Canadian Resources Income Trust Announces Extension Proposal

TORONTO, Jan. 14, 2015 /CNW/ - Canadian Resources Income Trust (the "Trust" or "CaRIT") announced today that it is calling a meeting of holders of units of the Trust ("Unitholders") to consider a proposal to extend the term of the Trust for an additional five years. The extension will involve (i) extending the redemption date permitting Unitholders to continue to hold their investment until March 31, 2020, (ii) changing the investment mandate to provide that the Trust will invest in a portfolio comprising the 20 highest yielding natural resource issuers in the S&P/TSX 60 Index initially on an equal weighted basis, which portfolio will be reconstituted and rebalanced at least annually, (iii) establishing a covered call writing strategy on no more than 25% of the portfolio, and (iv) creating a special retraction right to provide Unitholders who do not wish to extend their investment with the option of retracting their units as originally contemplated on March 31, 2015.  The Trust will not have a fixed distribution but intends to determine a distribution target annually based on, among other things, the actual and expected distributions and returns generated by its portfolio less the Trust's estimated expenses.  Distributions will be paid monthly and the initial distribution target is expected to be 6.00% per annum based on the Trust's net asset value.

A special meeting of Unitholders has been called and will be held on March 6, 2015 to consider and vote on the extension. Details of the proposed extension will be outlined in an information circular to be prepared and delivered to Unitholders in connection with the special meeting and which will be available on www.sedar.com. The extension will be subject to receipt of all necessary regulatory approvals.

About CaRIT

CaRIT is an investment trust which provides investors with high current yield and low cost diversification through a defined portfolio of equity securities of selected Canadian issuers focused on the natural resource industry.  Trust Units of CaRIT are listed for trading on The Toronto Stock Exchange under the symbol RTU.UN.

SOURCE Canadian Resources Income Trust

Investor Relations, CaRIT LP, Trustee of Canadian Resources Income Trust, [phone], E-mail: [email protected], Web site: www.scotiamanagedcompanies.com