April 2008 Series 2 Redemption Q&A

For Series 2 Shares with a redemption eligibility date up to March 31, 2009.

Am I eligible to redeem my shares this year?

The Series 2 Shares are redeemable generally only on or after the fifth anniversary of the date of issuance, except in very limited circumstances such as the death of a shareholder. Between November 2008 and March 31, 2009, 666,000 Series 2 Shares purchased between November 2003 and March 2004 will become eligible for redemption.

Is Pender Growth Fund in a position to honour my redemption request?

Yes. At the current Pricing NAV per share of $8.50, these shares would represent a possible total of $5,661,000 or 19% or the Fund, in redemptions. We are pleased to report that Pender Growth Fund currently has sufficient cash and liquid securities on hand to honour 100% of redemption requests presented to us up to March 31, 2009 for shares purchased between November 2003 and March 31, 2004.

Will my redemption request be honoured in cash?

Yes.

How do I request redemption of my shares?

Shareholders wishing to redeem must deliver a Redemption Request signed by the shareholder or his or her authorized investment dealer or broker, specifying the number of Series 2 Shares that the shareholder wishes to have redeemed. Forms for Redemption Requests will be available from Pender Growth Fund or an order may be entered through FundSERV after the 5th Anniversary.

How is the redemption value of my shares determined?

Shares will be redeemed at a price which is equal to the Weekly Pricing Net Asset Value per Share on the Valuation Date. This price is published weekly on the Pender website.

Do I have to redeem my shares on the redemption date?

No. You can continue to hold the shares as long as you wish.

Can I reinvest my cash redemption into Pender Growth Fund and receive a 2008 30% Tax Credit?

Yes. Reinvestment Redemptions may be made at any time during the one month period preceding the Redemption Date, and are eligible for a 2008 30% Tax Credit. Please note that Pender Growth Fund has received an allocation of $10 million for eligible 2008 Tax Credits. These will be sold on a first come - first served basis.

How do I find out more about the rules and policies that govern VCC Funds and Pender Growth Fund (VCC) Inc. redemption requests?

The Small Business Venture Capital Act outlines rules that govern the Fund's ability to process redemption requests. The policies of the Fund regarding redemption requests are described in the "Share Capital" section of the annual prospectus.

How has Pender Growth Fund been able to ensure that all redemptions are honoured in cash on the fifth anniversary of the date of issue?

Since its inception in 2003, Pender Growth Fund has adopted a policy of investing in restructuring and later stage public companies. We focus on selecting well managed companies that offer attractive low entry points and potential for growth. We also focus on public companies that offer greater potential for liquidity. While private companies can create value as well as public companies, it is not always possible for investors to obtain liquidity when needed.

If my shares are not eligible for redemption until later in 2009, will Pender honour my redemption in cash?

Although it is too early to predict with certainty, the management team is working to generate further profitable realizations in order to match future redemption requests. We will release an update on 2009 redemptions during late 2008.