BNS CI PerformerTM Deposit Notes (Return of Capital) Series 2

FundSERV: SSP 203

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The information contained herein is confidential and for advisor use only. The information contained herein is not to be reproduced or distributed to the public or the press.

The information in this presentation must be read in conjunction with the Information Statements. This document is a summary only of certain aspects of the Notes and you are urged to read the Information Statements in its entirety for complete information related to the Notes, including the risk actors. A hard copy of the Information Statements will be sent to all Investors.A prospective investor should decide to invest in the Notes only after carefully considering with his or her advisor as to whether the Notes are a suitable investment in light of the information set out in the Information Statements. None of the Bank including in its capacity as Calculation Agent, Scotia Capital Inc., including in its capacity as Selling Agent, nor CI Investments Inc. in its capacity as Fund Manager makes any recommendation as to whether the Notes are a suitable investment for any person.The Notes have certain investment characteristics that differ from conventional fixed income investments in that they do not provide holders with any return or income stream prior to the Maturity Date, or a return at the Maturity Date that is calculated by reference to a fixed or floating rate of interest that is determinable prior to the Maturity Date. The return on the Notes (if any), unlike the return on many deposit liabilities of Canadian chartered banks, is uncertain in that the Notes could produce no return on the holder’s original investment. Therefore, the Notes are not suitable investments for a holder if the holder needs or expects to receive any return or a specific return on investment. The Notes are designed for holders with a long–term investment horizon who are prepared to hold the Notes to the Maturity Date and are prepared to assume risks with respect to a return tied to the performance of the assets. Prospective purchasers should take into account additional risk factors associated with this Offering. See “Risk Factors” in the Information Statements.

If a holder sells Notes prior to the Maturity Date, the holder may have to do so at a discount from the original Principal Amount even if the performance of the Portfolio has been positive and, as a result, the holder may suffer losses. In addition, an “Early Trading Charge” of up to 6.95% of the principal amount of a Note will be applied if the holder sells a Note prior to maturity in years 1 to 3 following the issue date.The Notes are not redeemable by the investor. The Notes are generally not suitable for an investor who requires liquidity prior to the Maturity Date. An investor should consult his or her investment advisor concerning whether it would be more favorable to the investor in the circumstances at any time, to sell the Notes (assuming the availability of a secondary market) or to hold the Notes until the Maturity Date. An investor should also consult his or her tax advisor as to the income tax consequences arising from a sale prior the Maturity Date as compared to holding the Notes until the Maturity Date.The Notes are issued by The Bank of Nova Scotia. The Selling Agent is a subsidiary of the Bank. As a result, the Bank is a related and issuer of the Selling Agent under applicable securities legislation.

“CI”, “CI Investments”, “Global High Dividend Advantage Fund” and the CI Investments design are registered trademarks of CI Investments Inc. and have been licensed for use by Scotia Capital. “Scotiabank”, “Scotia Capital”, “Performer Deposit Notes” and the flying “S” logo are registered trademarks of The Bank of Nova Scotia (“Bank”).

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• 8-year Principal Protected Notes linked to the performance of the CI Global High Dividend Advantage Fund

• 125% exposure to the Fund on inception

• 5.56% per annum indicative Monthly Partial Principal Repayments (i.e. return of capital) based on 125% exposure to 75% of Fund distributions* (10.38% Pre-Tax Equivalent**)

• 200% potential exposure to the Fund using leverage generating an indicative potential distribution rate of 8.90% per annum

• Capital gains potential if sold prior to maturity

* As at July 31, 2007, the indicative distribution rate on the Fund was 5.93%. There is no guarantee that the Fund will achieve its target yield or make any distributions, or that the Deposit Notes will maintain 125% exposure. Accordingly, the amount of interest paid or partial principal repaid for any month during the term of the Deposit Notes will likely vary and could be zero.

