Press Releases

First Asset Energy & Resource Fund Announces Normal Course Issuer Bid

TORONTO, October 15, 2007 - First Asset Energy & Resource Fund (the "Fund") (TSX:TRF.UN) announced today that a Notice of Intention to make a Normal Course Issuer Bid (the "Bid") has been filed with, and accepted by, the Toronto Stock Exchange (the "TSX"). The Fund may, pursuant to the Bid, purchase up to 181,122 units of the Fund (the "Units") which Units represent 10% of the public float. As of October 15, 2007, both the number of Units in the public float and the number of Units issued and outstanding is 1,811,224. The Fund intends to purchase for cancellation any Units purchased pursuant to the Bid. Pursuant to TSX policies, the Fund will not purchase more than 2% of the 1,811,224 units outstanding during any 30 day period. The purchases may commence on October 17, 2007 and will terminate on October 16, 2008, or on such earlier date as the Fund may complete its purchases pursuant to the Notice, or provide notice of termination. Any such purchases will be made by the Fund through the facilities of the TSX in accordance with TSX Rules and Policies and the prices that the Fund will pay for any Units will be the market price of such shares at the time of acquisition. The Fund will make no purchases of Units other than open-market purchases.

On October 16, 2006, the Fund made a normal course issuer bid that will expire on October 16, 2007 (the "Former Bid"). Under the Former Bid, the Fund purchased a total of 39,800 units of the Fund at an average price of $21.66 per unit.

The Fund believes that, from time to time, the market price of the Units may not fully reflect the underlying value of the Units and that at such time the purchase of the Units is in the best interests of the Fund and are a desirable use of its available funds.

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