Financial Statements and Annual General Meeting

2011 Audited Financial Statements

N O T I C E !

Notice is hereby given that the one hundred and thirty-third Annual Meeting of the Policyholders of the Townsend Farmers' Mutual Fire Insurance Company will be held in

WATERFORD HERITAGE AND AGRICULTURAL MUSEUM

(formerly known as SPRUCE ROW MUSEUM)

159 NICHOL STREET, WATERFORD

-- ON --

Saturday, March 17, 2012

At two o'clock in the afternoon

For the purposes of considering and if thought appropriate, approving the financial report, electing three Directors for a three year period, appointing auditors, and transacting any other business which may be properly brought before the meeting.

The Directors whose three-year terms of office expire are Messrs. John Lenos, Barry Speck, and David Watt, all of whom have indicated their intent to stand for re-election. Any qualified person wishing to seek election or re-election as a Director must file intent to stand for election in writing with the Secretary of the Corporation at least one hundred and twenty (120) hours in advance of an annual meeting or special meeting called for the purpose of electing Directors. The qualifications and election procedure are outlined in the Corporation's by-laws, which are available to any policyholder upon request.

The Company's 2011 audited financial statements are available at www.townsendfarmers.com, and any policyholder may also obtain a printed copy of the statements by sending a request to the Company at least fourteen days in advance of the annual meeting.

Michael Kekes, Secretary

February 24, 2012