NORANDA INCOME FUND

NORANDA INCOME FUND

March 10, 2008 16:05 ET

Noranda Income Fund Provides an Update on Its 2008 Sulphuric Acid Contracts

SALABERRY-DE-VALLEYFIELD, QUEBEC--(Marketwire - March 10, 2008) - In response to questions received from the public regarding its exposure to the current pricing for sulphuric acid, the Noranda Income Fund (the "Fund") is providing the following update.

Production of Sulphuric Acid

The Fund produces zinc metal and various byproducts from zinc concentrates that are received from mining operations. Zinc concentrate contains sulphur, which is transformed into sulphur dioxide during the process of making zinc metal. Sulphur dioxide is captured and processed into sulphuric acid. Sulphuric acid is used in a variety of industries, including the chemical, pigment and fertilizer industries.

The Fund's annual production of sulphuric acid for the past two years was:



(tonnes) 2007 2006

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Sulphuric acid available for sale 426,520 441,688


2008 Sulphuric Acid Contract Update

The Fund markets its sulphuric acid through a reseller. Most of it is sold into the North American industrial market. To allow for a consistent offtake of the sulphuric acid and to meet the needs of the industrial market, the majority of the Fund's sulphuric acid is sold by way of annual and multi-year contracts that are negotiated between buyer and seller. Approximately 10-15% of the Fund's 2008 sulphuric acid production will be sold by the Fund's reseller on a transaction by transaction basis, based on current market conditions and pricing.

FORWARD-LOOKING INFORMATION

The Fund has provided Forward-looking Information on its exposure to the current pricing for sulphuric acid. The Fund has provided this Information in response to questions received from the public. Readers are cautioned that this Information may not be appropriate for other reasons.

This press release contains Forward-looking Information concerning the Fund's exposure to current pricing for sulphuric acid. Forward-looking Information involves known and unknown risks, uncertainties and other factors, which may cause the actual results or performance to be materially different from any future results or performance expressed or implied by the Forward-looking Information.

Examples of such risks, uncertainties and other factors include, but are not limited to, the following: (1) general business and economic conditions; (2) the demand for sulphuric acid; (3) the ability of the Fund to continue to service customers in the same geographic region; and (4) the ability of the Fund to continue to produce sulphuric acid at normal operating levels. This Forward-looking Information represents our views as of the date of this press release. The Fund anticipates that subsequent events and developments may cause its views to change.

Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol "NIF.UN". The Noranda Income Fund owns the CEZinc processing facility and ancillary assets (the "CEZinc processing facility") located in Salaberry-de-Valleyfield, Quebec. The CEZinc processing facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America, where the majority of its customers are located. It produces refined zinc metal and various byproducts from zinc concentrates purchased from mining operations. The Processing Facility is operated and managed by Canadian Electrolytic Zinc Limited.

Contact Information