Dominion Citrus Income Fund

Dominion Citrus Income Fund
Dominion Citrus Limited

Dominion Citrus Limited

June 16, 2011 17:38 ET

Dominion Citrus Income Fund (TSX:DOM.UN) and Dominion Citrus Limited (TSX:DMN.PR.A): Insurance Proceeds/Amendments to Credit Facility/Rights Offering Update

TORONTO, ONTARIO--(Marketwire - June 16, 2011) - Dominion Citrus Income Fund (the "Fund")(TSX:DOM.UN) and Dominion Citrus Limited ("DCL")(TSX:DMN.PR.A)(together the "Company" or "Dominion") jointly announce an agreement with one of their main insurers for payment to the Company of $712,106.65 in insurance proceeds. In January 2011 the Company identified a long trail of suspicious transactions over the years 2003 to 2010, originated by a then existing finance employee. The Company has conducted a formal investigation which culminated in a proof of loss being submitted to its insurer under its crime insurance bond. After review and investigation by the insurer, it was determined that the events qualified for restitution to the Company. The Company has executed a release and subrogation agreement and awaits final payment within 30 days.

The Fund and DCL also jointly announce an agreement with Dominion's principal bank to amend the Company's credit facility by reducing the limit to the amounts of the two letters of credit currently outstanding of $482,000. This limit will be further reduced as and when the letters of credit expire and then cancelled in its entirety by October 1, 2011. The facility has not been drawn upon over the last two years.

Given the insurance proceeds and operating improvements at DCL, the Fund has determined that the Rights Offering, as first announced in December 2010, will be foregone at this time. The Company presently feels that it has the liquidity in place to execute on its 2011 business plan.

Caution regarding Forward-Looking Statements

This release contains statements, which, to the extent that they are not a recitation of historical fact, may constitute "forward-looking statements". Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or performance, or our underlying assumptions. The words "estimate", "anticipate", "believe", "expect", "intend" or other similar expressions of future or conditional verbs such as "will", "should", "would" and "could" are intended to identify forward- looking statements. Persons reading this press release are cautioned that such statements are only expectations, and that our actual results or performance may be materially different.

Forward-looking information involves certain risks, assumptions, uncertainties and other factors which may cause actual future results to differ materially from those expressed or implied in any forward-looking statements.

Readers should not place undue reliance on these forward-looking statements when making decisions, and should consider the date onto which the statements were made. Except as required by applicable security law, management disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Dominion

Dominion is a diversified food company supplying fresh produce to a wide variety of customers in retail, foodservice and food distribution businesses. The Company provides procurement, processing, repacking, sorting, grading, warehousing and distribution services to its major domestic markets being Ontario and Québec. The Company also supplies products to customers in the United States. Dominion is a subsidiary of the Fund. The Fund is a publicly traded, unincorporated, open-ended limited purpose income trust. The trust units are listed on the TMX under the symbol DOM.UN. Dominion's website may be accessed at

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