** Based on marginal tax rate of 46.41%.

Investment Highlights

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Monthly Partial Principal Repayments– 75% of ordinary cash distributions paid out as Monthly Partial Principal Repayments with the remainder

reinvested to enhance growth potential

– Monthly Partial Principal Repayments, if any, will not be included in income for tax purposes

Competitive Fees and Low Cost Loan Facility– Maximum annual Program Fee of 2.55% on Class A Units (only 0.11% more than the 2006 MER)

– Interest rate of 1-month BA Rate + 0.25%, well below rates charged on investor margin accounts

Opportunity for Growth– 125% initial exposure with up to 200% potential exposure through the Loan facility

– Dynamic Asset Allocation Strategy offers enhanced returns by increasing Fund exposure when Fund outperforms and decreasing Fund exposure when Fund underperforms

– Use of declining floor feature creates potential for higher fund exposure through the term of the Note by reducing probability of a protection event

Payment at Maturity– 100% principal protection by maturity is provided by the Bank, as issuer, through the sum of the Monthly

Partial Principal Repayments and the Principal Outstanding at maturity

– Variable Return (if any) will be paid at maturity based on the performance of the Fund

Investment Highlights

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• 75% of all ordinary distributions by the Fund will be paid as Monthly Partial Principal Repayments subject to a maximum of $99 per Note during the term of the Notes

• The remaining 25% is reinvested in additional Units of the Fund

• Each Monthly Partial Principal Repayment made on the notes will reduce the Floor and increase the Distance, thereby reducing the risk that a Protection Event will occur

• Amount of Monthly Partial Principal Repayments will be dependent on the distribution rate of the Fund and the Note’s exposure to the Fund (i.e., number of Units held in the Fund Account) at the relevant time

• Based on the Fund’s current indicative distribution rate and 125% exposure to 75% of Fund Distributions, Monthly Partial Principal Repayments would be 5.56% per annum*

• Term-to-maturity: 8 years

Monthly Partial Principal Repayments

* As at July 31, 2007, the indicative distribution rate on the Fund was 5.93%. There is no guarantee that the Fund will achieve its target yield or make any distributions, or that the Deposit Notes will maintain 125% exposure. Accordingly, the amount of interest paid or partial principal repaid for any month during the term of the Deposit Notes will likely vary and could be zero.

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Monthly Partial Principal Repayments• The chart sets out indicative monthly partial repayment rates on the Notes in different scenarios that

vary depending on the performance of the Fund Account

• The data is based on: (i) an indicative annual Distribution rate on the Units of 5.93% (ii) monthly partial principal repayments equal to 75% of Distributions and; (iii) a constant floor price of $70

• Note: A Protection Event occurs if the NAV decreases to $1.50 or less above the Floor per Note. If a Protection Event occurs, the Units in the Fund Account are redeemed at the then prevailing net asset value per Unit with the proceeds used to pay down the Loan and acquire Bonds for the Bond Account.

Note NAVChange in Note

NAV Floor Price* Loan AmountFund Account

ValueBond Account

Value Note Distribution

$114.82 20.86% $70.00 $105.00 $219.82 - $8.90

$104.51 10.01% $70.00 $98.54 $203.05 - $8.61

$96.60 1.68% $70.00 $59.81 $156.41 - $6.89

$95.00 0.00% $70.00 $30.00 $125.00 - $5.56

$84.93 -10.60% $70.00 $2.89 $87.82 $0.00 $4.35

$80.88 -14.86% $70.00 - $64.00 $16.88 $3.52

$78.31 -17.57% $70.00 - $48.89 $29.42 $2.78

$76.06 -19.94% $70.00 - $35.64 $40.42 $2.08

$74.42 -21.66% $70.00 - $25.99 $48.43 $1.55

$73.22 -22.93% $70.00 - $18.95 $54.28 $1.15

$72.34 -23.85% $70.00 - $13.76 $58.58 $0.85

$71.70 -24.53% $70.00 - $10.00 $61.70 $0.62

$71.50 -24.74% $70.00 - $0.00 $71.50 $0.00

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Fund Description• The Fund provides investors with the opportunity to diversify their income sources by

providing exposure to high-quality companies around the world with a proven ability to grow their earnings and distribute a strong, sustainable stream of cash flow

Fund Management Expertise• Portfolio Advisor: Managed by Epoch Investment Partners, Inc., led by President and

Chief Investment Officer William Priest. Epoch currently has over US$ 4 billion under management

• Global Emphasis: Epoch employs a value style, bottom-up approach focusing on companies that are benefiting from globalization and increasing world trade

• Experience: The Portfolio Manager of the Fund, William Priest, has more than 35 years of investment industry experience. Prior to founding Epoch, he was Senior Partner and Portfolio Manager at Steinberg Priest & Sloane Capital Management, LLC. Before that he was Chairman and CEO of Credit Suisse Asset Management Americas and CEO and Portfolio Manager of its predecessor firm BEA Associates, which he co-founded in 1972

