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Canadian Energy Convertible Debenture Fund Files Preliminary Prospectus

TORONTO, December 7, 2009 - Canadian Energy Convertible Debenture Fund (the "Fund") announces that it has filed a preliminary prospectus dated December 3, 2009 with the securities regulatory authorities of all of the Canadian provinces for an initial public offering of a maximum of 7,500,000 trust units (the "Units") at $10 per Unit, for maximum gross proceeds of $75 million.

The Fund has been created to invest in an actively managed portfolio comprised primarily of convertible debentures of Canadian energy issuers. The Fund's investment objectives are to provide holders of Units with:

  1. monthly distributions initially targeted to be 7% per annum on the subscription price of $10.00 per Unit ($0.05833 per Unit per month or $0.70 per annum); and
  2. the opportunity for capital appreciation.

The Portfolio will be actively managed by First Asset, co-led by portfolio managers Lee Goldman and John Stephenson. First Asset is a Canadian wealth management company that manages and administers in excess of $1.4 billion in assets including approximately $300 million in convertible debentures.

On or about June 30, 2011, the Fund will automatically convert to an open-end mutual fund.

Prospective purchasers may purchase Units either by cash payment or by an exchange of freely tradeable securities of each class or series of securities described in the table below. Prospective purchasers under the Exchange Option will be required to deposit their eligible exchange securities prior to 5:00 p.m. (Toronto time) on December 18, 2009 in the manner described in the preliminary prospectus.


