Harvest Sustainable Income Fund

Harvest Portfolios Group Inc.

Harvest Portfolios Group Inc.

November 22, 2010 18:52 ET

Harvest Sustainable Income Fund Announces Exchange Ratios

TORONTO, ONTARIO--(Marketwire - Nov. 22, 2010) - Harvest Portfolios Group Inc. (the "Manager"), the manager of Harvest Sustainable Income Fund (the "Fund") is pleased to announce the exchange ratios for the Exchange Option as provided for in the preliminary prospectus of the Fund dated October 27, 2010 (the "Prospectus").

Prospective purchasers may purchase Units either by (i) cash payment or (ii) an exchange of each class or series of securities listed in this News Release and the final prospectus (the "Exchange Eligible Securities"). The number of Units issuable in exchange for an Exchange Eligible Security (the "Exchange Ratio") deposited by a prospective purchaser pursuant to the Exchange Option was determined by dividing the volume weighted average trading price of such securities on the Toronto Stock Exchange during the three consecutive trading days ending on, and including November 19, 2010 (the "Pricing Period"), as adjusted to reflect distributions and/or dividends declared by the applicable Exchange Issuer that will not be received by the Fund, by $12.00. The Exchange Ratios were rounded down to four decimal places. Fractional Units will not be issued by the Fund.

A prospective purchaser of Units was required to deposit its Exchange Eligible Securities with the Exchange Agent through CDS prior to 5:00 p.m. (Toronto time) on November 19, 2010.

The table below sets out the names of those Exchange Eligible Securities that were deposited prior to the November 19, 2010 deadline, the securities of which may be accepted by the Fund pursuant to the Exchange Option including the applicable Exchange Eligible Security's CUSIP number, ticker symbol, volume weighted average trading price during the Pricing Period and the applicable Exchange Ratio.  

Exchange Eligible Securities CUSIP Ticker Symbol Volume Weighted Average Trading Price Exchange Ratio
Income Trusts, Royalty Trusts, REITS and Common Stock        
A&W REVENUE ROYALTIES INCOME FUND 000255109 AW.UN 20.0726 1.6727
ADVANTAGE OIL & GAS 00765FAE1 AAV 6.8624 0.5719
ALGONQUIN POWER UTILITIES 015857105 AQN 4.7357 0.3946
ARC ENERGY TRUST 001986108 AET.UN 23.1663 1.9305
ARTIS REIT 04315L105 AX.UN 12.6868 1.0572
BANK OF MONTREAL 063671101 BMO 59.4788 4.9566
BAYTEX ENERGY TRUST 073176109 BTE.UN 41.1084 3.4257
BCE INC. 05534B760 BCE 33.4605 2.7884
BELL ALLIANT 07786J103 BA.UN 26.4394 2.2033
BOSTON PIZZA ROYALTIES INCOME FUND 101084101 BPF.UN 13.7141 1.1428
BRICK GROUP INCOME FUND 107874109 BRK.UN 2.6599 0.2217
CALLOWAY REIT 131253205 CWT.UN 23.9227 1.9936
CAPITAL POWER INCOME LP 14042N100 CPA.UN 17.8363 1.4864
CHARTWELL SENIORS HOUSING REIT 16140U100 CSH.UN 8.3791 0.6983
CIBC 136069101 CM 77.6369 6.4697
CINEPLEX GALAXY INCOME FUND 172453102 CGX.UN 21.0365 1.7530
COMINAR REIT 199910100 CUF.UN 21.3914 1.7826
DAVIS & HENDERSON INCOME FUND 239058100 DHF.UN 18.9978 1.5832
DUNDEE REIT 265270108 D.UN 29.8332 2.4861
ENERPLUS RESOURCES FUND 29274D694 ERF.UN 27.6106 2.3009
FREEHOLD ROYALTY TRUST 3559044103 FRU.UN 18.9709 1.5809
H&R REIT 404428203 HR.UN 19.3189 1.6099
HARDWOODS DISTRIBUTION INCOME FUND 412419103 HWD.UN 2.2778 0.1898
IBI INCOME FUND 449213107 IBG.UN 14.5261 1.2105
INTER PIPELINE FUND 45833P102 IPL.UN 14.5916 1.2160
MACQUARIE POWER & INFRASTRUCTURE INCOME FUND 556084101 MPT.UN 7.7853 0.6488
MANULIFE FINANCIAL CORP. 56501R106 MFC 15.4331 1.2861
MORNEAU SOBECO INCOME FUND 61767T101 MSI.UN 9.7374 0.8115
PEMBINA 706327103 PPL 21.6006 1.8001
POWER FINANCIAL CORPORATION 73927C100 PWF 30.2544 2.5212
PROVIDENT ENERGY TRUST 74386K104 PVE.UN 7.4101 0.6175
RIOCAN REIT 766910103 REI.UN 21.8785 1.8232
ROGERS COMMUNICATIONS INC. 775109200 RCI.B 36.9328 3.0777
ROYAL BANK 780087102 RY 54.1822 4.5152
SUPERIOR PLUS CORP. 86828P103 SPB 11.0857 0.9238
TELUS CORPORATION 87971M103 T 45.9511 3.8293
TORONTO DOMINION BANK 891160509 TD 73.9737 6.1645
TRANSALTA CORP. 89346D107 TA 20.4548 1.7046
TRANSCANADA CORP. 89353D107 TRP 35.9166 2.9931
TRIMAC INCOME FUND 89620N102 TMA.UN 4.6095 0.3841
VERMILLION ENERGY 923725105 VET 39.7399 3.3117
VICWEST INCOME FUND 92647T102 VIC.UN 15.1440 1.2620
YELLOW PAGES INCOME FUND 985521103 YLO 5.9986 0.4999
ZARGON ENERGY TRUST 989132105 ZAR.UN 19.1752 1.5979
Preferred Shares        
BANK OF NOVA SCOTIA 064149677 BNS.PR.T 27.9677 2.3306
BANK OF NOVA SCOTIA 064149776 BNS.PR.M 22.4335 1.8695
BANK OF NOVA SCOTIA 064149784 BNS.PR.L 22.4441 1.8703
BCE INC. 05534B786 BCE.PR.C 23.8043 1.9837
BCE INC. 05534B794 BCE.PR.A 24.0589 2.0049
BOMBARDIER INC 097751705 BBD.PR.C 23.2369 1.9364
CIBC 136069481 CM.PR.L 28.1258 2.3438
CIBC 136036499 CM.PR.K 27.1274 2.2606
CIBC 136069531 CM.PR.J 21.9228 1.8269
DUNDEE CORP 264901703 DC.PR.B 27.0677 2.2556
GEORGE WESTIN 961148848 WN.PR.E 21.2964 1.7747
GREAT WEST LIFECO 39138C874 GWO.PR.H 23.0291 1.9191
GREAT WEST LIFECO 39138C866 GWO.PR.I 21.0853 1.7571
FAIRFAX FINANCIAL HOLDINGS LTD. 303901862 FFH.PR.G 24.9803 2.0817
INDUSTRIAL ALLIANCE INSURANCE & FINANCIAL 455871509 IAG.PR.F 25.2426 2.1036
MANULIFE FINANCIAL CORP. 56501R874 MFC.PR.E 26.9570 2.2464
MANULIFE FINANCIAL CORP. 56501R403 MFC.PR.B 21.0866 1.7572
NATIONAL BANK 633067715 NA.PR.K 25.6607 2.1384
POWER FINANCIAL CORPORATION 73927C886 PWF.PR.F 23.8012 1.9834
ROYAL BANK 780085247 RY.PR.B 23.2838 1.9403
ROYAL BANK 780102653 RY.PR.F 22.1970 1.8497
ROYAL BANK 780086708 RY.PR.R 27.7247 2.3104
ROYAL BANK 780086872 RY.PR.T 27.8790 2.3233
SUN LIFE FINANCIAL INC. 866796303 SLF.PR.B 22.1500 1.8458
SUN LIFE FINANCIAL INC. 866796402 SLF.PR.C 20.6076 1.7173
TORONTO DOMINION BANK 891160681 TD.PR.O 24.2384 2.0199
TORONTO DOMINION BANK 891145740 TD.PR.K 28.0349 2.3362
TORONTO DOMINION BANK 891145773 TD.PR.I 27.9966 2.3330
TORONTO DOMINION BANK 891145799 TD.PR.G 27.8494 2.3208
TRANSCANADA PIPELINES 893526715 TCA.PR.X 50.2679 4.1890
TRANSCANADA CORP. 89353D503 TRP.PR.B 25.1318 2.0943

