ws Dear Limited Partner, WESTERN STANDARD PARTNERS QP, LP July 1, 2012 Performance for the month of June 2012 was +0.3% net of fees.' The index most comparable to Western Standard Partners QP, LP (the "partnership") is the Russell 2000, which was +5.0% for the month. cc c c 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% June r- 2012 Western Standard Russell 2000 • lune 2012 0.3% 5.0% Year to Date -2.6% -1.0% 1 • 500 4.1% 0.4% Return Since Mar 1, 2012 1.0% 0.0% -1.0% -2.0% -3.0% Cumulative Return • Western Standard Russell 2000 Msoo • Cumulative -2.6% -1.0% 0.4% C1212 Portfolio Attribution During Q212, the partnership had 60 positions that generated gains and 43 positions that generated losses. The average gain of the 60 winners was 0.6x the average loss of the 43 losers. While the partnership strives for a margin of safety in all positions, we recognize we can always be wrong and size positions such that a mistake is tolerable; our largest loss was 1.05% of capital, but our largest winner was 1.12% of capital for a ratio of 1.1x. Return (IQ Q212 Performance Attribution (Net Return: -1.5%) 600% 4.00% O 17 Common Equities ■ 41 Short Sales ■2 Bonds ■ 19 Short Sales 200% O24 Common Equities 0.00% -2.00% .400% -6.00% EFTA00307547