Foremost Income Fund Announces 2012 Cash Distribution and Updated Redemption Price

CALGARY, ALBERTA--(Marketwire - Dec. 18, 2012) - Foremost Income Fund ("Foremost", or the "Fund") has declared its 2012 annual cash distribution of $.70 per trust unit. Distributions are payable Monday, December 31, 2012 to Unitholders of Record as at Wednesday, December 19, 2012.

The 2012 annual distribution details are as follows:

Be advised, that unlike previous years, the Fund will not be declaring a special non-cash distribution or special redemption for the year ended December 31, 2012.

As a result of the 2012 cash distribution the Trustees have determined that, as of December 31, 2012, the Fund will decrease the redemption price for tendered Trust Units from $8.40 to $8.20.

The Trustees have received Mr. Jim Grenon's resignation from the Board effective November 30, 2012. Foremost and the Board would like to thank Jim for his years of service and leadership in his role as Lead Trustee. We wish Jim the best in his future endeavors. Jim has indicated to the Board that he has no intention of selling his Foremost units.

Effective December 1, 2012, Mr. Bevan May has joined the Board as Mr. Grenon's nominee. "I look forward to working with the rest of the Board and the Fund's executive team in stewarding the Fund into the future", said Mr. May, upon his appointment. Mr. May has served in leadership roles in a range of public and private companies spanning small business and Fortune 100 environments. Currently he is the Managing Director at TOM Capital Associates Inc., a private investment management firm.

On behalf of the Trustees

Foremost Income Fund

Bevan May, Trustee

FORWARD-LOOKING STATEMENT

Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements include statements the Fund's intention to proceed with a Unitholders' meeting and information regarding the Trustees' views of the future prospects and tax treatment of the Fund and tax treatment of the Special Redemption, the Fund's expectations regarding the future availability of cash to meet redemption requests and the Trustee's expectations for redemption prices in December 2011 and January 2012. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this news release. These forward-looking statements involve a number of risks and uncertainties, including: the impact of general economic conditions, industry conditions, changes in laws and regulations, increased competition, fluctuations in commodity prices and foreign exchange, and interest rates and stock market volatility.