Vault Energy Trust
TSX : VNG.UN

Vault Energy Trust

November 07, 2006 19:33 ET

Vault Energy Responds to Proposed Changes in Taxation

CALGARY, ALBERTA--(CCNMatthews - Nov. 7, 2006) - Vault Energy Trust (Vault) (TSX:VNG.UN) today announced that it has joined the Coalition of Canadian Energy Trusts ("CCET") in an effort to protect the value of unitholders in Canadian energy trusts.

Vault believes that the recent proposal of the federal government to tax income trusts is ill-conceived and will do significant damage to the Canadian economy, the reputation of Canadian capital markets, and particularly to the well being of investors, both retired and actively working, who rely on their own investment income for their present and future standard of living.

Vault came into existence in June, 2005 through the reorganization of Chamaelo Energy Inc. in conjunction with the acquisition of $365 million in mature producing properties from a large U.S. based producer and a combined debt and equity financing of $330 million.

Since inception, Vault has grown from 20 employees to over 70 full time employees located in Calgary and our various field offices. Vault has paid 17 cumulative distributions of approximately $65 million to our unitholders and have invested over $50 million in capital through a combination of efficient exploitation and extension of existing oil and gas reservoirs.

Vault believes that this repatriation of assets formerly owned by a large U.S. Exploration and Production company is a direct result of the lower cost of capital available under the existing royalty trust structure and is in line with Canadian interests to control our natural resources.

WE ENCOURAGE OUR UNITHOLDERS AND OTHER CONCERNED INDIVIDUALS TO WRITE, EMAIL OR VISIT THE CONSTITUENCY OFFICES OF THEIR MEMBERS OF PARLIAMENT TO PROTEST THIS ILL-CONCEIVED POLICY CHANGE AND TO DEMAND THAT A PROPER CONSULTATION PROCESS BE INITIATED IN WHICH A FAIR HEARING OF THE ISSUES CAN BE AIRED.

A directory of members of Parliament can be found at www.canada.gc.ca/directories/direct_e.html.

Vault Energy Trust is a conventional oil and gas income trust that was formed through the corporate reorganization of Chamaelo Energy Inc., completed on June 22, 2005. Vault units are traded on the Toronto Stock Exchange (TSX) under the symbol "VNG.UN".

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