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Press release from Marketwire

Canexus Income Fund Announces Unitholder Adoption of Conversion to Public Corporation

Thursday, May 05, 2011

Canexus Income Fund Announces Unitholder Adoption of Conversion to Public Corporation18:42 EDT Thursday, May 05, 2011CALGARY, ALBERTA--(Marketwire - May 5, 2011) - Canexus Income Fund (TSX:CUS.UN) (the "Fund") today announced that at its Annual and Special Meeting of Unitholders held earlier today, approval was given to the previously announced conversion of the Fund's income trust structure into a growth-oriented, dividend-paying public corporation named "Canexus Corporation." The conversion is being undertaken pursuant to a plan of arrangement (the "Arrangement") under the Business Corporations Act (Alberta). In addition, the Court of Queen's Bench of Alberta issued its final order approving the Arrangement earlier today. It is presently anticipated that the Arrangement will be completed on or about July 1, 2011. Pursuant to the Arrangement, each holder of Fund units will receive, for each Fund unit held, one common share of Canexus Corporation. Subject to, and conditional upon the closing of the Arrangement, it is also expected that the common shares of Canexus Corporation will commence trading on the Toronto Stock Exchange under the symbol "CUS" on or about July 4, 2011, at which time the Fund units will be delisted.About Canexus Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and two at one site 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 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 www.canexus.ca.Forward-Looking Statements This news release contains forward-looking statements and information relating to expected future events relating to the Fund, Canexus LP and its subsidiaries, including with respect to the anticipated timing of completion of the Arrangement, the listing of the Canexus Corporation common shares and the delisting of the Fund units. 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. Financial outlook information contained in this press release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Such financial outlook information should not be used for purposes other than those for which it is disclosed herein.FOR FURTHER INFORMATION PLEASE CONTACT: Gary KuberaCanexus LimitedPresident and CEO(403) 571-7300ORRichard McLellanCanexus LimitedCFO(403) 571-7300