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Noranda Income Fund Updates on Determination of Distributions

Nov 11, 2011 - 09:21 ET

SALABERRY-DE-VALLEYFIELD, QUÉBEC--(Marketwire - Nov. 11, 2011) - Subsequent to the November 8, 2011 press release announcing the third quarter results, Noranda Income Fund (the "Fund") (TSX:NIF.UN) received questions on distributions from investors. The Board of Trustees of Noranda Operating Trust (the "Trust") advises that it has undertaken, through its Independent Committee, a review to determine the availability of funds for future distributions.

The focus of the review by the Independent Committee is to examine, using independent expertise, the future operations of the Fund upon the expiry of the Supply and Processing Agreement in 2017. To assist the Independent Committee, a highly-regarded, international consulting group with expertise in minerals and mining has been engaged to perform an analysis of the Fund's ability to secure zinc concentrate post-2017. The Independent Committee has also retained a well-respected industry expert to assist in the analysis. A report prepared by the consulting group is expected to be presented at a December meeting of the Board of Trustees.

Based upon the findings of the report and further analysis, it may be necessary to establish significant reserves for closure costs of the facility located in Salaberry-de-Valleyfield, including severance payments, pension and retirement benefit plans and site rehabilitation costs. Such potential reserves may have a significant impact on future distribution levels. The Board of Trustees anticipates that, early in 2012, it will be in a position to determine if any change is required to the current level of monthly distributions. The Board of Trustees will continue to monitor the situation closely and diligently. In the interim, the Fund expects to be required to declare an in-kind distribution before the end of fiscal 2011, as required by its Trust Indenture.


This press release contains forward-looking information and statements within the meaning of applicable securities laws, including statements on determination of further distributions and the end of the SPA. Forward-looking information involves known and unknown risks, uncertainties and other factors, which may cause actual events, results or performance to be materially different from any future events, results or performance expressed or implied by the forward looking information, and as a result, the Fund cannot guarantee that any forward-looking statements or information will materialize. Such risks and uncertainties include, but are not limited to, the effect of general business and economic conditions and the conditions of financial and credit markets, the Fund's ability to operate at normal production levels, changes to the supply and demand for specific zinc metal products and other general risks and uncertainties set out in the Fund's continuous disclosure documents on available on SEDAR at

Forward-looking information contained in this press release is based on, among other things, management's current estimates, expectations, assumptions, plans and intentions, which management believes are reasonable as of the current date, and which are subject to a number of risks and uncertainties. Except as required by law, the Fund does not undertake to update these forward-looking statements or information, whether written or oral, that may be made from time to time by the Fund or on the Fund's behalf.

Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol "NIF.UN". The Noranda Income Fund owns the CEZinc processing facility and ancillary assets (the "CEZinc processing facility") located in Salaberry-de-Valleyfield, Québec. The CEZinc 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 zinc customers are located. It produces refined zinc metal and various byproducts from zinc concentrates purchased from mining operations. The CEZ processing facility is operated and managed by Canadian Electrolytic Zinc Limited.

Further information about the Noranda Income Fund can be found at


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

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