Global High Dividend Advantage Fund

Source: CI Investments, as of July 31, 2007

11.53%-6.24%-3.23%-2.29%

1 yr3 mth1 mthYTD

Performance as of July 31, 2007 (as a percentage per annum)

6.91%

Since Inception

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Global High Dividend Advantage Fund

Composition by Country

Composition by Sector Top 10 Holdings

Source: CI Investments, as of July 31, 2007

Fund Composition

RWE AG 2.12%

Verizon Communications 2.08%

Keyspan Corporation 2.07%

AT&T Inc. 2.04%

Duke Energy 1.97%

Citizens Communications Co. 1.94%

AllianceBerstein Holding LP 1.93%

Windstream 1.93%

Reynolds American Inc 1.82%

Southern Copper 1.74%

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Dynamic Asset Allocation:

• On Issue Date $125 per deposit note will be used to notionally purchase the Units

• Allocation Events rebalance the portfolio from time to time in accordance with a pre-defined set of rules. These rules ensure that there are sufficient assets to return the principal outstanding at maturity and may also allow for leverage through a notional loan facility during positive performance

• During the term of the Notes funds are allocated between the Units and the Notional Bonds using the following rules:

As the Distance Allocation to the Units (leveraging)As the Distance Allocation to the Units (de-leveraging)

Note

Notional Bonds

The Fund

Reallocation based on market movements

$125 Initial Investment

Distance = (NAV – Floor) Fund Account Value

How Does Dynamic Asset Allocation Work?

The Floor is the cost of a 0.50% p.a. coupon bond (less any partial principal repayments) which at maturity would equal the remaining principal outstanding.

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How Does Dynamic Asset Allocation Work?

• Assets may be re-balanced from time to time between Fund Units and Notional Bonds – based on a pre defined set of portfolio allocation rules

• The Distance between the NAV and the Declining Floor (see image below) determines the allocation between the Units and the Notional Bonds

– As the Distance increases, allocation to the units increases (leveraging)– As the Distance decreases, allocation to the units decreases (de-leveraging)– Through the use of the declining floor structure, the Notional Bond Floor is reduced

by any partial principal repayments resulting in a higher Distance over the term of the Note than a traditional ROC model

$25

$50

$75

$100

$125

$150

$175

2007 2008 2009 2010 2011 2012 2013 2014 2015

Declining Floor(Value of 0.5% per annum coupon bond less the

Partial Principal Repayments)

Distance = NAV - Floor

NAV

Net Asset Value

(Value of 0.5% per annum coupon bond less the Partial Principal Repayments)

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De-Leveraging Event

Less than 13% Between 13% and 21%Greater than 21%

Leveraging Event

• Sale of Bonds and/or Loan

facility used to purchase

additional Units

• Distance returns to 17%

• No action taken • Units sold, Loan amount

paid down & remainder

used to purchase Bonds

• Distance returns to 17%

Targeted Coverage Range

If Distance is:

How Does Dynamic Asset Allocation Work?

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• The BNS CI Performer Note employs the Dynamic Asset Allocation Model

• The Dynamic Asset Allocation model allows for potentially greater fund exposure over the term of the Note:

– Smaller positive change in NAV required to trigger leverage and increase fund exposure

– Larger negative change in NAV required to trigger de-leveraging event

Dynamic Asset Allocation or Target Exposure Strategy?

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Leveraging Event

• If the Distance rises above 21%, a Leveraging Event will occur• The Loan amount is increased with the proceeds notionally invested in the Fund Account to

return the Distance back to approximately 17%• This allows $29.55 of additional Units to be notionally purchased via the Loan thereby

increasing Fund Account Value to $154.88

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• If the Distance falls below 13%, then a De-Leveraging Event will occur• Units are notionally redeemed and proceeds from the sale will first be applied to repay the

Loan. Once the Loan is fully paid down, any additional proceeds are notionally invested in the Bond Account, returning the Distance back to 17%

• This would require $26.86 of Units to be notionally redeemed, thereby reducing Fund Account Value to $86.92

De-Leveraging Event

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Protection Event

• A “Protection Event” would occur if the NAV reaches or falls below $1.50 per Note above the Floor, at which time the Portfolio would be entirely invested in Bonds. Following a Protection Event, the Portfolio will remain entirely in Bonds until the Maturity Date regardless of the subsequent performance of the Units

