Conversion to Corporate Structure

Effective November 12, 2008, Bonterra Energy Income Trust converted to a corporation named Bonterra Energy Corp on a one for one basis. The conversion was deemed to be a tax deferred rollover. Beginning in November, 2008, monthly distributions became classed as dividends. If a disposition of shares of the corporation involved units purchased as the predecessor income trust, then Canada Revenue Agency will require an ACB calculation if a portion of the distribution received from the trust was deemed to have been return of capital.