Underscores That the New Agreement Continues the Strategy, Management, and Competitive Fee Structure of the Existing Agreement

Highlights That the New Agreement Enables the Fund to Leverage Brookfield’s Global Scale and Resources and Deliver Enhanced Value for All Shareholders

Encourages Shareholders to Vote “FOR” All Ballot Items

Angel Oak Financial Strategies Income Term Trust (NYSE: FINS) (the “Fund”) announces that it has filed an investor presentation with the U.S. Securities and Exchange Commission in connection with the Fund’s Special Meeting of Shareholders (the “Special Meeting”) to be held on September 26, 2025.

The Fund’s Board of Trustees (the “Board”) recommends that shareholders vote “FOR” the approval of the Fund’s new investment advisory agreement (the “New Agreement”), which is substantially identical to the current investment advisory agreement.

Key Points of the Presentation:

• Shareholders are expected to benefit from the combination of Brookfield Asset Management Ltd.’s (“Brookfield”) scale and Angel Oak Capital Advisors, LLC’s (the “Adviser”) specialization in high-yield, investment-grade opportunities in the community banking sector.
  • While the Adviser will continue to operate independently under its existing leadership and investment processes, Brookfield’s scale and financial strength are expected to enhance the Adviser’s resources.
  • The New Agreement is expected to deliver benefits to all shareholders through the Adviser’s improved market access, balance sheet support, and potential synergies and collaboration between the Adviser and Brookfield.
• Shareholder approval of the New Agreement is essential to the Fund’s efforts to help investors achieve their long-term financial goals.
  • As of August 31, 2025, the Fund has outperformed its benchmark – the Bloomberg U.S. Aggregate Bond Index – over the 1-, 3-, and 5-year periods, as well as year to date and since inception.¹
  • An investment at the Fund’s initial net asset value (“NAV”) of $20 per share is now worth $24.07, including return of capital, compared to the benchmark’s value of $21.54.²
  • The Board has taken steps to improve the Fund’s trading discount to NAV, including increasing the distribution rate and growing the Fund to increase liquidity and trading volumes – as a result, the discount has narrowed to 3.9% as of August 31, 2025, which is one of the best in the Fund’s peer group.³
  • The Fund intends to maintain its level distribution policy at the new, higher distribution rate announced for August 2025.
• The Board is committed to acting in the best interest of all shareholders.
  • A majority of the Board is independent from the Adviser, empowering the Board to provide objective oversight of management.
    • Current interested trustee Clayton Triick will resign from the Board before the Brookfield transaction closes, which will further strengthen the Board’s independence from the Adviser.
  • The Board unanimously approved the New Agreement, and prior to voting on the New Agreement, the independent trustees reviewed it with independent legal counsel.
  • The Board values investor feedback and is dedicated to continuing open engagement with all shareholders.

HOW TO VOTE

Shareholders of record as of August 20, 2025, are entitled to vote at the Special Meeting. The Board recommends that shareholders vote “FOR” Proposal 1, which is the proposal to approve the New Agreement, and vote “FOR” Proposal 2, which is the proposal to approve any adjournments of the Special Meeting, if necessary or appropriate, for the purpose of soliciting additional proxies. ​Shareholders should promptly vote their shares “FOR” both proposals by following the instructions provided in their proxy materials, whether by internet, telephone, or mail.

If you have any questions or need assistance voting your shares, please contact the Fund’s proxy solicitor, EQ Fund Solutions, LLC, at 800-581-3783.

ABOUT FINS

Led by Angel Oak’s experienced financial services team, the Fund invests predominantly in U.S. financial sector debt as well as selective opportunities across financial sector preferred and common equity. Under normal circumstances, the Fund will invest at least 50% of the Fund’s portfolio in debt investments rated investment grade by nationally recognized statistical rating organizations, or if unrated, judged by Angel Oak to be of investment grade quality.

ABOUT ANGEL OAK CAPITAL ADVISORS, LLC

Angel Oak is an investment management firm focused on providing compelling fixed-income investment solutions to its clients. Backed by a value-driven approach, Angel Oak seeks to deliver attractive, risk-adjusted returns through a combination of stable current income and price appreciation. Its experienced investment team seeks the best opportunities in fixed income, with a specialization in mortgage-backed securities and other areas of structured credit.

On April 1, 2025, Angel Oak Companies, LP, the parent of Angel Oak Asset Management Holdings, LLC, itself the parent of the Adviser, announced that it signed a definitive agreement pursuant to which Brookfield will acquire a majority interest in Angel Oak Companies, LP and its subsidiaries, including the Adviser (the “Transaction”). The closing of the Transaction is expected to be completed by September 30, 2025. The Transaction is not expected to result in any material change in the day-to-day management and operations of the Fund or any increase in fees. However, the closing of the Transaction is subject to certain conditions, and there can be no assurance that the Transaction will be completed as planned, or that the necessary conditions will be satisfied. If successful, the closing of the Transaction would be deemed to be a change of “control” of Angel Oak Companies, LP and its subsidiaries (collectively, the “Angel Oak Companies”) under the Investment Company Act of 1940, and deemed an “assignment” of the Fund’s investment advisory agreement (the “Existing Advisory Agreement”), which would result in the automatic termination of the Existing Advisory Agreement. However, following the closing of the Transaction, the existing management team of the Angel Oak Companies will continue to independently manage the day-to-day business of the Angel Oak Companies and the Adviser, and will control the boards of directors of the Angel Oak Companies.

Information regarding the Fund and the Adviser can be found at www.angeloakcapital.com.

Past performance is neither indicative nor a guarantee of future results. Investors should carefully consider the Fund’s investment objective and policies, risk considerations, charges and ongoing expenses of an investment before investing. For more information, please contact your investment representative or EQ Fund Solutions, LLC, the Fund’s proxy solicitor, at 800-581-3783.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this release constitute forward-looking statements. Forward-looking statements can be identified by the words “may,” “will,” “intend,” “expect,” “continue,” “plan,” and similar terms and the negative of such terms. These statements involve known and unknown risks, uncertainties and other factors that may cause the Fund’s actual results or level of performance to be materially different from any future results or level of performance expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors that could materially affect the Fund’s actual results include, among others, the performance of the portfolio of securities the Fund holds, the price at which the Fund’s securities trade in the public markets and other factors discussed in the Fund’s periodic filings with the U.S. Securities and Exchange Commission. As a result of these and other factors, the Fund cannot give you any assurances as to its future results or level of performance, and neither the Fund nor any other person assumes responsibility for the accuracy and completeness of such statements. Although the expectations expressed in the forward-looking statements are believed to be reasonable, actual results could differ materially from those projected or assumed in the forward-looking statements. Except for ongoing obligations under the federal securities laws, the Fund does not intend, and undertakes no obligation, to publicly update or revise any forward-looking statements made in this release.

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