Foremost Income Fund Reviews Unit Redemption Monthly Limit for September 2014

CALGARY, ALBERTA--(Marketwired - Sept. 12, 2014) - Foremost Income Fund ("Foremost" or the "Fund") reviews the monthly limit for Unit redemptions pursuant to section 6.4(ii)(B) of the deed of Trust.

Temporary Reduction of Monthly Limit for Fund Unit Redemptions Pursuant to Section 6.4(ii)(B) of the Deed of Trust

Pursuant to section 6.4(ii)(B) of the Deed of Trust of the Fund dated November 12, 2005 as amended (the "Deed of Trust"), the Trustees of the Fund have discretion, in any calendar month, to reduce the monthly limit for cash redemptions of units of the Fund due to concerns as to the current working capital or debt of the Fund. The exercise of such discretion may result in all or a portion (on a pro rata basis, depending on notices of redemption received) of the amount payable for units redeemed being paid by unsecured promissory notes in accordance with section 6.5 of the Deed of Trust.

As disclosed by a press releases dated May 15, June 9, July 11, and August 15, 2014, effective May 1, 2014 and applying to all notices of redemption received and/or payable in the months of May, June, July and August 2014, the Trustees of the Fund exercised their discretion pursuant to section 6.4(ii)(B) to reduce the monthly limit for cash redemptions from $1,500,000.00 to $0.00. The Trustees undertook to review the revised monthly limit in respect of the month of September 2014 no later than September 15, 2014.

With respect to the month of September 2014, the Trustees have determined that the monthly limit for cash redemptions will remain at $0.00. The Trustees have undertaken to review the revised monthly limit in respect of the month of October 2014 no later than October 15, 2014.

In accordance with the Deed of Trust, unitholders that submit or have submitted notices of redemption on or after May 1, 2014 or in respect of whose units the Fund is obligated pay the redemption price on or before October 31, 2014, have been or will be contacted individually and provided with the opportunity to elect to withdraw all or any part of such notices of redemption. Any unitholders not electing to withdraw their redemption notices, in whole or in part, will be paid the redemption price in respect of their redeemed units by unsecured promissory notes.

This discussion is intended for summary purposes only and is subject in all respects to the Deed of Trust. The income and other tax consequences of holding, redeeming or disposing of units and acquiring promissory notes will vary depending on the unitholder's particular circumstances, including the jurisdiction(s) in which the unitholder resides or carries on business, and whether the unitholder is an RRSP, RESP, RRIF, PPSP or TFSA. Accordingly, this summary is of a general nature only and is not intended to be legal or tax advice to any prospective purchaser or any unitholder. All unitholders should consult their own legal and tax advisors prior to redeeming units of the Fund.

On behalf of the Trustees

Foremost Income Fund

Bevan May, Interim President/CEO and 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.