For Canada Residents

Redemption of Great-West Lifeco Inc. (Lifeco) Series E Preferred Shares – Cost Base

• If you received your Lifeco Series E preferred shares in exchange¹ for Canada Life Financial Corporation (CLFC) shares that you had received on demutualization² and you filed a form T2057 (an election to defer the capital gain for 2003)

- Your cost base for Lifeco Series E preferred shares is $0.00 (zero)
 

• If you received your Lifeco Series E preferred shares in exchange¹ for CLFC shares that you had received on demutualization² and you did not file a form T2057 (an election to defer the capital gain for 2003)

- Your cost base for Lifeco Series E preferred shares is $25.00 per share
 

• If you received your Lifeco Series E preferred shares in exchange¹ for CLFC shares that you had purchased before July 10, 2003 and you filed a form T2057 (an election to defer the capital gain for 2003)

- Your cost base is the amount you agreed to on your election form
 

• If you received your Lifeco Series E preferred shares in exchange¹ for CLFC shares that you had purchased before July 10, 2003 and you did not file a form T2057 (an election to defer the capital gain for 2003)

- Your cost base is $25.00
 

• If you purchased your Lifeco Series E preferred shares after July 10, 2003

- Your cost base is the amount you paid for those shares
 

For further information regarding the taxation of the December 31, 2009 redemption of the Lifeco Series E preferred shares please refer to the November 25, 2009 letter that was mailed to shareholders with the redemption materials.

The above is general information and should not be taken as tax advice. Your situation may vary therefore you should consult a tax adviser.

¹ In 2003 Lifeco acquired the shares of CLFC at an agreed price of $44.50 per share. The $44.50 was paid out in a variety of forms including cash, common shares of Lifeco, and Series E and Series F preferred shares of Lifeco. The value attributed to the Lifeco Series E preferred shares was $25.00 per share.

² In 1999 The Canada Life Assurance Company (CLA) demutualized, which means it changed from being a mutual company owned by its policyholders to a company with share capital owned by its shareholders. As part of the demutualization, common shares of CLFC were issued to certain participating policyholders of CLA at no cost.