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Press release from Filing Services Canada

Proventure Income Fund Announces Results for First Quarter of 2010

Wednesday, May 12, 2010

Proventure Income Fund Announces Results for First Quarter of 201018:40 EDT Wednesday, May 12, 2010 FSC / Press ReleaseProventure Income Fund Announces Results for First Quarter of 2010Calgary, Alberta CANADA, May 12, 2010 /FSC/ - Proventure Income Fund (PVT.UN - TSX Venture)Proventure Income Fund (the "Fund") is pleased to report its financial results for the three month period ended March 31, 2010.Overall PerformanceDuring the first three months of 2010, we have continued to accomplish strategic growth by adding $10.3 million to our portfolio of real estate held for development and sale. We reported net earnings of $413 thousand or $0.05 per basic unit for the three month period ended March 31, 2010 when compared to net earnings of $281 thousand or $0.04 per unit for the same period in 2009. Gross revenues increased to $1.1 million compared to $836 thousand for the same period of 2009, an increase of 34%. In addition, our EBITDA (see "Non-GAAP Financial Measures) increased by approximately 16% to $928 thousand from $800 thousand in 2009. Net earnings and EBITDA increased primarily as a result of the gain on disposal of assets of $246 thousand during the three month period ended March 31, 2010 from the sale of the Fund's investment in Cervus Equipment Corporation shares.Net cash provided by operating activities increased to $540 thousand for the three month period ended March 31, 2010 when compared to $503 thousand for the same period of 2009 as the Fund is now receiving the full benefit of the increased rental activity from the majority of the acquisitions that took place in the latter part of 2009.Selected Quarterly Information -***- ------------------------------------------------------------------------- $ thousands, except per unit amounts March 31, March 31, % Change 2010 2009 ------------------------------------------------------------------------- Revenues 1,119 836 33.8 Net earnings 413 281 47.0 Per unit - Basic and diluted 0.05 0.04 25.0 ------------------------------------------------------------------------- Cash provided by operating activities 540 503 7.4 Per unit - basic and diluted 0.07 0.07 - ------------------------------------------------------------------------- EBITDA(1) 928 800 16.0 EBITDA margin(1) 82.9% 95.7% (13.4) Per Unit - basic and diluted 0.12 0.11 9.1 ------------------------------------------------------------------------- Weighted average units outstanding Basic 7,551 7,116 6.1 Diluted 7,555 7,125 6.0 Actual units outstanding 7,638 7,116 7.3 Closing market price 1.80 2.50 (28.0) ------------------------------------------------------------------------- Total assets 45,663 33,295 37.1 Total long-term liabilities 28,344 19,393 46.2 Unitholders' equity 14,4921 1,492 26.1 Net book value per unit - diluted 1.92 1.61 19.3 ------------------------------------------------------------------------- -****-Note: (1) These financial measures are identified and defined under the section "Non-GAAP Financial Measures"The Non-GAAP measures indentified in this Press Release do not have any standardized meaning prescribed by Canadian generally accepted accounting principles ("GAAP") and are therefore unlikely to be comparable to similar measures presented by other issuers. These non-GAAP measures are more fully defined and discussed, together with reconciliation to the most directly related GAAP measure in the MD&A of the Fund on the results of operations for the three month period ended March 31, 2010.Copies of Proventure Income Fund's unaudited financial statements and related MD&A are available on the SEDAR website at www.sedar.com. Proventure Income Fund is an open-ended mutual fund trust established on December 31, 2005 under laws of the Province of Alberta. The Fund is in the commercial property development business and leases real estate to Cervus LP. The units of Proventure Income Fund are listed on the TSX Venture Exchange and trade under the symbol "PVT.UN".For further information, please contact:Peter Lacey - President & CEO Randy Muth - Chief Financial Officer Telephone: (403) 567-0339 Ext: 245 Telephone: (403) 567-0339 Ext: 244 Fax: 403 567-0497 Fax: 403 567-0497 Email: peter.lacey@cervuscorp.com Email: rmuth@cervuslp.comNeither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Source: Proventure Income Fund (TSX-V: PVT.UN) http://www.cervuscorp.com Maximum News Dissemination by Filing Services Canada Inc. * www.usetdas.com