~Assets under Management and Administration grows 230% from $149 million ($125 million in Total Assets) in 2021 to $492 million in 2022 on the back of strategic acquisitions~

VANCOUVER, BC – February 7, 2023 – Montfort Capital Corporation (“Montfort” or the “Company”) (TSX-V:MONT/OTCQB:MONTF), a leading alternative lender utilizing focused strategies, experienced management teams and advanced technology, is providing selected preliminary unaudited results for its fiscal year ended December 31, 2022. Montfort is pleased to report that its Assets Under Management and Administration (“AUMA”) have grown to $492 million as at December 31, 2022 from $149 million in AUMA and $125 million in Total Assets as at December 31, 2021. AUMA includes assets under management plus loans managed on behalf of third parties.

The year-over-year increase in AUMA is due to the successful acquisition of Brightpath Capital Corporation (“Brightpath”) in August 2022, and 78% of Langhaus Financial Partners Inc. (“Langhaus”) in October 2022. When combined with Pivot Financial Inc. (“Pivot”), acquired in September 2021, and TIMIA Capital (“TIMIA”) AUMA have grown to $492 million.

“Montfort’s brand and integrated investment strategy as a leading innovator in specialty private credit leapt forward in 2022,” said Mike Walkinshaw, CEO of Montfort. “We’ve added significant scale and lending power to Montfort through our business model of combining seasoned management teams, advanced technology, and focused origination strategies. Given the current lending environment, we’re excited about Montfort’s opportunity to maximize its success in 2023.”

For further background on Montfort’s planned reporting schedule, the Company will divide its private credit businesses into two respective segments: corporate lending, which includes TIMIA and Pivot, and consumer lending made up of Brightpath and Langhaus.

Corporate lending is focused on providing innovative private credit to small and medium sized corporations. TIMIA offers revenue-based investment to fast growing, business-to-business recurring revenue software businesses in North America. Pivot concentrates on creative financing solutions for the small and medium business market throughout Canada. Montfort’s corporate lending segment closed out 2022 with over $127 million of AUMA.

Consumer lending is focused on real-estate and insurance backed lending and adds $365 million of AUMA to Montfort’s consumer loan portfolio.

Brightpath is one of Canada’s leading private providers of residential mortgages focused on Ontario and British Columbia. It specializes in arranging mortgages for people who are self-employed, new to the country, experiencing credit issues, or looking at renovation/flip projects. It also offers private mortgages and bridge financing for residential properties with competitive and flexible terms.

Langhaus is Canada’s largest independent provider of insurance policy backed loans focused on high-net-worth individuals and entrepreneurs throughout Canada. It works cooperatively with Canada’s major insurance companies and top advisers, the Langhaus team designs flexible lending programs in a way that best meets the needs of borrowers, with an expertise in structured finance transactions and complex borrower structures that fall outside the typical purview of Canadian banks.

Preliminary Unaudited Financial Information

The financial measures included in this news release are based on preliminary unaudited estimated results which have not yet been finalized or audited. These estimated results are subject to change upon completion of the financial statements for the year ended December 31, 2022 and the audit of such financial statements and such changes could be material due to, among other things, the completion of Montfort’s financial closing procedures, final adjustments, review by the Company’s auditors and other developments that may arise between now and the time the financial results are finalized. Accordingly, such estimated results are forward-looking statements (as defined below) within the meaning of applicable securities legislation and are subject to the limitations and risks described under “Forward-Looking Statements”, below.

Montfort expects to file its audited annual financial statements for the year ended December 31, 2022 and related management’s discussion and analysis on SEDAR in late April 2023.

About Montfort Capital Corporation

Montfort manages a diversified group of specialized private credit brands that utilize focused strategies and experienced management teams combined with advanced technology to improve fee-related performance. Montfort facilitates transparency for all of its investors through public company reporting. For further information, please visit www.montfortcapital.com

For more information, please contact:

Tim McNulty / Darren Seed
Incite Capital Markets
Mike Walkinshaw, CEO
Montfort Capital Corporation
(604) 398-8839
IR@MONTFORTCAPITAL.COM

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note on Non-GAAP Financial Measures

This release contains some non-Generally Accepted Accounting Principles (GAAP) financial measures as defined in National Instrument 52-112 “Non-GAAP and Other Financial Measures Disclosure”. Terms by which non-GAAP financial measures are identified include, but are not limited to, “assets under administration” and “assets under management”. Non-GAAP financial measures are used to provide management and investors with additional measures of performance to help assess results where no comparable GAAP (IFRS) measure exists. However, non-GAAP financial measures do not have standard meanings prescribed by GAAP (IFRS) and are not directly comparable to similar measures used by other companies. Investors may find these financial measures useful in understanding how management views the underlying business performance of the Company.

Assets under Management and Administration (AUMA)

Assets Under Management and Administration is a non-GAAP financial measure that provides an indicator of the size and volumes of the Company’s overall business. Management and administrative services are an important aspect of the overall business of the Company and should be considered when comparing volumes, size and trends. “Total Assets” is the most directly comparable financial measure to AUMA that is disclosed in the Company’s financial statements.

Forward-Looking Information

Certain information and statements in this news release contain and constitute forward-looking information or forward-looking statements as defined under applicable securities laws (collectively, “forward-looking statements”). Forward-looking statements normally contain words like ‘believe’, ‘expect’, ‘anticipate’, ‘plan’, ‘intend’, ‘continue’, ‘estimate’, ‘may’, ‘will’, ‘should’, ‘ongoing’ and similar expressions, and within this news release include any statements (express or implied) respecting the future growth of the Company and the Company’s future financial performance.

Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions and other factors that management currently believes are relevant, reasonable and appropriate in the circumstances, including, without limitation, the assumption that the Company and its investee companies are able to meet their respective future objectives and priorities and assumptions concerning general economic growth and the absence of unforeseen changes in the legislative and regulatory framework for the Company.

Although management believes that the forward-looking statements are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Montfort’s business. Material risks and uncertainties applicable to the forward-looking statements set out herein include but are not limited to: intense competition in all aspects of business; reliance on limited management resources; general economic risks; new laws and regulations and risk of litigation. Although Montfort has attempted to identify factors that may cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, predicted, estimated or intended. Also, many of the factors are beyond the control of Montfort. Accordingly, readers should not place undue reliance on forward-looking statements. Montfort undertakes no obligation to reissue or update any forward-looking statements as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements contained in this news release are qualified by this cautionary statement.

The reader is cautioned that the foregoing list of assumptions and factors is not exhaustive, and there may be other factors listed in other filings with securities regulators, including factors set out in the Company’s 2021 annual management discussion and analysis under “Financial Investments and Risk”, which, along with other filings, is available for review at www.sedar.com.

1 “Assets under management and administration” and “assets under management” are non-GAAP financial measures. Refer to “Cautionary Note on Non-GAAP Financial Measures” section of this release for additional details.