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FOR: NORANDA INCOME FUND

Noranda Income Fund Provides Update on Long-Term Refinancing

Jun 10, 2011 - 11:39 ET

SALABERRY-DE-VALLEYFIELD, QUEBEC--(Marketwire - June 10, 2011) - Noranda Income Fund (the "Fund") (TSX:NIF.UN) today announced that its wholly-owned subsidiary, Noranda Operating Trust (the "Operating Trust"), has executed a commitment letter with CIBC Asset-Based Lending Inc. and Roynat Asset Finance, a division of Roynat Inc. pursuant to which such lenders have committed to provide the Operating Trust with a 5-year secured asset-based revolving credit facility in the amount of up to $150 million.

Xstrata Canada Corporation ("Xstrata Canada") has agreed to certain accommodations required by the lenders in respect of such credit facility. These accommodations are not subject to conditions (except for satisfactory legal documentation) nor do they require the payment of a support fee.

Under the new credit facility, the Fund will be permitted to distribute excess cash flow to its Unitholders subject to a minimum excess availability and other customary restrictions. The Board of Trustees of the Operating Trust has not yet made a determination as to the reinstatement and the level, if any, of future distributions.

Since securing the Bridge Facility in December 2010, the management of Canadian Electrolytic Zinc Limited (the Operating Trust's manager) and the Independent Committee of the Operating Trust, with the assistance of their financial advisor, TD Securities Inc., have worked diligently to pursue a long-term refinancing solution for the Operating Trust. Mr. John J. Swidler, Chairman of the Board of Trustees of the Operating Trust and of the Independent Committee said: "We are very pleased that, as a result of the good performance of the Operating Trust since the beginning of 2010 and with the cooperation of Xstrata Canada, the commitment for the revolving credit has been obtained."

The closing of the financing contemplated by the commitment letter is expected to occur by the end of August 2011 and is subject to the satisfaction of certain conditions precedent, including the lenders being satisfied with the results of their due diligence, the negotiation of definitive legal documentation and the concurrent closing of a term debt financing having net proceeds of at least $90 million. The Operating Trust is in advanced discussions regarding the implementation of a term debt financing, but no commitment or written understanding has been executed to date. Xstrata Canada has indicated its willingness to provide accommodations to facilitate the efforts of the Operating Trust to obtain the term debt financing. There is no assurance that the Operating Trust will enter into definitive agreements with lenders and Xstrata Canada with respect to its long-term refinancing.

Noranda Income Fundis 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 www.norandaincomefund.com.



FOR FURTHER INFORMATION PLEASE CONTACT:

Michael Boone
Vice President and Chief Financial Officer,
Canadian Electrolytic Zinc Limited
Noranda Income Fund's Manager
416-775-1561



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