3rd Quarter Results

Canaccord Financial Inc. Reports Third Quarter Fiscal 2013 Results

Earned net income of $20.5 million during the quarter, excluding significantitems( 1)

(All dollar amounts are stated in Canadian dollars unless otherwise indicated)

TORONTO, Feb. 6, 2013 /CNW/ - In the third quarter of fiscal 2013, the quarterended December 31, 2012, Canaccord Financial Inc. (Canaccord, the Company, TSX:CF, LSE: CF.) generated $230.0 million in revenue. Excluding significantitems(1) (a non-IFRS measure), the Company recorded net income of $20.5million, or $0.17 per diluted common share. Including all expense items, on anIFRS basis, the Company recorded net income of $10.3 million, or $0.08 perdiluted common share."The results of our fiscal third quarter clearly illustrate the benefits of theacquisitions we've made over the last several years. With record advisoryrevenue, continued growth of our UK wealth management business, and strongperformance in the UK and US, we're pleased with the results we generated thisquarter," stated Paul Reynolds, President and CEO of Canaccord Financial Inc.

Mr. Reynolds continued, "Over half of Canaccord's revenue is now earned inmarkets outside of Canada - underscoring the importance and strength of ourglobal platform, and the value our clients receive from our comprehensiveservice offering."

Third quarter of fiscal 2013 vs. second quarter of fiscal 2013

· Revenue of $230.0 million, up 23% or $43.4 million from $186.6million

· Excluding significant items, expenses of $205.0 million, up 14% or$25.3 million from $179.7 million(1)

· Expenses of $216.9 million, up 6% or $12.0 million from $204.9million

· Excluding significant items, net income of $20.5 million compared tonet income of $5.9 million(1)

· Net income of $10.3 million compared to a net loss of $14.8 million

· Excluding significant items, diluted earnings per common share (EPS)of $0.17 compared to diluted EPS of $0.03 in the second quarter of fiscal 2013(1)

· Diluted EPS of $0.08 compared to a loss per common share of $0.19 inthe second quarter of fiscal 2013

Third quarter of fiscal 2013 vs. third quarter of fiscal 2012

· Revenue of $230.0 million, up 56% or $82.1 million from $147.9million

· Excluding significant items, expenses of $205.0 million, up 55% or$72.9 million from $132.1 million(1)

· Expenses of $216.9 million, up 52% or $74.1 million from $142.8million

· Excluding significant items, net income of $20.5 million compared tonet income of $10.6 million(1)

· Net income of $10.3 million compared to net income of $2.5 million

· Excluding significant items, diluted EPS of $0.17 compared to dilutedEPS of $0.11(1)

· Diluted EPS of $0.08 compared to diluted EPS of $0.01

Year-to-date fiscal 2013 vs. year-to-date fiscal 2012(Nine months ended December 31, 2012 vs. nine months ended December 31, 2011)

· Revenue of $579.2 million, up 36% or $152.0 million from $427.2million

· Excluding significant items, expenses of $566.4 million, up 42% or$168.7 million from $397.7 million(1)

· Expenses of $608.8 million, up 47% or $195.5 million from $413.3million

· Excluding significant items, net income of $10.1 million compared tonet income of $23.1 million(1)

· Net loss of $25.2 million compared to net income of $10.4 million

· Excluding significant items, diluted EPS of $0.02 compared to dilutedEPS of $0.23(1)

· Loss per common share of $0.35 compared to diluted EPS of $0.09

Financial condition at end of third quarter fiscal 2013 vs. third quarterfiscal 2012

· Cash and cash equivalents balance of $556.0 million, down $144.9million from $700.9 million

· Working capital of $397.2 million, down $74.7 million from $471.9million

· Total shareholders' equity of $1.1 billion, up $198.9 million from$852.3 million

· Book value per diluted common share for the period end was $7.62,down 11% or $0.92 from $8.54(1)

· On February 6, 2013, the Board of Directors approved a quarterlydividend of $0.05 per common share payable on March 15, 2013 with a record dateof March 1, 2013

