Hillsdale Canadian

Long/Short Equity L.P.

Fund Investment Objectives

The Fund's investment objective is to provide a rate of return on capital in excess of Canadian equities over a three-year period with a low correlation to, and volatility equal to or less than, the S&P/TSX Composite Index. The Fund is an open-end investment trust formed pursuant to the laws of Ontario. The Fund is a directional equity hedge fund that invests in, and sells short, a long portfolio and a short portfolio of securities. The Fund invests a minimum of 80% of its Total Assets primarily in a diversified selection of 50 to 200 selected Canadian corporations trading on major Canadian stock exchanges with at least CAD $100 million market capitalization at the time of purchase or short sale. The Fund maintains a net market exposure between 30% and 70% at all times with aggregate short positions maintained at a minimum of 25% of Total Assets. No single long or short position exceeds 5% of Total Assets. The Fund may invest up to 5% of its Net Asset Value in derivative instruments, primarily exchange traded, in order to moderate its exposure to market risk. Leverage is limited to a maximum of two times the Fund's net assets.