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FIRST ASSET ENERGY & RESOURCE FUND and FIRST ASSET ENERGY & RESOURCE INCOME & GROWTH FUND

TORONTO, June 26, 2007 - First Asset (I) General Partner Inc. and First Asset (II) General Partner Inc., the general partners of First Asset Energy & Resource Fund (TSX: TRF.UN) ("Partnership I") and First Asset Energy & Resource Income & Growth Fund (TSX: TXL.UN) ("Partnership II"), respectively, announce that a special meeting of limited partners of the each Partnership has been called for July 20, 2007.

At the meeting, Limited Partners will be asked to consider, and if deemed acceptable, approve special resolutions which will give the General Partners the authority to combine the two Partnerships and to implement certain other structural changes to the combined Partnership including the reinstatement of an annual redemption privilege commencing in January 2008, a reduction of the investment advisory fee in conjunction with a resetting of the performance bonus, and the ability to implement a division or consolidation of the units in the future should circumstances warrant it.

The General Partners believe that synergies can be realized through the combination of the two Partnerships given the numerous similarities between the two Partnerships (e.g., investment objectives and strategies, service providers, and applicable laws). Limited Partners of the combined entity will benefit through the elimination of duplication of costs (e.g., transfer agent fees, audit fees, legal fees, exchange listing fees, printing fees and mailing and reporting costs).

The General Partners also announce that, effective today, the investment advisory responsibilities for each Partnership will be assumed by First Asset Investment Management Inc. ("First Asset"), an affiliate of both General Partners, from Natcan Investment Management Inc.

Further details of the matters to be considered at the special meeting are outlined in a Notice and Management Information Circular that will be delivered to limited partners in connection with the meetings. The meetings will be held concurrently. Limited Partners of record on May 31, 2007 will be entitled to receive notice of and vote at the meetings. If needed, an adjourned meeting will be held on July 30, 2007.

For more information, please call Paul Dinelle (Executive Vice-President) at (416) 642-1289 or (877) 642-1289.