TriNorth's Board Refutes Dissident Shareholder Claims

    Dissidents misrepresenting company's actions regarding Russian Oil

    TORONTO, June 1 /CNW/ - TriNorth Capital Inc. ("TriNorth") (TSX: TRT)
today released an initial response to certain inaccurate and irresponsible
allegations made by a "Concerned Shareholder" regarding the company's
ownership position in Custnarvi Ltd. herein referred to as the "Russian Oil
    "After reviewing the information released on Friday, May 29, it is clear
that there is a persistent and troubling misrepresentation of the facts as
related to TriNorth and the Russian Oil Concessions," said John Crow, Chairman
of TriNorth's Board of Directors.

    Facts about the Russian Oil Concessions:

    -   TriNorth never made an equity investment in the Russian Oil
        Concessions and never had any equity capital at risk in this venture.
        The venture was and remains a speculative opportunity obtained by
        TriNorth at no financial cost.
    -   TriNorth never traded, transferred or sold any securities in
    -   The reduced ownership level for TriNorth in the Russian Oil
        Concessions is the result of dilution caused by the Russian Oil
        Concession's debt restructuring with its creditors.
    -   TriNorth did not have the financial resources necessary to satisfy
        Custnarvi's financial obligations, and therefore accepted the
        restructuring to ensure that TriNorth retained an ownership stake and
        the potential for future gains.
    -   At no time did TriNorth ever record any value for its ownership in
        the Russian Oil Concessions.
    -   All debt against the Russian Oil Concessions has been and continues
        to be non-recourse to TriNorth.

    Mr. Crow added: "TriNorth earned an interest in the Russian Oil
Concessions at no cost through the relationship it built with its partners in
Russo-Forest. While TriNorth invested no capital and had no liability
associated to this holding at any time, the Russian Oil Concessions required
substantial restructuring due to debt maturities. Without risking any capital
TriNorth has maintained an equity ownership stake, which may or may not have
future value. Given that TriNorth has never risked any capital or attributed
any financial value to this holding at any point, the Board is entirely
satisfied with TriNorth's resultant position and that the parties have acted
in TriNorth's best interests with respect to this holding."
    Mr. Crow concluded: "It is regrettable that, despite the repeated
attempts by TriNorth's management to explain the Company's position to these
same shareholders, there continues to be a misrepresentation of the facts."
    TriNorth will provide a more complete refutation of the arguments raised
by the dissident shareholders in the coming days.

    About TriNorth

    TriNorth is a Canadian-based investment company that invests in a
diversified portfolio of companies to generate long-term capital growth for
shareholders. TriNorth takes an active interest in its investee companies from
the earliest stages, providing strategic and financial counsel, support and
direction to assist in their growth and success. TriNorth's investment
strategy includes structuring and initiating deals focused on particular
resources, themes or regions as well as launching the development of
businesses in select industries by providing assistance with the hiring of
management teams, providing seed capital and facilitating IPOs. All investment
activities of TriNorth are managed by Lawrence Asset Management Inc, a leading
Canadian alternative investment asset manager.

    Cautionary Notes

    Except for statements of historical fact contained herein, the
information in this press release constitutes "forward-looking information"
within the meaning of Canadian securities law. Such forward-looking
information may be identified by words such as "plans", "proposes",
"estimates", "intends", "expects", "believes", "may", "will" and include
without limitation, statements regarding the stated use of proceeds; plan of
operations and comparative advantages; and benefits of this investment. There
can be no assurance that such statements will prove to be accurate; actual
results and future events could differ materially from such statements.
Factors that could cause actual results to differ materially include, among
others, regulatory risks, risks inherent in foreign operations, commodity
prices, competition, and investments having no history of operations. Most of
these factors are outside the control of the Company. Investors are cautioned
not to put undue reliance on forward-looking information. Except as otherwise
required by applicable securities statutes or regulation, the Company
expressly disclaims any intent or obligation to update publicly
forward-looking information, whether as a result of new information, future
events or otherwise.

    %SEDAR: 00003606E

For further information:

For further information: Investor or Media Contact: Janet Craig,
Kingsdale Communications Inc., (416) 669-6792,

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