· On February 6, 2013, the Board of Directors also approved a cashdividend of $0.34375 per Series A Preferred Share payable on April 1, 2013 witha record date of March 15, 2013, and a cash dividend of $0.359375 per Series CPreferred Share payable on April 1, 2013 to Series C Preferred shareholders ofrecord as at March 15, 2013SUMMARY OF OPERATIONSCorporate

· On October 1, 2012, Canaccord's acquisition of Eden Financial Ltd.'swealth management business closed

· On October 1, 2012, Canaccord appointed Philip Evershed Global Headof Investment Banking

· On November 6, 2012 Canaccord appointed Steve Buell Global Head ofResearch

· On November 7, 2012, Canaccord Financial Inc. welcomed Dipesh Shah asan additional independent director on its Board

Capital Markets

· Canaccord Genuity led or co-led 33 transactions globally, raisingtotal proceeds of C$888 million(2) during fiscal Q3/13

· Canaccord Genuity participated in 123transactions globally, raisingtotal proceeds of C$9.8 billion(2) during fiscal Q3/13

· During fiscal Q3/13, Canaccord Genuity led or co-led the followingtransactions:

· Two transactions totalling £105.3 million for HICL InfrastructureCompany Limited on the LSE

· £100.0 million for Monitise plc on AIM· £100.0 million for Newlon Housing Trust (Private Placement)· SGD$94.0 million for Geo Energy Resources Ltd. on the SGX

· C$89.1 million for Trez Capital Senior Mortgage InvestmentCorporation (non-exchange listed)

· £80 million for Intermediate Capital Group Plc through a retail bondissue· C$54.6 million for Pure Industrial Real Estate Trust on the TSX· £48.5 million for Alpha Plus Holdings Plc through a retail bond issue· US$41.4 million for AceIRX Pharmaceuticals Inc. on the NASDAQ· C$34.5 million for SilverCrest Mines Inc. on the TSX-Venture· AUD$36.0 million for Lifestyle Communities Limited on the ASX· AUD$30.0 million for Neon Energy Limited on the ASX· C$30.0 million for Labrador Iron Mines Holdings Limited on the TSX· C$28.8 million for TriOil Resources Ltd. on the TSX· AUD$21.0 million for Orocobre Limited on the ASX· £20.0 million for Secure Trust Bank Plc on AIM· In Canada, Canaccord Genuity raised $238.1 million for governmentbond issuances and $25.0 million for corporate bond issuances during fiscal Q3/13

· Canaccord Genuity generated record advisory revenues of $69.3 millionduring fiscal Q3/13, an increase of 80% compared to the previous record of$38.5 million generated in the same quarter last year

· During fiscal Q3/13, Canaccord advised on the following M&A andadvisory transactions:

· Viterra Inc. on its acquisition by Glencore International plc· Yellow Media Ltd. on its C$2.8 billion recapitalization

· Research In Motion on the sale of NewBay Software to SynchronossTechnologies, Inc.

· Mateco Group (Odewald & Compagnie) on its acquisition by TVH Group· Sprott Power Corp. on its acquisition of Shear Wind Inc.

· Automotive Technologies Inc. (Wireless Zone) on its acquisition ofGlentel Inc.

· Eco-Products on its acquisition by WNA, Inc.

· GT Advanced Technologies on its acquisition of Twin CreekTechnologies

· Mears Group on its acquisition of Morrison Facilities ServicesLimited· Wildroots and TrueBliss on their acquisition by Continental Mills,Inc.· Psion on its acquisition by Motorola Solutions, Inc.· Buy As You View Holdings Limited on its acquisition by RutlandPartners· DHX Media Ltd. on its acquisition of Cookie Jar Entertainment· Score Media Inc. on its acquisition by Rogers Communications Corp.· Zetar on its acquisition by Zertus UK Holding Limited

· Unifeeder on its acquisition of Feederlink from Irish ContinentalGroup

Canaccord Wealth Management (Global)

