Sherritt International completes C$730 million acquisition of Royal Utilities Income Fund units

On March 18, 2008, Sherritt International Corporation (Sherritt) had announced an offer to acquire the remaining 59% of Royal Utilities Income Fund (Royal Utilities) that it did not already own for C$12.25 per unit.

On April 14, 2008, Sherritt and Royal Utilities jointly announced that they had entered into a support agreement, pursuant to which Sherritt amended its previously announced offer to increase in the cash consideration from $12.25 to $12.68 per unit, which represented an aggregate increase of approximately C$25 million in the cash consideration from a maximum of C$225 million to a maximum of approximately C$250 million cash alternative.

Royal Utilities also announced that it will declare a cash distribution of $0.07997 per unit in respect of May 2008, conditional on Sherritt acquiring units under the amended offer. This cash distribution, which will be paid to unitholders who tender to the amended offer, is in addition to the previously announced cash distribution of $0.07464 that will be paid to unitholders of record as of April 28, 2008.

Over 98% of the units subject to the offer were tendered to Sherritt's bid. On May 5, 2008, Sherritt acquired the remaining units.

Royal Utilities Income Fund, based in Toronto, owns Prairie Mines and Royalty Ltd. (formerly Luscar Ltd.), the largest thermal coal producer in Canada.

Sherritt International, based in Toronto, is a diversified resource company involved in the production of thermal coal, nickel, cobalt, oil and electricity.

Further information is found on Sherritt's website.