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Press release from Marketwire

Canexus Income Fund Announces Closing of $60,000,000 Convertible Unsecured Subordinated Debenture Financing

Tuesday, September 28, 2010

Canexus Income Fund Announces Closing of $60,000,000 Convertible Unsecured Subordinated Debenture Financing08:50 EDT Tuesday, September 28, 2010CALGARY, ALBERTA--(Marketwire - Sept. 28, 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.Canexus Income Fund ("Canexus" or the "Fund") (TSX:CUS.UN) is pleased to announce today that it has closed its previously announced convertible debenture bought deal financing (the "Offering"). At closing, Canexus issued $60,000,000 aggregate principal amount of 5.75% Series III Convertible Unsecured Subordinated Debentures (the "Series III Debentures") at a price of $1,000 per Debenture. The Series III Debentures are convertible into trust units of the Fund ("Trust Units") and are listed and posted for trading on the TSX under the symbol "CUS.DB.A".The Offering was underwritten by a syndicate led by Scotia Capital Inc., and including CIBC World Markets Inc., National Bank Financial Inc., TD Securities Inc., HSBC Securities (Canada) Inc. and Acumen Capital Finance Partners Limited.Net proceeds from the Offering will be used to repay existing indebtedness to position Canexus to continue to develop its ongoing suite of potential growth opportunities, including the North American Terminal Operations unit.The Series III Debentures offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.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 South America 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 to its customers. Canexus trust units (CUS.UN) and convertible debentures (Series I - CUS.DB; Series III - CUS.DB.A.) trade on the Toronto Stock Exchange. More information about Canexus is available at Looking StatementsThis press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated use of the net proceeds of the Offering. By their nature, forward looking statements involve a variety of assumptions, known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward looking statements 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 Although Canexus believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Canexus can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.The forward looking statements contained in this press release are made as of the date hereof and Canexus undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.FOR FURTHER INFORMATION PLEASE CONTACT: Canexus Limited Gary Kubera President and CEO (403) 571-7300 or Canexus Limited Richard McLellan CFO (403) 571-7300