SALES PERIOD :March 8, 2018 to April 18, 2018

ISSUE DATE :April 25, 2018

MATURITY DATE :

3-year GIC : April 23, 20215-year GIC : April 24, 2023

INVESTMENT HIGHLIGHTS FOR THIS SERIES : Participation Factor: 85% (3-year GIC)Participation Factor: 125% (5-year GIC)No maximum Variable Interest

Investment details

Term: 3 or 5 years

Minimum Investment: $500

Principal 100% protected at maturity

Eligible for the CDIC deposit insurance2

Eligible for registered* and non-registered accounts

The Canadian Market Low Volatility GIC offers the growth potential of the S&P/TSX Composite Low Volatility Index while providing you with 100% guaranteed capital at maturity.

Variable Interest, if any, will be calculated at maturity based on the price performance of the Reference Portfolio including the Reference Index multiplied by the Participation Factor (see page 3 for more details of the calculation of the Variable Interest).

* Please check availability with your advisor.

Canadian Market Low Volatility GIC Series 8, Investors Category1 —

NBC OptimarketTM GIC

INVESTIR2

Reference Portfolio—The S&P/TSX Composite Low Volatility Index is designed to measure the performance of the 50 least volatile securities included in the S&P/TSX Composite Index.

The return of the Reference Asset is a price return and will not include dividends and/or distributions paid by issuers or components of the Reference Asset. As at February 23, 2018, dividends and/or distributions paid on account of the Reference Asset in the Reference Portfolio represented an annual return of approximately 4.36% representing an aggregate yield of of approximately 13.08% over the term of the 3-year GIC and 21.80% for the term of the 5-year GIC, assuming that the yield remains constant and dividends and/or distributions are not reinvested.

Reference Asset composition—Securities in the S&P/TSX Composite Index are ranked according to their level of volatility (measured by the standard deviation of daily returns in the previous 12 months). The 50 least volatile stocks become the constituents of the S&P/TSX Composite Low Volatility Index. This is rebalanced quarterly.

Securities are weighted inversely to their volatility; consequently, the less volatile stocks obtain the highest weightings.

Potential return—Variable Interest, if any, will not be capped at maturity. However, any positive Reference Portfolio Return will be multiplied by a Participation Factor, which will result in investors receiving less than the full return of the Reference Portfolio if the Participation Factor is less than 100%.

If the Reference Portfolio does not generate a positive price return over the term of the Canadian Market Low Volatility GIC, it will generate no Variable Interest and no return will be made.

Sector diversification of the S&P/TSX Composite Low Volatility Index as of February 23, 20183

Utilities

Telecommunication Services

Consumer Staples

Industrials

Consumer Discretionary

Information Technology

Health Care

Real Estate

Financial Services

Energy

%

%

%

%

%

%

%

%

%

31.9

29.0

14.1

6.7

4.3

3.6

3.3

2.0

1.7

%3.4

The volatility of a security is represented by the magnitude and frequency of the changes in the security's value over a given time

period. As is illustrated by the chart below, the higher the magnitude of the changes in the security's value, the more volatile the security:

Examples of volatility

%

%

%

%

%

%

%

%

%

%

Low

High

* source : Bloomberg * for illustration purposes only

INVESTINGCanadian Market Low Volatility GIC

INVESTIR3

Variable Interest calculation—The Variable Interest will be determined based on the price performance of the Reference Asset over the term of the Canadian Market Low Volatility GIC and the Variable Interest payment will be calculated as follows :

Variable Interest = Principal Amount invested on the Issue Date x Reference Portfolio Return x Participation Factor

The Reference Portfolio Return is equal to the sum of the weighed Reference Asset Return of each of the Reference Assets comprising the Reference Portfolio. The Reference Asset Return will be based on the average of the three closing levels of the Reference Asset determined over the last three months of the Canadian Market Low Volatility GIC. As a result, it is less likely that a brief period of market instability at the end of the Canadian Low Volatility Market GIC will have a significant impact on Variable Interest.

The Canadian Market Low Volatility GIC is not a conventional fixed income investment, as it does not provide investors with a defined income stream or a return that can be calculated by reference to a fixed or flaoting rate of rinterest that is determinable in advance.

Scenario Analysis—The following hypothetical examples are included for illustration purposes only and should not be construed as forecasts or projections. There can be no assurance that the results shown will be achieved.

Hypothetical example of a positive Variable Interest

Reference AssetReference

Asset Initial Value

Reference Asset Price at Average Valuation Date 1

(A)

Reference Asset Price at Average Valuation Date 2

(B)

Reference Asset Price at Average Valuation Date 3

(C)

Reference Asset Final Average

Value (A + B + C) / 3

Reference Asset Return

Reference Asset Weight

S&P/TSX Composite Low Volatility Index 410.00 681.00 703.00 701.00 695.00 69.51 % 100.00 %

Reference Portfolio Return 69.51 %

Participation Factor for the 3-year GIC Variable Interest payable at maturity for the 3-year GIC ($1,000 investment) ($1,000.00 x 69.51% x 85.00%)

85.00 %590.84$

Participation Factor for the 5-year GIC Variable Interest payable at maturity for the 5-year GIC ($1,000 investment) ($1,000.00 x 69.51% x 125.00%)

125.00 %868.88 $

In accordance with the Variable Interest calculation, the Reference Portfolio Return of 69.51% is multiplied by the Participation Factor of 85.00% for the 3-year GIC and 125.00% for the 5-year GIC. The Variable Interest payable at maturity on a $1,000 investment would be 590.84$ for the 3-year GIC and 868.88$ for the 5-year GIC in the example above, representing an annualized return of approximately 16.74% for the 3-year GIC and 13.32% for the 5-year GIC.

