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Canadian Energy Convertible Debenture Fund: Press Release

TORONTO, May 18, 2011 - Canadian Energy Convertible Debenture Fund (TSX:CFE.UN) (the "Fund") announces a distribution of $0.05833 per Unit for the month ending May 31, 2011. The distribution will be paid on or before June 15, 2011 to unitholders of record on May 31, 2011.

The Fund also announces that it will convert into an open-end mutual fund (the "Conversion") on or about July 8, 2011 (the "Conversion Date"). Unitholders of record on the June 30, 2011, being the last record date for distributions prior to the Conversion Date, will receive the regular monthly distribution for the month of June, which will be paid on or before July 15, 2011. Following the Conversion, the distribution rate of $0.05833 per Unit per month will continue until further notice. The Fund anticipates that its Units will be delisted from the Toronto Stock Exchange at the close of business on July 4, 2011 in order to permit the completion of the Conversion.

Following completion of the Conversion, the units of the Fund will be redeemable daily via FundSERV at net asset value. In addition, the record date for the Fund's monthly distribution will be changed from the last business day of each month to the second last business day of each month to reflect industry practice.

In connection with the Conversion, it is expected that the Fund will prepare and file a continuous offering prospectus for the issue of additional units to be issued and sold on a continuous basis at the net asset value of the units of the Fund.

For further information, please call Rob MacNiven, Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.