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Press release from Marketwire

Zargon Energy Trust Announces Adoption of a Distribution Reinvestment Plan

Friday, April 09, 2010

Zargon Energy Trust Announces Adoption of a Distribution Reinvestment Plan19:03 EDT Friday, April 09, 2010CALGARY, ALBERTA--(Marketwire - April 9, 2010) - NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.Zargon Energy Trust (TSX:ZAR.UN) (TSX:ZOG.B) ("Zargon" or the "Trust") announces that it has adopted a Distribution Reinvestment Plan (the "DRIP"). Eligible unitholders may elect to participate in the DRIP commencing with distributions to be paid following the distribution to be paid on April 15, 2010 to unitholders of record as of March 31, 2010.The DRIP allows eligible unitholders of the Trust to direct that their cash distributions be reinvested in additional trust units which, when issued from treasury, will be issued at 95 percent of the Average Market Price (as defined in the DRIP) on the applicable distribution payment date.While it is currently the intention of the Trust to issue the required additional trust units through treasury, the Trust may, from time to time, in its discretion, direct that such trust units be purchased through the facilities of the Toronto Stock Exchange at prevailing market prices. The Trust reserves the right to limit the amount of new equity available under the DRIP on any particular distribution date. Accordingly, participation may be prorated in certain circumstances in which case participant unitholders will receive from the Trust the regular cash distributions to which they would otherwise be entitled on such date and which are not reinvested as a result of such proration.A registered unitholder who wishes to enroll in the DRIP for a particular distribution to be paid by the Trust must deliver a completed Authorization Form to Valiant Trust Company (the "Plan Agent"), before 3:00 p.m. (Calgary time) on the business day prior to the record date for such distribution. Beneficial unitholders who wish to participate in the DRIP should contact the broker or other Nominee through which their trust units are held to provide appropriate enrolment instructions and to ensure any deadlines or other requirements that such broker or Nominee may impose or be subject to are met. Authorization Forms for both registered and beneficial unitholders received after the applicable enrolment deadline will be accepted but only effective for subsequent distributions.A complete copy of the DRIP is available on the Trust's website at or by calling the Manager, Income Trusts, of the Plan Agent, at (403) 233-2801. Unitholders should carefully read the complete text of the DRIP before making any decisions regarding their participation in the DRIP.No commissions, service charges or brokerage fees are payable in connection with the purchase of trust units from treasury under the DRIP. Eligible unitholders who wish to participate in the DRIP indirectly through the broker or other Nominee through which their trust units are held should consult such broker or Nominee to confirm whether commissions, service charges or other fees are payable.Participation in the DRIP does not relieve unitholders of any liability for taxes that may be payable in respect of distributions that are reinvested in new trust units under the DRIP. Unitholders should consult their tax advisors concerning the tax implications of their participation in the DRIP having regard to their particular circumstances.Please note that registered and beneficial owners of trust units who are not resident in Canada are not eligible to participate in the DRIP.This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1993, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.Based in Calgary, Alberta, Zargon's securities trade on the Toronto Stock Exchange and there are currently 23.345 million trust units (ZAR.UN) and 1.699 million exchangeable shares (ZOG.B) outstanding. After giving effect to the conversion privilege of the exchangeable shares at the exchange ratio, effective April 9, 2010, there would be a total of 26.204 million trust units outstanding. In order to learn more about Zargon, we encourage you to visit Zargon's website at where you will find a current shareholder presentation, financial reports and historical news releases.FOR FURTHER INFORMATION PLEASE CONTACT: Zargon Energy Trust C.H. Hansen President and Chief Executive Officer (403) 264-9992 or B.C. Heagy Executive Vice President and Chief Financial Officer (403) 264-9992