to majors ongoing – While Interfor’s stock has already seen some catch-up vs. industry majors we expect this dynamic has not yet fully played out. In fact, we think the market has (rightly) begun to appreciate Interfor as a growth story and see its valuation moving in line with larger capitalization comparable companies in coming quarters to reflect this.



Bullish commodity outlook – Our long standing lumber super-cycle thesis features a recovery in US housing markets, continued strong offshore exports, and supply constraints due to the Mountain Pine Beetle and reduced AAC in Eastern Canada. In line with the above commentary we see Interfor as well positioned to capitalize on the resulting extended period of elevated lumber prices beginning in coming years.

Strong Buy 1 C$16.00 C$12.49 28% C$12.65 - C$7.24

Suitability High Risk Market Data Market Capitalization (mln) Current Net Debt (mln) Enterprise Value (mln) Shares Outstanding (mln, f.d.) 10 Day Avg Daily Volume (000s) Dividend/Yield Key Financial Metrics 2012A P/E NA EV/EBITDA 15.9x Lumber (US$/mfbm) US$300 Net Debt (%)

C$787 C$150 C$937 63.0 244 C$0.00/0.0% 2013E

2014E

15.8x

6.8x

7.3x

4.9x

US$340

US$365 0%

Company Description Interfor is a Canadian lumber producer with operations in B.C. and the U.S., including 2 sawmills on the B.C. Coast, 3 in the B.C. Interior, 4 in the U.S. Pacific Northwest and 4 in the US South with total annual capacity of 2.23 bln fbm.

Valuation Our $16.00 target is based on a 6.0x 2014E EV/EBUTDA multiple – a modest discount to large cap competitors Canfor and West Fraser, both at 6.5x. EPS

Old New Old New

2012A 2013E 2013E 2014E 2014E

1Q Mar C$(0.07) 0.32A 0.32A 0.34 0.34

2Q Jun C$0.02 0.28A 0.28A 0.48 0.48

3Q Sep C$0.05 0.00A 0.00A 0.36 0.36

4Q Dec C$0.07 0.19 0.19 0.65 0.65

Full Year C$0.07 0.79 0.79 1.83 1.83

Revenue (mln) C$849 1,051 1,051 1,156 1,156

EBITDA (mln) C$59 128 128 193 193

Source: Raymond James Ltd., Thomson One; Note: Subordinate Voting

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Best Picks 2014

Canada Research | Page 15 of 29

Canada Research Published by Raymond James Ltd.

Whitecap Resources Inc.

December 9, 2013

WCP-TSX Luc Mageau CFA | 403.509.0505 | [email protected] Dave Nielsen CFA (Associate) | 403.509.0518 | [email protected]

Rating & Target

Intermediate Oil & Gas Producers

Target Price (6-12 mos): Current Price ( Dec-05-13 ) Total Return to Target 52-Week Range

Best Picks 2014 Investment Rationale We believe Whitecap is one of the best positioned mid-cap oil producers across the Canadian energy landscape. Although the stock has had an impressive run during 2013, we believe this momentum will continue into 2014 and continued success in its plays will be the driving force behind share appreciation. A Continued Re-rate Should Help Multiple Expansion. One of our overriding arguments for Whitecap continues to be that as a better positioned income paying oil story than some of its larger peers, the company should continue to close the EV/EBITDA discount that it trades at. Our numbers have the company trading near 6.5x vs. larger peers at 8.5x-9.0x. Although we would concede that the gap will not likely entirely disappear, it should narrow as the company continues to execute on its business strategy – for colour, a 1x multiple turn expansion translates to $2.00/share price appreciation (or a 16% return). Drilling the Best Wells in the Best Areas – Combined With Decreasing Well Costs. Our previous analysis has shown how the company has accumulated dominant land positions in areas that consistently demonstrate better than play-average well results. In addition, the company drills better than area average wells (in both of its core areas of the Cardium and Viking) and has also brought well costs down by 15-20% in each of its core operating areas – this translates to some of the best average play efficiency metrics and also means a more economic growth profile. Lower Decline Rates = Growth in Free Cash Flow Generation. The company has made significant strides to improve efficiency metrics for new production. It is also positioned well to lower corporate decline rates with expanded waterflood programs and a larger base of mature production. Total decline rates at the beginning of 2014 are expected to be 29%, but this should improve to 26% by year-end – this move alone should unburden $20 mln in annual cash flow (which would have been used for decline make-up). Or put another way this could support a $0.10/share dividend increase.

Suitability Growth Market Data Market Capitalization (mln) Current Net Debt (mln) Enterprise Value (mln) Shares Outstanding (mln, f.d.) 10 Day Avg Daily Volume (000s) Dividend/Yield Key Financial Metrics 2012A P/CFPS 7.2x P/NAV

2014E

6.0x

5.5x

0.9x

na

US$94.21 US$98.61 HHub (US$/mmbtu) US$2.83 US$3.70 Production (boe/d) 14,052 19,873 Production: Oil (%) 68% 69% Capex (mln) C$895 C$582 EBITDA (mln) C$206 C$265 Net Debt (mln) C$365 C$325 Net Debt/Trailing Cash Flow 1.9x 1.1x

US$95.00

WTI (US$/bbl)

Old New Old New

2012A 2013E 2013E 2014E 2014E

2Q Jun C$0.32 0.46A 0.46A 0.52 0.52

3Q Sep C$0.44 0.51A 0.51A 0.55 0.55

4Q Dec C$0.48 0.51 0.51 0.56 0.56

Full Year C$1.63 1.97 1.97 2.12 2.12

Revenues (mln) C$306 484 484 691 691

NAVPS

C$13.47 C$13.47 na na

Source: Raymond James Ltd., Thomson One. EPS is shown as f.d., from continuing ops. 1Q12 is IFRS.

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

US$3.75 28,081 71% C$593 C$439 C$300 0.7x

Company Description Whitecap is an intermediate sized oil-weighted producer with its core assets in the Cardium at East Pembina and Garrington, the Viking at Lucky Hills and a mature Montney oil pool at Valhalla.

