Obligation ScotiaBank 3% ( US064159BY12 ) en USD

ScotiaBank

100 % ▲

Canada

US064159BY12 ( en USD )

3% par an ( paiement semestriel )

17/04/2023 - Obligation échue

Prospectus brochure de l'obligation Bank of Nova Scotia US064159BY12 en USD 3%, échue

1 000 USD

31 500 000 USD

064159BY1

A+ ( Qualité moyenne supérieure )

Aa2 ( Haute qualité )

La Banque de Nouvelle-Écosse (Scotiabank) est une banque multinationale canadienne offrant une vaste gamme de services financiers personnels et commerciaux à travers les Amériques, en Europe et en Asie-Pacifique.

L'obligation US064159BY12 émise par la Bank of Nova Scotia (Canada), d'un montant total de 31 500 000 USD, avec un coupon de 3%, échéant le 17/04/2023, a été intégralement remboursée à son prix nominal de 100%, avec une taille minimale d'achat de 1000 USD et une fréquence de paiement semestrielle, et bénéficiant de notations S&P A+ et Moody's Aa2.

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424B2 1 e53167_424b2.htm PRICING SUPPLEMENT

Filed Pursuant to Rule 424(b)(2)

Registration No. 333-185049

Pricing Supplement dated April 12, 2013 to the
Prospectus dated December 28, 2012
Prospectus Supplement dated December 28, 2012 and Product Prospectus Supplement (Rate Linked Notes, Series A) dated December 28, 2012

The Bank of Nova Scotia
$31,500,000
Capped Fixed-to-Floating Rate Notes, Series A
Due April 17, 2023
· 100% repayment of principal at maturity, subject to the credit risk of the Bank
· Fixed Interest Rate of 3.00% per annum for the first six quarterly Interest Periods
· 10-year stated term
· Floating Interest Rate of 3-month USD LIBOR plus 0.75%, subject to a cap of 5.00% thereafter
· Quarterly interest payments

The Capped Fixed-to-Floating Rate Notes, Series A Due April 17, 2023 (the "Notes") offered hereunder are unsecured obligations of The Bank of Nova Scotia and are subject to
investment risks including possible loss of the Principal Amount invested due to the credit risk of The Bank of Nova Scotia. As used in this pricing supplement, the "Bank,"
"we," "us" or "our" refers to The Bank of Nova Scotia.
The Notes wil not be listed on any securities exchange or automated quotation system.
NEITHER THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION ("SEC") NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF
THE NOTES OR PASSED UPON THE ACCURACY OR THE ADEQUACY OF THIS DOCUMENT, THE ACCOMPANYING PROSPECTUS, PROSPECTUS SUPPLEMENT OR
PRODUCT PROSPECTUS SUPPLEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE NOTES ARE NOT INSURED BY THE CANADA DEPOSIT
INSURANCE CORPORATION PURSUANT TO THE CANADA DEPOSIT INSURANCE CORPORATION ACT, THE UNITED STATES FEDERAL DEPOSIT INSURANCE
CORPORATION, OR ANY OTHER GOVERNMENTAL AGENCY OF CANADA, THE UNITED STATES OR ANY OTHER JURISDICTION.
Scotia Capital (USA) Inc., our affiliate, wil purchase the Notes from us for distribution to other registered broker-dealers or wil offer the Notes directly to investors. Scotia Capital (USA) Inc. or
any of its affiliates or agents may use this pricing supplement in market-making transactions in the Notes after their initial sale. Unless we, Scotia Capital (USA) Inc. or another of its affiliates or
agents selling such Notes to you informs you otherwise in the confirmation of sale, this pricing supplement is being used in a market-making transaction. See "Supplemental Plan of Distribution
(Conflicts of Interest)" in this pricing supplement and "Supplemental Plan of Distribution" on page PS-32 of the accompanying product prospectus supplement.
Investment in the Notes involves certain risks. You should refer to "Additional Risk Factors" in this pricing supplement and "Additional Risk Factors Specific to the Notes"
beginning on page PS-5 of the accompanying product prospectus supplement and "Risk Factors" beginning on page S-2 of the accompanying prospectus supplement.

