Gold Participation and Income Fund Extends Expiration Date of Exchange Option



    TORONTO, June 26 /CNW/ - Gold Participation and Income Fund (the "Fund"),
an investment trust designed to provide investors with Canadian-dollar
exposure to the long-term performance of gold bullion and gold equity
securities while providing a monthly distribution stream and mitigating
downside risk, has announced an extension of the Fund's exchange option (the
"Exchange Option") with respect to its initial public offering. The cut-off
date to exchange Shares of SPDR Gold Trust and freely-tradeable listed
securities of issuers in the S&P/TSX Global Gold Index or the S&P/TSX 60 Index
(collectively, "Exchange Securities") for Combined Units of the Fund (each
Combined Unit consisting of one Unit of the Fund and one Warrant for one Unit)
has been extended to July 17, 2009.
    A prospective purchaser wishing to utilize the Exchange Option will have
until 5:00 p.m. (Toronto time) on July 17, 2009 to deposit (in the form of a
book-entry deposit) Exchange Securities. CDS participants may, however, have
an earlier deadline for receiving instructions from their clients to make
deposits pursuant to the Exchange Option.
    Under the Exchange Option, the number of Combined Units issuable in
exchange for Exchange Securities deposited by prospective purchasers will be
determined by dividing the weighted average trading price of such Exchange
Securities on the Toronto Stock Exchange, The New York Stock Exchange or The
NASDAQ Stock Market, as the case may be, during the three consecutive trading
days ending on July 17, 2009, adjusted to reflect dividends declared or
distributions pending that will not be received by the Fund by $12.00, being
the issue price of a Combined Unit.
    The exchange ratios will be announced in a press release to be issued by
the Fund on or about July 20, 2009. The Exchange Option is subject to the
terms and conditions set forth in the Fund's preliminary prospectus dated June
5, 2009 which, except as described herein, remain in full force and effect.
    The Fund will seek to achieve its objectives by investing 100% of its net
assets in the gold sector - initially 50% in Shares of SPDR Gold Trust, an
exchange-traded fund that seeks to track the price of gold by investing
directly in gold bullion, and 50% in a portfolio (the "Managed Gold
Portfolio") of equity securities selected from the S&P/TSX Global Gold Index,
a dynamic international benchmark of the world's leading gold companies. The
Fund intends to take advantage of the current high volatility of the Managed
Gold Portfolio securities by writing covered call options on approximately 25%
of its portfolio securities in order to mitigate downside risk for holders of
its Units and to generate additional returns above the distribution income
earned on its portfolio.





For further information:

For further information: John Mulvihill, President and CEO, John
Germain, Senior Vice-President, Sheila Szela, Vice-President, Finance and CFO,
Mulvihill Structured Products, A member of the Mulvihill Capital Management
Inc. Group of Funds, 121 King Street West, Suite 2600, Toronto, Ontario, M5H
3T9, (416) 681-3900, (800) 725-7172, www.mulvihill.com, hybrid@mulvihill.com

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GOLD PARTICIPATION AND INCOME FUND

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