Front Street Strategic Yield Fund Ltd.

Front Street Strategic Yield Fund Ltd.
Front Street U.S. MLP Income Fund Ltd.

Front Street U.S. MLP Income Fund Ltd.

July 12, 2013 16:10 ET

Merger of Front Street U.S. MLP Income Fund Ltd. and Front Street Strategic Yield Fund Ltd.

TORONTO, ONTARIO--(Marketwired - July 12, 2013) - Front Street U.S. MLP Income Fund Ltd. ("FS U.S. MLP") and Front Street Strategic Yield Fund Ltd. ("FSS", and together with FS U.S. MLP, the "Funds"), through their common manager Front Street Capital 2004 (the "Manager"), have announced that they will proceed with the previously announced merger of the Funds (the "Merger"). The Merger was approved by special resolution of the shareholders of each of the Funds at special meetings held on April 19, 2013.

The Department of Finance announced yesterday proposed technical changes to the transitional rules for the Economic Action Plan 2013 Character Conversion Measure, which provided the Manager with satisfactory assurances that the Merger, and the resultant increase in the size of the forward agreements previously entered into by FS U.S. MLP, would not have adverse tax consequences for the shareholders of FS U.S. MLP. As such, the Merger will proceed and the effective date of the Merger is expected to be on or about August 1, 2013.

Complete details regarding the proposed merger were outlined in the joint management proxy circular dated March 8, 2013. The joint management proxy circular is also available at www.sedar.com.

Certain statements in this press release may be viewed as forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "plans", "estimates" or "intends" (or negative or grammatical variations thereof), or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Statements which may constitute forward-looking statements relate to: the proposed timing of the merger and expected completion thereof. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including as a result of changes in the general economic and political environment, changes in applicable legislation, and the performance of each Fund. There are no assurances the Funds can fulfill such forward-looking statements and the Funds do not undertake any obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing one or more of the Funds, some of which are beyond the control of the Funds.

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