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Press release from Marketwire

Canexus Announces Successful TCP Startup at North Vancouver Facility

Wednesday, June 30, 2010

Canexus Announces Successful TCP Startup at North Vancouver Facility10:03 EDT Wednesday, June 30, 2010CALGARY, ALBERTA--(Marketwire - June 30, 2010) - Canexus Income Fund (TSX:CUS.UN) (the "Fund") today announced the successful startup of the Technology Conversion Project ("TCP") at its North Vancouver chlor-alkali facility.Initial production was achieved on June 25 following the completion of design improvements described in a June 16 news release and final commissioning and startup activities. Product shipments to customers are expected to resume shortly. Verification of design performance parameters will continue as production volumes are ramped up over the third quarter."We are pleased to have TCP up and running. The successful startup of the biggest and most complex project ever undertaken by our company positions us as a low-cost supplier of quality chlor-alkali products for the long term," said Gary Kubera, President and CEO. "We continue to expect that TCP will contribute $35 to $43 million in incremental operating cash flow annually and we look forward to seeing the benefits beginning in the third quarter."Nearly 60 percent of anticipated TCP benefits will come from cost savings from reduced electricity consumption per MECU, reduced staffing, the virtual elimination of natural gas usage and less maintenance spending. The remaining 40 percent of anticipated benefits will come from volume expansion. The projected final total cost of TCP is expected to be between $275 and $280 million.Forward-Looking StatementsThis news release contains forward-looking statements and information relating to expected future events and results of the Fund, Canexus LP and its subsidiaries, including with respect to the timing, nature and extent of the benefits to be derived from TCP, the expenses related thereto and TCP's contribution to operating cash flow. The use of the words "expects", "anticipates", "continue", "estimates", "projects", "should", "believe", "plans", "intends", "may", "will" or similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including market and general economic conditions, future costs, treatment under governmental regulatory, tax and environmental regimes and the other risks and uncertainties detailed under "Risk Factors" in the Fund's Annual Information Form filed on the Fund's SEDAR profile at www.sedar.com. Management believes the expectations reflected in these forward-looking statements are currently reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Due to the potential impact of these factors, the Fund and Canexus LP disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. About CanexusCanexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and one in Brazil are reliable, low-cost, strategically-located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus also provides fee-for-service hydrocarbon transloading services to the oil and gas industry from its terminal at Bruderheim, Alberta. Canexus targets opportunities to maximize unitholder returns and delivers high-quality products and services to its customers. Canexus units and convertible debentures trade on the Toronto Stock Exchange under the symbol CUS. More information about Canexus is available at www.canexus.ca.FOR FURTHER INFORMATION PLEASE CONTACT: Canexus Limited Gary Kubera President and CEO (403) 571-7300 or Canexus Limited Richard McLellan CFO (403) 571-7300 www.canexus.ca