Foremost Income Fund Announces 2019 Cash Distribution

Calgary, Alberta--(Newsfile Corp. - December 13, 2019) - Foremost Income Fund ("Foremost" or the "Fund") announces 2019 distribution.

It is the Fund's intention to pay a cash distribution in an amount equal to the taxable income of the Fund for the 2019 fiscal year. The cash distribution is estimated to be $0.17 per trust unit, which amount will be confirmed once the taxable income of the Fund is finally determined in February 2020. The distribution will be paid on or before March 31, 2020 to Unitholders of Record as at December 31, 2019. The Fund's distribution details are as follows:

Estimated distribution per trust unit: $0.17 to be confirmed prior to February 28, 2020 upon final determination of the taxable income of the Fund

Record date: December 31, 2019

Payment date: On or before March 31, 2020

As a result of the 2019 cash distribution, the Trustees have determined that, as of January 1, 2019, the Fund will decrease the redemption price for tendered Trust Units from $6.15 to $6.00.

Foremost Income Fund Announces Interim Reduction of Monthly Limit for Fund Unit Redemptions Pursuant to Section 6.4(ii)(A) and (B) of the Deed of Trust

Pursuant to section 6.4(ii)(A) and (B) of the Deed of Trust of the Fund dated November 12, 2005 as amended (the "Deed of Trust"), the Trustees of the Fund have discretion to reduce the monthly limit for cash redemptions of units of the Fund due to a material change, or concerns as to the current working capital or debt of the Fund. The exercise of such discretion may result in all or a portion (on a pro rata basis, depending on notices of redemption received) of the amount payable for units redeemed being paid by unsecured promissory notes in accordance with section 6.5 of the Deed of Trust.

As disclosed by prior press releases, effective May 1, 2014 and applying to all notices of redemption received in the months of May through October 2014, inclusive, and February 2015 through March 2018, inclusive, the Trustees of the Fund exercised their discretion pursuant to section 6.4(ii)(B) to reduce the monthly limit for cash redemptions from $1,500,000.00 to $0.00, to $500,000.00 for the months of November and December 2014 and January 2015, to $250,000 for the months of April to September 2018, and to $350,000.00 for the months of October 2018 to November 2019 (in each case the subject redemptions being payable by the end of the following month). The Trustees undertook to review the revised monthly limit in respect of the month of December 2019 no later than December 13, 2019.

Until further notice and for purposes of efficacy in our communication with our unitholders, the Trustees have determined that the monthly limit for cash redemptions will be set at $350,000.00 per month.

Regarding notices of redemption received in the month of December and going forward until further notice, the Fund will redeem up to $350,000.00 of units for cash, per month. If notices of redemption received in December or any subsequent month exceed $350,000.00 per month, then the unitholders that have submitted notices of redemption in such month will be contacted and provided with an opportunity to withdraw all or any part of such notices of redemption. Thereafter, to the extent notices of redemption for such month remain in excess of $350,000.00, the subject units will be redeemed in part for cash and in part for unsecured promissory notes on a pro rata basis.

This discussion is intended for summary purposes only and is subject in all respects to the Deed of Trust. The income and other tax consequences of holding, redeeming or disposing of units and acquiring promissory notes will vary depending on the unitholder's particular circumstances, including the jurisdiction(s) in which the unitholder resides or carries on business, and whether the unitholder is an RRSP, RESP, RRIF, DPSP or TFSA. Accordingly, this summary is of a general nature only and is not intended to be legal or tax advice to any prospective purchaser or any unitholder. All unitholders should consult their own legal and tax advisors prior to redeeming units of the Fund.

On behalf of the Trustees
Foremost Income Fund

[signed: Bevan May]

Bevan May, Trustee

Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements include statements the Fund's intention to proceed with a Unitholders' meeting and information regarding the Trustees' views of the future prospects and tax treatment of the Fund and tax treatment of the Special Redemption, the Fund's expectations regarding the future availability of cash to meet redemption requests and the Trustee's expectations for redemption prices. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this news release. These forward-looking statements involve a number of risks and uncertainties, including: the impact of general economic conditions, industry conditions, changes in laws and regulations, increased competition, fluctuations in commodity prices and foreign exchange, and interest rates and stock market volatility.

For further Investor Relations information please contact:
Jackie Schenn, CA

Tel: (403) 295-5800 or toll free 1-800-661-9190 (Canada/US) - Fax: (403) 295-5832
E-mail: - Website:

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