Our $13.00 target price applies a 50% weighting to both our 2013 NAV estimate of $13.47 and a 6.0x multiple (based on the company’s 2-year trading range) on our 2014 cash flow per share estimate of $2.12. 1Q Mar C$0.38 0.49A 0.49A 0.49 0.49

C$2,339 C$333 C$2,672 199.6 1,822 C$0.68/5.8% 2013E

Valuation

CFPS

Strong Buy 1 C$13.00 C$12.70 7% C$12.94 - C$8.36

Canada Research | Page 16 of 29

Best Picks 2014

Appendix Delphi Energy Corp. – Valuation Table 2012 Reserve Value 2012 Reserves (mmboe) Quality Adjustment Adjusted 2012 Reserves (mmboe) Cash Flow Factor ($/boe) Reserve Value Factor $/boe (1.4:1) Current 2012 Reserve Value 2012 Exit Net Debt ($mn) Future Capital ($mn) Dilution Proceeds ($mn) Current Value of 2012 Assets ($mn) Fully Diluted Units (mn) Per Unit (FD) Value

43.0 0% 43.0 $21.83 $15.60 $670.6 ($92.8) ($200.4) $16.5 $393.8 166.1 $2.37

2013E Value Add 2013 Gross Capex ($mn) Less: Land, Seismic & Facilities ($mn) Drilling Spending ($mn) Average Cost per Well ($mn) Forecast 2013 Net Wells Success Factor Forecast Successful Wells Average Reserves/Well (boe) 2013 Forecast Depletion (mmboe) Wells to Offset Depletion Net Growth Wells Net Reserve Growth (mmboe) Forecast Revisions (mmboe) Acquired Reserves (Net of Depr., mmboe) Forecast Net Reserves Growth (mmboe) Cash Flow Factor ($/boe) Reserve Value Factor $/boe (1.4:1) Value Add ($mn) Change in Net Debt ($mn) 2013 Value Add ($mn) 2013 Net Risk Adj. Equity Value Add (100% ) Fully Diluted Shares (mn) Per Share (FD) Value Sum of the Parts Valuation

$80.7 ($19.3) $61.3 $9.00 6.8 90% 6.1 1,200,000 3.0 2.5 3.6 4.4 0.0 0.0 4.4 $21.83 $15.60 $68.1 ($43.9) $24.2 $24.2 166.1 $0.15

2014E Value Add 2014 Gross Capex ($mn) Less: Land, Seismic & Facilities ($mn) Drilling Spending ($mn) Average Cost per Well ($mn) Forecast 2014 Net Wells Success Factor Forecast Successful Wells Average Reserves/Well (boe) 2014 Forecast Depletion (mmboe) Wells to Offset Depletion Net Growth Wells Net Reserve Growth (mmboe) Forecast Revisions (mmboe) Acquisitions (mmboe) Forecast Net Reserves Growth (mmboe) Cash Flow Factor ($/boe) Reserve Value Factor $/boe (1.4:1) Value Add ($mn) Change in Net Debt ($mn) 2014 Value Add ($mn) 2014 Net Risk Adj. Equity Value Add (90% ) Fully Diluted Units (mn) Per Unit (FD) Value

$mn $393.8 ($29.5) $24.2 $60.7 $449.2

2012 Reserve Value G&A/Interest Burden 2013E Value Add 2014E Value Add Target Equity Value

$70.0 ($12.0) $58.0 $9.00 6.4 95% 6.1 1,400,000 3.7 2.6 3.5 4.9 0.0 0.0 4.9 $21.83 $15.60 $76.7 ($9.3) $67.4 $60.7 166.1 $0.37 Per Unit $2.37 ($0.18) $0.15 $0.37 $2.70

Source: Raymond James Ltd.

Cite Table Company Citations Company Name Air Canada American Express Company Brookfield Asset Management Inc. Canadian Imperial Bank of Commerce Canfor Corp. Peyto Exploration and Development The Toronto-Dominion Bank West Fraser Timber

Ticker AC.B AXP BAM.A CM CFP PEY TD.T WFT

Exchange TSX NYSE TSX NYSE TSX TSX TSX TSX

Currency C$

Closing Price 7.78

C$ C$

24.21 31.51

C$

94.90

RJ Rating 3 NC NC NC 2 2 NC 2

RJ Entity RJ LTD.

RJ LTD. RJ LTD. RJ LTD.

Notes: Prices are as of the most recent close on the indicated exchange and may not be in US$. See Disclosure section for rating definitions. Stocks that do not trade on a U.S. national exchange may not be approved for sale in all U.S. states. NC=not covered.

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

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Canada Research | Page 17 of 29

Analyst Profiles Head of Equity Research Daryl Swetlishoff, CFA | Forest Products Daryl Swetlishoff was named Head of Research of Raymond James Ltd. in May 2007. Based in Vancouver, he is responsible for a group of 40 research and operations professionals, providing research coverage on over 240 companies across seven sectors. Daryl is also a ranked analyst covering Paper & Forest sector equities since joining the firm in 2001. Daryl holds the Chartered Financial Analyst designation, and earned an MA (Economics) from the University of Victoria.

Energy Andrew Bradford, CFA | Head of Energy Research | Oil & Gas Energy Services Andrew Bradford originally joined Raymond James in an analyst capacity in 2000, and after a brief hiatus, returned to the firm in December 2007. Andrew has been performing investment analysis for investment dealers on the energy sector and the energy services industry since 1998. Prior to that, he spent two years with a Calgarybased energy-focused private equity firm. Andrew earned a Masters degree in Economics from the University of Calgary in 1996 and is a CFA charterholder. Chris Cox | Oil & Gas Producers / Oil Sands Chris Cox originally joined Raymond James in 2009 as an Associate Equity Analyst covering the Senior Oil & Gas Producers / Oil Sands sector. He returned to the firm in 2013 after a brief hiatus working at AltaCorp Capital where he was a Research Analyst covering the same space. Chris is a CFA charterholder and holds a Bachelor of Commerce (Finance) and Bachelor of Arts (Economics, specializing in Applied Energy Economics), both from the University of Calgary. Luc Mageau, CFA | Oil & Gas Producers Luc Mageau joined the firm in March 2006. He was promoted to equity analyst in May 2009 and is responsible for covering junior and intermediate oil and gas producers. Prior to joining the firm, Luc was employed as a commercial lender at a major bank and as a research analyst at a U.S. based equity research firm. Educationally, Luc has a Bachelor of Commerce degree from the University of Alberta (2001) and holds the Chartered Financial Analyst designation. Kurt Molnar | Oil & Gas Producers Kurt joined Raymond James in 2013, as an Energy Analyst. Kurt began his 25 year energy finance career as a corporate lender in CIBC Energy Group and crossed over to the institutional equities side of the business in the mid 1990’s, holding roles in Institutional Sales, Investment Banking and Energy Research at various banks and boutiques. From 2001 through 2004 Kurt took a hiatus from the finance industry to be one of three founders of a successful private E&P company. Kurt holds a Bachelor of Commerce degree from the University of Calgary with a major in Finance.

