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Press release from Filing Services Canada

Badger Daylighting Ltd. Releases Canadian Tax Information for Badger Income Fund 2010 Distributions

Thursday, February 24, 2011

Badger Daylighting Ltd. Releases Canadian Tax Information for Badger Income Fund 2010 Distributions15:20 EST Thursday, February 24, 2011FSC / Press ReleaseBadger Daylighting Ltd. Releases Canadian Tax Information for Badger Income Fund 2010 DistributionsCalgary, Alberta CANADA, February 24, 2011 /FSC/ - Badger Daylighting Ltd. (BAD - TSX), On December 31, 2010 Badger Income Fund (the "Fund") was reorganized into a corporation called Badger Daylighting Ltd. ("Badger"). The following reporting is for the Fund. The information provided below is solely to assist Canadian individual unitholders with tax reporting information in respect of distributions paid and declared during the calendar year 2010. The information contained herein is based on the Fund's understanding of the Canadian Income Tax Act and the regulations thereunder and is provided for general information only. Canadian unitholders should consult with a taxation or investment professional for individual tax advice.Fund Units Held Within an RRSP, RRIF, RESP, DPSP or TFSANo amounts are to be reported on the unitholders' 2010 Income Tax Return where fund units are held within a Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), Registered Education Savings Plan (RESP), Deferred Profit Sharing Plan (DPSP) or Tax Free Savings Account (TFSA).Fund Units Held Outside an RRSP, RRIF, RESP, DPSP or TFSAUnitholders who hold their fund units outside of an RRSP, RRIF, RESP, DPSP or TFSA and were entitled to receive distributions on a distribution record date within the calendar year 2010 will receive a T3 Statement of Trust Income Allocations and Designations slip ("T3") directly from Computershare Investor Services or from the broker/intermediary who the unitholder holds their fund units through. The amount reported in Box 26 "Other Income" on the T3 should be reported on the Unitholders' 2010 Income Tax Return. The deadline for mailing the 2010 T3's to unitholders, as required by the Canada Revenue Agency, is March 31, 2011.Adjusted Cost Base of Fund Units for Capital Gain PurposesUnitholders are required to reduce the adjusted cost base ("ACB") of their fund units by the amount reported in Box 42 "Amount Resulting in Cost Base Adjustment" of the T3, which is equal to the cumulative distribution declared during calendar 2010 less the amount reported as "Other Income" in Box 26 of the T3. The ACB is used in determining the capital gain or loss on the disposition of fund units.Schedule of Tax Treatment of 2010 DistributionsThe following schedule details the cash distributions declared in 2010 and the tax treatment of each distribution per Fund unit for income tax purposes:-***- ------------------------------------------------------------------------- Record Payment Taxable Tax Total Date Date Amount Deferred Distribution (T3 - Box 26) Amount (T3 - Box 42) ------------------------------------------------------------------------- January February 29/10 15/10 0.09050 0.01450 0.1050 February March 26/10 15/10 0.09050 0.01450 0.1050 March April 31/10 15/10 0.09050 0.01450 0.1050 April May 30/10 17/10 0.09050 0.01450 0.1050 May June 31/10 15/10 0.09050 0.01450 0.1050 June July 30/10 15/10 0.09050 0.01450 0.1050 July August 30/10 16/10 0.09050 0.01450 0.1050 August September 31/10 15/10 0.09050 0.01450 0.1050 September October 30/10 15/10 0.09050 0.01450 0.1050 October November 29/10 15/10 0.09050 0.01450 0.1050 November December 30/10 15/10 0.09050 0.01450 0.1050 December January 31/10 17/11 0.09050 0.01450 0.1050 ------------------------------------------------------------------------- -****-Badger is North America's largest provider of non-destructive excavating services. Badger traditionally works for contractors and facility owners in the utility and petroleum industries. Our key technology is the Badger Hydrovac, which is used primarily for safe digging in congested grounds and challenging conditions. The Badger Hydrovac uses a pressurized water stream to liquefy the soil cover, which is then removed with a powerful vacuum system and deposited into a storage tank. Badger manufactures its truck-mounted hydrovac units.Badger's business model involves the provision of excavating services through two distinct entities: the Operating Partners (franchisees in the United States and agents in Canada), and Badger Corporate. Badger Corporate works with its Operating Partners to provide Hydrovac service to the end user. In this partnership, Badger provides the expertise, the trucks, and North American marketing and administration support. The Operating Partners deliver the service by operating the equipment and developing their local markets. All work is invoiced by Badger and then shared with the Operating Partner based upon a revenue sharing formula. In certain locations Badger has established corporate run operations to market and deliver the service in the local area.The Toronto Stock Exchange has neither approved nor disapproved the information contained herein. For more information regarding this Press Release, please contact:Tor Wilson Greg Kelly, CA President and CEO Vice President Finance and CFO 2820, 715 - 5th Avenue SW Phone (403) 264-8500 Calgary, Alberta T2P 2X6 Fax (403) 228-9773Source: Badger Daylighting Ltd. (TSX - BAD) Maximum News Dissemination by Filing Services Canada Inc.