Per Note
Total
Price to public
100.00%
$31,500,000.00
Underwriting commissions1
1.548413%
$487,750.00
Proceeds to The Bank of Nova Scotia2
98.451587%
$31,012,250.00
The difference between the estimated value of your Notes and the original issue price reflects costs that the Bank or its affiliates expect to incur and profits that the Bank or its affiliates expect to
realize in connection with hedging activities related to the Notes. These costs and profits wil likely reduce the secondary market price, if any secondary market develops, for the Notes. As a
result, you may experience an immediate and substantial decline in the market value of your Notes on the Trade Date and you may lose all or a substantial portion of your initial investment. The
Bank's profit in relation to the Notes wil vary based on the difference between (i) the amounts received by the Bank in connection with the issuance and the reinvestment return received by the
Bank in connection with those funds and (ii) the costs incurred by the Bank in connection with the issuance of the notes and the hedging transactions. The Bank wil also realize a profit that wil be
based on the (i) cost of creating and maintaining the hedging transactions minus (ii) the payments received on the hedging transactions.
We wil deliver the Notes in book-entry form through the facilities of The Depository Trust Company ("DTC") on or about April 17, 2013 against payment in immediately available funds.
Scotia Capital (USA) Inc.

1 Scotia Capital (USA) Inc. or one of our affiliates wil purchase the Notes at the Principal Amount and as part of the distribution of the Notes wil pay varying discounts and underwriting
commissions of up to $18.50 per $1,000 Principal Amount of Notes in connection with the distribution of the Notes. Scotia Capital (USA) Inc. wil also receive a structuring and development
fee of up to $2.35 per $1,000 Principal Amount of Notes. See "Supplemental Plan of Distribution (Conflicts of Interest)" in this pricing supplement.
2 Excludes profits from hedging. For additional considerations relating to hedging activities see "Additional Risk Factors--The Inclusion of Dealer Spread and Projected Profit from Hedging in
the Original Issue Price is Likely to Adversely Affect Secondary Market Prices" in this pricing supplement.

