First Quarter Report

For the three months ended March 31, 2025

Westshore Terminals Investment Corporation (the "Corporation") was incorporated under the Business Corporations Act (British Columbia) on September 28, 2010 and is domiciled in Canada. The registered and head office of the Corporation is located at Suite 1800, 1067 West Cordova Street, Vancouver, British Columbia V6C 1C7. The Corporation owns all of the limited partnership units of Westshore Terminals Limited Partnership ("Westshore"), a limited partnership established under the laws of British Columbia.

The Corporation derives its cash inflows from its investment in Westshore by way of distributions on Westshore's limited partnership units. Westshore operates a coal storage and unloading/loading terminal at Roberts Bank, British Columbia (the "Terminal"). Westshore's operating revenues are derived from rates charged for loading coal onto seagoing vessels. Westshore is currently undertaking significant infrastructure additions to the Terminal to allow it to handle potash for BHP Canada Inc., a subsidiary of BHP Group Limited ("BHP").

Westshore's results are affected by various factors, including the volume of coal shipped by each customer, and their contracted rate per tonne, as well as Westshore's operating costs and capital expenditures.

This MD&A contains certain forward-looking statements, which reflect the current expectations of the Corporation and Westshore with respect to future events and performance. Forward-looking statements are based on information available at the time they are made, assumptions by management, and management's good faith belief with respect to future events. They speak only as of the date of this MD&A, and are subject to inherent risks and uncertainties, including those risk factors outlined in the Annual Information Form of the Corporation filed on https://http://www.sedarplus.ca, that could cause actual performance or results to differ materially from those reflected in the forward-looking statements, historical results or current expectations.

Forward-looking information included in this document includes: statements regarding Westshore's future revenues and the impacts thereon, including anticipated throughout volumes and loading rates, distribution of throughput by customer, the US/CDN dollar exchange rate, anticipated rail performance, and the impact of construction activity at Westshore; statements regarding Westshore's potash project, including the timing of payment and amount of Westshore's capital contribution to the project, Westshore's ability to fund and the sources of funding for Westshore's capital contribution to the project, the project schedule and expected completion date, and timing of meaningful revenue from handling potash; Westshore continuing to meet annual operating and capital requirements and payment of the dividend and managing variations in working capital without any need for financing except for material capital improvements; the absence of liquidity concerns with respect to the ongoing operations of Westshore; funding requirements of post-retirement benefit obligations; ability to extend its credit facility when it matures; assumptions in connection with critical accounting estimates; and share repurchases.

Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at which, such performance or results will be achieved. There is significant risk that estimates, predictions, forecasts, conclusions and projections will not prove to be accurate, that assumptions may not be correct and that actual results may differ materially from such estimates, predictions, forecasts, conclusions or projections. Readers of this MD&A should not place undue reliance on forward-looking statements as a number of risk factors could cause actual results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. Specific risk factors include, among others: Westshore's dependence on coal shipments, which are in turn affected by global demand and competition in the supply of seaborne coal, the ability of customers to maintain or increase sales or deliver coal to the Terminal and fluctuations in exchange rates; fluctuations in inflation rates; Westshore's ability to renegotiate key customer contracts in the future on favourable terms or at all; global changes in climate change initiatives and environmental regulations and policies; and risks related to the construction and operation of the potash project, including cost overruns and delays. See risk factors outlined in the Annual Information Form referred to above.

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The unaudited financial results along with management's discussion and analysis contained in this report should be read in conjunction with the Corporation's unaudited condensed consolidated financial statements for the three-month period ended March 31, 2025, and annual audited financial statements and management's discussion and analysis included in the Corporation's Annual Report for the year ended December 31, 2024. The date of this management's discussion and analysis and results of operations is May 2, 2025.

As of May 2, 2025, the Corporation has 61,769,766 (December 31, 2024 - 61,769,766) issued and outstanding shares. The Corporation renewed its normal course issuer bid ("NCIB") effective April 15, 2025 which allows the Corporation to purchase for cancellation up to 807,118 Common shares (approximately 2.5% of its "public float" (as defined in the TSX Company Manual)) in the following 12 months. Shareholders may contact the Corporation to request a copy of the Corporation's notice of intention to make a normal course issuer bid that was filed with the Toronto Stock Exchange.

No Common shares have been purchased under the NCIB during 2025 up to and including May 2, 2025. In 2024, a total of 744,909 Common shares were repurchased under the NCIB for a total of $17.7 million.

The following table sets out selected consolidated financial information of the Corporation for the three months ended March 31, 2025.

(In thousands of Canadian dollars except per share amounts and where noted) Three Months Ended

(1) Weighted average shares outstanding for the three-month period ended March 31, 2025 was 61,769,766 (March 31, 2024 -

62,514,675).

The following tables set out selected consolidated financial information for the Corporation on a quarterly basis for the last eight quarters.

(In thousands of Canadian dollars) Three Months Ended

Tonnage shipped for Q1 2025 was 5.9 million tonnes compared to 6.0 million tonnes for the same period in 2024. Of the tonnes shipped in Q1 2025, 63% was thermal coal and 37% was metallurgical coal, compared to 62% and 38% respectively for the same period in the prior year. Volumes were down 1.9% for the quarter (year over year) as a result of adverse weather that impacted our operations and logistics chain as well as weaker thermal coal prices and demand.

Coal loading revenue, consistent with lower tonnage shipped, decreased by 1.3% to $78.8 million for Q1 2025 compared to $79.8 million for the same period in 2024. The average loading rate in Q1 2025 was $13.35 per tonne compared to $13.27 per tonne through the same period in 2024.

Other revenue for Q1 2025 was $4.0 million compared to $4.9 million for Q1 2024. The amounts for both periods primarily consisted of wharfage fees and revenue relating to train and vessel operations.

Operating and administrative expenses increased by 6.1% to $62.9 million for Q1 2025 compared to $59.3 million for the same period in 2024 due to higher operating costs driven by inflation, timing of maintenance activities and logistics costs.

Foreign exchange gain of $0.5 million in Q1 of 2025 increased from a loss of $0.7 million in the same period of 2024. Q1 2025 included a $0.7 million unrealized gain on the mark to market of foreign exchange hedging contracts, compared to a $1.3 million unrealized loss in Q1 2024.

Net finance costs increased to $4.7 million in Q1 2025 from $3.8 million during the same period of 2024, primarily due to less interest income earned in the first quarter of 2025 compared to the first quarter of 2024 as a result of lower interest rates.

Income tax expense decreased to $4.3 million in Q1 2025 from $5.7 million in Q1 2024 due to lower profits before taxes.

Profit in the quarter decreased to $11.5 million in Q1 2025 from $15.2 million during the same period of 2024, as a result of lower revenues and higher operating and administrative costs.

Other comprehensive income or loss includes actuarial gains and losses on the defined benefit post-retirement obligations which are primarily impacted by the discount rate used, membership assumptions and the plan asset performance (relative to actuarial expectations).

After-tax other comprehensive income (loss) for the first quarter of 2025 decreased to a loss of $5.9 million from an income of $7.3 million in Q1 2024. The change in the first quarter of 2025 was primarily caused by a 0.25% decrease in the discount rate which increased the post-retirement obligations and plan assets performing worse than actuarial expectations. The change in the first quarter of 2024 was primarily caused by a 0.25% increase in the discount rate which decreased the post-retirement obligations and plan assets performing better than actuarial expectations.