Anson Funds Management LP

Item 5 - Fees and Compensation

DESCRIPTION OF COMPENSATION AND FEES

We typically receive two types of compensation from our clients – an asset-based management fee
and performance-based compensation. Generally, we charge our clients management fees at an
annual rate of 2.0% of each client’s net asset value, calculated and payable quarterly in advance.
In addition, we or our affiliates receive an annual performance allocation from each of our clients
at the end of each year of 20% of each client’s annual net profits, but only to the extent that the
client’s net profits exceed any losses carried forward from prior years, based on a “high water
mark” formula.

We generally do not negotiate our fees. However, we may, in our discretion, alter the terms
applicable to certain investors in our clients that result in rights and obligations that differ from
those described in this brochure, including with regard to fees and redemption rights. This may be
achieved through side letter agreements, rebates, waivers, issuance of separate classes of interests
or any other permissible means.

PAYMENT OF FEES

Our clients pay management fees quarterly, in advance, as of the first business day of each calendar
quarter. We deduct management fees directly from the capital account of each investor in our
clients on the first business day of each calendar quarter.

As further described in Item 10 - Other Financial Industry Activities and Affiliates, Anson Advisors
Inc., an Ontario-based corporation and an SEC Exempt Reporting Adviser (“Anson Advisors”),
is a co-investment advisor of the Funds and receives a portion of the management fees payable by
the Funds (together with the Adviser, the “Co-Investment Advisors”).

We generally calculate and receive our performance-based allocations as of the end of each fiscal
year directly from the capital account of each investor in our clients.

We have waived, and may waive in the future, any management fee or performance-based
allocation for our employees and principals who have invested directly or indirectly in our clients.

OTHER FEES AND EXPENSES

We generally pay all ordinary office overhead expenses of our firm, which include rent, supplies,
secretarial expenses, stationery, charges for furniture and fixtures, and compensation of security
analysts and personnel. Our clients generally bear all other expenses, which include, but are not
limited to, (i) legal, accounting, auditing and other professional expenses, (ii) investment expenses
such as commissions, research expenses, interest on margin accounts and other indebtedness,
(iii) the pro rata share of the fees and expenses incurred from investing in other investment
vehicles, (iv) custodial fees and (v) other reasonable expenses related to the purchase, sale or
transmittal of client assets. Clients generally pay all brokerage fees and transaction costs
associated with their investment activities.

For more information on brokerage transactions and costs, please see Item 12 - Brokerage
Practices.

WITHDRAWALS

With respect to the Anson Investments Funds, subject to the terms and conditions in the offering
documents, each investor that has held its investment for one year generally may make complete
or partial withdrawals as of the close of business on the last day of each calendar month. Investors
must generally provide notice of any withdrawal in writing at least 30 days prior to the proposed
withdrawal date. We will use commercially reasonable efforts to pay at least 90% of any estimated
withdrawal request within 30 days of a withdrawal date. We will pay any remaining balance within
30 days following the completion of the Anson Investments Funds’ audit of its financial statements
for the applicable fiscal year. The board of directors, in consultation with the Adviser, may also
suspend or postpone redemption in certain circumstances where, in our sole discretion, it would
be fair and equitable to do so, including but not limited to, the case where normal trading is
suspended on any stock exchange on which a material portion of the assets of the Anson
Investment Funds are listed or traded. We do not refund prepaid management fees.

With respect to the Anson Opportunities Funds, subject to the terms and conditions in the offering
documents, each investor that has held its investment for one year generally may make complete
or partial withdrawals as of the close of business on the last day of each calendar month. The
Adviser may, in its sole discretion, waive these notice requirements. We will use commercially
reasonable efforts to pay at least 90% of any estimated redemption proceeds within 10 business
days of a redemption date, provided, that the directors may delay the payment if a delay is
reasonably necessary to prevent a redemption from having a material adverse impact on the Anson
Opportunities Funds. We will pay any remaining balance within 30 days following the completion
of the Anson Opportunities Funds’ audit of its financial statements for the applicable fiscal year.
The board of directors, in consultation with the Adviser, may also suspend or postpone redemption
in certain circumstances where, in our sole discretion, it would be fair and equitable to do so,
including but not limited to, the case where normal trading is suspended on any stock exchange on
which a material portion of the assets of the Anson Opportunities Funds are listed or traded. We
do not refund prepaid management fees.

With respect to the Anson East Funds, subject to the terms and conditions in the offering
documents, each investor that has held its investment for one year generally may make complete
or partial withdrawals as of the close of business on the last day of each calendar month. The
Adviser may, in its sole discretion, waive these notice requirements. We will use commercially

reasonable efforts to pay at least 90% of any estimated redemption proceeds within 10 business
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Item 7 - Types of Clients

As mentioned in Item 4 – Advisory Business, we currently provide investment advisory services
solely to pooled investment vehicles. Our clients rely on certain exclusions from the definition of
“investment company” in the Investment Company Act of 1940, as amended. Accordingly, none
of our clients are registered as investment companies with the Securities and Exchange
Commission. We may in the future provide investment advice to other types of clients including,
but not limited to, individuals and separately managed accounts and funds.

