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Press release from Marketwire

Parallel Energy Trust Comments on Government of Canada Announcement Related to Taxation of Specified Investment Flow-Through Entities

Wednesday, July 20, 2011

Parallel Energy Trust Comments on Government of Canada Announcement Related to Taxation of Specified Investment Flow-Through Entities14:29 EDT Wednesday, July 20, 2011CALGARY, ALBERTA--(Marketwire - July 20, 2011) -THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY UNITED STATES NEWSWIRE SERVICES OR OTHERWISE FOR DISTRIBUTION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS.The Government of Canada today announced proposed amendments (the "Proposed Amendments") to the taxation of Specified Investment Flow-Through ("SIFT") Entities. Parallel Energy Trust (TSX:PLT.UN) ("Parallel" or the "Trust") and its tax advisors have reviewed the Government of Canada's announcement and are of the view that the Proposed Amendments should not apply to or adversely affect the Trust. Legislation to implement the Proposed Amendments has not yet been issued. ABOUT PARALLEL ENERGY TRUSTParallel's objectives are to create stable, consistent returns for investors through the acquisition and development of conventional oil and natural gas reserves and production with unexploited low risk potential in certain regions of the United States, and to pay out a portion of available cash to holders of trust units on a monthly basis. The trust units of Parallel are listed on the Toronto Stock Exchange under the symbol "PLT.UN".Parallel is a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust is not and will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act). Further information relating to Parallel and the trust units is set out in Parallel's final prospectus. FORWARD-LOOKING STATEMENTSThis news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Parallel. Forward-looking information in this news release includes, but is not limited to, the impact of the proposed amendments announced by the Government of Canada to the taxation of SIFTs, real estate investment trusts and certain publicly traded corporations and Parallel's objectives and status as a mutual fund trust and not a SIFT trust. Parallel cautions investors in Parallel's securities about important factors that could cause Parallel's actual results to differ materially from those projected in any forward-looking statements included in this news release, including the possibility that the Government of Canada may propose further changes to the Income Tax Act (Canada) that may adversely affect the Trust. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that the expectations set out herein will prove to be correct and accordingly, prospective investors should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this press release and Parallel does not assume any obligation to update or revise them to reflect new events or circumstances.FOR FURTHER INFORMATION PLEASE CONTACT: Dennis FeuchukParallel Energy TrustPresident and CEO403-781-7888 or Toll Free: 1-855-781-7888ORRick MillerParallel Energy TrustChief Financial Officer403-781-7888 or Toll Free: 1-855-781-7888investor@parallelenergy.ca