Vermilion Energy Trust Announces 2007 Canadian and US Tax Information



    CALGARY, Feb. 29 /CNW/ - Vermilion Energy Trust ("Vermilion" or the
"Trust") (VET.UN-TSX) announces the 2007 tax treatment on distributions for
unitholders in Canada and the United States.

    Canadian Individual Unitholders:
    --------------------------------

    For the 2007 taxation year, the treatment of distributions is 100% return
on capital (taxable income).

    For purposes of the Canadian Income Tax Act, the Trust is a mutual fund
trust. Each year, an income tax return is filed by the Trust with the taxable
income allocated to and taxable in the hands of unitholders. Distributions
paid by the Trust can be both a return of capital (i.e. a repayment of a
portion of the investment) and a return on capital (i.e. income).
    Each year the taxable income portion or return on capital, is calculated
and reported in the Trust's T3 return and allocated to each unitholder who
received distributions for that taxation year and reported in Box 26 'Other
income' on the T3 Supplementary forms, which are mailed to unitholders before
March 31st in accordance with regulatory requirements. Registered unitholders
will receive a T3 Supplementary form directly from the Trust's transfer agent,
Computershare Trust Company of Canada. Beneficial unitholders will receive a
T3 Supplementary form from their broker or other intermediary. The T3 slip
will report both the taxable and non-taxable income components of their
distributions. The tax deferred, or return of capital component of
distributions which is reported in Box 42 "Amount Resulting in Cost Base
Adjustment" reduces the unitholder's adjusted cost base of trust units.
    Unitholders who hold their investment in a Registered Retirement Savings
Plan, Registered Retirement Income Fund, Deferred Profit Sharing Plan or
Registered Education Savings Plan need not report any income related to trust
unit distributions on their 2007 income tax return.

    
    The following table sets out the allocation of the Canadian 2007 monthly
    distributions:

                                                           Tax       Taxable
                                           Total      Deferred        Amount
    Payment Date       Record Date  Distribution        Amount       (Income)
    -------------------------------------------------------------------------
    Feb 15/07            Jan 31/07       0.17000       0.00000       0.17000
    Mar 15/07            Feb 28/07       0.17000       0.00000       0.17000
    Apr 13/07            Mar 30/07       0.17000       0.00000       0.17000
    May 15/07            Apr 30/07       0.17000       0.00000       0.17000
    Jun 15/07            May 31/07       0.17000       0.00000       0.17000
    Jul 13/07            Jun 29/07       0.17000       0.00000       0.17000
    Aug 15/07            Jul 31/07       0.17000       0.00000       0.17000
    Sep 14/07            Aug 31/07       0.17000       0.00000       0.17000
    Oct 15/07            Sep 28/07       0.17000       0.00000       0.17000
    Nov 15/07            Oct 31/07       0.17000       0.00000       0.17000
    Dec 14/07            Nov 30/07       0.17000       0.00000       0.17000
    Jan 15/08            Dec 31/07       0.19000       0.00000       0.19000
    -------------------------------------------------------------------------
                                         2.06000       0.00000       2.06000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    United States Individual Unitholders:
    -------------------------------------

    We believe the Trust should be treated as a qualified corporation and the
units are equity for United States tax purposes. The Trust has calculated that
100% of the distributions paid in 2007 are dividends that are "Qualifying
Dividends". The taxability of distributions for US purposes is calculated
using U.S. tax rules. The taxable portion of the monthly distribution is
determined annually by the Trust based upon 2007 current and accumulated
earnings in accordance with U.S. tax law.
    Unitholders who are not residents of Canada for income tax purposes are
encouraged to seek advice from a qualified tax advisor in the country of
residence for the tax treatment of distributions. Monthly distributions
payable to non-residents of Canada are normally subject to a withholding tax
of 25% as prescribed by the Income Tax Act of Canada. This withholding tax may
be reduced in accordance with reciprocal tax treaties, and in the case of the
Tax Treaty between Canada and the United States, the withholding tax for
residents of the United States is prescribed at 15%. U.S. taxpayers may be
eligible for a foreign tax credit with respect to the Canadian withholding
taxes paid. Information regarding the amount of Canadian tax withheld in 2007
should be available through your broker or other intermediary and is not
provided by Vermilion.
    Investors should consult their brokers and tax advisors to ensure that
the information presented here is accurately reflected on their tax returns.

    Summary
    -------

    The information in this release is not meant to be an exhaustive
discussion of all possible income tax considerations, but a general guideline
and is not intended to be legal or tax advice to any particular holder or
potential holder of Vermilion trust units. Holders or potential holders of
trust units should consult their own income tax advisors as to the particular
income tax consequences of holding the trust units.

    Vermilion Energy Trust focuses on the acquisition, development and
optimization of mature producing properties in Western Canada, Western Europe
and Australia. Vermilion achieves value creation through the execution of
asset optimization programs and strategic acquisitions. Vermilion also exposes
its unitholders to significant upside opportunities while limiting capital
risk. Management and directors of the Trust hold approximately 9% of the
outstanding units and are dedicated to consistently delivering superior
rewards for all its stakeholders. Vermilion Energy Trust trades on the Toronto
Stock Exchange under the symbol VET.UN

    %SEDAR: 00018945E          %CIK: 0001293135




For further information:

For further information: Curtis W. Hicks, C.A., Executive VP & CFO, Paul
Beique, Director Investor Relations, 2800, 400 - 4th Avenue S.W. - Calgary,
Alberta, T2P 0J4, TEL (403) 269-4884, FAX (403) 264-6306, TOLL FREE
1-866-895-8101, investor_relations@vermilionenergy.com,
www.vermilionenergy.com

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VERMILION ENERGY TRUST

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