The Manager's interpretation of the terms and conditions of the Exchange Option will be final and binding. The Manager reserves the right to waive any conditions of the Exchange Option, other than the Maximum Ownership Level, and to accept or reject, in whole or in part, any deposit of securities made pursuant to the Exchange Option. The Manager also reserves the right to accept or reject any security under the Exchange Option for any reason, including, without limitation, an unfavourable relationship between the Exchange Ratio and the prevailing trading price or rating of an Exchange Eligible Security. If, for any reason, at the discretion of the Manager, the Exchange Eligible Securities deposited pursuant to the Exchange Option are not acquired by the Fund, the holders of such securities will be notified of such fact as soon as practicable following the Closing or the termination of the Offering, as the case may be, and such securities will be re-credited to their accounts through CDS and the CDS Participants.

The syndicate of agents is being co-led by BMO Capital Markets, CIBC and RBC Capital Markets and includes Scotia Capital Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc., Canaccord Genuity Corp., Dundee Securities Corporation, Raymond James Ltd., Desjardins Securities Inc., Macquarie Private Wealth Inc., Wellington West Capital Markets Inc., Industrial Alliance Securities Inc. and Mackie Research Capital Corporation (collectively, the "Agents").

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Fund, the Manager and/or the Investment Manager. The forward-looking statements are not historical facts but reflect the Fund's, the Manager's and/or Investment Manager's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Fund, the Manager and/or the Investment Manager believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Fund, the Manager and/or the Investment Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

A preliminary prospectus dated October 27, 2010 (the "Prospectus") containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. The Prospectus is still subject to completion or amendment. Copies of the Prospectus may be obtained from any of the Agents. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

Capitalized terms used herein but not defined have the meaning ascribed to them in the Prospectus.

For further information: please contact Michael Kovacs at Harvest Portfolios Group Inc. at mkovacs@harvestportfolios.com or at 1-866-998-8298; or for additional information or a copy of the Prospectus, please contact your registered financial advisor.

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