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Canada Research | Page 18 of 29

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Industrial Ben Cherniavsky | Head of Industrial Research | Infrastructure & Construction / Transportation Ben Cherniavsky joined the firm as a research associate in 1998 following his completion of the MBA program at the University of Western Ontario. As an analyst, Ben covers industrial product and aerospace & aviation companies. Prior to his MBA, Ben worked in public finance as a research analyst for the Ministry of Finance in Ottawa and at the University of Toronto’s International Centre for Tax Studies. In addition to his MBA, Ben holds a B.A. in Economics from the University of Alberta. Frederic Bastien, CFA | Infrastructure & Construction Frederic joined the firm in 2003 and was promoted to equity analyst covering the Industrial sector in 2005. Frederic has achieved Brendan Wood International’s annual ‘Top Gun’ status in the Small Cap/Special Situations category since 2008, and in 2009 he ranked as the number one Diversified Industrials Earnings Estimator in StarMine’s annual survey of analyst performance for Canada. Educationally, Frederic holds an MBA (2002) from the Sauder School of Business at the University of British Columbia, a Bachelor of Engineering (Mechanical) degree (1995) from McGill University, and the CFA designation. Steven Hansen, CFA, CMA | Transportation / Agribusiness & Food Products Steven Hansen joined the firm in October 2005 as an associate equity analyst covering the Industrial sector and was promoted to equity analyst in April 2007. Prior to joining the firm, Steve was employed as a stock analyst with Morningstar covering the Paper and Forest products sector. Steve holds an MBA (2004) from the Richard Ivey School of Business and a Bachelor of Science in Forestry (1999) from the University of British Columbia. Steve also holds his CMA designation and has the CFA designation. Theoni Pilarinos | Industrials| Special Situations Theoni Pilarinos joined the firm in 2007 and covers industrial and special situations companies. Prior to joining the firm, Theoni was employed with Intrawest Placemaking as an Analyst in Structured Finance and CIBC World Markets as an Associate. Theoni holds a Bachelor of Business Administration degree from Simon Fraser University (2005) and the Chartered Financial Analyst designation.

Mining & Natural Resources Adam Low, CFA | Base Metals & Minerals / Iron Ore Adam Low joined the firm in April 2005. He is part of the equity research team covering base metal producers and developers. Prior to joining the firm, Adam was employed as a financial analyst with IBM. Educationally, Adam has a Bachelor of Commerce degree from the University of Manitoba (2002) and holds the Chartered Financial Analyst designation.

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

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Canada Research | Page 19 of 29

Phil Russo, MBA | Precious Metals Phil joined Raymond James Ltd. in January 2011. Within the equity research group, he focuses on precious metal companies, ranging from junior explorers to multi-national producers. He has over 10 years of mining and investment experience, and prior to joining Raymond James, he worked in the global division of Barrick Gold Corporation, with primary responsibility in supporting Barrick’s pipeline of feasibility and development-stage projects. Phil has a Bachelor of Applied Science and an MBA (Mineral & Energy Economics) from Curtin University in Perth, Australia. David Sadowski | Uranium David Sadowski joined Raymond James in June 2008, and covers the uranium space, as well as precious metals exploration and development companies. Prior to joining the firm, David worked as a geologist in central and northern BC with multiple Vancouverbased junior exploration companies, focused on base and precious metals. David holds a Bachelor of Science in Geological Sciences from the University of British Columbia. Alex Terentiew, MBA, P.Geo. | Base Metals & Minerals / Platinum Group Metals Alex joined Raymond James in November 2011 as a mining equity research analyst focusing on base metals, both producers and developers. Over the past six years, Alex has provided research coverage of base and precious metals and mining equities in similar roles at Credit Suisse Securities (Canada) and Scotia Capital Inc. Prior to joining the investment industry, Alex worked as a Geoscientist at various environmental and engineering consulting companies. Alex holds a BSc from the Dept. of Geology at the University of Toronto, a MASc in Civil Engineering (U of T), and an MBA (Rotman School of Management at the U of T), is a member of the Association of Professional Geoscientist of Ontario, The Canadian Institute of Mining, Metallurgy and Petroleum (CIM), and the Prospectors and Developers Association of Canada. Chris Thompson, M.Sc. (Eng), P.Geo | Precious Metals Chris joined Raymond James in September 2012 as a mining equity research analyst focusing on precious metals small to mid-capital developers and producers. Prior to joining Raymond James Chris worked for Haywood Securities for seven years covering small to mid-capital explorers, developers and producers, and as a geologist and mineral economist for junior exploration through to major mining companies. Chris holds a MSc in Mineral Economics, a Graduate Diploma in Mining Engineering and a BSc in Mining and Exploration Geology from the University of the Witwatersrand in South Africa and is a registered P.Geo with the Association of Professional Engineers and Geoscientists of British Columbia, and a member of the Prospectors and Developers Association of Canada. Chris was awarded the 2011 StarMine Top Analyst Award for Stock Picker in the Metals and Mining sector.

Consumer Kenric S. Tyghe, MBA | Consumer & Retail Kenric Tyghe joined the firm in July 2009 as an Equity Analyst covering Consumer Products and Retail. Prior to joining the firm Kenric had in excess of 8 years experience in equity research and trading at other leading investment dealers in Canada and South Africa. Kenric holds an MBA from the Richard Ivey School of Business.

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Canada Research | Page 20 of 29

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Real Estate Ken Avalos, MBA | Real Estate & REITS Ken joined Raymond James Ltd. in October of 2011 as an equity research analyst covering REITs and real estate operating companies. Ken has over 15 years of experience in the investment, lending and real estate industries. He returns to the Raymond James organization after spending the last two years as the Director of Finance and Capital Markets at First Potomac Realty Trust where he was responsible for debt, equity and hedging transactions, investor relations and risk management. First Potomac is a $2 billion office/industrial REIT based in Washington D.C., which doubled in size during Ken’s tenure. Prior to First Potomac, Ken held various positions in equity research at Raymond James & Associates in St. Petersburg, FL, most recently holding the title of VP – REIT Analyst while covering nearly 25 stocks. Ken holds a BA from Boston College, and earned an MBA from the Stern School of Business at NYU with a concentration in Finance and international Business

Technology & Communications Steven Li, CFA | Technology / Alternative Energy & Clean Tech Steven Li joined the firm in July 2001 as an equity analyst. Before joining Raymond James Ltd., Steven spent a total of four years as a research associate at three other investment dealers. In StarMine’s annual survey of analyst performance for Canada, Steven was the number one Stock Picker for Software and IT Services in 2007. He also ranked 8th in the Top 10 Overall Stock Pickers of 2009 for his coverage of IT Equipment, Software, and IT Services. Steven holds the Chartered Financial Analyst designation and earned a BA and MA from the University of Cambridge (England) and an MBA from York University.

