March 22, 2005 09:36 ET

Strategic Energy Fund 'TSX: SEF.UN' Announces Rights Offering




MARCH 22, 2005 - 09:36 ET

Strategic Energy Fund 'TSX: SEF.UN' Announces Rights

TORONTO, ONTARIO--(CCNMatthews - March 22, 2205) - (TSX:SEF.UN)

Rights Offering

Strategic Energy Management Corp. is pleased to announce that Strategic
Energy Fund (the "Fund") has filed a final prospectus dated March 18,
2005, which qualifies the distribution of the rights (the "Rights") and
the units (the "Units") issuable on the exercise of the Rights in each
of the provinces and territories of Canada.

The Fund will issue Rights to subscribe for Units to its Unitholders of
record at the close of business (Toronto time) on April 1, 2005.

Rights and subscription price

Unitholders of record on April 1, 2005 will receive one Right for each
Unit held. Three Rights will entitle the holder of the Rights to
purchase one Unit at a price of $12.00 until 4:00 p.m. (Toronto time) on
April 29, 2005.

Discount to Market Price

The subscription price of $12.00 represents a discount of 10.5 per cent
to the closing price of $13.41 per Unit on March 17, 2005.

Additional Subscription Privilege

Holders of Rights who fully exercise their Rights are entitled to
subscribe pro rata for additional 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.

Listing and trading

The Rights will commence trading on the Toronto Stock Exchange on April
1, 2005 and will be posted for trading on a "when issued" basis as of
March 30, 2005 under the symbol SEF.RT. The TSX has conditionally
approved the listing of the Units issuable upon the exercise of the
Rights subject to the satisfaction of certain standard listing

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 as 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

    Investor Services
    (investor enquiries)
    1 (888) 246-6656
    (416) 364-1330 (FAX)
    Jason Graham/Patrick Schryburt
    (media enquiries)
    1 (888) 246-6656
    (416) 364-1330 (FAX)