Thunder Energy Trust
TSX : THY.UN

Thunder Energy Trust

January 31, 2007 19:03 ET

Thunder Energy Trust Releases 2006 Canadian Income Tax Information

CALGARY, ALBERTA--(CCNMatthews - Jan. 31, 2007) -

The information contained in the press release is based on Thunder Energy Trust's understanding of the Income Tax Act (Canada) and the regulations thereunder. Unitholders should consult their own tax advisors with respect to their particular circumstances.

Thunder Energy Trust (TSX:THY.UN) today issued the following information, which is intended to assist individual Canadian unitholders of Thunder Energy Trust ("Thunder") in the preparation of their 2006 T1 Income Tax Return.

Trust Units Held Within an RRSP, RRIF, RESP or DPSP

No amounts are required to be reported on the 2006 T1 Income Tax Return where the Thunder trust units are held within an RRSP, RRIF, RESP or DPSP.

Trust Units Held Outside of an RRSP, RRIF, RESP or DPSP

Unitholders who held their Thunder trust units outside of an RRSP, RRIF, RESP or DPSP, through a broker or other intermediary and received cash distributions during the period, will receive "T3 Supplementary" slips directly from their broker or intermediary, not from the transfer agent of Thunder. Registered unitholders of Thunder trust units who received cash distributions during the period from the transfer agent, Olympia Trust Company, (and not from a broker or intermediary), will receive "T3 Supplementary" slips directly from Olympia Trust Company. The deadline for mailing all T3 Supplementary Information slips as required by Canada Revenue Agency is March 31, 2007.

Under Paragraph 12(1)(m) of the Canadian Income Tax Act, taxable amounts allocated by Thunder in 2006 to the unitholders must be reported by the unitholders in their 2006 Income Tax Return.

The taxable amount of distributions (i.e. "Other Income" Box (26) and "Actual amount of dividends" Box (23) on the T3 slips) with respect to record dates from January 1, 2006 up to and including December 31, 2006 will be included in your "T3 Supplementary".

Holders of Thunder trust units who received distributions are required to reduce the Adjusted Cost Base of their units to the extent the distributions constituted a return of capital. The reduction is equal to the cumulative distributions minus cumulative taxable amounts reported as "Other Income" Box (26) and "Actual amount of dividends" Box (23) on their T3 slips. This amount will be included in Box (42) in your "T3 Supplementary".

The Adjusted Cost Base is used in calculating capital gains or losses on the disposition of the trust units where the owner holds the trust units as a capital property.

The attached "Schedule 1" includes supplementary information on the approximate taxable portion and the approximate tax deferred portion of the 2006 distributions, shown on a per unit basis.



Schedule 1:

---------------------------------------------------------------------------
Thunder Energy Trust
2006 - T3 Information for Canadian Residents
---------------------------------------------------------------------------
Taxable Tax Deferred
Total Amount Amount (Box 42)
Distribution (Box 26) Other Return of
Record Date Payment Date Paid Income Capital Amount
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Jan 23, 2006 Feb 15, 2006 0.15 0.13335 0.01665
---------------------------------------------------------------------------
Feb 22, 2006 Mar 15, 2006 0.15 0.13335 0.01665
---------------------------------------------------------------------------
Mar 22, 2006 Apr 17, 2006 0.15 0.13335 0.01665
---------------------------------------------------------------------------
Apr 24, 2006 May 15, 2006 0.15 0.13335 0.01665
---------------------------------------------------------------------------
May 23, 2006 Jun 15, 2006 0.12 0.10668 0.01332
---------------------------------------------------------------------------
Jun 22, 2006 Jul 17, 2006 0.12 0.10668 0.01332
---------------------------------------------------------------------------
Jul 24, 2006 Aug 15, 2006 0.12 0.10668 0.01332
---------------------------------------------------------------------------
Aug 22, 2006 Sep 15, 2006 0.12 0.10668 0.01332
---------------------------------------------------------------------------
Sep 22, 2006 Oct 16, 2006 0.12 0.10668 0.01332
---------------------------------------------------------------------------
Oct 23, 2006 Nov 15, 2006 0.12 0.10668 0.01332
---------------------------------------------------------------------------
Nov 22, 2006 Dec 15, 2006 0.12 0.10668 0.01332
---------------------------------------------------------------------------
Dec 29, 2006 Jan 15, 2007 0.12 0.10668 0.01332
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total Per Unit 1.56 1.38684 0.17316
---------------------------------------------------------------------------
---------------------------------------------------------------------------


Contact Information