· Globally, Canaccord Wealth Management generated $60.0 million inrevenue

· Assets under administration in Canada, and assets under management inthe UK and Europe, and Australia, were $27.0 billion at the end of Q3/13(1)

Canaccord Wealth Management (North America and Australia)

· Canaccord Wealth Management generated $35.2 million in revenue and,after intersegment allocations, recorded a net loss of $5.6 million beforetaxes in Q3/13

· Assets under administration in Canada were $11.4 billion as atDecember 31, 2012, down 14% from $13.3 billion at the end of the previousquarter and down 21% from $14.4 billion at the end of fiscal Q3/12(1)

· This decrease is due largely to the reduction of branches operatingin Canada, as was announced on September 24, 2012.

· Assets under management in Australia were $408 million at the end offiscal Q3/13, up 15% from $354 million at the end of the previous quarter(1)

· Assets under management in Canada (discretionary) were $791 millionas at December 31, 2012, up 1% from $784 million at the end of the previousquarter and up 30% from $607 million at the end of fiscal Q3/12(1)

· As at December 31, 2012, Canaccord Wealth Management had 184 AdvisoryTeams(3), a decrease of 94 Advisory Teams from December 31, 2011 and a decreaseof 47 from September 30, 2012

Canaccord Wealth Management (UK and Europe)

· Collins Stewart Wealth Management generated $24.8 million in revenueand, excluding significant items, recorded net income of $2.4 million beforetaxes in Q3/13· This division recognized $1.5 million of restructuring andacquisition-related costs related to the purchase of Eden Financial Ltd.'swealth management business and $1.6 million of amortization of intangibleassets acquired in connection with the acquisition of CSHP. Including thesesignificant items, Collins Stewart Wealth Management recorded a net loss afterintersegment allocations and before income taxes of $0.7 million during thequarter ended December 31, 2012

· Assets under management (discretionary and non-discretionary) were$15.2 billion (£9.5 billion)

Non-IFRS MeasuresThe non-International Financial Reporting Standards (IFRS) measures presentedinclude assets under administration, assets under management, book value perdiluted common share and figures that exclude significant items. Significantitems include restructuring costs, amortization of intangible assets, andacquisition-related expense items, which include costs recognized in relationto both prospective and completed acquisitions. Management believes that thesenon-IFRS measures will allow for a better evaluation of the operatingperformance of Canaccord's business and facilitate meaningful comparison ofresults in the current period to those in prior periods and future periods.Figures that exclude significant items provide useful information by excludingcertain items that may not be indicative of Canaccord's core operating results.A limitation of utilizing these figures that exclude significant items is thatthe IFRS accounting effects of these items do in fact reflect the underlyingfinancial results of Canaccord's business; thus, these effects should not beignored in evaluating and analyzing Canaccord's financial results. Therefore,management believes that Canaccord's IFRS measures of financial performance andthe respective non-IFRS measures should be considered together.

Selected financial information excluding significant items

Quarter- YTD- Three months ended over- Nine months ended over- December 31 quarter December 31 YTD(C$ thousands, except per share and % amounts) 2012 2011 change 2012 2011 changeTotal revenue per IFRS $230,003 $147,889 55.5% $579,151 $427,172 35.6%Total expenses per IFRS 216,882 $142,822 51.9% 608,840 $413,252 47.3%Significant items recorded in Canaccord Genuity Restructuring costs 5,276 1,292 n.m. 9,671 1,292 n.m. Acquisition-related costs -- 2,700 (100.0)% 388 4,143 (90.6)% Amortization of intangible assets 3,473 1,767 96.5% 11,282 3,627 211.1%Significant items recorded in Canaccord WealthManagement Restructuring costs 1,034 -- n.m. 14,601 -- n.m. Acquisition-related costs 431 -- n.m. 1,331 -- n.m. Amortization of intangible assets 1,643 -- n.m. 4,255 -- n.m.Significant items recorded in Corporate and Other Restructuring costs --

5,000 (100.0)% 900 5,000 (82.0)%

Acquisition-related costs -- -- n.m. -- 1,513 (100.0)%Total significant items 11,857 10,759 10.2% 42,428 15,575 172.4%Total expenses excluding significant items 205,025 132,063 55.2% 566,412 397,677 42.4%Net income before taxes - adjusted $24,978 $15,826 57.8% $12,739 $29,495 (56.8)%Income taxes - adjusted 4,525 5,182 (12.7)% 2,674 6,391 (58.2)%Net income - adjusted $20,453 $10,644 92.2% $10,065 $23,104 (56.4)%Earnings per common share - basic, adjusted $0.19 $0.12 58.3% $0.02 $0.26 (92.3)%Earnings per common share - diluted, adjusted $0.17

$0.11 54.5% $0.02 $0.23 (91.3)%

n.m.: not meaningfulFellow shareholders:The results of our fiscal third quarter demonstrate the value of our larger,global platform and the importance of the investments we've made over the lastseveral years. Most notably, the successful integration of our acquisition ofCollins Stewart Hawkpoint is evident across our business. Our UK and USoperations are now operating profitablyi. We're benefiting from a strong UKand European wealth management platform, in markets that should provide evenmore opportunities to grow client assets. And we've established CanaccordGenuity as a leading investment bank in the UK. In fact, Canaccord Genuity wasthe second most active investment bank in the UK for the number of transactionsled or co-led during calendar 2012, and ninth overall for total proceeds raisedfor clients, in this highly competitive marketii.Our strategy of geographic diversification appears to be well timed. Byexpanding our operations in the UK, US and overseas markets, we are much betterpositioned to leverage international market opportunities and withstandregional fluctuations of capital markets activity. The results of which areapparent in our performance. Half of Canaccord's revenue is now generated inmarkets outside of Canada - underscoring the importance of the expansionactivities we successfully executed over the last several years.

Quarterly performance

Record advisory fees drove significant revenue gains during our fiscal thirdquarter. In the three months ended December 31, 2012, Canaccord Financial Inc.generated revenue of $230.0 million and adjusted net incomei of $20.5 million,or $0.17 per diluted common share. During the quarter we implemented a numberof strategies aimed at enhancing the performance of some of our businesses. These initiatives resulted in $11.9 million of restructuring costs and othersignificant items not related to continuing operating activities. Includingsignificant items, on an IFRS basis, the Company generated net income of $10.3million, or $0.08 per diluted share.Annualized return on common shareholders' equity, excluding significant items,increased to 7.8% during the quarter. We're pleased with the progress we'remaking to enhance ROE. Just as important, the increased diversification of ourbusiness should allow us to achieve more consistent returns going forward.We remain committed to a conservative capital strategy. Our business continuesto be well capitalized to serve our clients, both in the current marketenvironment and during periods with much more robust market activity. At theend of the fiscal third quarter, Canaccord had $556.0 million in cash and cashequivalents, $397.2 million in net working capital and $1.1 billion inshareholders' equity. I'm also pleased to confirm that our Board of Directorsapproved a dividend of $0.05 this quarter.

Canaccord Genuity

Our strategy to further integrate our global capital markets platform,particularly within our investment banking practice, is progressing very well. We believe these efforts will further enhance the value of the services weoffer and increase our relevance to clients. We also expect additionalsynergies will be achieved through further cross-border collaboration -benefiting both our business and our clients.

