Press Releases

Triax Diversified High-Yield Trust

Toronto, October 25, 2005 - The Manager of Triax Diversified High-Yield Trust announces that it will hold a special meeting of the unitholders of the Trust to consider proposals to: (a) extend the termination date of the Trust from January 1, 2007 to January 1, 2017, (b) approve certain amendments to the investment strategy and restrictions, (c) approve a change of the Trust's trustee and the appointment of the Manager as successor trustee, (d) approve certain amendments to the redemption features of the Trust Units, and (e) approve certain amendments to the ability of the Trust to issue additional Units.

The Manager will propose amendments to the Trust Agreement to remove percentage limitations on investments in foreign property, investments in rated debt securities having a rating less than the specified ratings, investments in any one industry or type of investment vehicle, and on investments in U.S. issuers and foreign governments. The Manager will also propose amendments to increase the permitted indebtedness of the Trust and the limits on investments in illiquid investments. The Manager will propose to remove the requirement that the Trust invest primarily in Canadian issuers and limit investments to Canadian or United States dollar denominated securities, and include equity paying dividend securities and participation in loans to corporate borrowers as investment products that may be purchased by the Trust.

The Manager will also propose to add a monthly redemption right based on the market price of the Units, reduce the frequency of redemptions based on net asset value from quarterly to annually, and add a further redemption right designed to permit Unitholders to redeem their Units at 100% of net asset value in order to switch to other public investment vehicles sponsored or promoted by the Manager or an affiliate of the Manager in the future. A proposal will also be made to permit the Trust to issue additional Units at net asset value as determined prior to the date on which such Units are priced.

In the event the termination of the Trust is extended, the Manager will present a proposal to amend the Trust Agreement to permit the Manager, at any time after January 1, 2007, to terminate the Trust if its net asset value falls below a level that is not beneficial to unitholders.

Unitholders of record on November 3, 2005 will be entitled to receive notice of and vote at the meeting which will be held on December 8, 2005, with an adjourned meeting (if required) to be held on December 19, 2005. Details of the proposals will be outlined in a management information circular to be prepared and delivered to unitholders in connection with the meetings.

For more information, please call Triax at (416) 362-2929 or 1 (800) 407-0287, or visit www.triaxcapital.com.