2008

Bonterra Oil and Gas Ltd. (Formally Bonterra Energy Income Trust - “the Trust”) is pleased to provide the following tax information to assist the Trust’s former Unitholders in the preparation of their 2008 income tax returns.

Canadian Tax Information

The tax breakdown of the distributions is as follows:

Percentage
----------
Taxable Income (Other Income) 85.16%
Return of Capital 14.84%
-------
100.00%

It should be noted that the return of capital, to the extent the units are in a taxable account, reduces the adjusted cost basis of your units.  Kindly consult your tax advisor if you require further information.

Joint Tax Election Package

Bonterra Oil & Gas Ltd. (Bonterra) has made available a Joint Tax Election package which contains a letter of instruction for eligible former Bonterra Energy Income Trust Unitholders. A Unitholder who is an Eligible Holder (see definition below), and under the Bonterra Arrangement, exchanged Trust Units for Bonterra Shares, may make a joint election with Bonterra pursuant to subsection 85(1) of the Tax Act (Form T2057) (or, in the case of a holder that is a partnership (Form T2058), pursuant to subsection 85(2) of the Tax Act) and thereby obtain a full or partial tax-deferred “rollover” for Canadian income tax purposes, depending on the amount specified in that election (the “Elected Amount”) and the adjusted cost base to the Unitholder of such Trust Units at the time of the Bonterra Arrangement. Eligible Holders may elect so as not to realize any capital gain for the purposes of the Tax Act on the Bonterra Arrangement.

Only Eligible Holders are permitted to make this election jointly with Bonterra. An Eligible Holder is a former holder of Trust Units who is:

• A resident of Canada for purposes of the Tax Act, other than those exempt from tax under the Act, such as an RRSP, RRIF, RESP or pension plan; or
• A partnership that is a Canadian partnership for the purposes of the Tax Act and if one or more of the partners would be an Eligible Holder if such partner held the Trust Units directly.

The Joint Tax Election package has been mailed to all registered shareholders. For beneficial holders, please contact your broker or brokerage representative to receive a copy of the Joint Tax Election package.  In addition, you may contact Bonterra Oil & Gas Ltd. at (403) 262-5307 or visit www.bonterraenergy.com to obtain a copy of the Joint Tax Election package.

Each Eligible Holder, who chooses to make a Joint Tax Election, is solely responsible for ensuring Form T2057 or T2058, as applicable, is properly completed.

THIS MATTER REQUIRES YOUR IMMEDIATE ATTENTION. BONTERRA AGREES ONLY TO EXECUTE AND FILE DULY COMPLETED FORMS RECEIVED BY IT ON OR BEFORE MARCH 31, 2009.

US Tax Information

Trust Units Held Outside a Qualified Retirement Plan

With respect to cash distributions paid during the year to U.S. individual Unitholders, 17.71 percent should be reported as a return of capital (to the extent of the Unitholder’s U.S. tax basis in their respective units) and 82.29 percent should be reported as “qualified dividends”.  

Kindly consult your tax advisor for further information.

Trust Units Held Within a Qualified Retirement Plan

No amounts are required to be reported on a Form 1040 where Bonterra trust units are held within a qualified retirement plan.

2007

Bonterra Energy Income Trust is pleased to provide the following tax information to assist our Unitholders in the preparation of their 2007 income tax returns.

Canadian Tax Information

The tax breakdown of the distributions is as follows:

Percentage
----------
Taxable Income (Other Income) 91.45%
Return of Capital 8.55%
-------
100.00%

It should be noted that the return of capital, to the extent the units are in a taxable account, reduces the adjusted cost basis of your units. Kindly consult your tax advisor if you require further information.

U.S. Tax Information

Trust Units Held Outside a Qualified Retirement Plan:

With respect to cash distributions paid during the year to U.S. individual Unitholders, 7.9 percent should be reported as a return of capital (to the extent of the Unitholder's U.S. tax basis in their respective units) and 92.1 percent should be reported as "qualified dividends". Kindly consult your tax advisor for further information.

Trust Units Held Within a Qualified Retirement Plan:

No amounts are required to be reported on a Form 1040 where Bonterra trust units are held within a qualified retirement plan. Bonterra Energy Income Trust is a conventional oil and gas royalty trust with operations in Alberta and Saskatchewan. Its units are listed on the Toronto Stock Exchange under the symbol "BNE.UN".

2006

Bonterra Energy Income Trust is pleased to provide the following tax information to assist our Unitholders in the preparation of their 2005 income tax returns.

