Fording Canadian Coal Trust
TSX : FDG.UN
NYSE : FDG

Fording Canadian Coal Trust

February 26, 2007 18:58 ET

Fording Reports Tax Information for 2006 Distributions to Unitholders

CALGARY, ALBERTA--(CCNMatthews - Feb. 26, 2007) - Fording Canadian Coal Trust (TSX:FDG.UN)(NYSE:FDG) today reports the following income tax information for cash distributions declared in 2006 for unitholders resident in Canada and paid in 2006 for unitholders resident in the United States.

Unitholders are strongly urged to consult their tax advisors with respect to their particular circumstances.

Tax Information for Unitholders Resident in Canada

The following information is based on the Trust's understanding of the Income Tax Act (Canada) and regulations thereunder, and is provided for general information only. T3 Statement of Trust Income Allocations and Designations forms are expected to be available by March 31, 2007.

The following table provides the cash distributions declared in 2006 in Canadian dollars. The stated amounts are on a per-unit basis and reflect the units outstanding when the payments were declared.



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CDN$ Per Unit
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Other
Taxable Return of Total
Income Capital Distribution
Record Date Payment Date (taxable) (tax deferred) Paid
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March 31, 2006 April 13, 2006 $ 1.12159 $ 0.27841 $ 1.40
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June 30, 2006 July 14, 2006 0.80114 0.19886 1.00
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September 29, October 13,
2006 2006 0.64091 0.15909 0.80
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December 29, January 15,
2006 2007 0.76108 0.18892 0.95
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The "Other Taxable Income" amount is the portion of the distributions that is to be included in the taxable income of unitholders. The "Return of Capital" amount of the distributions is not taxable but should be deducted from the adjusted cost base of unitholder's units of the Trust. Both of these amounts will be reported on the T3 statements.

Tax Information for Unitholders Resident in the United States

Distributions by the Trust in the 2006 calendar year are considered foreign-source dividend income under U.S. federal income tax principles, reportable on a Form 1099. Providing that applicable holder-level requirements are met, these distributions are "qualified dividends," eligible for taxation at reduced rates under U.S. federal income tax legislation.

Distributions paid by the Trust to U.S. unitholders are generally subject to Canadian withholding tax of 15%. U.S. unitholders are advised to seek advice from their tax advisor for the tax treatment of distributions.

Cash distributions in 2006 are reported as follows in U.S. dollars. The stated amounts are on a per-unit basis and reflect the units outstanding when the payments were made.



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US$ Per Unit
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Qualified Withholding
Dividends Tax Deducted
Record Date Payment Date (taxable) in Canada
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December 30, 2005 January 13, 2006 $ 1.372330 $ 0.205849
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March 31, 2006 April 13, 2006 1.199555 0.179933
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June 30, 2006 July 14, 2006 0.896861 0.134529
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September 29, 2006 October 13, 2006 0.717296 0.107594
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It is possible that the U.S. dollar amount was different for non-registered, or beneficial unitholders receiving their payment from an intermediary or brokerage firm using different exchange rates.

The distribution payable to record holders on December 30, 2006 and paid on January 13, 2007 to unitholders resident in the United States will be reported for the 2007 calendar year.

About Fording

Fording Canadian Coal Trust is an open-ended mutual fund royalty trust. The Trust makes quarterly distributions to unitholders using royalties received from its 60% interest in the metallurgical coal operations of the Elk Valley Coal Partnership and earnings from its NYCO subsidiaries which are leading producers of the industrial mineral wollastonite. Elk Valley Coal Partnership, comprised of Canada's senior metallurgical coal mining properties, is the world's second largest exporter of metallurgical coal, supplying high-quality coal products to the international steel industry. The Trust's shares are traded on the Toronto Stock Exchange under the ticker symbol FDG.UN and on the New York Stock Exchange under the symbol FDG.

Contact Information

  • Fording Canadian Coal Trust
    Paul Armstrong
    Director, Investor Relations
    (403) 260-5215
    or
    Fording Canadian Coal Trust
    Catherine Hart
    Investor Relations Analyst
    (403) 260-9817
    Email: investors@fording.ca
    Website: www.fording.ca