Transcript Slide 1

www.primewest.ca
SECURITIES OFFERED BY WAY OF PROSPECTUS
Securities of PrimeWest Mortgage Investment Corporation are being offered by way of a prospectus dated December 5, 2007. The
prospectus contains important detailed information about the securities being offered. Copies of the prospectus may be obtained from the
exclusive sales agent of PrimeWest, Union Securities Ltd, at the following address:
Union Securities Ltd.
#102 – 2022 Cornwall Street
Regina, SK
Phone: 1-866-544-2466 (toll free)
Attention: Jim Harris
Investment Advisor
Investors should read the prospectus before making an investment decision.
FORWARD LOOKING INFORMATION
Certain statements in this presentation may constitute forward-looking statements. The results or events predicted in these statements
may differ materially from actual results or events. These forward-looking statements can generally be identified by the use of statements
that include phrases such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “likely”, “will” or similar words or phrases. Similarly,
statements that describe the Company’s objectives, plans or goals are or maybe forward-looking statements.
These forward-looking statements are based on the Company’s current expectations and its projections about future events. However,
whether actual results and developments will conform to the Company’s expectations and projections is subject to a number of risks and
uncertainties, including, among other things, the risks and uncertainties associated with the real estate market and fluctuating values of
real property, investments in mortgages are relatively illiquid and such illiquidity will tend to limit the Company's ability to vary the
mortgage portfolio promptly in response to changing economic or investment conditions, requiring financial leverage to fund new
investments, the ability to meet additional funding requirements, changes in legislative or regulatory requirements including income tax
treatment of the Company, competition, environmental risks associated with foreclosure on real property and dependence on key
personnel. These are not necessarily all of the important facts that could cause actual results to differ materially from those expressed in
any of the Company’s forward-looking statements. Other known and unpredictable factors could also harm its results. Consequently,
there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially
realized, that they will have the expected consequences to, or effects on, the Company. Unless otherwise required by applicable
securities laws, the Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as
a result of new information, future events or otherwise.
Executive
President and CEO:
Al W. Zack
• BComm. U of A – Honours (Finance)
• 10 years commercial banking experience
• Managed over $200 Million in mortgages
• Committees/Board Involvement
– Junior Achievement Saskatoon
– Edwards School of Business Co-op Program
– North Saskatoon Business Association
INTERNAL USE ONLY – NOT FOR DISTRIBUTION
Board of Directors
Tom Archibald
Francis Bast
Darryn Knibbs
Chairman
Doug Frondall, CA
Managing Partner of Virtus
Group.
Irene Seiferling
Mike Hough
President of Board Dynamics
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Previous Exec.VP, Conexus
Pres/CEO of Hoffman Kool
Ins.
G.M. S’toon Christian Center
About Us
Mortgage Investment Corporation (MIC)
– Focus on short term residential mortgages
• Operating in the hottest economy in the Country
– Profits distributed to investors via quarterly
dividends: 8.25% average 2 year return
– No corporate tax
INTERNAL USE ONLY – NOT FOR DISTRIBUTION
Our Clients
• Families re-establishing their credit
• Commissioned Based Salespeople
• Professional immigrants
• Real Estate Investors doing “quick flips”
INTERNAL USE ONLY – NOT FOR DISTRIBUTION
Where we get our Business
The Industry
• Canada:
– Over $221 Billion in conventional mortgages
– Alternative market estimated at 8% of
conventional or $18 Billion
• Saskatchewan:
– at 3% of the national total, the alternative
market is $540 Million
Less than 0.5% Loan Losses in the past 10 yrsMortgage Bankers Association
INTERNAL USE ONLY
Analyst Quotes
• “The Canadian alternative mortgage
industry is one of the top 5 most profitable
industries in Canada” - Canadian Business Magazine
• “Canada’s non-traditional mortgage
lenders operate in a fragmented, largely
untapped and very lucrative market” – First
Associates/Blackmont - Toronto
INTERNAL USE ONLY – NOT FOR DISTRIBUTION
The Market
• Best Real Estate Market in the Province’s
History
• 49% in Regina increase in average selling price
since December, 2007 (14% in Saskatoon)
– Demand for urban housing in Saskatchewan is the
highest in over 35 years
– Housing inventory still undervalued comparatively
• Continued trends for strong future urbanization
and immigration
INTERNAL USE ONLY – NOT FOR DISTRIBUTION
Price Sustainability: 25 year History
Source: Saskatoon Real Estate Board
What Merrill Lynch Missed About SK
• Saskatoon and Regina had the most
undervalued real estate in Canada prior to 2007
• Our new business friendly government, focused
on making sure the province remains
competitive
• Strongest GDP forecast in the country
• Growing labour force
• Most diversified resource potential in the country
• Bio-Tech hub of Canada
• The Roughriders
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Residential Real Estate
Comparables
Average Sales Price Comparisons - July 2008
450000
Saskatoon - $292,000
400000
350000
300000
Saskatoon
Regina - $246,000
250000
Regina
Edmonton
200000
Calgary
150000
Winnipeg
100000
50000
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
Average MLS Selling Price in 2007 - $313,000
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2007
2008
More About Us – Vital Stats.
• Average mortgage amount $163,000
• Average loan to value 67%
• Urban 92%
• Residential 90%
• Average mortgage term 1.1 years
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Year 3 - Snapshot
(as of August 2008)
Investors
400
350
300
250
200
150
100
50
0
Assets vs. Debt
$14.9
270
370
2007
2008
76
2006
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$15,000,000
$12,500,000
$10,000,000
$7,500,000
$5,000,000
$2,500,000
$0
$12.0
$7.6
2006
2007
2008
Year 3 - Snapshot
(as of August, 2008)
Mortgages
80
70
60
50
40
30
20
10
0
$10,000,000
Capital Raised
(millions)
$9.2
$7.2
$8,000,000
61
74
$6,000,000
$4,000,000
35
$2.2
$2,000,000
2006
2007
2008
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$0
2006 2007 2008
LIQUIDITY
• 68% Asset Turnover over in 2007
• 3% redemption fee only in the first 12
months
• 10% of the assets are held in cash, or
cash equivalents
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