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

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Canada Research | Page 21 of 29

IMPORTANT INVESTOR DISCLOSURES Raymond James & Associates (RJA) is a FINRA member firm and is responsible for the preparation and distribution of research created in the United States. Raymond James & Associates is located at The Raymond James Financial Center, 880 Carillon Parkway, St. Petersburg, FL 33716, (727) 567-1000. Non-U.S. affiliates, which are not FINRA member firms, include the following entities which are responsible for the creation and distribution of research in their respective areas; In Canada, Raymond James Ltd., Suite 2100, 925 West Georgia Street, Vancouver, BC V6C 3L2, (604) 659-8200; In Latin America, Raymond James Latin America, Ruta 8, km 17, 500, 91600 Montevideo, Uruguay, 00598 2 518 2033; In Europe, Raymond James Euro Equities, SAS, 40, rue La Boetie, 75008, Paris, France, +33 1 45 61 64 90. This document is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of or located in any locality, state, country, or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. The securities discussed in this document may not be eligible for sale in some jurisdictions. This research is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It does not constitute a personal recommendation nor does it take into account the particular investment objectives, financial situations, or needs of individual clients. Information in this report should not be construed as advice designed to meet the individual objectives of any particular investor. Investors should consider this report as only a single factor in making their investment decision. Consultation with your investment advisor is recommended. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. The information provided is as of the date above and subject to change, and it should not be deemed a recommendation to buy or sell any security. Certain information has been obtained from third-party sources we consider reliable, but we do not guarantee that such information is accurate or complete. Persons within the Raymond James family of companies may have information that is not available to the contributors of the information contained in this publication. Raymond James, including affiliates and employees, may execute transactions in the securities listed in this publication that may not be consistent with the ratings appearing in this publication. With respect to materials prepared by Raymond James Ltd. (“RJL”), all expressions of opinion reflect the judgment of the Research Department of RJL, or its affiliates, at this date and are subject to change. RJL may perform investment banking or other services for, or solicit investment banking business from, any company mentioned in this document. All Raymond James Ltd. research reports are distributed electronically and are available to clients at the same time via the firm’s website (http://www.raymondjames.ca). Immediately upon being posted to the firm’s website, the research reports are then distributed electronically to clients via email upon request and to clients with access to Bloomberg (home page: RJLC), Capital IQ and Thomson Reuters. Selected research reports are also printed and mailed at the same time to clients upon request. Requests for Raymond James Ltd. research may be made by contacting the Raymond James Product Group during market hours at (604) 659-8000. In the event that this is a compendium report (i.e., covers 6 or more subject companies), Raymond James Ltd. may choose to provide specific disclosures for the subject companies by reference. To access these disclosures, clients should refer to: http://www.raymondjames.ca (click on Equity Capital Markets / Equity Research / Research Disclosures) or call toll-free at 1-800-667-2899.

ANALYST INFORMATION Analyst Compensation: Equity research analysts and associates at Raymond James are compensated on a salary and bonus system. Several factors enter into the compensation determination for an analyst, including i) research quality and overall productivity, including success in rating stocks on an absolute basis and relative to the local exchange composite Index and/or a sector index, ii) recognition from institutional investors, iii) support effectiveness to the institutional and retail sales forces and traders, iv) commissions generated in stocks under coverage that are attributable to the analyst’s efforts, v) net revenues of the overall Equity Capital Markets Group, and vi) compensation levels for analysts at competing investment dealers. Analyst Stock Holdings: Effective September 2002, Raymond James equity research analysts and associates or members of their households are forbidden from investing in securities of companies covered by them. Analysts and associates are permitted to hold long positions in the securities of companies they cover which were in place prior to September 2002 but are only permitted to sell those positions five days after the rating has been lowered to Underperform. The Analyst and/or Associate or a member of his/their household has a long position in the securities of Delphi Energy Corp. The views expressed in this report accurately reflect the personal views of the analyst(s) covering the subject securities. No part of said person's compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. In addition, said analyst has not received compensation from any subject company in the last 12 months.

RATINGS AND DEFINITIONS Raymond James Ltd. (Canada) definitions: Strong Buy (SB1) The stock is expected to appreciate and produce a total return of at least 15% and outperform the S&P/TSX Composite Index over the next six months. Outperform (MO2) The stock is expected to appreciate and outperform the S&P/TSX Composite Index over the next twelve months. Market Perform (MP3) The stock is expected to perform

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Canada Research | Page 22 of 29

