FIRST NATIONAL FINANCIAL INCOME FUND ANNOUNCES ESTIMATED YEAR-END SPECIAL
DISTRIBUTION AND DECEMBER MONTHLY DISTRIBUTION

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./

TORONTO, Dec. 13, 2010 /CNW/ - First National Financial Income Fund (TSX: FN.UN) (the "Fund") today announced that its Board of Trustees approved an estimated one-time special cash distribution for the fiscal year ending December 31, 2010. The amount of the special distribution is estimated to be $0.35 per unit and will be paid on or about February 15, 2011 to unitholders of record at the close of business on December 31, 2010. The exact value of the special cash distribution will be based on the taxable income of the Fund for the fiscal year ending December 31, 2010 and will be announced via news release once the taxable income is determined in January 2011.

In addition, the Fund announced that its regular monthly cash distribution for the period December 1 to December 31, 2010 will be $0.125 per unit. This distribution will be payable on January 17, 2011 to unitholders of record at the close of business on December 31, 2010.

About First National Financial Income Fund
First National Financial Income Fund (TSX: FN.UN) owns a 21% interest in First National Financial LP, a Canadian-based originator, underwriter and servicer of predominantly prime residential (single family and multi-unit) and commercial mortgages. With over $52 billion in mortgages under administration, First National is Canada's largest non-bank originator and underwriter of mortgages and is among the top three in market share in the growing mortgage broker distribution channel. For more information, please visit www.firstnational.ca.

First National Financial Income Fund will complete its previously announced and approved plan of arrangement pursuant to which its operations will be reorganized and thereafter carried on by First National Financial Corporation, effective January 1, 2011.  In connection with this transaction, all of the issued and outstanding Units (TSX: FN.UN) and Series 1 Senior Secured Debentures of the Fund will be automatically exchanged on a 1:1 basis without any further action by the holder for common shares (TSX: FN) and Series 1 Senior Secured Debentures of First National Financial Corporation, respectively.  For further details on the plan of arrangement, kindly consult First National Financial Income Fund's Management Information Circular dated March 31, 2010 and related material change report dated April 1, 2010.  First National Financial Corporation anticipates commencing paying its first monthly dividend on its common shares, initially in the amount of $0.09167 per common share, in respect of January 2011 on or about February 15, 2011.

Forward-Looking Statements
Certain information included in this news release may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will, "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. This forward-looking information should not be read as providing guarantees of future performance or results, and will not necessarily be an accurate indication of whether or not, or the times by which, those results will be achieved. This forward-looking information is as of the date of this release, and is subject to change after such date. However, management and the Fund disclaim any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

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