Telesat Canada announced that, together with Telesat LLC, as co-issuer, it intends to issue US$200 million of additional 6.0% senior notes due 2017 (the “Additional Senior Notes”). Telesat intends to use the net proceeds from the offering to fund the repayment of certain indebtedness owed to its principal shareholders, including accrued and unpaid interest thereon, and for general corporate purposes. Telesat expects that the Additional Senior Notes will be fungible with the Co-Issuers’ previously issued 6.0% senior notes due 2017 (the “Original Senior Notes”) and will form a single class under the indenture, dated May 14, 2012, with the Original Senior Notes.

The Additional Senior Notes are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and, outside the United States, only to non-U.S. investors pursuant to Regulation S. The Additional Senior Notes will not be registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent an applicable exemption from registration requirements or in a transaction not subject to the registration requirements of the Securities Act or any state securities laws.