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            Issuer             Convertible Debenture   TSX Symbol   CUSIP   
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Advantage Oil & Gas Ltd.       7.75% due December 1,                        
                               2011                     AAV.DB.D  00765FAC5 
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Advantage Oil & Gas Ltd.       6.50% due June 30, 2010  AAV.DB.E  00765FAA9 
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Advantage Oil & Gas Ltd.       8.00% due December 31,                       
                               2011                     AAV.DB.G  00765FAD3 
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Ag Growth International Inc.   7.00% due December 31,                       
                               2014                     AFN.DB    001181AA4 
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Anatolia Minerals Development  4.75% due April 30, 2012 ANO.DB    032900AA0
Limited                        
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Algonquin Power & Utilities    7.50% due November 30,                       
Corp.                          2014                     AQN.DB    015857AA3 
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Algonquin Power & Utilities    7.00% due June 30, 2017  AQN.DB.B  015857AC9
Corp.                          
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Atlantic Power Corporation     6.25% due October 31,                        
                               2011                     ATP.DB    04878QAH6 
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Atlantic Power Corporation     6.25% due March 15, 2017 ATP.DB.A  04878QAM5 
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Bellatrix Exploration Ltd.     7.50% due June 30, 2011  BXE.DB    078314AA9 
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Connacher Oil and Gas Limited  4.75% due June 30, 2012  CLL.DB.A  20588YAA1 
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Canexus Income Fund            8.00% due December 31,                       
                               2014                     CUS.DB    13751RAB0 
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Daylight Resources Trust       8.50% due October 31,                        
                               2012                     DAY.DB.B  239600AB5 
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Daylight Resources Trust       10.00% due December 31,                      
                               2013                     DAY.DB.C  239600AE9 
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Enterra Energy Trust           8.00% due December 31,                       
                               2011                     ENT.DB    29381PAA0 
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Enterra Energy Trust           8.25% due June 30, 2012  ENT.DB.A  29381PAB8 
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Extendicare Real Estate        5.70% due June 30, 2014  EXE.DB    302251AA1
Investment Trust                
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Extendicare Real Estate        7.25% due June 30, 2013  EXE.DB.A  302251AB9 
Investment Trust                
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Firm Capital Mortgage          6.00% due June 30, 2013  FC.DB     318324AA8
Investment Trust               
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Fairborne Energy Ltd.          6.50% due December 31,                       
                               2011                     FEL.DB    303623AA0 
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First Uranium Corporation      4.25% due June 30, 2012  FIU.DB    33744RAA0 
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Great Basin Gold Ltd.          8.00% due November 30,                       
                               2014                     GBG.DB    390124AA3 
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Harvest Energy Trust           6.50% due December 31,                       
                               2010                     HTE.DB.B  41752XAD3 
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Harvest Energy Trust           6.40% due October 31,                        
                               2012                     HTE.DB.D  41752XAF8 
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Harvest Energy Trust           7.25% due September 30,                      
                               2013                     HTE.DB.E  41752XAH4 
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Harvest Energy Trust           7.25% due February 28,                       
                               2014                     HTE.DB.F  41752XAJ0 
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Harvest Energy Trust           7.50% due May 31, 2015   HTE.DB.G  41752XAK7 
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Jazz Air Income Fund           9.50% due December 31,                       
                               2014                     JAZ.DB    47214XAA8 
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Just Energy Exchange Corp.     6.00% due September 30,                      
                               2014                     JEX.DB    48214AAA6 
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Keyera Facilities Income Fund  8.25% due December 31,                       
                               2013                     KEY.DB.A  493272AB4 
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Macquarie Power &              6.75% due December 31,                       
Infrastructure Income Fund     2010                     MPT.DB    556084AA9 
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NAL Oil & Gas Trust            6.75% due August 31,     NAE.DB    628949AA7 
                               2012
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NAL Oil & Gas Trust            6.25% due December 31,                       
                               2014                     NAE.DB.A  628949AB5 
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Northland Power Income Fund    6.50% due June 30, 2011  NPI.DB    666910AA2 
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Northland Power Income Fund    6.25% due December 31,                       
                               2014                     NPI.DB.A  666910AB0 
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Pacific Rubiales Energy Corp.  8.00% due August 29,     PRE.DB    69480UAA5 
                               2013
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Paramount Energy Trust         6.25% due June 30, 2010  PMT.DB.A  699219AC5 
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Paramount Energy Trust         6.25% due April 30, 2011 PMT.DB.B  699219AE1 
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Paramount Energy Trust         6.50% due June 30, 2012  PMT.DB.C  699219AF8 
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Parkland Income Fund           6.5% due November 30,                        
                               2014                     PKI.DB    70137QAA9 
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Pengrowth Energy Trust         6.50% due December 31,                       
                               2010                     PGF.DB    706902AA1 
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Penn West Energy Trust         7.20% due May 31, 2011   PWT.DB.E  707885AB5 
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Penn West Energy Trust         6.50% due December 31,                       
                               2011                     PWT.DB.F  707885AF6 
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Progress Energy Resources      6.75% due June 30, 2010  PRQ.DB    74326YAA5 
Corp.
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Progress Energy Resources      6.25% due September 30,                      
Corp.                          2011                     PRQ.DB.A  74326YAB3 
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Progress Energy Resources      5.25% due October 31,                        
Corp.                          2014                     PRQ.DB.B  74326YAC1 
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Provident Energy Trust         6.50% due August 31,     PVE.DB.C  74386KAD6 
                               2012
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Provident Energy Trust         6.50% due April 30, 2011 PVE.DB.D  74386KAE4 
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Superior Plus Corp.            5.75% due December 31,                       
                               2012                     SPB.DB.B  86828PAA1 
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Superior Plus Corp.            5.85% due October 31,                        
                               2015                     SPB.DB.C  86828PAB9 
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Trinidad Drilling Ltd.         7.75% due July 31, 2012  TDG.DB    896356AA0 
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Uranium One Inc.               4.25% due December 31,                       
                               2011                     UUU.DB    91701PAA3 
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Western Coal Corp.             7.50% due March 24, 2011 WTN.DB    95801TAA5 
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The syndicate of agents for this offering is being led by CIBC World Markets Inc. and National Bank Financial Inc., and includes BMO Capital Markets, RBC Capital Markets, Scotia Capital Inc., TD Securities, Dundee Securities Corporation, Raymond James Ltd., Canaccord Adams, GMP Securities L.P., HSBC Securities (Canada) Inc., Manulife Securities Incorporated and Wellington West Capital Markets Inc.

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.