Warrantholders Eligible to Receive October Distribution

TORONTO, Oct. 7 /CNW/ - Middlefield Group, on behalf of Pathfinder Convertible Debenture Fund ("Pathfinder" or the "Fund"), reminds Warrantholders that Warrants may be exercised immediately to receive the Fund's October distribution of $0.065 per Unit.  In order to be eligible for the October distribution, Warrants must be exercised and submitted to MFL Management Limited no later than 5:00 p.m. (Toronto time) on October 26, 2010.  In addition, Warrantholders may wish to consult with their financial advisor to ensure Warrants are exercised in a timely fashion.

Each Warrant entitles the holder to purchase one Unit at a subscription price of $12.00 on or before 5:00 p.m. (Toronto time) on November 30, 2010 (the "Expiry Time").  Dealers may impose earlier deadlines for exercise.  Warrants not exercised by the Expiry Time will be void and of no value. 

The Fund is exposed to an actively managed diversified portfolio comprised primarily of convertible debentures of Canadian issuers.  Middlefield Capital Corporation, the Advisor, believes that convertible debentures represent an appealing investment opportunity, providing:

• high levels of stable current income and attractive yields to maturity;
  
• additional stability and safety of a senior security position relative to an investment in equities, income trust securities or preferred securities; and
  
• the potential for common equity-like returns.

As at September 30, 2010, the Fund has generated a total annualized return of 15.8% since inception on November 20, 2009.

The Fund's Units and Warrants trade on the Toronto Stock Exchange under the symbols PCD.UN and PCD.WT, respectively.

This press release contains forward-looking information. The forward-looking information contained in this press release is based on historical information concerning the coupon payments, distributions and dividends paid on the securities of issuers to which the Fund is exposed. Actual future results, including the amount of distributions paid by the Fund, may differ from the monthly distribution amount. Specifically, the income from which distributions are paid may vary significantly due to: changes in portfolio composition; changes in coupon payments, distributions and dividends paid by issuers of securities to which the Fund is exposed from time to time; there being no assurance that those issuers will pay distributions or dividends on their securities; the declaration of distributions and dividends by issuers of securities to which the Fund is exposed will generally depend upon various factors, including the financial condition of each issuer and general economic and stock market conditions; the level of borrowing by the Fund; and the uncertainty of realizing capital gains.  The risks, uncertainties and other factors that could influence actual results are described under "Risk Factors" in the Fund's prospectus dated October 28, 2009 and other documents filed by the Fund with the Canadian securities regulatory authorities. The forward-looking information contained in this press release constitutes the Fund's current estimate, as of the date of this press release, with respect to the matters covered hereby. Investors and others should not assume that any forward-looking statement contained in this press release represents the Fund's estimate as of any date other than the date of this press release.

For further information:

please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or at 1.888.890.1868.