Inter Pipeline Announces 2013 Tax Information for Partnership Distributions

CALGARY, ALBERTA--(Marketwired - Sept. 24, 2013) - Inter Pipeline Ltd. ("Inter Pipeline") (TSX:IPL) announced today the following tax information in relation to cash distributions declared to unitholders from January 2013 to August 2013 while Inter Pipeline was structured as a limited partnership. Additional tax information relating to Inter Pipeline as a corporation, for the period September 2013 to December 2013, will be provided in early 2014.

Tax Information

From January 2013 to August 2013, Inter Pipeline Fund declared cash distributions totalling $0.7475 per unit. The 2013 taxable portion amounts to $0.08423 per unit or 11.27% of total cash distributions. The return of capital component in 2013 was $0.66327 per unit or 88.73%.

Unitholders holding Class A units within a tax-free savings account, registered retirement savings plan, registered retirement income fund, deferred profit sharing plan, registered education savings plan or other similar type of deferral plan should not report any income related to cash distributions on their 2013 income tax return. Class A units held outside a deferred plan are taxable.

Unitholders should be aware that their participation in Inter Pipeline Fund's historical Premium Distribution™ and Distribution Reinvestment Plan does not relieve them of any liability for Federal and Provincial income taxes in Canada arising from these distributions, whether re-invested or received as cash.

A breakdown of Inter Pipeline Fund's January to August 2013 distributions is illustrated in the following table:

Pursuant to the corporate conversion that occurred in September 2013, unitholders received one common share of Inter Pipeline in exchange for each Class A unit held. Former unitholders may elect to exchange Class A units for common shares, from a Canadian federal income tax perspective, on a tax-deferred rollover basis. A tax election form must be properly completed and submitted to Inter Pipeline on or before December 1, 2013 in order to realize the tax-deferred rollover. The tax election form and other additional tax information is available on our website at www.interpipeline.com. Unitholders are advised to consult their own tax advisors as to their particular income tax situation.

™ Denotes trademark of Canaccord Genuity Corp.

Tax Forms

If unitholders registered their Class A units directly with Inter Pipeline's registrar and transfer agent, Computershare Trust Company of Canada (Computershare), then Computershare will be responsible for completing and mailing the T5013 or Releve 15 tax form. If unitholders held their Class A units beneficially through a brokerage firm, then the brokerage firm will be responsible for completing and mailing the T5013 or Releve 15 form. Both the T5013 and Releve 15 forms should be mailed to unitholders on or before March 31, 2014.

Inter Pipeline is not responsible for completing or mailing individual T5013 or Releve 15 tax forms.

Inter Pipeline Ltd.

Inter Pipeline is a major petroleum transportation, bulk liquid storage and natural gas liquids extraction business based in Calgary, Alberta, Canada. Inter Pipeline owns and operates energy infrastructure assets in western Canada, the United Kingdom, Denmark, Germany and Ireland. Additional information about Inter Pipeline can be found at www.interpipeline.com.

Common shares trade on the Toronto Stock Exchange under the symbol IPL.

Disclaimer

Certain information contained herein may constitute forward-looking statements that involve risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements. Such information, although considered reasonable by Inter Pipeline at the time of preparation, may later prove to be incorrect and actual results may differ materially from those anticipated in the statements made. For this purpose, any statements that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements often contain terms such as "may", "will", "should", "anticipate", "expects" and similar expressions. Such risks and uncertainties include, but are not limited to, risks associated with operations, such as loss of markets, regulatory matters, environmental risks, industry competition, potential delays and cost overruns of construction projects, including the Corridor pipeline system expansion project, and the ability to access sufficient capital from internal and external sources. You can find a discussion of those risks and uncertainties in Inter Pipeline's securities filings at www.sedar.com. The forward-looking statements contained in this news release are made as of the date of this document, and, except to the extent required by applicable securities laws and regulations, Inter Pipeline assumes no obligation to update or revise forward-looking statements made herein or otherwise, whether as a result of new information, future events, or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary note.

All dollar values are expressed in Canadian dollars unless otherwise noted.