NORANDA INCOME FUND
TSX : NIF.UN

NORANDA INCOME FUND

June 19, 2009 08:00 ET

Noranda Income Fund Announces Its June Cash Distribution of 4 Cents Per Priority Unit

20% Reduction in Sulphuric Acid and Zinc Production to Continue in July

VALLEYFIELD, QUEBEC--(Marketwire - June 19, 2009) - The Noranda Income Fund (the "Fund") (TSX:NIF.UN) announced today its monthly distribution for the month of June 2009 of $0.04 per unit. The distribution will be payable on July 27, 2009 to Priority Unitholders of record at the close of business on June 30, 2009.

In February, the Fund had received notice from its sales agent, Xstrata Canada Corporation that it was unable to arrange for sales and/or temporary storage for sulphuric acid in quantities equal to the normal rate of production due to weak demand. As a result, since the beginning of March, production of sulphuric acid and zinc has been reduced by approximately 20% from 2008 levels. This reduced production level will continue for the month of July.

The reduction in production will negatively impact the Fund's profitability and cash flow. The Fund is unable to predict with any certainty the expected duration of weak demand for sulphuric acid.

Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol "NIF.UN". The Noranda Income Fund owns the CEZinc processing facility and ancillary assets (the "CEZinc processing facility") located in Salaberry-de-Valleyfield, Quebec. The CEZinc processing facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America, where the majority of its customers are located. It produces refined zinc metal and various by-products from zinc concentrates purchased from mining operations. The Processing Facility is operated and managed by Canadian Electrolytic Zinc Limited.

Further information about the Noranda Income Fund can be found at www.norandaincomefund.com

Contact Information

  • Financial information: Noranda Income Fund
    Michael Boone
    Vice President & Chief Financial Officer of Canadian
    Electrolytic Zinc Limited, Noranda Income Fund's Manager
    416-775-1561
    mboone@xstrata.ca