Gold and Silver Enhanced Income Fund Announces Filing of Preliminary Prospectus

TORONTO, Nov. 2, 2011 /CNW/ - Gold and Silver Enhanced Income Fund (the "Fund") is pleased to announce that it has filed and received a receipt for its preliminary prospectus from the securities regulatory authority in each province of Canada. The Fund is an investment trust designed to provide investors with an actively managed investment in the common shares of leading gold and silver mining producers while mitigating downside risk and paying a monthly cash distribution.

The Fund's investment objectives are:

(i) to maximize risk adjusted returns for holders of Units of the Fund; and
(ii) to pay Unitholders monthly cash distributions in an amount targeted to be 5.0% per annum on the net asset value per Unit.

The Fund will seek to achieve its investment objectives by actively investing in a diversified portfolio consisting primarily of gold and silver equity securities combined with selective covered call option writing designed to enhance portfolio income and mitigate downside risk. The precious metals sector is particularly attractive for covered option writing given that gold and silver equity securities have traditionally exhibited higher volatility and lower dividend yields relative to the broader equity market. Moreover, a divergence has emerged between the performance of gold and silver equity securities and the increase in bullion prices. While the price performance of gold and silver bullion has beenimpressive, large-cap gold and silver mining stocks have significantly underperformedbullion in recent years.

Strathbridge Asset Management Inc., an experienced Canadian closed-end fund manager, will be responsible for the management and administration of the Fund and will also implement the Fund's investment strategies.

The offering is being made through a syndicate of investment dealers co-led by RBC Capital Markets and CIBC and includes BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., Desjardins Securities Inc., GMP Securities L.P., HSBC Securities (Canada) Inc., Mackie Research Capital Corporation, Macquarie Private Wealth Inc., Manulife Securities Incorporated and Raymond James Ltd.

The Strathbridge team is committed to providing unique investment funds for investors to meet their individual income needs and risk tolerance. For further information, please contact Investor Relations at 416.681.3966, toll free at 1.800.725.7172 or visit www.strathbridge.com.

A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from Strathbridge Asset Management Inc. by emailing info@strathbridge.com. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

SOURCE Gold and Silver Enhanced Income Fund

For further information:

David Roode
President, Fund Services
416.681.3940

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Gold and Silver Enhanced Income Fund

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