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Press release from CNW Group

Proventure Income Fund Announces Results for First Quarter Of 2012

Monday, May 28, 2012

Proventure Income Fund Announces Results for First Quarter Of 201219:54 EDT Monday, May 28, 2012Symbol: PVT.UN (TSX-V)CALGARY, May 28, 2012 /CNW/ - Proventure Income Fund (the "Fund") is pleased to report its financial results for the three month period ended March 31, 2012. Highlights for the quarterOn January 5, 2012 the Fund sold certain real estate assets to a related party, Cervus Equipment Corporation ("Cervus") with a carrying value of $25.2 million.  This represented approximately 70% of the real estate assets of the Fund.  The sales price for the real estate assets was $26.3 million and was paid to the Fund through an assumption of mortgages of $11.5 million, cash of $13.3 million and a reduction of $1.5 million in the advances owing to Cervus by the Fund.In addition, on January 23, 2012, the Fund paid a special cash distribution in the amount of $1.70 per unit to the Unitholders of record on January 17, 2012.  The aggregate amount of the dividend was $13.3 million.Overall Performance for the QuarterThe Fund reported a profit of $1.1 million or $0.14 per basic unit when compared to a profit of $361 thousand or $0.05 per basic unit for 2011.  In addition, our EBITDA (see "Non-IFRS Financial Measures") increased slightly to $1.3 million from $1.1 million for the three month period when compared to 2011.  The increase in profit was provided from a gain on sale of investment properties to Cervus of $1.1 million.Selected Quarterly Information   $ thousands, except per unit amountsMarch 31, 2012March 31, 2011Rental income3,388837Profit for the three month period328361 Per unit - Basic0.040.05Cash provided by operating activities(310)                 435Per unit - basic(0.04)0.06Distributions declared to Unitholders13,346382 Per unit1.700.05EBITDA21,3121,060 Per Unit - basic0.170.14Weighted average units outstanding   Basic7,8507,648 Diluted7,8509,751 Actual units outstanding7,8507,648Total assets10,99553,949Total long-term liabilities6,94030,210Unitholders' equity76523,739Net book value per unit - diluted0.102.43Note:  (1) These financial measures are identified and defined under the section "Non-IFRS Financial Measures"The Non-IFRS measures indentified in this Press Release do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and are therefore unlikely to be comparable to similar measures presented by other issuers. These non-IFRS measures are more fully defined and discussed, together with reconciliation to the most directly related IFRS measure in the MD&A of the Fund on the results of operations for the three month period ended March 31, 2011.Copies of Proventure Income Fund's unaudited financial statements and related MD&A are available on the SEDAR website at These financial measures are identified and defined under the section "Non-IFRS Financial Measures".Proventure Income Fund is an open-ended mutual fund trust established on December 31, 2005 under laws of the Province of Alberta.  The Fund is in the commercial property development business.  The units of Proventure Income Fund are listed on the TSX Venture Exchange and trade under the symbol "PVT.UN".Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.   For further information: Peter Lacey - President & CEO     Telephone: (403) 567-0339 Ext: 245 Fax: 403 567-0497 Email: Randy Muth - Chief Financial Officer Telephone: (403) 567-0339 Ext: 244 Fax: 403 567-0497 Email: