Imperial Capital Conference September 20, 2012

This presentation may include certain information that is “forward-looking information” under applicable Canadian securities laws and “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. By their nature, forward-looking information and statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others, competition from other newspapers and alternative forms of media; the effect of economic conditions on advertising revenue; the ability of the Company to build out its digital media and online businesses; the failure to maintain current print and online newspaper readership and circulation levels; the realization of anticipated cost savings; possible damage to the reputation of the Company’s brands or trademarks; possible labour disruptions; possible environmental liabilities, litigation and pension plan obligations; fluctuations in foreign exchange rates and the prices of newsprint and other commodities. For a complete list of our risk factors please refer to the section entitled “Risk Factors” contained in our annual management’s discussion & analysis for the year ended August 31, 2011, which can be found on the Company’s website at www.postmedia.com, on SEDAR at www.sedar.com or on the SEC’s website at www.sec.gov. Although the Company bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which the Company operates may differ materially from any such information and statements in this presentation. Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. Other than as required by law, the Company does not undertake, and specifically declines, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements. Unless otherwise noted, all references to “$” are to Canadian dollars and all Postmedia financials are for fiscal years ending August 31st.

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Forward-Looking Statements

Company Highlights

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• Daily newspapers that reach 4.3 million Canadian adults each week and have #1 weekly readership in Canada, plus weekly community papers and magazines(1)

• Digital properties with 6.8 million average monthly unique visitors(2), including newspaper sites ranked #1 in Canada that reach 32% of Canadian newspaper site visitors(3)

(1) Source: NADbank 2011 (2) Source: comScore, YTD ending May 31, 2012 (3) Source: comScore, MediaMetrix., Total Canada, All Locations, May 2012 (3-mth avg – March/April/May )

Significant cost savings opportunities

• Multiple cost reduction initiatives successfully completed in 2010 and 2011 • Transformation program initiated in Q3 of F2012 with target of reducing 15% to 20% of current total

operating costs over the next three years • Expect to eliminate $35 to $40 million of annualized costs through savings programs in Q4 F’12/Q1 F’13 • Shifting cost structure for higher margin digital environment

Transformation into leading multi-platform

content provider

• #1 English news source in its key markets provides strong value proposition to advertisers for both local, regional, and national reach

• Four platform strategy driving conversion from legacy printing business into a content engine offering customized bundles to both readers and advertisers

• Reinvesting in local news content within its markets and its already extensive portfolio of premium digital media, online and mobile assets

• Robust, enterprise-wide audience data analytics will drive sales approach

Company Highlights

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Strong free cash flow with track record of debt

repayment

• Attractive margins and modest capital expenditures drive strong free cash flow • LTM free cash flow(1) to total indebtedness above 25% per annum since 2010 • Over $190 million of debt repaid since July 2010 • First-lien debt to be reduced using net sale proceeds of the Toronto Head Office expected to close in

September 2012

(1) Free cash flow defined as Operating Income before Depreciation, Amortization and Restructuring less Capital Expenditures

Strong, well-respected management team

• Management and Board of Directors have extensive industry experience • CEO Paul Godfrey is a respected figure in Canadian media with long-standing relationships with key

advertisers in major sectors such as auto and financial

Company Highlights

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Canadian newspaper fundamentals superior

to U.S.

• Canadian newspapers have outperformed U.S. newspapers in revenue growth (-10% vs. -30% from Q4’07 to Q4’10) (2)

• Better newspaper industry penetration in Canada (73% vs. 57%)(3)

• Newspaper readership in Canada continues to grow (top 19 markets have grown 3.4% since 2007)(4)

(1) Includes Postmedia’s Toronto head office, which consists of 147,156 sq. ft. of office space. On June 26, 2012, Postmedia announced that it had entered into an agreement of purchase and sale with The Rose & Thistle Group Ltd. for the sale of its Toronto head office at a purchase price of $24 million. The agreement includes a leaseback of the property to Postmedia for a period of 18 to 24 months while new accommodations are readied for relocation. The transaction is expected to close in October, 2012. The net proceeds from the sale will be used for a mandatory redemption of approximately $23.3 million aggregate principal amount of first-lien debt at par.

(2) Company Filings. Canadian Newspapers consist of reported newspaper segments of Postmedia, Quebecor, FP Newspapers, Glacier Media and Torstar (Star and Metroland). U.S. Newspapers consist of reported newspaper segments of Gannett, The New York Times, McClatchy, Lee Enterprises, The Washington Post and Media General. (3) eMarketer, Global Media Intelligence Report: North America, October 2011; NADbank; PMB (4) NADbank

Substantial owned real estate value

• Significant tangible asset base of owned real estate • Own more than 1.6 million sq. ft. total, including eight facilities in excess of 100,000 sq. ft.(1)

• Potential for additional asset sales to accelerate debt repayment

Well-Established and Trusted Brands

#1 100% M.S.(1)

#2(2)

100% M.S.(1)

#1 100% M.S.

#1 100% M.S. #1

82% M.S.

#1 69% M.S.

#1 77% M.S.

#3(3)

100% M.S.

#1 100% M.S.

Note: Market shares represent local market share of paid daily newspapers (1) Includes The Vancouver Sun and The Province (2) Second to The Vancouver Sun which is also operated by the company (3) Number one among English-language paid daily newspapers, number three overall among paid daily newspapers

• Postmedia’s newspaper brands are woven into the fabric of the communities they serve, some for over a century

• 9 daily metropolitan newspapers, and are #1 in the markets they serve – Brands include the Calgary Herald, Montreal Gazette and Vancouver Sun – 100% market share of paid daily English language newspapers in 5 of 9 markets

• The National Post, one of Canada’s two daily national newspapers • 5 community mastheads, serving areas of Southwestern Ontario

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Portfolio of Premium Digital Assets

Postmedia Network Sites

6.8 million unique visitors monthly Ranks #6 in News & Information category

Infomart.ca

Approximately 1,000 subscribers

3rd Party Sites Managed & Exclusive Ad Agreements

1.3 million monthly UVs(1)

Newspaper sites 5.1 million monthly UVs

canada.com (site) 1.6 million monthly UVs • Electronic resource of Canadian news

and business information products • Same-day and archival access to

approximately 6,625 full-text newspapers, magazines, newswires, transcripts and blogs(2)

• Postmedia owns and represents 28 destination websites and has exclusive advertising representation agreements with high-profile third party sites

• Combined audience of 6.8 million average monthly unique visitors (“UVs”)

Source: comScore Canada Inc., YTD ending May 31, 2012

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canada.com classifieds 1.2 million monthly UVs

(1) Source: comScore Canada Inc., YTD ending May 31, 2012 (2) Source: As at July 30, 2012

• Ability to offer comprehensive suite of advertising solutions across network

• Along with owned properties, Postmedia provides sales representation for other newspapers, community publications and online brands

Note: Numbers above represent Postmedia Network audiences and third party properties represented through advertising sales agreements.

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Unparalleled Reach

4.3m Weekly Readers (NADbank 2011)

6.8m Monthly UV’s

(comScore avg. YTD May 31, 2012)

4.0m Monthly UV’s

(Omniture 3 month avg June 2012)

• Postmedia daily newspapers reach 4.3 million Canadian Adults each week

Toronto Star Network: Toronto Star, KW Record, Guelph Mercury and Hamilton Spectator Sun Media: Calgary Sun, Edmonton Sun, Winnipeg Sun, Toronto Sun and Ottawa Sun Metro Network: Metro - Vancouver, Calgary, Edmonton, Toronto, Ottawa and Halifax 24 Hours Network: 24 Hours - Vancouver, Calgary, Edmonton, Toronto and Ottawa

(1) Source: NADbank 2011; For comparative purposes, Networks based on English language readership. Weekly Readership = 6/7 day cumulative (cume) Postmedia, Sun Media, TorStar, Globe and Mail; 5-day cume Metro and 24 Hours Base: Postmedia Network owned properties (48 Markets), Sun Media (5 markets + 15 markets for Toronto Sun), Torstar (19 markets), Globe and Mail (48 markets), Metro (6 markets), 24 Hours (5 markets).

(2) Source: Newspapers Canada 2011 Circulation Data Report; Postmedia includes disposed properties

Weekly Readership(1) – Adults 18+

The Postmedia Network Advantage

% Share of Total Paid Daily Circulation(2)

Other

4.3 Million

3.0 Million 2.8 Million 2.6 Million

2.3 Million

1.8 Million

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#1 Newspaper Websites in Canada

5,477

3,806

3,703

2,445

1,967

1,924

1,625

1,546

1,233

Postmedia Newspapers

The Globe And Mail

Toronto Star

Transcontinental Digital LocalSolutions Group

Mail Online

The New York Times Brand

TORONTOSUN.COM

The Guardian

Tribune Newspapers

32% Reach

Postmedia Newspapers reach 32% of all Canadians

who visit newspaper websites

Newspaper Category

Unique Visitors (000) – Q3 F’12 (3-month avg.)

