The following information, prepared as of March 22, 2010, should be read in conjunction with the audited annual
consolidated financial statements of Quest Capital Corp. (“Quest” or the “Company”) as at December 31, 2009
and 2008 and for the years ended December 31, 2009, 2008 and 2007 and related notes attached thereto,
which were prepared in accordance with Canadian generally accepted accounting principles (“GAAP”). All
amounts are expressed in Canadian dollars unless otherwise indicated.
Additional information relating to the Company, including the Company’s Annual Information Form, is available
on SEDAR at www.sedar.com .
BUSINESS PROFILE AND STRATEGY
Historically, Quest’s primary business focus was to invest in mortgages secured by Canadian real estate,
however, during 2009, Quest primarily focused on the collection and monetization of its existing loan portfolio
rather than on the origination of new loans. The Company has made progress in this regard, and expects further
monetization to occur during 2010, and these proceeds will be used to purchase its non-recourse syndicated
loans and to reinvest in mortgages. As such, the Company will recommence lending. There are several significant
factors which will impact the timing and success in recommencing lending activities which are discussed herein
under the heading “Recommencing Lending Activities”.
As a mortgage investment corporation (“MIC”), Quest’s balance sheet is dominated by residentially oriented
loans. In general, a loan is residentially oriented if, at the time the loan is made, greater than 80% of the real estate
by which the loan is secured, is, or is intended to be, devoted to residential purposes. This includes loans for the
development or financing of single family, apartment, condominium, social housing and nursing/retirement
residences. Quest also invests in first mortgages secured by commercial real estate.
As a MIC, Quest is able to reduce its taxable income through the payment of dividends to its co