Canaccord Genuity generated $165.4 million of revenue globally, an increase of39% from last quarter and 77% from the same period last year. While revenuegrew substantially, operating expenses only increased 16% from the previousquarter, which lowered expense ratios in this division meaningfully. CanaccordGenuity contributed $29.3 million of adjusted net income before taxi to theCompany during the fiscal quarter, an increase of 116% compared to the sameperiod last year.This quarter set a new company record for M&A and advisory revenue. At $69.3million, more revenue was generated through our global advisory practice thanin the past two quarters combined. In addition, in the first nine months offiscal 2013 we have generated 15% more advisory revenue than all of last year. This performance was helped by two substantial and high-profile advisorymandates completed in Canada, as well as increased advisory activity in the UKand Europe. It is a strong representation of the value being generated fromour acquisitions of Genuity Capital Markets in 2010 and Collins StewartHawkpoint last year. We are particularly pleased with the performance of ouradvisory practice, and continue to have a very healthy pipeline of advisorymandates.In the last several months we have taken steps to better integrate the advisorybusiness of Canaccord Genuity Hawkpoint into our broader global investmentbanking group. We expect our UK and European clients will benefit greatly fromthis integrated approach, through our ability to meet multiple corporate needswith one dedicated team. When this initiative completes on March 1, thisbusiness will operate under the Canaccord Genuity brand.Capital raising activity also benefited from the expanded reach of ouroperations this quarter, with contributions from all the markets we service. On a global basis, Canaccord Genuity led or co-led 33 transactions over $1.5million during the quarter, raising over C$887 million for clients. Investment banking activities generated $34.2 million of revenue for thedivision, a 10% increase from last quarter, and a 45% increase from the sameperiod last year.Wealth ManagementMuch of our focus this quarter was dedicated to enhancing our global wealthmanagement platform. In the UK, we were very pleased to welcome our newcolleagues from Eden Financial on October 1. Approximately 35 wealthmanagement professionals joined our firm, as did 2,500 client accounts and £835million of new client assets. This team is now working side-by-side withcolleagues from Collins Stewart Wealth Management and will ultimately work fromthe same support platform.In Canada, we continued with our strategy of strengthening our platform byfocusing our operations in core Canadian centres. Canaccord Wealth Managementnow has 16 branches across the country. At the end of the quarter, ourCanadian wealth management division had 184 Investment Advisory teams and $11.4billion of assets under administration.

Combined, Canaccord's wealth management operations generated $60.0 million ofrevenue, an increase of 4% compared to last quarter and 35% compared to thesame period last year.

Today, our global wealth management platform operates in Canada, the UK,Switzerland, the Channel Islands, the Isle of Man and Australia. We oversee$27.0 billion of client assetsiii. And we offer clients tailored servicesthrough our team of over 800 wealth management employees.

To better reflect the scope of this division, I'm pleased to announce that ourglobal wealth management operations will soon be unified under one universalbrand: Canaccord Genuity Wealth Management. We believe this change will moreaccurately communicate the span of our wealth management businesses to ourclients and stakeholders, and will allow us to more easily share resourcesamongst the markets we operate in. We expect this branding change will beimplemented during the second calendar quarter.

Looking forward

While the market environment has been less than optimal for several quarters,we are beginning to see promising signs of capital markets activity. We'reoptimistic that equity markets and financing transactions will rebound in thecoming months, as we are already seeing positive inflows to equities from fixedincome products. As appetite for risk returns, particularly in the US and theUK, we expect our well-established transactional capabilities will benefitalongside our already robust M&A pipeline.Our focus continues to be on further integrating our business within ourinvestment banking practice and across our wealth management platform, in orderto capture the full value of our operating scale. We also remain committed toevaluating ways to enhance the earnings capabilities of our firm, whether theyinvolve activities aimed at lowering our expense ratios or growing ourrelevance to clients. All of our efforts have been, and will continue to be,aimed at expanding our client relationships and increasing the value of ourbusiness for our shareholders.Kind regards,Paul ReynoldsPresident & CEOCanaccord Financial Inc.

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i Excluding restructuring and acquisition-related items referred to as

"significant items" elsewhere in this report. Adjusted net income before

tax is net income before tax excluding significant items. ii Thomson Reuters information iii As at December 31, 2012 ACCESS TO QUARTERLY RESULTS INFORMATIONInterested investors, the media and others may review this quarterly earningsrelease and supplementary financial information at http://www.canaccordfinancial.com/EN/IR/Pages/default.aspx .CONFERENCE CALL AND WEBCAST PRESENTATIONInterested parties are invited to listen to Canaccord's third quarter fiscal2013 results conference call with analysts and institutional investors, via alive webcast or a toll free number. The conference call is scheduled forWednesday, February 6, 2013 at 2:00 p.m. (Pacific Time), 5:00 p.m. (EasternTime), 10:00 p.m. (UK Time), and at 6:00 a.m. (China Standard Time), and 9:00a.m. (Australia EDT Time) on Thursday, February 7, 2013. At that time, seniorexecutives will comment on the results for the third quarter of the fiscal 2013year and respond to questions from analysts and institutional investors.The conference call may be accessed live and archived on a listen-only basisvia the Internet at: www.canaccordfinancial.com/EN/NewsEvents/Pages/Events.aspx