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Key Benefits

• Principal Protection with attractive potential yield– Investor’s principal, if held to maturity, is secure regardless of the performance

of the Portfolio– Current indicative Distribution rate of 5.93%* on the Fund producing a 5.56%

p.a. Monthly Partial Principal Repayment

• Reduced De-Leveraging Probability– Value of the Floor will be reduced as distributions are paid– Distance using the Declining Floor strategy will exceed the Distance using the

Traditional Floor strategy, resulting in greater exposure levels to the Fund

$25

$50

$75

$100

$125

$150

$175

2007 2008 2009 2010 2011 2012 2013 2014 2015

Declining Floor

Net Asset Value

Traditional Floor

* As at July 31, 2007, the indicative distribution rate on the Fund was 5.93%. There is no guarantee that the Fund will achieve its target yield or make any distributions, or that the Deposit Notes will maintain 125% exposure. Accordingly, the amount of interest paid or partial principal repaid for any month during the term of the Deposit Notes will likely vary and could be zero.

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Key Benefits

• Potential for Enhanced Returns– Up to 200% exposure to the Fund using the dynamic asset allocation

strategy

• Competitive Fees and Low Cost Loan Facility

– Maximum annual Program fee of 2.55%, only 0.11% more than the 2006 MER on the Class A units of the Fund

– Interest rate of 1-month Bankers’ Acceptance Rate + 0.25%, well below rates charged on investor margin accounts

• Tax Efficient Structure*– Variable Return, if any, should not be subject to tax until it is paid

– Capital gains potential if sold prior to maturity

– Monthly Partial principal repayments, if any, will not be included as taxable income

* Holders should consult and rely on their own tax advisors.

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Potential Investors

• Conservative Investors:– Medium to long-term, risk-sensitive investors interested in gaining market

exposure without risking their capital– Investors seeking an easy way to achieve global diversification through one

easy investment

• Income Investors:– Investors hesitant to lock in long-term rates at current levels– Investors looking for a potential after-tax yield pick-up over current market rates– Investors seeking attractive yield opportunities as an alternative to income trusts

• Retirees:– Retired investors who are looking for regular monthly distribution

• Tax-Sensitive Investors:– Individuals with taxable investment accounts interested in receiving tax efficient

distributions

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Summary of TermsIssuer Bank of Nova Scotia

Issue Date October 29, 2007

Maturity Date October 29, 2015 (Term to Maturity: 8 years)

Issue Size Subscription Price: $100 per Deposit NoteMinimum Purchase: $5,000 (50 Deposit Notes)

Structural Features • Dynamic Asset Allocation Strategy • Underlying Fund: CI Global High Dividend Advantage Fund• Potential for 200% exposure to the Fund• 125% exposure on inception and 100% principal protection at maturity• Monthly partial principal repayments equivalent to 75% ordinary distributions of the Fund• Monthly partial principal repayments at inception expected to equal 5.56% per annum*

Fees & Expenses Portfolio Fee: 2.55% of Fund Account Value; 0.50% of Bond Account Value Loan Facility: Interest charged at the Bankers’ Acceptance rate plus 25 bps per annum

All fees and expenses calculated daily and payable monthly in arrears from assets in the Portfolio

Interest on Subscription Proceeds

Subscription proceeds submitted by Investors in advance of the Issue Date will bear interest at an annual rate equal to 2.00% payable in kind to the extent that interest accrued > $100

RRSP Eligibility 100% eligible for RRSPs, RRIFs, RESPs, DPSPs and LIRAs

All registered plan purchases must be placed through a dealer or intermediary sponsored plan

Secondary Market Scotia Capital will maintain a secondary market for Deposit Notes (subject to availability). Early trading charge may apply on dispositions prior to maturity

Selling period August 27 - October 24, 2007

* As at July 31, 2007, the indicative distribution rate on the Fund was 5.93%. There is no guarantee that the Fund will achieve its target yield or make any distributions, or that the Deposit Notes will maintain 125% exposure. Accordingly, the amount of interest paid or partial principal repaid for any month during the term of the Deposit Notes will likely vary and could be zero.

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Advisor Compensation:

Upfront Commission: 5.00% Trailer: 0.40% p.a. of Fund Account Value FundSERV Code: SSP 203

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THANK YOU

For more information please visit our website:

www.ci.com/depositnotes