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SUMMARY
The information in this "Summary" section is qualified by the more detailed information set forth in this pricing supplement, the prospectus, the
prospectus supplement and the product prospectus supplement, each filed with the SEC. See "Additional Terms of Your Notes" in this pricing
supplement.
Issuer:
The Bank of Nova Scotia (the "Issuer" or the "Bank")
CUSIP/ISIN:
CUSIP 064159BY1 / ISIN US064159BY12
Type of Note:
Capped Fixed-to-Floating Rate Notes, Series A
Minimum Investment:
$1,000
Denominations:
$1,000 and integral multiples of $1,000 in excess thereof
Principal Amount:
$1,000 per Note
Currency:
U.S. Dol ars
Trade Date:
April 12, 2013
Pricing Date:
April 12, 2013
Original Issue Date:
April 17, 2013
Maturity Date:
April 17, 2023
Business Day:
Any day which is neither a legal holiday nor a day on which banking institutions are authorized or obligated by law,
regulation or executive order to close in New York and Toronto.
Interest Period:
For each Interest Payment Date, the quarterly period from, and including, the previous Interest Payment Date (or the
Original Issue Date in the case of the first Interest Payment Date) to, but excluding, the applicable Interest Payment
Date.
Fixed and Floating Interest
The Notes wil bear interest at the Fixed Interest Rate for the first six quarterly Interest Periods and at the Floating
Periods:
Interest Rate thereafter, subject to a Maximum Rate/Cap of 5.00%.
Fixed Interest Rate:
3.00% per annum
Floating Interest Rate:
During the Interest Periods when a floating interest rate is paid, the Notes are capped. The floating interest rate
payable on the Notes during any such Interest Period wil equal the lesser of (a) LIBOR + the Spread and (b) the
Maximum Rate/Cap.
The Notes wil also be subject to a minimum rate of 0.00% (the "Minimum Rate").
Spread:
75 basis points (0.75)%
Maximum Rate/Cap:
5.00% per annum
Interest Payment Dates:
Quarterly payments made on the 17th calendar day of each January, April, July and October commencing July 17,
2013 and ending on the Maturity Date.
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If these days are not Business Days, interest wil actual y be paid on the dates determined as described below.
LIBOR:
The offered rate appearing on the Reference Page as of 11:00 a.m., London time, on the LIBOR Interest
Determination Date, for deposits of U.S. Dol ars having the Index Maturity.
Index Maturity:
Three months
Reference Page
Reuters page LIBOR01
LIBOR Interest Determination The second London Business Day preceding the relevant Interest Reset Date (regardless of whether such Interest
Dates:
Reset Date is a Business Day).
London Business Day:
A Monday, Tuesday, Wednesday, Thursday or Friday that is neither a legal holiday nor a day on which banking
institutions are authorized or required by law, regulation or executive order to close, in London.
Interest Reset Dates:
Each Interest Payment Date (regardless of whether such day is a Business Day or London Business Day)
Day Count Fraction:
30/360, unadjusted, fol owing business day convention (al as more ful y described below).
Form of Notes:
Book-entry
Calculation Agent:
Scotia Capital Inc., an affiliate of the Bank
Status:
The Notes wil constitute direct, unsubordinated and unsecured obligations of the Bank ranking pari passu with al
other direct, unsecured and unsubordinated indebtedness of the Bank from time to time outstanding (except as
otherwise prescribed by law). Holders wil not have the benefit of any insurance under the provisions of the Canada
Deposit Insurance Corporation Act, the U.S. Federal Deposit Insurance Act or under any other deposit insurance
regime
Tax Redemption:
The Bank (or its successor) may redeem the Notes, in whole but not in part, at a redemption price equal to the
Principal Amount thereof together with accrued and unpaid interest to the date fixed for redemption, if it is determined
that changes in tax laws or their interpretation wil result in the Bank (or its successor) becoming obligated to pay, on
the next Interest Payment Date, additional amounts with respect to the Notes. See "Tax Redemption" in this pricing
supplement.
Listing:
The Notes wil not be listed on any securities exchange or quotation system
Use of Proceeds:
General corporate purposes
Clearance and Settlement:
Depository Trust Company
Terms Incorporated:
Al of the terms appearing under the caption "General Terms of the Notes" beginning on page PS-10 in the
accompanying product prospectus supplement, as modified by this pricing supplement

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ADDITIONAL TERMS OF YOUR NOTES
You should read this pricing supplement together with the prospectus dated December 28, 2012, as supplemented by the prospectus supplement
dated December 28, 2012 and the product prospectus supplement (Rate Linked Notes, Series A) dated December 28, 2012, relating to our Senior
Note Program, Series A, of which these Notes are a part. Capitalized terms used but not defined in this pricing supplement wil have the meanings given
to them in the product prospectus supplement. In the event of any conflict, this pricing supplement wil control. The Notes may vary from the terms
described in the accompanying product prospectus supplement in several important ways. You should read this pricing supplement
carefully.

