Conversion to Corporation

Effective July 1, 2010, Labrador Iron Ore Royalty Income Fund was converted to a corporation named Labrador Iron Ore Royalty Corporation on a one for one basis. The conversion was deemed to be a tax-deferred roll-over. 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. Please refer to the message regarding the return of capital.