Newfoundland Capital : Aug 11 , 2016 - Newfoundland Capital Corporation Limited today announces its financial results for the second quarter ending June 30, 2016.

Dartmouth, N.S. - August 11, 2016, Newfoundland Capital Corporation Limited (the "Company") today announces its financial results for the second quarter ending June 30, 2016.‌

Highlights

• Revenue for the second quarter of $44.2 million was $1.6 million or 4% higher than the same quarter last year and year-to-date revenue of $81.1 million was $3.0 million or 4% higher than 2015. The increase during the quarter and year-to-date was primarily due to growth in Toronto and Ottawa as a result of strong listener ratings in those markets.

• Earnings before interest, taxes, depreciation and amortization ("EBITDA"(1)) of $13.8 million in the second quarter was $1.3 million or 11% higher than the second quarter last year and year-to-date EBITDA of

  $22.0 million was $2.4 million or 12% higher than 2015. The improvements in EBITDA are a result of the revenue growth as well as the Company's continued commitment to managing costs.

• Profit for the period of $8.4 million was $2.4 million or 39% higher than the same quarter last year. Year-to- date profit of $13.0 million was $4.4 million or 52% higher than last year due primarily to higher revenue and lower interest expense. In addition, the prior year provision for income taxes was higher due to changes in future corporate income tax rates which caused a one-time increase of $0.6 million in deferred tax expense.

  Significant events

• During the second quarter, the Company repurchased 1.1 million of its outstanding Class A Subordinate Voting Shares for cash consideration of $10.1 million.‌

• Subsequent to quarter end, the Board of Directors approved an increase in dividends to $0.20 per share per annum, up from $0.15 per share per annum. As a result, the Board of Directors declared a dividend of $0.10 per share on each of the Company's Class A Subordinate Voting Shares and Class B Common Shares on August 11, 2016, payable on September 15, 2016 to all shareholders of record as at August 31, 2016.

"The Company's success in the second quarter was a result of strong listener ratings that allowed us to grow revenue and EBITDA," commented Rob Steele, President and Chief Executive Officer. "We are pleased with the Company's overall results as many of our stations outperformed their respective markets, helping to compensate for certain regions where we have faced challenges this year."

Financial Highlights - Second Quarter

Three months ended June 30

(thousands of Canadian dollars, except share information) 2016 2015

Revenue

$ 44,225

42,598

EBITDA (1) 13,811 12,474

Profit 8,405 6,034

Earnings per share - basic 0.32 0.22

Earnings per share - diluted 0.30 0.21

Weighted average number of shares outstanding (in thousands) 26,44827,915

June 30 December 31

2016 2015

Share price, NCC.A (closing)

$ 9.02

11.00

Total assets 362,694 364,246

Long-term debt, including current portion 143,932 145,908

Shareholders' equity 148,872 145,991

(1) Refer to page 12 " Non-IFRS Accounting Measure"

MANAGEMENT'S DISCUSSION AND ANALYSIS

The purpose of the Management's Discussion and Analysis ("MD&A") is to provide readers with additional complementary information regarding the financial condition and results of operations for Newfoundland Capital Corporation Limited (the "Company") and should be read in conjunction with the unaudited condensed interim consolidated financial statements ("interim financial statements") and related notes for the periods ended June 30, 2016 and 2015, as well as the annual audited consolidated financial statements and related notes prepared in accordance with International Financial Reporting Standards ("IFRS") and the MD&A contained in the Company's 2015 Annual Report. The Company's second quarter 2016 interim financial statements and the accompanying notes have been prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting" ("IAS 34") as issued by the International Accounting Standards Board ("IASB") and using the accounting policies described therein. These interim financial statements include the accounts of the Company and other entities in which the Company controls in accordance with IFRS 10, "Consolidated Financial Statements" and are reported in Canadian dollars. These documents along with the Company's Annual Information Form, its Management Proxy Circular dated March 3, 2016 and other public information are filed electronically with various securities commissions in Canada through the System for Electronic Document Analysis and Retrieval and can be accessed at www.sedar.com. This information is also available on the Company's website at www.ncc.ca.