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generally in line with the S&P/TSX Composite Index over the next twelve months and is potentially a source of funds for more highly rated securities. Underperform (MU4) The stock is expected to underperform the S&P/TSX Composite Index or its sector over the next six to twelve months and should be sold. Raymond James & Associates (U.S.) definitions: Strong Buy (SB1) Expected to appreciate, produce a total return of at least 15%, and outperform the S&P 500 over the next six to 12 months. For higher yielding and more conservative equities, such as REITs and certain MLPs, a total return of at least 15% is expected to be realized over the next 12 months. Outperform (MO2) Expected to appreciate and outperform the S&P 500 over the next 12-18 months. For higher yielding and more conservative equities, such as REITs and certain MLPs, an Outperform rating is used for securities where we are comfortable with the relative safety of the dividend and expect a total return modestly exceeding the dividend yield over the next 12-18 months. Market Perform (MP3) Expected to perform generally in line with the S&P 500 over the next 12 months. Underperform (MU4) Expected to underperform the S&P 500 or its sector over the next six to 12 months and should be sold. Suspended (S) The rating and price target have been suspended temporarily. This action may be due to market events that made coverage impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be providing investment banking services to the company. The previous rating and price target are no longer in effect for this security and should not be relied upon. Raymond James Latin American rating definitions: Strong Buy (SB1) Expected to appreciate and produce a total return of at least 25.0% over the next twelve months. Outperform (MO2) Expected to appreciate and produce a total return of between 15.0% and 25.0% over the next twelve months. Market Perform (MP3) Expected to perform in line with the underlying country index. Underperform (MU4) Expected to underperform the underlying country index. Suspended (S) The rating and price target have been suspended temporarily. This action may be due to market events that made coverage impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be providing investment banking services to the company. The previous rating and price target are no longer in effect for this security and should not be relied upon. Raymond James Euro Equities, SAS rating definitions: Strong Buy (1) Expected to appreciate, produce a total return of at least 15%, and outperform the Stoxx 600 over the next 6 to 12 months. Outperform (2) Expected to appreciate and outperform the Stoxx 600 over the next 12 months. Market Perform (3) Expected to perform generally in line with the Stoxx 600 over the next 12 months. Underperform (4) Expected to underperform the Stoxx 600 or its sector over the next 6 to 12 months. Suspended (S) The rating and target price have been suspended temporarily. This action may be due to market events that made coverage impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be providing investment banking services to the company. The previous rating and target price are no longer in effect for this security and should not be relied upon. In transacting in any security, investors should be aware that other securities in the Raymond James research coverage universe might carry a higher or lower rating. Investors should feel free to contact their Financial Advisor to discuss the merits of other available investments. Suitability Categories (SR): Total Return (TR) Lower risk equities possessing dividend yields above that of the S&P 500 and greater stability of principal. Growth (G) Low to average risk equities with sound financials, more consistent earnings growth, at least a small dividend, and the potential for long-term price appreciation. Aggressive Growth (AG) Medium or higher risk equities of companies in fast growing and competitive industries, with less predictable earnings and acceptable, but possibly more leveraged balance sheets. High Risk (HR) Companies with less predictable earnings (or losses), rapidly changing market dynamics, financial and competitive issues, higher price volatility (beta), and risk of principal. Venture Risk (VR) Companies with a short or unprofitable operating history, limited or less predictable revenues, very high risk associated with success, and a substantial risk of principal.

RATING DISTRIBUTIONS Coverage Universe Rating Distribution

Investment Banking Distribution

RJL

RJA

RJ LatAm

RJEE

RJL

RJA

RJ LatAm

RJEE

Strong Buy and Outperform (Buy)

62%

50%

43%

45%

40%

24%

0%

0%

Market Perform (Hold)

37%

44%

57%

35%

21%

9%

0%

0%

Underperform (Sell)

1%

7%

0%

20%

0%

1%

0%

0%

RAYMOND JAMES RELATIONSHIP DISCLOSURES Raymond James Ltd. or its affiliates expects to receive or intends to seek compensation for investment banking services from all companies under research coverage within the next three months. Company Name Aecon Group

Disclosure Raymond James Ltd - the analyst and/or associate has viewed the material operations of Aecon Group. Raymond James Ltd. has managed or co-managed a public offering of securities within the last 12 months with respect to Aecon Group. Raymond James Ltd. has provided investment banking services within the last 12 months with respect to Aecon Group. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

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Canada Research | Page 23 of 29

Company Name

Disclosure

AIMIA

Raymond James Ltd - the analyst and/or associate has viewed the material operations of AIMIA.

Air Canada

Raymond James Ltd - the analyst and/or associate has viewed the material operations of Air Canada. Raymond James Ltd. has provided non-investment banking securities-related services within the last 12 months with respect to Air Canada. Raymond James Ltd. has received compensation for services other than investment banking within the last 12 months with respect to Air Canada.

Allied Properties REIT

Raymond James Ltd - the analyst and/or associate has viewed the material operations of Allied Properties REIT. Raymond James Ltd. has managed or co-managed a public offering of securities within the last 12 months with respect to Allied Properties REIT. Raymond James Ltd. has provided investment banking services within the last 12 months with respect to Allied Properties REIT. Raymond James Ltd. has received compensation for investment banking services within the last 12 months with respect to Allied Properties REIT.

B2Gold Corp.

Raymond James Ltd - the analyst and/or associate has viewed the material operations of B2Gold Corp.. Raymond James Ltd. has provided non-securities-related services within the last 12 months with respect to B2Gold Corp.. Raymond James Ltd. or an affiliate received non-securities related compensation from B2Gold Corp. within the past 12 months.

Brookfield Infrastructure Partners L.P.

Raymond James Ltd - the analyst and/or associate has viewed the material operations of Brookfield Infrastructure Partners L.P.. Raymond James Ltd. has managed or co-managed a public offering of securities within the last 12 months with respect to Brookfield Infrastructure Partners L.P.. Raymond James Ltd. has provided investment banking services within the last 12 months with respect to Brookfield Infrastructure Partners L.P.. Raymond James Ltd. has received compensation for investment banking services within the last 12 months with respect to Brookfield Infrastructure Partners L.P..

Brookfield Properties Corporation

Raymond James Ltd. has received compensation for investment banking services within the last 12 months with respect to Brookfield Properties Corporation.

CA Technologies

Raymond James & Associates makes a market in shares of CA.

Cenovus Energy

Raymond James Ltd - the analyst and/or associate has viewed the material operations of Cenovus Energy.

Citigroup, Inc.

Raymond James & Associates received non-investment banking securities-related compensation from C within the past 12 months.

Eldorado Gold Corp.

Raymond James Ltd - the analyst and/or associate has viewed the material operations of Eldorado Gold Corp.. Raymond James Ltd - within the last 12 months, Eldorado Gold Corp. has paid for all or a material portion of the travel costs associated with a site visit by the analyst and/or associate. Ross Cory who is an employee of Raymond James Ltd. or its affiliates serves as a director of Eldorado Gold Corp..

First Potomac Realty Trust

Raymond James & Associates lead-managed a follow-on offering of FPO shares within the past 12 months. Raymond James & Associates received non-securities-related compensation from FPO within the past 12 months.

Genpact, LTD

Raymond James & Associates received non-securities-related compensation from G within the past 12 months.

Gildan Activewear

Raymond James Ltd - the analyst and/or associate has viewed the material operations of Gildan Activewear.

International Forest Products Ltd.

Raymond James Ltd - the analyst and/or associate has viewed the material operations of International Forest Products Ltd.. Raymond James Ltd. has managed or co-managed a public offering of securities within the last 12 months with respect to International Forest Products Ltd..