Analysts and institutional investors can call in via telephone at:

· 647-427-7450 (within Toronto)· 1-888-231-8191 (toll free North America)· 0-800-051-7107 (toll free from the UK)· 1-800-760-620 (toll free from Ireland)· 0-800-917-449 (toll free from France)· 0-800-183-0171 (toll free from Germany)· 10-800-714-1191 (toll free from Northern China)· 10-800-140-1195 (toll free from Southern China)· 1-800-287-011 (toll free from Australia)

Please request to participate in Canaccord Financial's Q3/13 earnings call.

A replay of the conference call can be accessed after 5:00 p.m. (Pacific Time),8:00 p.m. (Eastern Time) Wednesday, February 6, 2013, and after 1:00 a.m. (UKTime), 9:00 a.m. (China Standard Time) and 12:00 p.m. (Australia EDT Time) onThursday, February 7, 2013 until March 23, 2013 at 416-849-0833 or1-855-859-2056 by entering passcode 87744173 followed by the pound (#) sign.

ABOUT CANACCORD FINANCIAL INC.:

Through its principal subsidiaries, Canaccord Financial Inc. is a leadingindependent, full-service financial services firm, with operations in twoprincipal segments of the securities industry: wealth management and globalcapital markets. Since its establishment in 1950, Canaccord has been driven byan unwavering commitment to building lasting client relationships. We achievethis by generating value for our individual, institutional and corporateclients through comprehensive investment solutions, brokerage services andinvestment banking services. Canaccord has offices in 13 countries worldwide,including wealth management offices located in Canada, Australia, the UK andEurope. Canaccord Genuity, the international capital markets division,operates in Canada, the US, the UK, France, Germany, Ireland, Italy, Hong Kong,mainland China, Singapore, Myanmar, Australia and Barbados.

Canaccord Financial Inc. is publicly traded under the symbol CF on the TSX andthe symbol CF. on the London Stock Exchange. Canaccord Series A PreferredShares are listed on the TSX under the symbol CF.PR.A. Canaccord Series CPreferred Shares are listed on the TSX under the symbol CF.PR.C.

None of the information on Canaccord's websites at www.canaccordfinancial.com ,www.canaccordgenuity.com , and www.canaccord.com should be considered

incorporated herein by reference.

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1 See Non-IFRS measures. 2 Source: Transactions over $1.5 million. Internally sourced information. 3 Advisory Teams are normally comprised of one or more Investment Advisors

(IAs) and their assistants and associates, who together manage a shared set

of client accounts. Advisory Teams that are led by, or only include, an IA

who has been licensed for less than three years are not included in

our Advisory Team count, as it typically takes a new IA approximately three

years to build an average-sized book of business.

SOURCE: Canaccord Financial Inc.

For further information:

North American media:Scott DavidsonExecutive Vice President, Global Head of Corporate Development & StrategyPhone: 416-869-3875Email: [email protected] London media:Bobby Morse or Ben RomneyBuchanan Communications (London)Phone: +44 (0) 207 466 5000Email: [email protected] Investor relations inquiries:Jamie KokoskaVice President, Investor Relations & CommunicationsPhone: 416-869-3891Email: [email protected] Broker:Oliver Hearsey or James KellyRBC Europe LimitedPhone: +44 (0) 20 7653 4000Email: [email protected] Broker:Erick DiazKeefe, Bruyette & Woods LimitedPhone: +44 (0) 207 663 3162Email: [email protected]

(CF.)