The Board of Directors, upon recommendation of the Audit and Governance Committee, approved the content of this MD&A on August 11, 2016. Disclosure contained in this document is current to this date, unless otherwise stated.

Management's Discussion and Analysis of financial condition and results of operations contains forward-looking statements and forward-looking information within the meaning of Canadian provincial securities laws. These forward-looking statements are based on current expectations. The use of terminology such as "expect", "intend", "anticipate", "believe", "may", "will", "should", "would", "plan" and other similar terminology relate to, but are not limited to, objectives, goals, plans, strategies, intentions, outlook and estimates. By their very nature, these statements involve inherent risks and uncertainties, many of which are beyond the Company's control, which could cause actual results to differ materially from those expressed in such forward-looking statements. As a result, there is no guarantee that any forward-looking statements will materialize and readers are cautioned not to place undue reliance on these statements. Assumptions, expectations and estimates made in the preparation of forward-looking statements and risks that could cause our actual results to differ materially from our current expectations are discussed in detail in the Risks and Opportunities section of this MD&A. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CORPORATE PROFILE

Newfoundland Capital Corporation Limited owns and operates Newcap Radio, which is one of Canada's leading radio broadcasters with 95 licences across Canada. The Company reaches millions of listeners each week through a variety of formats and is a recognized industry leader in radio programming, sales and networking. It is Canada's largest pure-play radio company, employing approximately 1,000 of the best radio professionals across the country. The Company's portfolio of radio assets includes 80 FM and 15 AM licences which can be heard throughout Canada. Most of the Company's stations are globally accessible via the internet and various mobile device applications, allowing listeners the flexibility to tune in at anytime from anywhere. The shares of the Company trade on the Toronto Stock Exchange under the symbols NCC.A and NCC.B.

The Company's long-term strategy is to maximize returns on existing operations and add new licences through business and licence acquisitions and through the Canadian Radio-television and Telecommunications Commission ("CRTC") licence application process.

The Company's day-to-day operating objective is to grow its existing operations by increasing advertising revenue and remaining focused on controlling costs to maximize EBITDA margins. Management will continue to explore acquisition and expansion opportunities that fit the Company's objectives and it will make applications to the CRTC for new licences. The Company's commitment to its talented employees, its customers, its listeners and to the communities it serves remains critical to its success.

CORPORATE DEVELOPMENTS

The following is a review of the key corporate developments which should be considered when reviewing the "Consolidated Financial Performance Review" section. The results of the launched stations have been included in the interim financial statements since their launch dates.

Recent Developments:

• August 2016 - the Company's Board of Directors approved an increase in annual dividends to $0.20 per share from $0.15 per share previously and declared dividends of $0.10 on each of its Class A Subordinate Voting and Class B Common shares

• May 2016 - launched a new FM licence in Clarenville, Newfoundland and Labrador

• May and June 2016 - the Company repurchased a total of 1,055,700 Class A subordinate voting shares for cash consideration of $10.1 million

• March 2016 - rebranded CKDQ in Drumheller to 910 CFCW, an extension of the Company's legendary CFCW brand, the voice of rural Alberta which is now available in nearly all of Alberta

• February 2016 - rebranded CFXJ-FM in Toronto to 93.5 The Move, a rhythmic hot adult contemporary station targeting adults 25 to 44

• February 2016 - rebranded CKUL-FM in Halifax to Mix 96.5, a hot adult contemporary station playing a variety of pop/rock hits from the 90s to now

• December 2015 - launched a new FM licence in Fox Creek, Alberta (a repeater of CFXW-FM Whitecourt, Alberta)

• August and December 2015 - the Company's Board of Directors approved dividends totalling $0.15 on each of its Class A Subordinate Voting and Class B Common shares