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Canada Research | Page 24 of 29 Company Name

Best Picks 2014 Disclosure Raymond James Ltd. has provided investment banking services within the last 12 months with respect to International Forest Products Ltd.. Raymond James Ltd. has received compensation for investment banking services within the last 12 months with respect to International Forest Products Ltd..

NICK

Raymond James & Associates makes a market in shares of NICK.

Open Text

Raymond James & Associates received non-securities-related compensation from OTC within the past 12 months. Raymond James Ltd - the analyst and/or associate has viewed the material operations of Open Text. Raymond James Ltd. or an affiliate received non-securities related compensation from Open Text within the past 12 months.

Orezone Gold Corp.

Raymond James Ltd - the analyst and/or associate has viewed the material operations of Orezone Gold Corp..

Raymond James Financial Inc.

Raymond James & Associates or one of its affiliates owns more than 1% of the outstanding shares of RJF.

Sprint Corp.

Raymond James & Associates received non-investment banking securities-related compensation from S within the past 12 months.

Whitecap Resources Inc.

Raymond James Ltd - the analyst and/or associate has viewed the material operations of Whitecap Resources Inc.. Raymond James Ltd. has managed or co-managed a public offering of securities within the last 12 months with respect to Whitecap Resources Inc.. Raymond James Ltd. has provided investment banking services within the last 12 months with respect to Whitecap Resources Inc.. Raymond James Ltd. has received compensation for investment banking services within the last 12 months with respect to Whitecap Resources Inc..

Wolverine World Wide, Inc.

Raymond James & Associates received non-securities-related compensation from WWW within the past 12 months.

STOCK CHARTS, TARGET PRICES, AND VALUATION METHODOLOGIES Valuation Methodology: The Raymond James methodology for assigning ratings and target prices includes a number of qualitative and quantitative factors including an assessment of industry size, structure, business trends and overall attractiveness; management effectiveness; competition; visibility; financial condition, and expected total return, among other factors. These factors are subject to change depending on overall economic conditions or industry- or company-specific occurrences.

RISK FACTORS General Risk Factors: Following are some general risk factors that pertain to the projected target prices included on Raymond James research: (1) Industry fundamentals with respect to customer demand or product / service pricing could change and adversely impact expected revenues and earnings; (2) Issues relating to major competitors or market shares or new product expectations could change investor attitudes toward the sector or this stock; (3) Unforeseen developments with respect to the management, financial condition or accounting policies or practices could alter the prospective valuation.

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

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Canada Research | Page 25 of 29

Risks - AIMIA Concentration of Accumulation Partners: CIBC, Air Canada, and Sainsbury’s, account for approximately 51% of Aimia’s gross billings. A decline in gross billings from these partners could result in a decline in the overall gross billings. Travel Industry: An estimated 85% of Aeroplan Miles are redeemed for airline seats with either Air Canada or a Star Alliance member airline. Aimia, given members’ preference for air travel rewards, is dependant on demand for air travel. A reduction in Air Canada’s competitiveness versus other carriers offering flights routes serviced by Air Canada could negatively impact the attractiveness of the Aeroplan program. Major disruptions to either the airline industry, or Air Canada specifically, could result in a reduction in demand for air travel, negatively impacting the accumulation and redemption of Aeroplan Miles. Breakage and Future Redemption Cost Estimates: Breakage and future redemption cost estimates are critical accounting estimates used by Aimia. While they appear to have a reasonable basis, there is risk that either the breakage assumption of 17% is too high, or the engineered redemption cost estimate (equal to the GAAP redemption cost) is too low. Revisions to these estimates could have a material impact on free cash flow generation. Reward Availability and Costs: Aimia’s redemption costs could be impacted by a revised CPSA, and may increase as a result of revisions to available capacity with Star Alliance, leading to higher redemption costs and lower margins. In addition, Aeroplan may not be able to meet the demand for airline seats at specific prices if insufficient seat inventory is made available during key periods. The negotiation of rates charged by Air Canada occurs every three years, with the next scheduled negotiation to begin in F2Q10. Privacy Legislation: Aimia collection, packaging, analysis and resale of data on consumer purchase behaviour, collected at point-of-sale when a member uses their membership cards, is a revenue stream vulnerable to changes in privacy legislation in both Canada and the U.K. Interchange Fees: The ongoing Senate Committee on Banking, Trade and Commerce’s review of interchange fees could be an issue for Aimia if a material change to the current fee structure was implemented. Risks - Allied Properties REIT Allied is subject to the risks common to commercial real estate investing including general economic conditions (including, but not limited to, interest rates, unemployment levels, and the availability of long term mortgage funds), local real estate markets, excessive competitive supply, space demand, tenant credit risk, and construction risk. Future growth is dependant on the REIT’s ability to access the capital markets on a cost-effective basis. Additionally, changes in underlying property valuations could occur. To the extent that a potential rise in cap rates does not correspond to a higher level of rental income, this would result in a lower property valuation and would therefore negatively influence investor return. Risks - Brookfield Infrastructure Partners L.P. Any deterioration in the general commodities markets, such as natural gas, minerals or timber may adversely affect the financial performance of certain operations. Timber operations may also experience factors that limit or prevent harvesting such as extreme weather conditions and changes in industry practices. In addition, timber operations face unique competitive forces including substitution risk for their products. For example, the demand for paper products may decline significantly as the popularity of electronic media increases. BIP’s tolling and revenue collection systems depend on reliable and efficient tolling, metering or other revenue collection systems, a failure in which could result in decreased revenue and cash flow. Risks - B2Gold Corp. • Development Risk. 2013 and 2014 are critical years for B2Gold as it prepares to double existing production by developing its Jabali (La Libertad) and Otjikoto projects as well as execute on its operational / development plans for Masbate. • Political Risk. BTO’s asset base is located in Nicaragua, Namibia and Colombia. With the successful merger of B2Gold and CGA, this asset base will also include CGA’s Masbate operation in the Philippines. Despite Nicaragua’s rank as the second poorest country in the Western Hemisphere next to Haiti, the country remains a stable democracy. Whilst mining ranks as the biggest contributor to Namibia's economy in terms of revenue and infrastructure is rated as one of the best in Africa, changes in tax and royalty rates are being considered. An export levy on raw materials, increases in the corporate income tax rate and a windfall tax on profits are being considered. Also, whilst the risk of nationalization of mining projects in Namibia are low, uncertainty prompted by last year’s declaration of uranium, copper, gold, zinc and coal as strategic minerals for exploitation by state-owned Epangelo Mining should be noted. A major mining reform was undertaken last year in the Philippines including a moratorium on new projects. A new executive order detailing the government's policy on mining was signed in July, and is waiting to be implemented. The moratorium on new projects remains and is expected to be lifted when a new law of passed by the Philippines congress giving the government a larger share in resource contracts. Risk of an increase in royalties and a level of revenue-sharing should be noted. Security and geopolitical risks remain a concern in Colombia. • Gold Price Risk. A drop in the gold price could cause deterioration in B2Gold’s ability to fund its development project pipeline, part of which Raymond James estimates will be financed via cash flow. • Cost Inflation Risk. Our outlook assumes certain future capital and operating costs for development projects. Although we apply conservative estimates to these assumptions there is a risk that we have understated these costs or that these costs may increase in the future. • Operational and Labour Risk. There is a risk that the El Limon, La Libertad and Masbate operations suffer accidents or disruptions to production or development which could impair the value of the assets. Risks of labour disruptions due to strike action, may also impact production and profitability. We also note that Nicaragua and the Philippines are located in active earthquake regions.

Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Canada Research | Page 26 of 29

Best Picks 2014

Risks - Cenovus Energy - While the company’s downstream business insulates cash flows from pricing differentials, exposure to global crude prices remain; - With the focus of future growth centered on the oil sands, the company is reliant upon regulatory approval of major projects, particularly for future developments outside of Christina Lake and Foster Creek; - Furthermore, with major projects focused on the oil sands, continued successful execution of the Christina Lake and Foster Creek expansions will be key; - Foreign exchange rates; - Third party services: the nature of the operations will require third party services from time to time on site, as well as infrastructure to bring product to market, both of which are subject to supply and demand constraints; - Operational risks: the company production could decline rapidly due to unanticipated reservoir conditions, operator issues, and/or unplanned outages; - The inability of the company to turn around recent deterioration in the operational performance of the Foster Creek project; - Change in government policies (local, provincial, and federal); specifically as it relates to royalty rates and the treatment of oil and gas production; - Interest rate fluctuations could also negatively impact net income and cash flow; - Unanticipated downstream downtime and exposure to rising feedstock costs as well as feedstock supply. Risks - Delphi Energy Corp. The Bigstone project is undeniably capital intensive per operation at $9 million per well for a $50 million cash flow company. But choosing to do $9 million two mile laterals is far more capital efficient, and rational, rather than doing a $7 million one mile lateral to reduce per operation risk. A failed well would undoubtedly be painful, but Delphi is well aware of this risk and actually takes extra precautions to minimize this risk, that actually increase per operation costs. This is smart tradeoff to accept (smaller likelihood of failed event versus a per operation cost of say $8 million per well) but it will be a factor to manage in the field, and in the stock market, until Delphi’s run rate cash and free cash flow get bigger. We expect this risk to largely moderate/fall away by late 2014 but there can be no guarantee on this front. Delphi’s absolute debt level is not insignificant. This places increased importance on asset quality (past and present) and managing pace of capitalization. Delphi also actively hedges commodity prices to moderate the risk of that aspect of the annual borrowing base review with their bankers. Delphi is only seven wells into a program that we expect will be more than 100 wells in size. Were this inventory to be downgraded it would mean a big reduction in the size of the prize we have currently defined. Delphi has mitigated this risk both with their own drilling (step outs to the boundaries of their lands) and with offsetting wells by industry peers further mitigating this risk suggesting the Montney is a strong project well outside the Delphi land boundaries. Delphi’s current cost of equity is high in the stock market. That is appealing from a new potential stock buyer’s perspective but moderates the pace of growth that Delphi is likely to pursue in the short term simply because the cost of capital in equity markets is too high to consider new equity here. Risks - Eldorado Gold Mining is an inherently risky business with the most prevalent risks related to mining assets, the political environment and metal prices. Company specific risks relating to Eldorado include: 1) Political risk with assets in China, Greece and Romania. We would point out though that one of the keys to Eldorado’s success over the years in foreign jurisdictions has been its use of in country expertise when available. Once an operation is up and running and the local workforce has been trained Eldorado employs very few expatriates. We believe this mitigates Eldorado’s political risk to some extent 2) Development risk in constructing, commissioning and expanding multiple assets simultaneously by 2016 3) Execution risks - completing development on time and on budget Risks - Gildan Activewear Customer Concentration: Gildan (GIL-N), with a relatively small number of significant customers, generates in excess of 65% of sales from its top ten customers. Any material change in purchase behaviour, would negatively impact GIL’s financial results; Tax Structure: Any surprise changes to either income tax treaties the GIL currently relies on, changes to domestic tax laws or additional CRA audits may adversely impact the effective income tax rate and GIL’s financial results and valuation; Trade Agreement Revisions: GIL’s offshore manufacturing strategy and business model benefits from a number of regional trade agreements, including CAFTA-DR, NAFTA and HOPE. Revisions to any of these trade agreements may adversely impact its business; Material Raw material Cost Increases: Cotton is approximately 34% of COGS. If GIL is unable to mitigate the impact of potentially higher cotton costs through either their hedging strategy or price increases, these increases could have a materially negative impact on GIL’s financials; Country Risk: GIL’s manufacturing is concentrated in Honduras and the Dominican Republic. Political, social, labour, and weather related events, could materially disrupt GIL’s supply chain and production, which could negatively impact operations and financial performance; Capacity Expansion: Further product line extensions in retail, and expansion in Europe requite additional capacity. While the capacity expansion deferrals make sense in the current environment, our longer term outlook and growth assumptions are premised on timely build and ramp of incremental capacity.

