First Asset Energy & Resource Fund’s investment objective is to achieve long-term growth, primarily through capital appreciation but also through investment in income generating assets, including units of income trusts. The Fund will invest in a diversified portfolio of securities of businesses active in, or providing service and/or support to businesses active in, the exploration, production, transportation or distribution of all forms of energy and natural resources. The Fund's investment portfolio will be actively managed so as to achieve its investment objective.

The Fund’s investment strategy entails investing in securities issued by businesses involved at every stage of the energy value chain in an effort to take advantage of emerging investment themes such as energy convergence, environmental protection, new energy technology, deregulation and consolidation, as well as energy production. The Fund will attempt to balance growth and defensive potentials by taking advantage of the cyclical leverage available from energy investments and from new long-term secular trends that are appearing in the energy and natural resource sectors. The Fund will attempt to balance risks and rewards through investments in a diversified portfolio of securities that combines exposure to both old economy and new economy energy and natural resource investments, both cyclical leverage and secular trends, and both aggressive growth and defensive value. The Fund may also invest a portion of its net assets in certain securities, including those issued by private corporations, which are subject to resale restrictions and commodity-linked securities. The Fund may also invest in securities of foreign issuers.

October 4, 2007, First Asset Energy & Resource Income & Growth Fund (“Fund II”) completed its combination with First Asset Energy & Resource Fund (TSX: TRF.UN)(“Fund I”). The Exchange Transaction was completed on a taxable basis for Limited Partners of Fund II. On a per unit basis, each unit of Fund II was converted into 1.4819 units of Fund I. As a result of this transaction, Fund II no longer exists and its former limited partners are now limited partners of Fund I.

The exchange ratio was determined by dividing (i) the net asset value per unit of Fund II as at the close of business on October 3, 2007 (i.e. $41.02 per Unit) by (ii) net asset value per unit of Fund I as at the close of business on October 3, 2007 (i.e. $27.68 per Unit).