Noranda Income Fund provides an update on its 2008 sulphuric acid contracts



    SALABERRY-DE-VALLEYFIELD, QC, March 10 /CNW/ - In response to questions
received from the public regarding its exposure to the current pricing for
sulphuric acid, the Noranda Income Fund (the "Fund") is providing the
following update.

    Production of Sulphuric Acid

    The Fund produces zinc metal and various byproducts from zinc
concentrates that are received from mining operations. Zinc concentrate
contains sulphur, which is transformed into sulphur dioxide during the process
of making zinc metal. Sulphur dioxide is captured and processed into sulphuric
acid. Sulphuric acid is used in a variety of industries, including the
chemical, pigment and fertilizer industries.
    The Fund's annual production of sulphuric acid for the past two years
was:

    
    (tonnes)                                              2007         2006
                                                          ----         ----

    Sulphuric acid available for sale                   426,520      441,688
    

    2008 Sulphuric Acid Contract Update

    The Fund markets its sulphuric acid through a reseller. Most of it is
sold into the North American industrial market. To allow for a consistent
offtake of the sulphuric acid and to meet the needs of the industrial market,
the majority of the Fund's sulphuric acid is sold by way of annual and
multi-year contracts that are negotiated between buyer and seller.
Approximately 10-15% of the Fund's 2008 sulphuric acid production will be sold
by the Fund's reseller on a transaction by transaction basis, based on current
market conditions and pricing.

    FORWARD-LOOKING INFORMATION
    -------------------------------------------------------------------------

    The Fund has provided Forward-looking Information on its exposure to the
current pricing for sulphuric acid. The Fund has provided this Information in
response to questions received from the public. Readers are cautioned that
this Information may not be appropriate for other reasons.
    This press release contains Forward-looking Information concerning the
Fund's exposure to current pricing for sulphuric acid. Forward-looking
Information involves known and unknown risks, uncertainties and other factors,
which may cause the actual results or performance to be materially different
from any future results or performance expressed or implied by the
Forward-looking Information.
    Examples of such risks, uncertainties and other factors include, but are
not limited to, the following: (1) general business and economic conditions;
(2) the demand for sulphuric acid; (3) the ability of the Fund to continue to
service customers in the same geographic region; and (4) the ability of the
Fund to continue to produce sulphuric acid at normal operating levels. This
Forward-looking Information represents our views as of the date of this press
release. The Fund anticipates that subsequent events and developments may
cause its views to change.

    Noranda Income Fund is an income trust whose units trade on the Toronto
Stock Exchange under the symbol "NIF.UN". The Noranda Income Fund owns the
CEZinc processing facility and ancillary assets (the "CEZinc processing
facility") located in Salaberry-de-Valleyfield, Quebec. The CEZinc processing
facility is the second-largest zinc processing facility in North America and
the largest zinc processing facility in eastern North America, where the
majority of its customers are located. It produces refined zinc metal and
various byproducts from zinc concentrates purchased from mining operations.
The Processing Facility is operated and managed by Canadian Electrolytic Zinc
Limited.

    %SEDAR: 00017578EF




For further information:

For further information: Michael Boone, Vice President & Chief Financial
Officer, Canadian Electrolytic Zinc Limited, Noranda Income Fund's Manager,
Tel: (416) 775-1561, mboone@xstrata.ca; Further information about the Noranda
Income Fund can be found at www.norandaincomefund.com

Organization Profile

NORANDA INCOME FUND

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