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Strategic Energy Fund (TSX: SEF.UN) Announces Exchange Offer

Strategic Energy Management Corp. is pleased to announce that Strategic Energy Fund (the "Fund") (TSX: SEF.UN) has filed a preliminary prospectus across Canada, qualifying units of the Fund (the "Fund Units") to be issued in connection with its exchange offer (the "Exchange Offer") for securities of the issuers (the "Issuers") listed below. The maximum size of the Exchange Offer is $100,000,000.

Deposit date and closing

The Exchange Offer will be open for acceptance by holders of securities of the Issuers until 4:00 pm (Toronto time) on May 28, 2007 (the "Deposit Date"). The closing is expected to occur on or about June 11, 2007.

Exchange ratios

Fund Units may be purchased by the exchange of eligible securities of any Issuer named below. The number of Fund Units issuable for the securities of each Issuer (the "Exchange Ratio") will be determined by dividing the weighted average trading price of such securities on the Toronto Stock Exchange ("TSX") during the period of three consecutive trading days ending on the Deposit Date (the "Pricing Period") by the weighted average trading price of the Fund Units on the TSX during the Pricing Period.

Acceptance

The Exchange Offer may be accepted only by means of a book-entry deposit through CDS Clearing and Depository Services Inc. ("CDS"). Holders of securities of an Issuer who wish to accept the Exchange Offer must request their investment adviser, investment dealer, bank, trust company or other nominee to effect the transaction for them and should do so not later than May 25, 2007 to ensure that their securities are included in the deposit to be made through CDS on May 28, 2007. Some nominees may require an earlier deadline for receiving instructions concerning a deposit.

Issuers

Advantage Energy Income Fund         The Consumers' Waterheater Income Fund
Algonquin Power Income Fund          Crescent Point Energy Trust
AltaGas Income Trust                 Daylight Resources Trust
ARC Energy Trust                     Enbridge Income Fund
Atlantic Power Corporation           Energy Savings Income Fund
Badger Income Fund                   Enerplus Resources Fund
Baytex Energy Trust                  EPCOR Power L.P.
Bonavista Energy Trust               Fairborne Energy Trust
Bonnett's Energy Services Trust      Focus Energy Trust
Bonterra Energy Income Trust         Fording Canadian Coal Trust
Boralex Power Income Fund            Foremost Industries Income Fund
Canadian Oil Sands Trust             Fort Chicago Energy Partners L.P.
Canetic Resources Trust              Freehold Royalty Trust
Cathedral Energy Services
 Income Trust                        Gaz Metro Limited Partnership
CCS Income Trust                     GMP Capital Trust
Great Lakes Hydro Income Fund        Primary Energy Recycling Corporation
Harvest Energy Trust                 PrimeWest Energy Trust
Innergex Power Income Fund           Progress Energy Trust
Inter Pipeline Fund                  Provident Energy Trust
Keyera Facilities Income Fund        Royal Utilities Income Fund
Laborador Iron Ore Royalty
 Income Trust                        Shiningbank Energy Income Fund
Macquarie Power & Infrastructure     Spectra Energy Income Fund
 Income Fund                         Stoneham Drilling Trust
Mullen Group Income Fund             Superior Plus Income Fund
NAL Oil & Gas Trust                  Taylor NGL Limited Partnership
Newalta Income Fund                  Total Energy Services Trust
Northland Power Income Fund          TransAlta Power L.P.
Paramount Energy Trust               TransForce Income Fund
Parkland Income Fund                 Trilogy Energy Trust
Pembina Pipeline Income Fund         Trimac Income Fund
Pengrowth Energy Trust               Trinidad Energy Services Income Trust
Penn West Energy Trust               True Energy Trust
Peyto Energy Trust                   Vermilion Energy Trust
Phoenix Technology Income Fund       Westshore Terminals Income Fund
Precision Drilling Trust             Zargon Energy Trust

Dealer manager

National Bank Financial has been engaged as the dealer manager for the Exchange Offer.

Strategic Energy Fund

Strategic Energy Fund is an investment trust that seeks to provide unitholders with superior rates of return through a diversification strategy focused on investment opportunities within the Canadian energy sector. The Fund invests in established companies, early-stage energy companies and, to a lesser extent, special energy issuers, each with prospects for high growth in the near to medium term and the potential for long-term capital appreciation.

The Fund's investments in established companies, including energy royalty and income trusts, are made with a view to generate sufficient income to permit the Fund to make monthly cash distributions to unitholders.

Investments in early-stage energy companies are focused on both private and public issuers with strong, experienced management teams that have proven track records of enhancing shareholder value and successfully executing exit strategies. As well, the Fund may invest in undervalued issuers where Sentry Select Capital Corp., investment advisor to the Fund, believes that capital appreciation can be realized.

Trading information and NAV

The Fund Units trade on the TSX under the symbol SEF.UN. As of April 27, 2007, the Fund's closing price on the TSX was $9.45 per unit and the most recent net asset value as of April 25, 2007 was $10.92 per unit.

Sentry Select Capital Corp.

Sentry Select Capital Corp. is a Canadian wealth management company who manages over $8 billion in gross assets as of March 31, 2007. The company offers a diverse range of investment products including closed-end trusts, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates. Sentry Select provides management and advisory services to over 25 exchange listed entities.

Restrictions

The Exchange Offer is not a take-over bid for any of the issuers and is not, and under no circumstances is to be construed as, an offering of any Fund Units for sale in the United States or to any resident thereof.

This news release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, the future performance of the Fund, including the potential for future distributions. These statements reflect Sentry Select's current expectations, but are subject to a number of risks and uncertainties. Due to the many risks and uncertainties, Sentry Select cannot assure that the forward-looking statements contained in this news release will be realized.