Canadian Tax Information

The tax breakdown of the distributions is as follows:

Percentage
------------
Taxable Income (Other Income) 78.82%
Return of Capital 21.18%
------------
100.00%

It should be noted that the return of capital, to the extent the units are in a taxable account, reduces the adjusted cost basis of your units. Kindly consult your tax advisor if you require further information.

U.S. Tax Information

Trust Units Held Outside a Qualified Retirement Plan:

With respect to cash distributions paid during the year to U.S. individual Unitholders, 18.1 percent should be reported as a return of capital (to the extent of the Unitholder's U.S. tax basis in their respective units) and 81.9 percent should be reported as "qualified dividends". Kindly consult your tax advisor for further information.

Trust Units Held Within a Qualified Retirement Plan:

No amounts are required to be reported on a Form 1040 where Bonterra trust units are held within a qualified retirement plan.

2005

Bonterra Energy Income Trust is pleased to provide the following tax information to assist our Unitholders in the preparation of their 2005 income tax returns.

Canadian Tax Information

The tax breakdown of the distributions is as follows:

Percentage
----------
Taxable Income (Other Income) 86.05%
Return of Capital 13.95%
-------
100.00%

It should be noted that the return of capital, to the extent the units are in a taxable account, reduces the adjusted cost basis of your units. Kindly consult your tax advisor if you require further information.

U.S. Tax Information

Trust Units Held Outside a Qualified Retirement Plan:

With respect to cash distributions paid during the year to U.S. individual Unitholders, 9.3 percent should be reported as a return of capital (to the extent of the Unitholder's U.S. tax basis in their respective units) and 90.7 percent should be reported as "qualified dividends". The portion of the distributions treated as "qualified dividends" should be reported on Line 9b of Form 1040, unless the fact situation of the U.S. individual Unitholders determines otherwise. Commentary on page 23 of the Form 1040 Instruction Booklet for 2005 with respect to "qualified dividends" provides examples of individual situations where the dividends would not be "qualified dividends". Where, due to individual situations, the dividends are not "qualified dividends", the amount should be reported on Schedule B - Part II - Ordinary Dividends and Line 9a of Form 1040.

For U.S. federal income tax purposes, in reporting a return of capital with respect to distributions received, U.S. unitholders are required to reduce the cost base of their trust units by the total amount of distributions received that represent a return of capital. This amount is non-taxable if it is a return of cost base in the trust units. A return of capital for U.S. tax purposes is calculated differently than for Canadian tax purposes. For U.S. tax purposes, a return of capital occurs only after all the current and accumulated earnings and profits of a corporation have been distributed.

If the full amount of the cost base has been recovered, any further return of capital distributions should be reported as capital gains. U.S. Unitholders are encouraged to utilize the Qualified Dividends and Capital Gain Tax Worksheet of Form 1040 to determine the amount of tax that may be otherwise applicable.

The taxable portion (for Canadian income tax purposes) of the distributions is subject to a minimum 15% Canadian withholding tax that is withheld prior to any payments being distributed to Unitholders. Beginning in 2005, the return of capital portion (for Canadian income tax purposes) of the distributions is also subject to a 15% withholding tax that is withheld prior to any payments being distributed to Unitholders. Where trust units are held in a cash account, we believe the full amount of all withholding tax should be creditable for U.S. tax purposes, subject to numerous limitations, in the year in which the withholding taxes are applied. Where trust units are held in a qualified retirement account, the same withholding taxes apply but the amount is not creditable for U.S. tax purposes.

The amount of Canadian tax withheld should be reported on Form 1116, "Foreign Tax Credit (Individual, Estate, or Trust)". Information regarding the amount of Canadian tax withheld in 2005 should be determined from your own records and is not available from Bonterra. Amounts over withheld, if any, from Canada should be claimed as a refund from the Canada Revenue Agency no later than two years after the calendar year in which the payment was paid.

Investors should report their dividend income and capital gain (if any), and make adjustments to their tax basis in Bonterra's units, in accordance with this information and subject to advice from their tax advisors. U.S. individual Unitholders who hold their Bonterra trust units through a stockbroker or other intermediary should receive tax reporting information from their stockbroker or other intermediary. We expect that the stockbroker or other intermediary will issue a Form 1099-DIV, "Dividends and Distributions" or a substitute form developed by the stockbroker or other intermediary. Bonterra is not required to furnish such Unitholders with Form 1099-DIV. Information on the Forms 1099-DIV issued by the brokers or other intermediaries may not accurately reflect the information in this press release for a variety of reasons. Investors should consult their brokers and tax advisors to ensure that the information presented here is accurately reflected on their tax returns. Brokers and/or intermediaries may or may not be required to issue amended Forms 1099-DIV. Trust Units Held Within a Qualified Retirement Plan. No amounts are required to be reported on a Form 1040 where Bonterra trust units are held within a qualified retirement plan.

