Royal Utilities Income Fund Mails Trustees' Circular

TORONTO, April 8 /CNW/ - The special committee of independent trustees (the "Special Committee") of Royal Utilities Income Fund (the "Fund") announced today that it has filed on SEDAR its Trustees' Circular in response to Sherritt's offer for all the Units of the Fund that it does not own. The Trustees' Circular will be mailed to all Unitholders commencing tomorrow. The Trustees' Circular recommends that Unitholders take no action with respect to Sherritt's take-over bid at this time. Unitholders are urged to read the Trustees' Circular, which may be found at www.sedar.com, in its entirety. The Special Committee will communicate further with Unitholders prior to the expiry of Sherritt's take-over bid.

About Royal Utilities Income Fund

The Fund is an unincorporated, open-ended, limited purpose trust established under the laws of Alberta. The Fund directly holds all of the shares of Prairie Mines & Royalty Ltd. (the "Company"), which is the largest thermal coal producer in Canada. The Company owns and operates the Paintearth, Sheerness, Genesee (50% joint venture interest), Poplar River, Boundary Dam and Bienfait mines, and operates the Highvale and Whitewood mines under contract. A total of 36 million tonnes of coal was produced by the Company in 2007.

The Company also holds a portfolio of mineral rights located in Alberta and Saskatchewan on which it earns royalties from the production of coal and potash.

The Company's revenue is derived from two principal sources: the supply of thermal coal under long-term contracts with the major electric utilities in Alberta and Saskatchewan, and royalty payments received from certain utility customers and other parties based on coal and potash production.

Contacts

Peter Buzzi
RBC Capital Markets
(416) 842-7687