This pricing supplement, together with the documents listed below, contains the terms of the Notes and supersedes all prior or contemporaneous oral
statements as wel as any other written materials including preliminary or indicative pricing terms, correspondence, trade ideas, structures for
implementation, sample structures, brochures or other educational materials of ours. You should careful y consider, among other things, the matters set
forth in "Additional Risk Factors Specific to the Notes" in the accompanying product prospectus supplement, as the Notes involve risks not associated
with conventional debt securities. We urge you to consult your investment, legal, tax, accounting and other advisors before you invest in the Notes. You
may access these documents on the SEC website at www.sec.gov as fol ows (or if that address has changed, by reviewing our filings for the relevant
date on the SEC website at
http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000009631):

Prospectus dated December 28, 2012:
http://www.sec.gov/Archives/edgar/data/9631/000119312512518291/d459446d424b3.htm

Prospectus Supplement dated December 28, 2012:
http://www.sec.gov/Archives/edgar/data/9631/000119312512518324/d457877d424b3.htm

Product Prospectus Supplement (Rate Linked Notes, Series A), dated December 28, 2012
http://sec.gov/Archives/edgar/data/9631/000119312512518374/d457891d424b5.htm

The Bank of Nova Scotia has filed a registration statement (including a prospectus, a prospectus supplement, and a product prospectus
supplement) with the SEC for the offering to which this pricing supplement relates. Before you invest, you should read those documents
and the other documents relating to this offering that we have filed with the SEC for more complete information about us and this
offering. You may obtain these documents without cost by visiting EDGAR on the SEC Website at www.sec.gov. Alternatively, The Bank of
Nova Scotia, any agent or any dealer participating in this offering will arrange to send you the prospectus, the prospectus supplement and
the product prospectus supplement if you so request by calling 1-416-866-3672.

PAYMENT AT MATURITY
We wil pay you the Principal Amount of your Notes on the Maturity Date, plus the final interest payment.

In the event that the stated Maturity Date is not a Business Day, then relevant repayment of principal wil be made on the next Business Day, regardless
of whether such Business Day fal s in the month fol owing that in which the stated Maturity Date would otherwise have fal en (" fol owing business day
convention").

INTEREST
The Notes are fixed-to-floating notes. The Fixed Interest Rate wil apply for the first six quarterly Interest Periods and wil be 3.00% per annum. The
Floating Interest Rate wil apply thereafter and wil equal LIBOR plus the Spread of 75 basis points (0.75%), subject to a Minimum Rate of 0.00% and a
Maximum Rate/Cap of 5.00% thereafter.

We describe payments as being based on a "day count fraction" of 30/360, unadjusted, "following business day convention".
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This means that the number of days in the Interest Period wil be based on a 360-day year of twelve 30-day months ("30/360") and that the number of
days in the Interest Period wil be based on the days on which interest would have been paid if each such day was a Business Day, not on the actual
days on which payment is made ("unadjusted").

If any Interest Payment Date fal s on a day that is not a Business Day (including any Interest Payment Date that is also the Maturity Date), the relevant
payment of interest wil be made in accordance with the fol owing business day convention.

Notwithstanding anything in the Prospectus, Prospectus Supplement, or Product Prospectus Supplement:

· the "Interest Reset Date" wil be the stated Interest Payment Date, not the third Wednesday of the month, and the Interest Reset Date wil occur
on that date even if it is not a Business Day. See "Description of the Notes--Interest Rates--Interest Reset Dates" in the Prospectus Supplement.
Thus, the deposits on which LIBOR is based may not, in fact, commence on the relevant Interest Reset Date. See "Description of the Notes--
Interest Rates--LIBOR Notes" in the Supplement.
· the "Interest Payment Dates" wil be the Interest Payment Dates specified above. See "Description of the Notes--Interest Rates--Interest
Payment Dates" in the Prospectus Supplement.
· regardless of whether the Notes are paying a fixed or floating rate of interest, if the Interest Payment Date would otherwise fal on a day that is not
a Business Day and the next Business Day fal s in the next calendar month, then the Interest Payment Date wil stil be advanced to the next day
that is a Business Day. See "Description of the Notes--Interest Rates--Interest Payment Dates" in the Prospectus Supplement.

EVENTS OF DEFAULT AND ACCELERATION
If the Notes have become immediately due and payable fol owing an Event of Default (as defined in the accompanying prospectus) with respect to the
Notes, the Calculation Agent wil determine (i) your Principal Amount and (i ) any accrued but unpaid interest payable based upon the then-applicable
interest rate calculated on the basis of a 360-day year consisting of twelve 30-day months.

