Investors

The Board reviews and determines the dividend on a quarterly basis after considering expected commodity prices, foreign exchange rates, economic conditions, production volumes, tax payable, and our capacity to finance operating and investing obligations. The dividend rate is established with the intent of mitigating short-term market volatility over several months. It also recognizes our intention to fund capital expenditures primarily through funds generated from operations and to maintain a strong balance sheet to take advantage of acquisition opportunities.

Record dates for regular monthly dividends are the end of each month, and payment dates are approximately the 15th day of the following month.

The regular monthly dividend is currently fixed at $0.09 per share.

Direct Deposit

A Direct Deposit option is in place to provide shareholders who have Canadian bank accounts with a method of receiving cash dividends as a direct deposit into their bank account.

U.S. Currency Payment Plan

Shareholders may elect to receive their dividend payments in U.S. funds.

Canadian Income Tax

Dividends paid on common shares are designated as eligible dividends for Canadian income tax purposes. If you have any questions regarding the taxation of eligible dividends, please contact your Canadian tax advisor or your local office of the Canada Revenue Agency.

Non-Resident Tax

Shareholders who are not residents of Canada for income tax purposes are encouraged to seek advice from a qualified tax advisor in their country of residence regarding the tax treatment of dividends.

Non-Resident Withholding Tax

Dividends paid or payable to non-residents of Canada are subject, on the date of payment, to a withholding tax of 25%, as prescribed by the Income Tax Act (Canada). This withholding tax may be reduced in accordance with reciprocal tax treaties. In the case of the Tax Treaty between Canada and the U.S., the withholding tax for U.S. residents is prescribed at 15%.

U.S. Residents

Shareholders who are residents of the United States (“U.S.”) should be aware that, based on consultation with Freehold’s U.S. tax advisor, the Company may be classified as a passive foreign investment company (“PFIC”) for U.S. federal income tax purposes. As a result, dividends paid to U.S. taxpayers are generally subject to the PFIC rules under U.S. federal income tax law and are not considered “qualified dividends” for U.S. tax purposes. U.S. resident shareholders are encouraged to consult their own tax advisors regarding the tax treatment of PFIC investments, the related reporting requirements, and the potential availability of elections such as the Qualified Electing Fund election. To support U.S. shareholders in making such an election, Freehold posts a PFIC Annual Information Statement on its website each year; however, U.S. shareholders should seek independent tax advice for assistance in completing Form 8621. This information is not available from Freehold.