Thunder Energy Trust
TSX : THY.UN

Thunder Energy Trust

January 31, 2006 18:03 ET

Thunder Energy Trust Releases 2005 Canadian Income Tax Information

CALGARY, ALBERTA--(CCNMatthews - Jan. 31, 2006) - Thunder Energy Trust (TSX:THY.UN) today issued the following information, which is intended to assist individual Canadian unitholders of Thunder Energy Trust ("Thunder") in the preparation of their 2005 T1 Income Tax Return.

Trust Units Held Within an RRSP, RRIF, RESP or DPSP

No amounts are required to be reported on the 2005 T1 Income Tax Return where the Thunder trust units are held within an RRSP, RRIF, RESP or DPSP.

Trust Units Held Outside of an RRSP, RRIF, RESP or DPSP

Unitholders who held their Thunder trust units outside of an RRSP, RRIF, RESP or DPSP, through a broker or other intermediary and received cash distributions during the period, will receive "T3 Supplementary" slips directly from their broker or intermediary, not from the transfer agent of Thunder.

Registered unitholders of Thunder trust units who received cash distributions during the period from the transfer agent, Olympia Trust, (and not from a broker or intermediary), will receive "T3 Supplementary" slips directly from Olympia Trust.

The attached "Schedule 1" includes supplementary information on the taxable portion of the 2005 distributions and is shown on a per unit basis. Under Paragraph 12(1)(m) of the Canadian Income Tax Act, taxable amounts allocated by Thunder in 2005 to the unitholders must be reported by the unitholders in their 2005 Income Tax Return.

Accordingly, the taxable amount of distributions (i.e. "Other Income" Box (26) and "Actual amount of dividends" Box (23) on the T3 slips) with respect to record dates from July 12, 2005 up to and including December 31, 2005 are included in your "T3 Supplementary". The deadline for mailing all T3 Supplementary Information slips as required by Canada Revenue Agency is March 31, 2006.

Adjusted Cost Base

Holders of Thunder trust units who received distributions are required to reduce the Adjusted Cost Base of their units. The reduction is equal to the cumulative distributions minus cumulative taxable amounts reported as "Other Income" Box (26) and "Actual amount of dividends" Box (23) on their T3 slips).

The Adjusted Cost Base is used in calculating capital gains or losses on the disposition of the trust units where the owner holds the trust units as a capital property.



Schedule 1:

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Thunder Energy Trust
2005 - T3 Information for Canadian Residents

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Total Return of
Distribution Capital
Record Date Payment Date Paid Other Income Amount
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Jul 29, 2005 Aug 15, 2005 0.15 0.121245 0.028755
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Aug 31, 2005 Sep 15, 2005 0.15 0.121245 0.028755
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Sep 30, 2005 Oct 17, 2005 0.15 0.121245 0.028755
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Oct 31, 2005 Nov 15, 2005 0.15 0.121245 0.028755
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Nov 30, 2005 Dec 15, 2005 0.15 0.121245 0.028755
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Dec 31, 2005 Jan 16, 2006 0.15 0.121245 0.028755
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Total Per Unit 0.90 0.72747 0.17253
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Forward-looking Statements

This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect the Trust's operations or financial results are included in the Trust's reports on file with Canadian securities regulatory authorities.

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