Source: comScore, MediaMetrix., Total Canada, All Locations, May 2012 (3-mth avg – March/April/May )

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Postmedia Digital Newspapers have more than doubled in size since 2008 • Audiences have grown consistently over time • Postmedia Newspaper sites have reached over 5 million average monthly UVs in

2012

Source: comScore Canada Inc., Postmedia Digital Newspapers, Unique Visitor Trends 2008 - 2011

+32%

+32%

+19% +6%

+121% Since 2008

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New Comprehensive Strategic Plan

• Four-platform product strategy – Launch of targeted, differentiated products and services by platform, brand – Rollout of ‘all access’ subscription strategy

• Audience-based sales strategy

– Shift of sales focus from traditional sale of “impressions” to selling audience and results

– Development of deep audience database with full data analytics – Aggressive digital growth through local client penetration, behavioral targeting

segments, real-time bidding, etc.

• Ongoing reduction of print-related infrastructure – ‘One newsroom’ concept (centralize editorial and news production processes) – Continued pursuit of operational efficiencies through outsourcing,

centralization, benchmarking and other process improvements – Accelerates ability to monetize real estate portfolio

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Focused Strategic Approach

Optimize near-term revenue while strategically repositioning the Company for mid- and long-term revenue and operating income growth

Build a high performance organization with a winning culture, exceptional people, and systems that demand excellence

Optimize print and aggressively grow digital revenues

Reduce costs by proactively managing print costs, redefining the organizational structure, and continuing ongoing cost reductions

Create deep data-based audience

intelligence

Create a highly engaged user base

Grow complementary

digital businesses

Be an “audience first” organization and deliver the most relevant news, information and services across the four platforms of print, web, tablet and smartphone Build a consultative, multi-platform sales approach in order to cost-effectively drive results for our advertisers by reaching the most relevant audience at scale

MISSION:

VISION:

ENABLERS:

STRATEGIC IMPERATIVES:

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Comprehensive Four Platform Strategy

Boomers (48-66)

Gen Y (18-32) Gen X (33-47)

Digital Hub (all)

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• Focused development of differentiated products targeted by platform, integrated by brand

• Permits shift to 'all access' bundled subscription strategy • Integration of robust data analytics to drive 'audience-based' sales approach

Business Transformation Initiatives • Successfully implemented over $50 million of operating cost reductions by fiscal-end 2011 • Recently initiated a new transformation program with target of eliminating additional 15% to

20% of current total operating costs over next 3 years • Phase 1 of program to be implemented in Q4 F’12/Q1 F’13 to eliminate annualized costs of

$35 to $40 million

Com

plet

ed F

’12 • Cancellation of certain Sunday/Monday editions

• Streamlining senior executive reporting structure

• Centralization of marketing function

• Monetization of B.C. Papers and related debt repayment

• Elimination of breaking-news wire service and contracting with Canadian Press for “commodity news”

In P

roce

ss

• Streamlining of advertising flyer inserting operations

• Consolidation of editorial production functions in Hamilton

• Introduction of common pages for international/national news and national features

• Outsourcing of business processes

• General staff reductions through voluntary and involuntary buyout programs

• Real estate efficiencies – sale/sublet of surplus real estate

• Elimination of unprofitable circulation outside of primary market zone

Track Record of Cost Reduction(1) Initiative

(1) Financial information for periods prior to July 13, 2010 relate to Canwest Limited Partnership and for periods subsequent to July 13, 2010 relate to Postmedia Network Canada Corp. (“Postmedia” or the “Company”). Postmedia adopted IFRS on September 1, 2011. As a result, financial information for periods prior to F2011 have been prepared in accordance with Canadian GAAP - Part V and financial information for periods subsequent to F2010 have been prepared in accordance with IFRS. For a full discussion of the impact of the transition to IFRS see the interim condensed consolidated financial statements and MD&A for the three months ended November 30, 2011 and 2010.

(2) On November 30, 2011, the Company completed the sale of the Victoria Times Colonist, Vancouver Island Newspaper Group and certain community newspapers in British Columbia (the “Disposed Properties”) to affiliates of Glacier Media Inc. As a result of the sale, the Company has presented the results of the Disposed Properties as discontinued operations and as such the F2011 financial information has been revised to reflect this change in presentation. F2008, F2009, and F2010 results have not been revised to present the results of the Disposed Properties as discontinued operations.

(2)

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Surrey, BC Production 208,047 sq. ft.

Calgary, AB Combined Facilities 383,000 sq. ft.

Edmonton, AB Production 187,000 sq. ft. Saskatoon, SK

Combined Facilities 110,000 sq. ft.

Regina, SK Combined Facilities 103,946 sq. ft.

Toronto, ON Office 147,156 sq. ft.

Ottawa, ON Combined Facilities 190,000 sq. ft.