Investors in our clients are generally required to make a minimum initial investment as specified
in the offering documents of each fund, which varies across the funds, but generally ranges from
$250,000 to $1,000,000, although we may accept investments in a lesser amount in our sole
discretion.

The Co-Investment Advisors are registered with the Commodity Futures Trading Commission (the
“CFTC”) as commodity pool operators (“CPOs”) and are members of the National Futures
Association (the “NFA”).

Notwithstanding their registration as CPOs, the Co-Investment Advisors rely on the exemption
from CPO registration pursuant to Regulation 4.13(a)(3) with respect to the Fund. Regulation
4.13(a)(3) is available to operators of pools (and of feeder funds that invest in pools) that trade a
de minimis amount of commodity interests (which includes futures, options on futures and certain
swaps). Among other things, the exemption requires the filing of a claim of exemption with the
NFA. It is also required that at all times either: (a) the aggregate initial margin and premiums
required to establish commodity interest positions does not exceed five percent (5%) of the
liquidation value of the Fund’s portfolio; or (b) the aggregate net notional value of the Fund’s
commodity interest positions does not exceed one hundred percent (100%) of the liquidation value
of the Fund’s portfolio and further that all pool participants are required to be accredited investors
or certain other qualified investors. Finally, each of the Co-Investment Advisors must be exempt
as a commodity trading adviser and provide advice solely to the pool or pools for which it has filed
a claim of exemption as a CPO. Consequently, the Co-Investment Advisors are not required to
deliver a disclosure document or a certified annual report to participants in this pool as otherwise
required for registered CPOs.

This Brochure is not an offer to invest in our clients.

Item 8 - Method of Analysis, Investment Strategies and Risk of Loss

              Anson Investments Funds (referred to in this section as the “Fund”)

Investment Objective

The objective of the Fund is to preserve investor capital and to achieve consistent annual capital
appreciation uncorrelated with broad equity markets.

Investment Strategy

The Co-Investment Advisors generally seek to achieve the objective of the Fund by maintaining a
relatively liquid, well-diversified portfolio. Capital preservation is sought by making infrequent
use of leverage and by limiting concentrations at the issuer, sector or factor level within the
portfolio. The Co-Investment Advisors seek to generate capital appreciation in the portfolio by
investing in the best opportunities available at a point in time within the Fund’s strategic
framework, and by seeking asymmetric risk-return profiles in the market. Correlation with broad
equity markets is minimized by maintaining low average net exposure over time.

The Co-Investment Advisors manage the Fund’s portfolio using three core strategies, which
include longs, shorts and special situations. Capital is allocated across the portfolio, with each
portfolio manager managing a discrete sub-strategy which falls under one of the Fund’s core
strategies. Adjustments to sub-strategy allocations are regularly considered based on opportunities
available in the market.

The Chief Investment Officer also maintains a central portfolio, which includes an overlay of the
best opportunities available in each of the sub-strategies. In addition, positions are taken in the
central portfolio when short term, catalyst-oriented special situations opportunities emerge in the
markets. These opportunities emerge when market dislocations, market regime changes, or unusual
issuer-specific factors occur. The infrequent use of leverage by the Fund typically allows the Co-
Investment Advisors to trade opportunistically in these circumstances.

Though investments are not limited to the following strategies, the Co-Investment Advisors
currently allocate to the following sub-strategies within the Fund.

Long Positions

Tactical Longs

Total market exposure is determined by analyzing five key factors: (i) sovereign credit signals,
(ii) corporate credit signals, (iii) economic indicators, (iv) market breadth, and (v) the trend of
revenue and earnings revisions.

Individual securities are generally selected by screening strong relative strength sectors for high
quality companies with strong fundamental attributes, which the Co-Investment Advisors believe
indicates favorable supply and demand dynamics. The Co-Investment Advisors will also look to
opportunistically capitalize on initial public offerings (“IPOs”), secondaries, and trading
dislocations.

Real Estate Investment Trusts (“REITS”)

Public market real estate is an asset class that gives prospective investors potential access to high
quality real estate with consistent income at attractive pricing. The objective is to deliver positive
absolute returns on an annual basis by investing in global real estate securities utilizing the
following approach:

           •     specifically targeting poorly managed REIT’s where real estate value is higher than
                 REIT unit trading prices;
           •     identifying merger, acquisition and privatization candidate in the REIT sector;
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