For United States 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

- Your cost base for Lifeco Series E preferred shares is C$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

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

• 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 Canadian withholding tax that applies to a portion of the December 31, 2009 Lifeco Series E redemption proceeds 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 C$44.50 per share of CLFC shares. The C$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 Series E preferred shares was C$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 share capital company owned by its shareholders. As part of the demutualization, common shares of CLFC were issued to certain participating policy holders of CLA at no cost.