STRATEGIC ENERGY FUND

STRATEGIC ENERGY FUND

February 28, 2005 11:56 ET

Strategic Energy Fund (TSX:SEF.UN) Announces Rights Offering


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STRATEGIC ENERGY FUND

TSX SYMBOL: SEF.UN

FEBRUARY 28, 2005 - 11:56 ET

Strategic Energy Fund (TSX:SEF.UN) Announces Rights
Offering

TORONTO, ONTARIO--(CCNMatthews - Feb. 28, 2005) -

Rights Offering

Strategic Energy Management Corp. is pleased to announce that Strategic
Energy Fund (the "Fund") has filed a preliminary prospectus in
connection with an offering of Rights to its Unitholders to subscribe
for Trust Units (the "Rights Offering").

The Rights Offering is subject to receipt of all regulatory approvals,
including the approval of the Toronto Stock Exchange.

Rights and subscription price

Each Unitholder will receive one Right for each Trust Unit held on the
record date. Three Rights will entitle the holder to purchase one Trust
Unit.

The record date, exercise price and rights expiration date have not yet
been determined. The Trust will make a further announcement subsequent
to the filing of the final prospectus.

Additional Subscription Privilege

Holders of Rights who fully exercise their Rights are entitled to
subscribe pro rata for additional Trust Units, if available, that were
not subscribed for initially.

Standby Commitment

John F. Driscoll, a principal Unitholder, has agreed to invest up to
$3,000,000 to subscribe for all Units to which he is entitled under the
Basic Subscription Right, and to purchase Units not otherwise subscribed
for pursuant to the Basic Subscription Rights or the Additional
Subscription Privilege.

Step Up Privilege

Holders of Rights not evenly divisible by three will be entitled to
round up subscriptions to the next highest whole number.

Use of proceeds

The net proceeds of the Rights Offering will be invested by the Fund in
accordance with the Investment Objectives, subject to the Investment
Restrictions of the Fund.

Dealer Manager

First Associates Investments Inc. has been engaged to be the Dealer
Manager for the Rights Offering.

Strategic Energy Fund

Strategic Energy Fund is an investment trust that seeks to provide
Unitholders with superior rates of return through a diversification
strategy focused on investment opportunities within the Canadian energy
sector. The Fund invests in established companies as well as early stage
energy companies and to a lesser extent special energy issuers, each
with prospects for high growth in the near to medium term and the
potential for long term capital appreciation.

The Fund's investments in established companies, including energy
royalty and income trusts, are made with a view of generating sufficient
income to permit the Fund to make monthly cash distributions to
Unitholders. These distributions are currently at a rate of $0.07 per
unit monthly.

Investments in early stage energy companies are focused on both private
and public issuers with strong, experienced management teams, which have
proven track records of enhancing shareholder value and successfully
executing exit strategies. As well, the Fund may invest in undervalued
issuers where Sentry Select Capital Corp., investment adviser to the
Fund, believes that capital appreciation can be realized.

Sentry Select Capital Corp.

The Investment Adviser is Sentry Select Capital Corp. Sentry Select is a
wealth management company with total assets under management of
approximately $4.0 billion, including more than $1.2 billion in energy
sector-related investments.



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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Investor Services
    (investor enquiries)
    1-888-246-6656
    416-364-1330 (FAX)
    or
    Jason Graham/Patrick Schryburt
    (media enquiries)
    1-888-246-6656
    416-364-1330 (FAX)
    info@sentryselect.com
    www.sentryselect.com