P A C I F I C & W E S T E R N

MEETING OF THE SERIES C PROMISSORY NOTEHOLDERSJUNE 12, 2008

P A C I F I C & W E S T E R N

Advisory

The Corporation occasionally makes forward-looking statements about its objectives, operations and targeted financial results. These statements may be written or verbal and may be included in such things as press releases, corporate presentations, Annual Reports and other disclosure documents and communications. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. A number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, the strength of the Canadian economy in general and the strength of local economies within Canada in which we conduct operations; the effect of changes in interest rates; the effects of competition in the markets in which we operate; capital market fluctuations; and the impact of changes in laws and regulations. When relying on forward-looking statements to make decisions, investors and others should carefully consider these factors and other uncertainties or potential events. The Corporation makes no undertaking to update any forward-looking statement that is made from time to time by the Corporation.

P A C I F I C & W E S T E R N

Noteholders Not Attending

Registered Noteholders who are not in attendance at this Meeting have been encouraged to complete the form of Proxy and to have it returned to Computershare Trust Company of Canada in accordance with the instructions provided on the Proxy.

P A C I F I C & W E S T E R N

Purpose of Meeting

• To extend the maturity date of the Series C Promissory Notes (the "Notes") for 10 years from October 16, 2008 to October 16, 2018; and

• To increase the aggregate principal amount of Notes that may be offered by the Corporation from a maximum of Twenty-Two Million Six Hundred Eighty-Nine Thousand Dollars ($22,689,000) to One Hundred Million Dollars ($100,000,000).

P A C I F I C & W E S T E R N

Background

P A C I F I C & W E S T E R N

Our Mission

To maximize the value of our common shares and total

return to our shareholders over time, by providing

innovative financial solutions to our clients in selected

niche markets.

TSX SYMBOL: PWC

Organizational Chart

P A C I F I C & W E S T E R N

Our Model

Focus Niche markets not well served by large banks

Quality Seek low credit risk lending opportunities

Efficiency Use technology and existing distribution channels

Growth Seek markets with high growth potential

P A C I F I C & W E S T E R N

Our Strengths

• Extensive nationwide low cost funds source

• High quality portfolio with negligible losses

• Schedule 1 Canadian Bank Charter

• Very scalable infrastructure

• State of the art financial institution software

P A C I F I C & W E S T E R N

Special Initiatives

• Discovery Air• PW Plus Account• Visa Card• Versabanq Innovations• Infrastructure - Hospital Financings

P A C I F I C & W E S T E R N

Discovery Air

P A C I F I C & W E S T E R N

P A C I F I C & W E S T E R N

P A C I F I C & W E S T E R N

P A C I F I C & W E S T E R N

• Joint venture discussions with large national retailers to issue a Visa Credit Card

• National retailer brings brand recognition and existing distribution channels to effectively reach potential cardholders across the country.

• New retailer loyalty program embedded within the Visa card– Cardholders earn value-based points/rewards on every purchase regardless of where the Visa card is used.– Creates brand loyalty as well as increases in-store traffic – Gets the PWB Visa card to the front of the wallet.

• Retailer would share in all revenues generated by the card and all costs to manage the program.

PWB / Retailer Visa Card

Retailer Brand Here

P A C I F I C & W E S T E R N

Versabanq Innovations

P A C I F I C & W E S T E R N

Versabanq Innovations• In discussions with numerous, very large potential partners in U.S. and Canada

• Strategy is to use existing distribution channels and enhance our partners’ relationship with their customer by filling blank spaces in or enhancing their product portfolio.

• Currently in joint development session with one of the largest banking software providers in the world

• Our products very well-suited to satisfy demands related to the current liquidity crisis (e.g., syndicated loans and efficient deposit gathering)

• Also provide built-in Basel II compliance which will soon be required in the U.S.

P A C I F I C & W E S T E R N

On October 4, 2007, Pacific & Western arranged the financing for the construction by EllisDon Corporation of the $214 million Bluewater Health Capital Redevelopment Project in Sarnia, Ontario. This financing was arranged with the assistance of the Gwich'in Tribal Council, an aboriginal organization that represents the Gwich'in in the Mackenzie-Delta of the Northwest Territories.

Hospital Infrastructure Financing

Bluewater Health

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Hospital Infrastructure Financing

Hamilton Henderson Hospital

On December 14, 2007, Pacific & Western arranged the financing for the construction by EllisDon Corporation of the $200 million Hamilton Henderson Hospital. This financing was arranged with the assistance of the Gwich'in Tribal Council, an aboriginal organization that represents the Gwich'in in the Mackenzie-Delta of the Northwest Territories.

P A C I F I C & W E S T E R N

On October 31, 2007 Pacific & Western arranged approximately $20 million in financing for the redevelopment by EllisDon Corporation of the Hamilton General Hospital. CIBC is also participating in financing this redevelopment project.

Hospital Infrastructure Financing

Hamilton General Hospital

P A C I F I C & W E S T E R N

Our Securities

Pacific & Western Credit Corp. (PWC)

• Common Shares PWC $5.30 (June 08)

• Preferred Shares PWC.PR.A $2.90 (Jun 08) (dividend .21)

• A Notes (04/10) PWC.NT.A $100.00 (Jun 08) (yield 9.25%)

• C Notes (10/08) PWC.NT.C $100.00 (Jun 08) (yield 9.0%)

P A C I F I C & W E S T E R N

Series C Note Arithmetic

Amount Spread Rate InterestRisk

Weight RWA  

1,000,000   9.000% 90,000     9% Notes

15,000,000   3.500% 525,000     GICs

16,000,000   3.844% 615,000     Total

             

7,750,000 2.750% 6.250% 484,375 100% 7,750,000 Loans

6,550,000 1.200% 4.700% 307,850 20% 1,310,000 PSEs & AAAs

1,700,000 0.800% 4.300% 73,100 0% - CMHCs

16,000,000   5.408% 865,325   9,060,000  

             

Net Interest   1.565% 250,325 BIS 11.038%  

Return on Note     25.033%      

P A C I F I C & W E S T E R N

Advantage to Noteholders

• Seamless extension of 10 year Note at 9%.• Attractive yield for new 10 year period• Investment in a Schedule I Canadian chartered bank

P A C I F I C & W E S T E R N

Summary

Highly efficient entrepreneurial Schedule 1 bank with low

risk strategy well positioned to take advantage of the

current liquidity crisis.

P A C I F I C & W E S T E R N

MEETING OF THE SERIES C PROMISSORY NOTEHOLDERSJUNE 12, 2008