If the Notes have become immediately due and payable fol owing an Event of Default, you wil not be entitled to any additional payments with respect to
the Notes. For more information, see "Description of the Debt Securities We May Offer -- Events of Default" beginning on Page 21 of the
accompanying prospectus.

TAX REDEMPTION
The Bank (or its successor) may redeem the Notes, in whole but not in part, at a redemption price equal to the Principal Amount thereof together with
accrued and unpaid interest to the date fixed for redemption, upon the giving of a notice as described below, if:

· as a result of any change (including any announced prospective change) in or amendment to the laws (or any regulations or rulings promulgated
thereunder) of Canada (or the jurisdiction of organization of the successor to the Bank) or of any political subdivision or taxing authority thereof or
therein affecting taxation, or any change in official position regarding the application or interpretation of such laws, regulations or rulings (including a
holding by a court of competent jurisdiction), which change or amendment is announced or becomes effective on or after the Pricing Date (or, in the
case of a successor to the Bank, after the date of succession), and which in the written opinion to the Bank (or its successor) of legal counsel of
recognized standing has resulted or wil result (assuming, in the case of any announced prospective change, that such announced change wil
become effective as of the date specified in such announcement and in the form announced) in the Bank (or its successor) becoming obligated to
pay, on the next succeeding date on which interest is due, additional amounts with respect to the Notes; or

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· on or after the Pricing Date (or, in the case of a successor to the Bank, after the date of succession), any action has been taken by any taxing
authority of, or any decision has been rendered by a court of competent jurisdiction in, Canada (or the jurisdiction of organization of the successor
to the Bank) or any political subdivision or taxing authority thereof or therein, including any of those actions specified in the paragraph immediately
above, whether or not such action was taken or decision was rendered with respect to the Bank (or its successor), or any change, amendment,
application or interpretation shal be officially proposed, which, in any such case, in the written opinion to the Bank (or its successor) of legal
counsel of recognized standing, wil result (assuming, in the case of any announced prospective change, that such announced change wil become
effective as of the date specified in such announcement and in the form announced) in the Bank (or its successor) becoming obligated to pay, on
the next succeeding date on which interest is due, additional amounts with respect to the Notes;

and, in any such case, the Bank (or its successor), in its business judgment, determines that such obligation cannot be avoided by the use of
reasonable measures available to it (or its successor).

In the event the Bank elects to redeem the Notes pursuant to the provisions set forth in the preceding paragraph, it shal deliver to the Trustees a
certificate, signed by an authorized officer, stating (i) that the Bank is entitled to redeem such Notes pursuant to their terms and (ii) the Principal Amount
of the Notes to be redeemed.

Notice of intention to redeem such Notes wil be given to holders of the Notes not more than 45 nor less than 30 days prior to the date fixed for
redemption and such notice wil specify, among other things, the date fixed for redemption and the redemption price.

ADDITIONAL RISK FACTORS
An investment in the Notes involves significant risks. In addition to the fol owing risks included in this pricing supplement, we urge you to read "Additional
Risk Factors Specific to the Notes" beginning on page PS-5 of the accompanying product prospectus supplement and "Risk Factors" beginning on page
S-2 of the accompanying prospectus supplement and on page 6 of the accompanying prospectus.

You should understand the risks of investing in the Notes and should reach an investment decision only after careful consideration, with your advisers, of
the suitability of the Notes in light of your particular financial circumstances and the information set forth in this pricing supplement and the
accompanying prospectus, prospectus supplement and product prospectus supplement.

After the First Six Quarterly Interest Periods, the Amount of Each Interest Payment on an Interest Payment Date is Variable and may be
0.00% Per Annum.

