SHERRITT COAL COMPLETES LUSCAR COAL INCOME FUND TAKEOVER.

(Full text of a statement. Contact details below.)

TORONTO, June 30 CNW-AsiaNet - Sherritt Coal Partnership (Sherritt Coal) today announced that it now holds all the outstanding Units and Debentures of Luscar Coal Income Fund (the Fund).

Sherritt Coal recently completed a successful take-over bid (the Offer) for all the Units and Debentures of the fund. More than 95% of each of the Units and Debentures were tendered to the Offer. As set out in the Offer, Sherritt Coal has now effected second-stage transactions to become the sole holder of the fund's securities.

Pursuant to the declaration of trust governing the Units of the Fund, as amended, Sherritt Coal has deposited with CIBC Mellon Trust Company, as depositary, on behalf of the Trustees of the Fund, the maximum consideration payable to purchase all Units not previously tendered to the Offer.

Pursuant to the declaration of trust, upon such payment Sherritt Coal has become the holder of all Units not previously tendered under the Offer.

Sherritt Coal has today mailed to holders whose Units have been so acquired a notice, together with a form of election to permit them to elect to receive cash, shares of Sherritt International Corporation (Sherritt), or a combination thereof, on the same basis as was available under the Offer.

Under the Offer, Unitholders of the Fund had the option to elect to receive either $4.00 in cash or one Sherritt share for each Unit, provided that the aggregate number of Sherritt ...