Hypothetical example of a nil Variable Interest caused by the Average Valuation Dates

Reference AssetReference

Asset Initial Value

Reference Asset Price at Average Valuation Date 1

(A)

Reference Asset Price at Average Valuation Date 2

(B)

Reference Asset Price at Average Valuation Date 3

(C)

Reference Asset Final

Average Value (A + B + C) / 3

Reference Asset Return

Reference Asset Weight

S&P/TSX Composite Low Volatility Index 410.00 381.74 401.22 424.36 402.44 -1.84 % 100.00 %

Reference Portfolio Return Variable Interest payable at maturity ($1,000 investment)

-1.84 %0.00 $

Since the Reference Portfolio Return is negative, no Variable Interest would be payable at maturity in the example above.

Hypothetical example of a nil Variable Interest

Reference AssetReference

Asset Initial Value

Reference Asset Price at Average Valuation Date 1

(A)

Reference Asset Price at Average Valuation Date 2

(B)

Reference Asset Price at Average Valuation Date 3

(C)

Reference Asset Final

Average Value (A + B + C) / 3

Reference Asset Return

Reference Asset Weight

S&P/TSX Composite Low Volatility Index 410.00 380.00 382.00 370.00 377.33 -7.97 % 100.00%

Reference Portfolio Return Variable Interest payable at maturity ($1,000 investment)

-7.97 %0,00 $

Since the Reference Portfolio Return is negative, no Variable Interest would be payable at maturity in the example above.

INVESTINGCanadian Market Low Volatility GIC

Legal notice—Risk factorsAn investment in the Canadian Market Low Volatility GIC involves various risks that all investors should consider before making a decision to invest in this investment. These risks are summarized in the Information Statement dated March 8, 2018 and you should, together with your financial and legal advisors, carefully evaluate them.

Suitability considerations and guidelinesAn investment in the Canadian Market Low Volatility GIC is not suitable for all investors and even if it is appropriate, all investors should consider the role that the Canadian Market Low Volatility GIC should play in an overall investment plan. The Information Statement includes a summary of various suitability considerations and guidelines. You are encouraged to read the Information Statement carefully.

1 The Canadian Market Low Volatility, Series 8, Investors Category, 3-year term herein referred to as “3-year GIC” and the Canadian Market Low Volatility GIC, Series 8, Investors Category, 5-year term herein referred to as “5-year GIC” and together with the 3-year GIC, as “Canadian Market Low Volatility GIC”.

2 The Canadian Market Low Volatility GIC is a deposit eligible for deposit insurance by the Canada Deposit Insurance Corporation (CDIC), subject to the maximum dollar limit of CDIC coverage and applicable conditions. More information about CDIC deposit insurance can be found in the “Protecting Your Deposits” brochure (available online at cdic.ca or by telephone at 1-800-461-2342).

3 The historical composition of the S&P/TSX Composite Low Volatility Index does not necessarily reflects the composition of such index in the future.

This document is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase in connection with the Canadian Market Low Volatility GIC.

The information in this document is based on sources we believe to be reliable, but we can not ensure that they are complete and accurate. Full information regarding this Canadian Market Low Volatility GIC issuance will be contained in the Information Statement to be sent to investors prior to the Issue Date. All information regarding the Canadian Market Low Volatility GIC is available on the nbc.ca/optimarket website and is provided upon request by your advisor or by calling 1 888 TelNat-1 (1 888 835-6281).

The Canadian Market Low Volatility GIC is not a conventional fixed-income instrument. A change in the Reference Portfolio will directly affect the Variable Interest payable at maturity. No interest or other amount will be paid during the term of the Canadian Market Low Volatility GIC. Potential investors should consult the Information Statement before investing. The Bank has issued previous series for this product which may have different terms and conditions. Please see our website for a list of terms and conditions compared to previous series.

Terms and expressions not defined in this document have the meanings assigned to them in the Information Statement.

S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("S&P"), Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and TSX is a trademark of TSX, Inc. This trademark is licensed to S&P Dow Jones Indices LLC and sublicensed to the Bank for certain purposes. The S&P/TSX Composite Low Volatility Index is a product of S&P Dow Jones Indices LLC, its affiliates and / or its third party licensors, Use granted to the Bank. The Canadian Market Low Volatility GIC is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Down Jones, S&P, TSX or any of their respective affiliates or their third party licensors. And none of these parties make any representations as to the merits of investing in this product and can not be held responsible for any errors, omissions or interruptions in the S&P/TSX Composite Index.

NBC OptimarketTM is a trademark of National Bank of Canada.

© 2018 National Bank of Canada. All rights reserved. Any reproduction in whole or in part is strictly prohibited without the prior written authorization of National Bank of Canada.

l If you have any questions, please do not hesitate to contact your advisor.—1 888 TelNat-1 (1 888 835-6281)

nbc.ca/optimarket

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