Royal Utilities Income Fund

Royal Utilities Income Fund

April 21, 2008 18:15 ET

Royal Utilities Income Fund Announces April and May 2008 Cash Distributions

TORONTO, ONTARO--(Marketwire - April 21, 2008) - Royal Utilities Income Fund (the "Fund") (TSX:RU.UN) announced today that its Board of Trustees has approved a cash distribution of $0.07464 per unit, payable on or about May 15, 2008 to unitholders of record as of April 28, 2008, as well as a cash distribution of $0.07997 per unit, payable on or about May 15, 2008, in respect of May 2008 to unitholders of record as of May 2, 2008.

The April distribution of $0.07464 per unit reflects the regular monthly distribution pro rated to April 28, 2008, the scheduled expiry date of the amended offer (the "Amended Offer") by Sherritt International Corporation ("Sherritt") for all the units of the Fund not already owned by Sherritt and it affiliates. The April distribution is not conditional on Sherritt acquiring units of the Fund under the Amended Offer. The May 2008 distribution is conditional on Sherritt acquiring units of the Fund under the Amended Offer.

Under the support agreement between Sherritt and the Fund announced on April 14, 2008, each of the April and May distributions is to be received without deduction from the purchase price payable by Sherritt under the Amended Offer. If Sherritt does not acquire units under the Amended Offer, the Fund expects to pay the May distribution in the ordinary course to holders of record as of May 30, 2008 and to pay a cash distribution in respect of April 29 and 30, 2008 in due course.

About Royal Utilities Income Fund

The Fund is an unincorporated, open-ended, limited purpose trust established under the laws of Alberta. The Fund directly holds all of the shares of Prairie Mines & Royalty Ltd. (the "Company"), which is the largest thermal coal producer in Canada. The Company owns and operates the Paintearth, Sheerness, Genesee (50% joint venture interest), Poplar River, Boundary Dam and Bienfait mines, and operates the Highvale and Whitewood mines under contract. A total of 36.1 million tonnes of coal was produced by the Company in 2007.

The Company also holds a portfolio of mineral rights located in Alberta and Saskatchewan on which it earns royalties from the production of coal and potash.

The Company's revenue is derived from two principal sources: the supply of thermal coal under long-term contracts with the major electric utilities in Alberta and Saskatchewan, and royalty payments received from certain utility customers and other parties based on coal and potash production.

Forward-looking Statements

This news release contains forward-looking statements. Forward-looking statements generally can be identified by the use of statements that include words such as "believe", "expect", "anticipate", "intend", "plan", "forecast", "likely", "may" or other similar words or phrases. Similarly, statements contained in the "Outlook" section of this news release including those with respect to expectations concerning assets, prices, revenues, costs, distributions, earnings, production, market conditions, capital expenditures, commodity demand, risks, corporate objectives and plans or goals, are or may be forward-looking statements. These forward-looking statements are not based on historic facts, but rather on current expectations, assumptions and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that are beyond the Fund's ability to control or predict. Actual results and developments may differ materially from those contemplated by this news release depending on, among others, such key factors as business and economic conditions in Canada.

Key factors that may result in material differences between actual results and developments and those contemplated by this news release also include the supply, demand and prices for the Fund's products; dependence on significant customers; deliveries; production levels, production and other anticipated and unanticipated costs and expenses; energy costs; interest rates; foreign exchange rates; rates of inflation; changes in tax legislation; the timing, capital costs and financing arrangements associated with development projects; the timing of the receipt of government and other approvals; risks related to collecting accounts receivable; risks associated with mining, processing and exploration activities; potential imprecision of reserve estimates; market competition; developments affecting labour relations and the market for skilled workers; environmental and utility industry regulation ; and other risk factors listed in the Fund's prospectus dated June 16, 2006, and the Fund's Management's Discussion and Analysis for the year ended December 31, 2006 from time to time in the Fund's continuous disclosure documents such as its annual report, annual information form and management information circular.

Further, any forward-looking statement speaks only as of the date on which such statement is made, and except as required by applicable law, the Fund undertakes no obligation, to update any forward-looking statements.

Contact Information

  • Royal Utilities Income Fund
    Investor Relations
    (416) 934-7655