Fol owing the first six quarterly Interest Periods, you wil receive interest on the applicable Interest Payment Date based on a rate per annum equal to
the LIBOR fixed on the corresponding Interest Determination Date plus Spread of 75 basis points (0.75)%, subject to the Maximum Rate/Cap of 5.00%
thereafter. While the interest rate applicable to each Interest Payment Date after the first six quarterly Interest Periods wil fluctuate because it is
based on the floating rate of LIBOR, the interest rate for any Interest Payment Date wil not be greater than the Maximum Rate/Cap of 5.00%.

Interest Rate Risk

General y, when market interest rates rise, the prices of debt obligations fal , and vice versa. This risk may be particularly acute because market
interest rates are currently at historically low levels. The prices of long-term debt obligations general y fluctuate more than prices of short-term debt
obligations as interest rates change. The Notes are a long-term investment in a Fixed Interest Rate for the first eight quarterly Interest Periods and a
Floating Interest Rate for the remaining Interest Periods. However, the Floating Interest Rate wil become fixed if it rises above the Maximum Rate/Cap.
Fixed Interest Rate instruments are general y more sensitive to market interest rate changes, however floating rate instruments may nevertheless
decline in value in response to market interest rate changes. Therefore, an increase in market interest rates wil adversely affect the value of your
Notes.
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The Interest Rate for Each Interest Payment Date is limited by the Maximum Rate/Cap.

For each Interest Payment Date during the period when the Note bears a Floating Interest Rate, the Floating Interest Rate wil be capped at the
Maximum Rate/Cap of 5.00%. As a result, you wil not participate in any increase in LIBOR in excess of 4.25% (the Maximum Rate/Cap less the
Spread of 75 basis points (0.75%)). THE INTEREST RATE FOR EACH SUCH INTEREST PAYMENT DATE WILL NOT BE GREATER THAN THE
MAXIMUM RATE/CAP.

As a result of the fact that the quarterly interest rate may not be greater than the Maximum Rate/Cap, you wil not be ful y compensated for any loss in
value due to inflation and other factors relating to the value of money over time. You should consider, among other things, the overall potential annual
interest rate of the Notes (taking the Maximum Rate/Cap into account) as compared to other investment alternatives.

Repayment of Principal Only at Maturity.

The Notes offer repayment of principal only if you hold your Notes until the Maturity Date.

LIBOR, and Therefore the Value of the Notes, May be Volatile and Will Be Affected by a Number of Factors.

LIBOR, and therefore the value of the Notes is subject to volatility due to a variety of factors, including but not limited to:

·
interest and yield rates in the market,
·
changes in, or perceptions about future LIBOR rates,
·
general economic conditions,
·
policies of the U.S. Federal Reserve Board regarding interest rates,
·
supply and demand among banks in London for U.S. dol ar-denominated deposits with the relevant term,
·
sentiment regarding underlying strength in the U.S. and global economies,
·
expectations regarding the level of price inflation,
·
sentiment regarding credit quality in the U.S. and global credit markets,
·
inflation and expectations concerning inflation,
·
performance of capital markets,
·
geopolitical conditions and economic, financial, political, regulatory or judicial events that affect markets general y and that may affect LIBOR.

The impact of any of the factors set forth above may enhance or offset some or al of the changes resulting from another factor or factors. A lower
LIBOR wil result in the corresponding interest rate decreasing, but in no case wil the interest rate be greater than the Maximum Rate/Cap of 5.00%.

Changes in Banks' Inter-Bank Lending Rate Reporting Practices or Method Pursuant to which the LIBOR Rates are determined may
adversely affect the Value of Your Notes.

