Xceed Mortgage Corporation Announced Final Payout of $10.6 million Q-XCD Investment

TORONTO, Dec. 31, 2012 /CNW/ - Xceed Mortgage Corporation [TSX: XMC] ("Xceed" or the "Company") today announced that its $10.6 million senior subordinated note in Q-XCD trust had been repaid, and as a result the Company's cash balances had increased by a corresponding amount.

As a result of this transaction, Xceed no longer has any investments with economic exposure to its legacy trusts, and Q-XCD is now the only trust still existing.

Q-XCD is a trust to which the Company sold mortgages between 2002 and 2007. In November of this year the match between trust cash assets and senior note balances, triggered an automatic clean up call whereby the cash was used to pay out the remaining senior notes.

Q-XCD trust continues to hold mortgages as collateral on behalf of the remaining junior note holders, on whose behalf Xceed continues to act as servicer.  Those note holders will receive proceeds as the mortgages pay out.

Investor Inquiries

Michael Jones, President and Chief Executive Officer, and Jeff Bouganim, Chief Financial Officer are available to respond to investor inquiries regarding this announcement.

Michael Jones can be reached at:

Telephone: [phone] Ext.3434
E-mail: [email protected]

Jeff Bouganim can be reached at:

Telephone: [phone] Ext.3335
E-mail: [email protected]

About Xceed Mortgage

Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of residential mortgages that it originates in Canada.  The Company has approximately $0.8 billion of mortgages under administration.  The Company's shares are traded on the Toronto Stock Exchange (TSX: XMC).  To find out more about Xceed Mortgage Corporation, visit our website at www.xceedmortgage.com.

Forward-Looking Statements

Forward-looking statements in this document are based on current expectations that are subject to significant risks and uncertainties.  Actual results might differ materially due to various factors such as the competitive nature of the mortgage industry, the ability of the Company to continue to execute its growth and development strategy, and the reliance of the Company on key personnel.  The Company and the Company's management assume no obligation to update these forward-looking statements, or to update the reasons why actual results could differ from those reflected in these.  Additional information identifying risks and uncertainties is contained in the company's regulatory filings available on its website and at www.sedar.com.

SOURCE: Xceed Mortgage Corporation

Michael Jones can be reached at:

Telephone: [phone] Ext.3434
E-mail: [email protected]

Jeff Bouganim can be reached at:

Telephone: [phone] Ext.3335
E-mail: [email protected]