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Best Picks 2014

Canada Research | Page 27 of 29

Risks - Husky Energy Inc. - While the company’s downstream business insulates cash flows from differential pricing risk, the company remains exposed to global crude prices; - As an offshore explorer and operator in both offshore Asia and Canada’s East Coast, the company faces exploration risk on the capitalintensive wells in addition to the exploration risk in frontier areas such as Slater River and the Rainbow Muskwa; - The company has a significant controlling shareholder, Li Ka-Shing, who effectively controls 70.5% of total outstanding shares; - With near-term growth driven by the completion of the major projects Liwan and Sunrise, project execution will be key in the nearterm; - Fluctuations in cash flow relating to changes in commodity prices as well as changes in various location and quality discounts; - Foreign exchange rates; - Third party services: the nature of the operations will require third party services from time to time on site, as well as infrastructure to bring product to market, both of which are subject to supply and demand constraints; - Operational risks: the company production could decline rapidly due to unanticipated reservoir conditions, operator issues, and/or unplanned outages; - Unexpected cost overruns or increasing costs of drilling/completing wells and infrastructure; - Change in government policies (local, provincial, and federal); specifically as it relates to royalty rates and the treatment of oil and gas production; - Interest rate fluctuations could also negatively impact net income and cash flow; - Unanticipated downstream downtime and exposure to rising feedstock costs as well as feedstock supply. Risks - Interfor i) Lumber prices are cyclical, slower than expected economic growth or higher mortgage rates could reduce our price forecasts. ii) As sales are denominated in U.S. dollars, a depreciation of the U.S. dollar could negatively affect earnings. iii) Interfor’s logging operations are primarily on Crown land. Government policy changes could negatively affect operating margins, iv) Forest product markets are global in nature issues affecting transportation or market access could impact earnings. Risks - Whitecap Resources Inc. Key risks include cash flow exposure to fluctuations in energy prices and foreign exchange rates, more specifically the relationship between the Canadian and U.S. dollar. Due to the nature of its operations, Whitecap also faces risks associated with weather-related interruptions, dry holes, restricted access to facilities, unplanned pipeline shutdowns and unexpected production delays. Also, the company is exposed to the risk that unexpected increases in decline rates lower production volumes, resulting in lower cash flow. Unexpected cost overruns, change in government policies (local, provincial and federal) and interest rate fluctuations could also negatively impact net income and cash flow. Some of Whitecap’s acreage is non-operated in nature, therefore the company is at risk of changes in corporate direction by the operator. Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available for Raymond James at rjcapitalmarkets.com/Disclosures/index and for Raymond James Limited at www.raymondjames.ca/researchdisclosures.

INTERNATIONAL DISCLOSURES FOR CLIENTS IN THE UNITED STATES: Any foreign securities discussed in this report are generally not eligible for sale in the U.S. unless they are listed on a U.S. exchange. This report is being provided to you for informational purposes only and does not represent a solicitation for the purchase or sale of a security in any state where such a solicitation would be illegal. Investing in securities of issuers organized outside of the U.S., including ADRs, may entail certain risks. The securities of non-U.S. issuers may not be registered with, nor be subject to the reporting requirements of, the U.S. Securities and Exchange Commission. There may be limited information available on such securities. Investors who have received this report may be prohibited in certain states or other jurisdictions from purchasing the securities mentioned in this report. Please ask your Financial Advisor for additional details and to determine if a particular security is eligible for solicitation in your state. Raymond James Ltd. is not a U.S. broker-dealer and therefore is not governed by U.S. laws, rules or regulations applicable to U.S. broker-dealers. Consequently, the persons responsible for the content of this publication are not licensed in the U.S. as research analysts in accordance with applicable rules promulgated by the U.S. Self Regulatory Organizations. Any U.S. Institutional Investor wishing to effect trades in any security should contact Raymond James (USA) Ltd., a U.S. broker-dealer affiliate of Raymond James Ltd.

FOR CLIENTS IN THE UNITED KINGDOM: For clients of Raymond James & Associates (London Branch) and Raymond James Financial International Limited (RJFI): This document and any investment to which this document relates is intended for the sole use of the persons to whom it is addressed, being persons who are Eligible Counterparties or Professional Clients as described in the FCA rules or persons described in Articles 19(5) (Investment professionals) or 49(2) (High net worth companies, unincorporated associations etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or any other person to whom this promotion may lawfully be directed. It is not intended Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Canada Research | Page 28 of 29

Best Picks 2014

to be distributed or passed on, directly or indirectly, to any other class of persons and may not be relied upon by such persons and is therefore not intended for private individuals or those who would be classified as Retail Clients. For clients of Raymond James Investment Services, Ltd.: This report is for the use of professional investment advisers and managers and is not intended for use by clients. For purposes of the Financial Conduct Authority requirements, this research report is classified as independent with respect to conflict of interest management. RJA, RJFI, and Raymond James Investment Services, Ltd. are authorised and regulated by the Financial Conduct Authority in the United Kingdom.

FOR CLIENTS IN FRANCE: This document and any investment to which this document relates is intended for the sole use of the persons to whom it is addressed, being persons who are Eligible Counterparties or Professional Clients as described in “Code Monétaire et Financier” and Règlement Général de l’Autorité des Marchés Financiers. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons and may not be relied upon by such persons and is therefore not intended for private individuals or those who would be classified as Retail Clients. For institutional clients in the European Economic Area (EEA) outside of the United Kingdom: This document (and any attachments or exhibits hereto) is intended only for EEA institutional clients or others to whom it may lawfully be submitted. Raymond James International and Raymond James Euro Equities are authorized by the Autorité de contrôle prudentiel et de résolution in France and regulated by the Autorité de contrôle prudentiel et de résolution and the Autorité des Marchés Financiers. Proprietary Rights Notice: By accepting a copy of this report, you acknowledge and agree as follows: This report is provided to clients of Raymond James only for your personal, noncommercial use. Except as expressly authorized by Raymond James, you may not copy, reproduce, transmit, sell, display, distribute, publish, broadcast, circulate, modify, disseminate or commercially exploit the information contained in this report, in printed, electronic or any other form, in any manner, without the prior express written consent of Raymond James. You also agree not to use the information provided in this report for any unlawful purpose. This report and its contents are the property of Raymond James and are protected by applicable copyright, trade secret or other intellectual property laws (of the United States and other countries). United States law, 17 U.S.C. Sec.501 et seq, provides for civil and criminal penalties for copyright infringement. Additional information is available upon request. This document may not be reprinted without permission. RJL is a member of the Canadian Investor Protection Fund. ©2013 Raymond James Ltd.

Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2

Best Picks 2014 EQUITY RESEARCH HEAD OF EQUITY RESEARCH DARYL SWETLISHOFF, CFA

Canada Research | Page 29 of 29 RAYMOND JAMES LTD. CANADIAN INSTITUTIONAL EQUITY TEAM WWW.RAYMONDJAMES.CA INSTITUTIONAL EQUITY SALES 604.659.8246

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Please read domestic and foreign disclosure/risk information beginning on page 21 and Analyst Certification on page 21. Raymond James Ltd. | 2100 – 925 West Georgia Street | Vancouver BC Canada V6C 3L2