Beginning in 2008, concerns have been raised that some of the member banks surveyed by the British Bankers' Association (the "BBA") in connection
with the calculation of daily LIBOR rates may have been under-reporting the inter-bank lending rate applicable to them in order to avoid an appearance
of capital insufficiency or adverse reputational or other consequences that may result from reporting higher inter-bank lending rates. Inquiries remain
ongoing, including investigations by regulators and governmental authorities in various jurisdictions, and if such under-reporting occurred, it may have
resulted in the LIBOR rate being artificially low. If any such under-reporting still exists and some or al of the member banks discontinue such practice,
there may be a resulting sudden or prolonged upward movement in LIBOR rates. In addition, in August 2008 the BBA announced that it was changing
the LIBOR rate-fixing process by increasing the number of banks surveyed to set the LIBOR rate. The BBA has taken steps intended to strengthen the
oversight of the process and review biannual y the composition of the panels of banks surveyed to set the LIBOR rate. Any changes in the method
pursuant to which the LIBOR rates are determined, or the development of a widespread market view that LIBOR rates have been or are being
manipulated by members of the bank panel, may result in a sudden or prolonged increase or decrease in the reported LIBOR rates. You may
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not benefit from such increase in LIBOR rates because the interest on your Notes is subject to a Maximum Rate/Cap. As a result, the amount of
interest payable for each of your Notes may be significantly less than it would have been had you invested in a similar investment not subject to a cap.

The Notes are Not Ordinary Debt Securities.

The Notes have certain investment characteristics that differ from traditional fixed income securities. Specifically, the performance of the Notes wil not
track the same price movements as traditional interest rate products. A person should reach a decision to invest in the Notes after careful y considering,
with his or her advisors, the suitability of the Notes in light of his or her investment objectives and the information set out in the above terms of the
offering. The Issuer does not make any recommendation as to whether the Notes are a suitable investment for any person.

Historical Levels of the 3-Month USD LIBOR do not guarantee Future Levels.

The 3-Month USD LIBOR historical levels do not guarantee future levels of the 3-Month USD LIBOR. It is not possible to predict whether the levels of
the 3-Month USD LIBOR wil rise or fal during the term of the Notes.

3-Month USD LIBOR as of any LIBOR Interest Determination Date may be less than 3-Month USD LIBOR as of any Other Day during the
Term of the Notes.

Because 3-Month USD LIBOR for any relevant Interest Period wil be determined solely as of two London Business Days prior to the previous Interest
Reset Date, 3-Month USD LIBOR wil not be considered on any other dates during the term of the Notes. Therefore, even if 3-Month USD LIBOR as of
any day that is not the LIBOR Interest Determination Date for the applicable Interest Period is higher than 3-Month USD LIBOR as of such LIBOR
Interest Determination Date, the amount of interest on the corresponding Interest Payment Date wil not take into account that higher level.

Your Yield may be lower than the Yield on Other Debt Securities of Comparable Maturity.

The yield that you wil receive on your Notes may be less than the return you could earn on other investments. The interest payable for (i) any of the
first 6 (six) Interest Periods is based on a rate of 3.00% per annum, and (i ) any of the remaining Interest Periods is linked to the 3-Month USD LIBOR
as of the applicable Interest Reset Date plus 0.75% (subject to the Maximum Rate/Cap). If there is a decline in the 3-Month USD LIBOR over the term
of your Notes, the effective yield on your Notes for such Interest Period may be less than that which would be payable on a conventional fixed-rate debt
security with the same Stated Maturity Date, including those of the Issuer. Your investment may not reflect the ful opportunity cost to you when you
take into account factors that affect the time value of money.

Your Investment is Subject to the Credit Risk of The Bank of Nova Scotia.

The Notes are senior unsecured debt obligations of The Bank of Nova Scotia, and are not, either directly or indirectly, an obligation of any third party.
As further described in the accompanying prospectus, prospectus supplement and product prospectus supplement, the Notes will rank on par with all of
the other unsecured and unsubordinated debt obligations of The Bank of Nova Scotia, except such obligations as may be preferred by operation of
law. Any payment to be made on the Notes, including the return of the Principal Amount at maturity, depends on the ability of The Bank of Nova Scotia
to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of The Bank of Nova Scotia may affect the market
value of the Notes and, in the event The Bank of Nova Scotia were to default on its obligations, you may not receive the amounts owed to you under the
terms of the Notes.

