ZARGON ENERGY TRUST
TSX : ZAR.UN

ZARGON ENERGY TRUST
Zargon Oil & Gas Ltd.
TSX : ZAR

Zargon Oil & Gas Ltd.

March 02, 2005 15:12 ET

Zargon Energy Trust Announces Canadian Tax Treatment of 2004 Distributions


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ZARGON ENERGY TRUST

TSX SYMBOL: ZAR.UN

MARCH 2, 2005 - 15:12 ET

Zargon Energy Trust Announces Canadian Tax Treatment
of 2004 Distributions

CALGARY, ALBERTA--(CCNMatthews - March 2, 2005) - Zargon Energy Trust
("Zargon") (TSX:ZAR.UN) announces that for Canadian tax reporting
purposes, cash distributions paid to Unitholders in the 2004 taxation
year were 100% taxable.

The information contained herein is based on Zargon's understanding of
the Canadian Income Tax Act and is provided for general information
purposes only. Unitholders are advised to consult their personal tax
advisors with respect to their particular circumstances.

UNITS HELD WITHIN AN RRSP, RRIF OR DPSP

With respect to units of Zargon Energy Trust held in a Registered
Retirement Savings Plan (RRSP), Registered Retirement Income Fund
(RRIF), or Deferred Profit Sharing Plan (DPSP) during 2004, no amount
should be reported on the 2004 individual Income Tax Return ("T1").

UNITS HELD OUTSIDE AN RRSP, RRIF OR DPSP

Zargon unitholders who held trust units outside an RRSP, RRIF or DPSP
will receive a T3 Supplementary Slip for 2004 ("T3") that will report
the taxable portion of such distributions as "other income" in Box 26 of
their T3. Registered unitholders will receive their T3 slip from
Zargon's transfer agent, Valiant Trust Company, while beneficial
unitholders who held units through intermediaries such as investment
advisers will be receiving T3 receipts from their advisor or other
intermediary.

FOR CANADIAN TAXPAYERS

The following table summarizes, on a monthly basis, cash distributions
received in 2004 by unitholders, indicating that the full amount is
taxable and no portion is considered to be a return of capital.


Taxable
Amount Return Total
(Other of Cash
Record Date Payment Date Income) Capital Distribution

August 31, 2004 September 15, 2004 $0.14 $0.00 $0.14
September 30, 2004 October 15, 2004 $0.14 $0.00 $0.14
October 31, 2004 November 15, 2004 $0.14 $0.00 $0.14
November 30, 2004 December 15, 2004 $0.14 $0.00 $0.14
December 31, 2004 January 17, 2005 $0.14 $0.00 $0.14
-------------------------------
Total $0.70 $0.00 $0.70
-------------------------------
-------------------------------


Based in Calgary, Alberta, Zargon's securities trade on the Toronto
Stock Exchange (TSX). Trust units of Zargon trade under the symbol
"ZAR.UN", exchangeable shares of Zargon trade under the symbol "ZOG.B".

In order to learn more about Zargon, we encourage you to visit Zargon's
website at www.zargon.ca where you will find a current shareholder
presentation, financial reports and historical news releases.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Zargon Energy Trust
    C.H. Hansen
    President and Chief Executive Officer
    or
    B.C. Heagy
    Vice President, Finance and Chief Financial Officer
    Telephone: 403-264-9992
    E-mail: zargon@zargon.ca
    Website: www.zargon.ca