Montreal, QC Production 165,000 sq. ft.

Owned Properties

City Sq.ft.

1 Calgary, AB 383,000

2 Surrey, BC 208,047

3 Ottawa, ON 190,000

4 Edmonton, AB 187,000

5 Montreal, QC 165,000

6 Toronto, ON(1) 147,156

7 Saskatoon, SK 110,000

8 Regina, SK 103,946

9 Windsor, ON(2) 65,000

10 Windsor, ON 60,000

Total Owned 1,619,149

11 Edmonton, AB(3) 133,250(3)

Other Leased 245,379

Total 1,997,778

1

4

6

3 5

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Edmonton, AB Office 133,250 sq. ft.

2

8

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Significant Value in Real Estate

(1) Announced sale of building for $24 million expected to close September 28, 2012

(2) Office property in Windsor, ON was sold for $2 million. The sale is expected to close in November 2012

(3) Subject to a sale leaseback agreement, whereby Postmedia owns the land and space above and can repurchase the building in 2041

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(3)

Summary of Facilities

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Windsor, ON Office 65,000 sq. ft.

Windsor, ON Production 60,000 sq. ft.

(2)

(1)

Financial Highlights

LTM Operating Income before Depreciation, Amortization and Restructuring(1)

(C$ millions)

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Revenue and Operating Income Performance

LTM Consolidated Revenue(1) (C$ millions)

(1) Financial information for periods prior to July 13, 2010 relates to Canwest Limited Partnership and for periods subsequent to July 13, 2010 relates to Postmedia Network Canada Corp. (“Postmedia” or the “Company”). Postmedia adopted IFRS on September 1, 2011. As a result, financial information for periods prior to Q1 F11 have been prepared in accordance with Canadian GAAP - Part V and financial information for periods subsequent to Q4 F10 have been prepared in accordance with IFRS. For a full discussion of the impact of the transition to IFRS see the interim condensed consolidated financial statements and MD&A of Postmedia for the three months ended November 30, 2011 and 2010.

(2) Fiscal 2011 adjusted financial information is based on actual fiscal 2011 results adjusted to exclude the Disposed Properties (Times-Colonist, Vancouver Island Newspaper Group, and BC community newspapers), but information for prior periods has not been adjusted.

(2) (2)

Consolidated Debt (C$ millions)

Debt Repayment Record and FCF Generation

LTM Free Cash Flow(1,4) (C$ millions)

(1) Financial information for periods prior to July 13, 2010 relate to Canwest Limited Partnership and for periods subsequent to July 13, 2010 relate to Postmedia Network Canada Corp. (“Postmedia” or the “Company”). Postmedia adopted IFRS on September 1, 2011. As a result, financial information for periods prior to Q1 F11 have been prepared in accordance with Canadian GAAP - Part V and financial information for periods subsequent to Q4 F10 have been prepared in accordance with IFRS. For a full discussion of the impact of the transition to IFRS see the interim condensed consolidated financial statements and MD&A for the three months ended November 30, 2011 and 2010.

(2) Represents a non-IFRS financial measure. Postmedia believes this measure is beneficial from the perspective of assessing the Company’s financial performance. However, non-IFRS financial measures do not have any standard definition prescribed under IFRS and as such may not be comparable to similar measures used by other companies.

(3) On November 30, 2011, the Company completed the sale of the Victoria Times Colonist , Vancouver Island Newspaper Group and certain community newspapers in British Columbia (the “Disposed Properties”) to affiliates of Glacier Media Inc. As a result of the sale, the Company has presented the results of the Disposed Properties as discontinued operations and as such F11 LTM Free Cash Flow has been revised to reflect this change in presentation, but prior periods have not been revised.

(4) Free cash flow defined as LTM Operating Income before Depreciation, Amortization and Restructuring less Capital Expenditures. (5) Pro forma $23.3 million debt repayment from sale of head office, and $2.2 million additional lease-back expense.

(3)

• Top priority for free cash flow(2,4) is debt reduction • Approximately $191 million paid since July 2010

– Planned $23.3 million repayment with net proceeds of head office sale in Q1 2013

• $86.5 million of debt was repaid following the sale of BC newspaper assets in November 2011

(5) (5)

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Capital Expenditures (C$ millions)

Low Capital Expenditures Requirements • Priorities for capital investments

include:

– Updated sales productivity technology(CRM)

– Development of new digital products to support 4-platform strategy (print/web/tablet/smartphone)

– Development of integrated audience database analysis and targeting capabilities

– Technology infrastructure to support centralization efforts

• Continued reduction of capex related to legacy print business

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www.postmedia.com/investors/presentations