MINT Announces Third Quarter Results

Business Wire, Nov 10, 2004

TORONTO -- MINT Income Fund (TSX:MID.UN)

THIRD QUARTER REPORT 2004

For the period ended September 30, 2004

Middlefield Group is pleased to present the unaudited financial results for MINT Income Fund ("MINT") for the period ended September 30, 2004, the details of which are attached.

In the third quarter of 2004, MINT paid distributions totalling $0.21 per unit to unitholders. MINT generated a total return of 35.1% for the one year ended September 30, 2004.

As at September 30, 2004, the asset class weightings for the MINT portfolio were:

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Asset Class                                       Portfolio Weighting
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Business Trusts                                                 41.9%
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Real Estate Investment Trusts                                   23.8%
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Oil and Gas Royalty Trusts                                      21.1%
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Power and Pipeline Trusts                                       10.9%
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Cash                                                             2.3%
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The primary objective of MINT is to provide unitholders with high levels of sustainable monthly income. MINT invests selectively in the income trust sector with a bias toward economically sensitive trusts with lower capital expenditure requirements, stable cash flows and dominant market positions. Business trusts comprise the largest weighting within MINT's portfolio, supplemented by REITs and oil and gas royalty trusts. This strategy provides unitholders with a balance of high, stable, tax-efficient income and the potential for capital appreciation.

MINT trades on the Toronto Stock Exchange under the symbol "MID.UN".

November 10, 2004

This press release contains forward-looking information. Actual future results may differ materially. The risks, uncertainties and other factors that could influence actual results are described in the MINT annual report and other documents filed with regulatory authorities.

MANAGEMENT'S DISCUSSION AND ANALYSIS

SEPTEMBER 30, 2004 AND 2003 (UNAUDITED)

The following discussion and analysis should be read in conjunction with the attached unaudited interim financial statements. Readers should also refer to Management's Discussion and Analysis in the Fund's 2003 Annual Report. Management is responsible for the existence of appropriate information systems, procedures and controls to ensure that information used internally and disclosed externally is complete and reliable.

SECTOR ANALYSIS

The business trust sector continued to expand during the second quarter. Business trusts currently comprise 90 issuers with a market capitalization of approximately $39 billion. Parkland Income Fund was added to the portfolio during the third quarter. Parkland's main businesses are retail and wholesale fuel marketing, as well as convenience stores. The Fund is growing its merchandising business which should offset the inherent volatility in the retail and wholesale area. Parkland recently announced an increase in their distributions.

During the third quarter, REIT unit prices recovered from the correction experienced in the second quarter and generated healthy returns aided by stable property demand/supply dynamics. Calloway REIT made its fourth acquisition from FirstPro Shopping Centres acquiring 14 Wal-Mart anchored centres and announced an increase in distributions. This is the second time this year Calloway has increased distributions.

Strong commodity prices continued to support the oil and gas royalty trust sector, generating the strongest returns among sub sectors in the income trust market. Canadian Oil Sands Trust performed exceptionally well during the quarter which saw its unit price increase by approximately 24%.

In light of the Co-Advisors' expectation of a recovery in economic growth and a gradual increase in interest rates over the next 12 months, the Fund has adopted an underweight position in power and pipeline trusts.

DISTRIBUTIONS TO UNITHOLDERS

Cash distributions paid to unitholders in the third quarter totalled $0.21 per unit. MINT generated a total return of 35.1% for the one year ended September 30, 2004.

FINANCIAL PERFORMANCE

The net asset value per unit increased by 8.9% during the quarter and increased by 24.3% year-over-year to $10.52 at September 30, 2004. Net investment income was $0.20 per unit in the third quarter of 2004 compared to $0.21 per unit during the third quarter of 2003. The ratio of management fees and other operating expenses (excluding interest expense and bank charges) to average net asset value ("MER") was 1.50% for the period, compared to 1.44% in the third quarter of 2003.