The Price at Which the Notes may be sold prior to Maturity will depend on a Number of Factors and May Be Substantially Less Than the
Amount for Which They Were Originally Purchased.

The price at which the Notes may be sold prior to maturity wil depend on a number of factors. Some of these factors include, but are not limited to: (i)
volatility of the level of interest rates and the market's perception of future volatility of the level of
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interest rates, (i ) changes in interest rates generally, (i i) any actual or anticipated changes in our credit ratings or credit spreads, and (iv) time
remaining to maturity.

Depending on the actual or anticipated level of interest rates, the market value of the Notes may decrease and you may receive substantially less than
100% of the issue price if you sel your Notes prior to maturity.

The Inclusion of Dealer Spread and Projected Profit from Hedging in the Original Issue Price is Likely to Adversely Affect Secondary Market
Prices.

Assuming no change in market conditions or any other relevant factors, the price, if any, at which Scotia Capital (USA) Inc. or any other party is willing
to purchase the Notes at any time in secondary market transactions wil likely be significantly lower than the original issue price, since secondary
market prices are likely to exclude underwriting commissions paid with respect to the Notes and the cost of hedging our obligations under the Notes that
are included in the original issue price. The cost of hedging includes the projected profit that we and/or our subsidiaries may realize in consideration for
assuming the risks inherent in managing the hedging transactions. These secondary market prices are also likely to be reduced by the costs of
unwinding the related hedging transactions. In addition, any secondary market prices may differ from values determined by pricing models used by
Scotia Capital (USA) Inc. as a result of dealer discounts, mark-ups or other transaction costs.

The Notes Lack Liquidity.

The Notes wil not be listed on any securities exchange or automated quotation system. Therefore, there may be little or no secondary market for the
Notes. Scotia Capital (USA) Inc. or any other dealer may, but is not obligated to, make a market in the Notes. Even if there is a secondary market, it
may not provide enough liquidity to allow you to trade or sel the Notes easily. Because we do not expect that other broker-dealers wil participate
significantly in the secondary market for the Notes, the price at which you may be able to trade your Notes is likely to depend on the price, if any, at
which Scotia Capital (USA) Inc. or any other dealer is wil ing to purchase the Notes from you. If at any time Scotia Capital (USA) Inc. or any other
dealer were not to make a market in the Notes, it is likely that there would be no secondary market for the Notes. Accordingly, you should be wil ing to
hold your Notes to maturity.

We, our Subsidiaries, or Affiliates may Publish Research that Could Affect the Market Value of the Notes. We also expect to Hedge Our
Obligations under the Notes.

We or one or more of our affiliates may, at present or in the future, publish research reports with respect to movements in interest rates general y. This
research is modified from time to time without notice and may express opinions or provide recommendations that are inconsistent with purchasing or
holding the Notes. Any of these activities may affect the market value of the Notes. In addition, our subsidiaries expect to hedge our obligations under
the Notes and they may realize a profit from that expected hedging activity even if investors do not receive a favorable investment return under the
terms of the Notes or in any secondary market transaction.

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http://www.sec.gov/Archives/edgar/data/9631/000089109213003319/e5...
HISTORICAL PERFORMANCE OF LIBOR
Historical y, LIBOR has experienced significant fluctuations. Any historical upward or downward trend in the level of LIBOR during any period shown
below is not an indication that the interest payable on the Notes is more or less likely to increase or decrease at any time during the floating rate period.

The Floating Interest Rate was 0.2776% on April 12, 2013. The graph below sets forth the historical performance of the Floating Interest Rate from
January 1, 2003 through April 12, 2013. Past performance of the 3-Month USD LIBOR is not indicative of future performance of the 3-Month
USD LIBOR.

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