• May and July 2015 - The Company repurchased a total of 1,569,800 Class A Subordinate Voting shares for cash consideration of $13.9 million

• May 2015 - The Company amended its credit facilities to reduce interest rates by approximately 0.5% and to extend the maturity date to May 31, 2018

Consolidated Financial Results of Operations

(thousands of Canadian dollars

except percentages and

Three months ended June 30 Six months ended June 30

per share data) 2016 2015 % Change 2016 2015 % Change

(1) EBITDA - Earnings before interest, taxes, depreciation and amortization - refer to page 12 "Non-IFR Accounting Measure"

3 Newfoundland Capital Corporation Limited

ANALYSIS OF CONSOLIDATED FINANCIAL RESULTS

A detailed analysis of the variations in revenue, operating expenses and EBITDA are included in the section entitled "Financial Review by Segment".

In the second quarter, consolidated revenue of $44.2 million was $1.6 million or 4% higher than the same quarter last year and year-to-date revenue of $81.1 million was $3.0 million or 4% higher than 2015. The quarter and year-to-date increases were primarily attributable to the higher revenue in the Broadcasting segment, particularly the Toronto and Ottawa operations, as a result of strong listener ratings in those markets.

In the second quarter, consolidated operating expenses of $30.4 million were $0.3 million or 1% higher than the same period last year and year-to-date operating expenses of $59.1 million were $0.6 million or 1% higher than 2015. The increase in operating expenses was primarily a result of higher operating expenses in the Broadcasting segment as the Company incurred higher variable costs as a result of revenue growth and incurred higher marketing costs as the Company continued to invest in promoting its stations, including those recently re-branded during the year. This is partially offset by lower corporate expenses.

In the second quarter, consolidated EBITDA of $13.8 million was $1.3 million or 11% higher than the same period last year and year-to-date EBITDA of $22.0 million was $2.4 million or 12% higher than 2015. The increase was primarily due to the higher revenue and the Company's continued commitment to managing costs.

Accretion of other liabilities arises from discounting Canadian Content Development ("CCD") commitments to reflect the fair value of the obligations. Accretion expense was lower in the second quarter and year-to-date than the same periods in 2015 because of the payments of CCD commitments during 2015 which reduced the balance on which accretion was recorded.

Interest expense in the second quarter of $1.2 million was $0.2 million or 16% lower than the same quarter last year because of lower effective interest rates. Year-to-date interest of $2.5 million was $1.2 million or 32% lower than last year primarily because of fluctuations in the value of the Company's interest rate swap payable which contributed $0.7 million of the variance, combined with lower interest rates as a result of the renegotiation of the Company's credit facilities in May 2015.

Other income (expense) generally consists of gains and losses, realized and unrealized, on the Company's marketable securities and items that are not indicative of the Company's core operating results, and not used in the evaluation of the Company's performance such as acquisition-related costs and impairment charges. Other income in the second quarter was $0.3 million compared to $0.1 million in 2015 while year-to-date other income was $0.5 million compared to an expense of $0.1 million the same time last year.

The Company recognized mark-to-market unrealized gains of $0.2 million in the second quarter, consistent with the same period in 2015. Unrealized gains of $0.5 million were recognized year-to-date compared to unrealized gains of less than $0.1 million in 2015. The Company had no realized gains or losses on marketable securities in the second quarter or year-to-date 2016, compared to losses of $0.1 million in the second quarter and year-to-date 2015. Refer to note 8(a) of the Company's interim financial statements for additional details on mark-to-market gains and losses.

In the second quarter, the effective tax rate was 27% and the year-to-date rate was 26% which were lower than the statutory tax rate of 31% primarily because of the subsidiary rate differential that arises from consolidated entities that are taxed in different jurisdictions with lower tax rates. In addition, certain tax estimates were updated during the quarter and year-to-date, resulting in a decrease in tax expense.

Newfoundland Capital Corporation Limited 4