Taxation Overview

Canadian Taxpayers

The following is intended to provide shareholders of Badger with additional information to assist in the preparation of their Canadian Income Tax returns. The information presented is general in nature and cannot possibly address every situation experienced by all investors. This material is not intended to replace professional investment or tax advice.

Unless otherwise stated, Badger designates all dividends paid as “eligible” dividends under the Income Tax Act (Canada) and any corresponding provincial legislation. Under this legislation, individuals resident in Canada may be entitled to enhance dividend tax credits which reduces personal income tax otherwise payable.

Shares held within a Registered Retirement Savings Plan (RRSP), a Registered Retirement Income Fund (RRIF), Tax Free Savings Account (TFSA) or a Deferred Profit Sharing Plan (DPSP):

If the investment in the shares of Badger is held within one of these plans, income earned in respect of the shares while in the account is not subject to tax in the year. Instead, the amount of capital and any earnings in the plan could be taxed on withdrawal from the plan and is dependent on individual circumstances and the type of plan.

Shares held outside of an RRSP, RRIF, TFSA or DPSP:

Shareholders with an investment outside of an RRSP, RRIF, TFSA, or DPSP who received dividends will receive a “T5 Supplementary” tax slip, which is typically mailed on the last day of February of the year following the respective taxation year. Please note that if the shares are registered in the investor’s name, the T5 will be sent directly from Badger to the shareholder. However, if the shares are held in the name of a broker (i.e. in “street form”), the shareholder will need to obtain a T5 tax slip from their broker.

U.S. Resident Taxpayers

The following information is provided for general information only and should not be construed to be legal or tax advice to any shareholder. Shareholders are encouraged to seek advice from a qualified tax advisor in their country or residence to obtain guidance with respect to the appropriate tax treatment of their distributions.

Badger is treated as a corporation for U.S. tax purposes. As a result, any distribution made on a share by Badger is treated as foreign-source dividend income under U.S. federal income tax principles, reportable on a Form 1099. This treatment of the distributions is based on the fact that we have not determined our current or accumulated earnings and profits. In the absence of such information, we believe that a United States resident should report our distributions as fully subject to United States federal income tax.

Providing the applicable holder-level requirements are met, we believe that these distributions would be treated as “qualified dividends,” eligible for taxation at reduced rates under U.S. federal income tax legislation.

Non-Resident Withholding Tax Information

Effective January 1, 2012, the Canadian Revenue Agency has asked all paying trust agents, including Computershare, which administers Badger’s dividend payments, to withhold a statutory rate of 25% from all applicable payments or credits.

In order to be considered for the preferred treaty rate, non-resident shareholders must provide Computershare with a NR301 – Declaration of Eligibility for Benefits Under a Tax Treaty for a Non-Resident Taxpayer. A link to this form is provided below. Additionally, a copy of the letter, which provides additional details, is also provided below.