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Press release from Marketwire

Canexus Income Fund Completes Conversion to Canexus Corporation

Friday, July 08, 2011

Canexus Income Fund Completes Conversion to Canexus Corporation10:11 EDT Friday, July 08, 2011CALGARY, ALBERTA--(Marketwire - July 8, 2011) - Canexus Corporation (TSX:CUS.UN) ("Canexus") is pleased to announce the closing of the previously announced plan of arrangement (the "Arrangement") resulting in the successful conversion of Canexus Income Fund (the "Fund") from an income trust to a corporate entity, Canexus. Pursuant to the Arrangement, each holder of Fund units received, for each Fund unit held, one common share of Canexus (the "Canexus Corporation Shares"). In connection with the Arrangement, all of the assets of the Fund were transferred to Canexus and Canexus assumed all of the liabilities of the Fund, including all of the obligations of the Fund under the debenture indentures in respect of the 8% Series I convertible unsecured subordinated debentures issued August 31, 2009, the 5.75% Series III convertible unsecured subordinated debentures issued September 28, 2010 and the 5.75% Series IV convertible unsecured subordinated debentures issued June 30, 2011. It is expected that the Canexus Corporation Shares will commence trading on the Toronto Stock Exchange under the symbol "CUS" on or about July 13, 2011, at which time the Fund units (CUS.UN) will be delisted. Canexus will continue to carry on the business previously conducted by the Fund. The directors and officers of the Fund will continue as directors and officers of Canexus.The holders of Fund units and debentures are not required to take any specific action with respect to the exchange of Fund units for Canexus Corporation Shares or the assumption by Canexus of the obligations under the debentures.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 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 shareholder returns and delivers high-quality products to its customers. The Canexus Corporation Shares (CUS) are expected to commence trading on or about July 13, 2011, and the debentures (Series I – CUS.DB; Series III – CUS.DB.A; Series IV – CUS.DB.B) trade on the Toronto Stock Exchange. More information about Canexus is available at www.canexus.ca.Forward Looking StatementsThis news release contains forward-looking statements and information relating to expected future events relating to Canexus and its subsidiaries, including with respect to the listing of the Canexus Corporation 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, Canexus disclaims 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 CorporationPresident and CEO(403) 571-7300ORRichard McLellanCanexus CorporationSenior VP, Finance and CFO(403) 571-7300www.canexus.ca