Cash Store Financial Default Announcement Pursuant to National Policy 12-203

EDMONTON, May 16, 2014

Cash Store Financial's inability to file these materials is attributable to the circumstances of the Company's ongoing court-supervised restructuring process under the Companies' Creditors Arrangement Act (the "CCAA"). In particular, the expense and effort involved in complying with the quarterly reporting requirements cannot, in the opinion of the Company, be justified in light of the Company's current operational and financial situation. Cash Store Financial intends to file the Continuous Disclosure Documents as soon as is commercially reasonable, or as required by the Court.

Under the CCAA proceedings, FTI Consulting Canada Inc. was appointed by the Court as Monitor. Since the CCAA proceedings commenced, in compliance with the CCAA and the order of the Court in the CCAA proceedings, Cash Store Financial has provided the Monitor will full access to its accounting records. The Monitor has filed with the Court periodic reports which have included Cash Store Financial's cash flow projections and other financial information concerning the Company. The Company anticipates that the Monitor will continue to file reports with the Court (and post them on its website) updating relevant financial information concerning the Company. The Monitor's reports and Court records are available online on its website at: http://cfcanada.fticonsulting.com/cashstorefinancial/.

Cash Store Financial intends to comply with the alternative information guidelines as set out in National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults throughout the default period. In that regard, Cash Store Financial will issue default status reports in the form of news releases that include information relating to material changes in the information contained in this news release and material information concerning Cash Store Financial's affairs that has not been generally disclosed. Cash Store Financial also intends to file with the applicable securities regulatory authorities throughout the default period the same information it provides to its creditors when the information is provided to its creditors (other than confidential material if disclosure of that information would be unduly detrimental to the interests of Cash Store Financial) and in the same manner as it would file a material change report under Part 7 of National Instrument 51-102 Continuous Disclosure Requirements.

About Cash Store Financial

Cash Store Financial operates 506 branches across Canada under the banners "Cash Store Financial" and "Instaloans". Cash Store Financial also operates 27 branches in the United Kingdom.

Cash Store Financial and Instaloans primarily act as lenders to facilitate short-term advances and provide other financial services to income-earning consumers who may not be able to obtain them from traditional banks. Cash Store Financial also provides a private-label debit card (the "Freedom" card) and a prepaid credit card (the "Freedom MasterCard") as well as other financial services, including bank accounts.