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Noranda Income Fund Announces Extension of Revolving Credit Facility to December 3, 2010

- One month extension of Revolving Facility to December 3, 2010

- Extension provides Independent Committee with additional time to pursue refinancing alternatives for Revolving Facility and Senior Secured Notes

- Cash distributions remain suspended during the Extension Period

Oct 27, 2010 - 08:00 ET

VALLEYFIELD, QUEBEC--(Marketwire - Oct. 27, 2010) - Noranda Income Fund (the "Fund") (TSX:NIF.UN) announced today that, subject to the satisfaction of certain closing conditions, a syndicate of Canadian chartered banks (the "Syndicate") has agreed to extend the maturity date of Noranda Operating Trust's (the "Operating Trust") existing credit facility (the "Revolving Facility") from November 3, 2010 to December 3, 2010 (the "Extension Period").

The extension will provide the Operating Trust with additional time to pursue the refinancing of the $153.5 million senior secured notes (the "Notes") that mature on December 20, 2010, and will allow the independent committee of the board of trustees of the Operating Trust to continue working with its independent financial advisor, TD Securities Inc., to review refinancing alternatives with respect to the Revolving Facility and the Notes.

Under the extension of the Revolving Facility, the amount available to be drawn will continue to vary on a quarterly basis and will continue to be based on the same percentages of the Fund's inventory and accounts receivable from the previous quarter. The maximum amount available to be drawn at any time has been reduced to $100 million from $120 million to reflect a reduction in the Fund's debt from $208 million on December 31, 2009 to $185 million on September 30, 2010 and to reduce standby charges payable to the Syndicate by the Operating Trust.

Consistent with the terms of the previous six-month extension of the Revolving Facility in April of this year, the Fund is not permitted to make cash distributions to the holders of its units during the Extension Period.

Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol "NIF.UN". Noranda Income Fund was created to acquire Noranda Inc.'s CEZ processing facility and ancillary assets (the "CEZ processing facility") located in Salaberry-de-Valleyfield, Québec. The CEZ processing facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America, where the majority of its customers are located. It produces refined zinc metal and various by-products from zinc concentrates purchased from mining operations. The CEZ processing facility is operated and managed by Canadian Electrolytic Zinc Limited.

Further information about Noranda Income Fund can be found at


Michael Boone
Vice President and Chief Financial Officer,
Canadian Electrolytic Zinc Limited
Noranda Income Fund's Manager

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