ZARGON ENERGY TRUST
TSX : ZAR.UN

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

Zargon Oil & Gas Ltd.

March 04, 2005 14:03 ET

Zargon Energy Trust Releases US Tax Information


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ZARGON ENERGY TRUST

TSX SYMBOL: ZAR.UN

MARCH 4, 2005 - 14:03 ET

Zargon Energy Trust Releases US Tax Information

CALGARY, ALBERTA--(CCNMatthews - March 4, 2005) - Zargon Energy Trust
(TSX:ZAR.UN) ("Zargon") today released information necessary for 2004
United States ("U.S.") tax reporting. Zargon's tax advisors have
provided advice, for U.S. federal income tax purposes, that the units of
Zargon more likely than not will be properly classified as equity in a
corporation, rather than as debt, and that dividends paid to its
individual U.S. unitholders should be qualified dividends. As such, the
distributions made during 2004 that are considered dividends should
qualify for the reduced rate of tax applicable to certain capital gains.

The portion of the trust distributions that is considered a dividend for
U.S. income tax purposes is determined based upon Zargon's current
and/or accumulated earnings & profits ("E&P") as determined in
accordance with U.S. income tax principals.

With respect to cash distributions paid in 2004 to U.S. individual
unitholders, 100 percent should be reported as qualified dividends.

Zargon is not required to issue Form 1099 DIV's; however, U.S.
unitholders may have previously received a Form 1099 DIV from a broker
or intermediary that may not be correct. As a result of this, U.S.
unitholders should consult their brokers and tax advisors to ensure that
this information is accurately reflected on their tax returns. Brokers
and/or intermediaries may or may not be required to issue amended Form
1099 DIV's. There may be certain individual circumstances where the
dividends may not be qualified dividends (such as in situations where
the individual unitholder does not meet a holding period test). Readers
should consult their own legal or tax advisors as to their particular
tax consequences of holding Zargon trust units.

The information contained in this press release is of a general nature
only and not exhaustive of all possible U.S. tax considerations. It is
not intended to constitute legal or tax advice to any holder or
potential holder of Zargon trust units.

Canadian resident taxpayers should note that the above information has
no impact on the previously disclosed Canadian tax information.

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

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
    Phone: (403) 264-9992
    E-mail: zargon@zargon.ca
    Website: www.zargon.ca