2004

Bonterra Energy Income Trust is pleased to provide the following tax information to assist our Unitholders in the preparation of their 2004 income tax returns.

The tax breakdown of the distributions is as follows:

Percentage
----------
Taxable Income (Other Income) 58.51%
Return of Capital 41.49%
-------
100.00%

It should be noted that the return of capital, to the extent the units are in a taxable account, reduces the adjusted cost basis of your units. Kindly consult your tax advisor if you require further information.

2003

Bonterra Energy Income Trust is pleased to provide the following tax information to assist our Unitholders in the preparation of their 2003 income tax returns.

The tax breakdown of the distributions is as follows:

Percentage
----------
Taxable Income (Other Income) 68.92%
Return of Capital 31.08%
-------
100.00%

It should be noted that the return of capital, to the extent the units are in a taxable account, reduces the adjusted cost basis of your units. Kindly consult your tax advisor if you require further information.

2002

Bonterra Energy Income Trust is pleased to provide the following tax information to assist our Unitholders in their preparation of their 2002 income tax returns.

Bonterra Energy Income Trust (Bonterra) was formed by the merger of Comstate Resources Income Trust (Comstate) and Bonterra Energy Income Trust (old Bonterra) on February 1, 2002. Prior to the merger Comstate and old Bonterra made distributions for the month of January 2002 (paid February 28, 2002). Subsequent to January 31, 2002, Bonterra made distributions for the periods February 1 to December 31, 2002.

We have been dealing with CCRA regarding the proper way of reporting our T3 information for the 2002 taxation year. CCRA has notified us that we will be able to file one T3 representing the combined tax status of the distributions for Comstate, old Bonterra, and Bonterra.

Based on the combined filing the tax breakdown of the distributions is as follows:

Percentage
----------
Taxable Income (Other income) 69.82%
Return of Capital 30.18%
------
100%

It should be noted that the return of capital, to the extent the units are in a taxable account, reduces the adjusted cost basis of your units. Kindly consult your tax advisor if you require further information.

2001

Bonterra Energy Income Trust, Comstate Resources Income Trust

Bonterra Energy Income Trust is pleased to provide the following tax information to assist our unitholders and those of Comstate Resources Income Trust in their preparation of their 2001 income tax returns.

Bonterra Energy Income Trust

The conversion of Bonterra Energy Corp. (Bonterra) to Bonterra Energy Income Trust (Bonterra Trust) was a taxable transaction (unless the shares where held in a non taxable entity such as an RSP) which will generally result in each former shareholder of Bonterra realizing a net capital gain (or a net capital loss) equal to the amount by which the proceeds of disposition (being the fair market value of the Bonterra Trust units received) are greater (or less) than the shareholders adjusted cost base (ACB) of the Bonterra common shares.

The determination of the fair market value of the Bonterra Trust units, in management's opinion, should be made by reference to the trading value of the Bonterra common shares for a period both before and following the announcement date of the reorganization. Using such parameters, management of Bonterra has determined that a reasonable fair market value received for the Bonterra common shares is $1.28 per share.

When determining the ACB of the Bonterra Trust units acquired on the exchange of the Bonterra common shares, the arrangement resulted in .25 of a Bonterra Trust unit for each Bonterra common share. Therefore the ACB of the Bonterra Trust units is 4 times $1.28 or $5.12 per unit. This determination is not binding upon any particular shareholder of Bonterra nor upon Canada Customs and Revenue Administration. Shareholders may wish to consult their own income tax advisors in determining the amount of their capital gain or loss.

Bonterra Trust further advises that the breakdown of its July 1 to December 31, 2001, distributions including those paid on January 31, 2002, for the month of December 31, 2001, is as follows:

Percentage Amount
-------------
Taxable income 64.5% $0.516
Return of capital 35.5% $0.284
----------
100% $0.800

It should be noted that the return of capital, to the extent the units are held in a taxable account, will result in a reduction of your ACB. Kindly consult your tax advisor if you require further information.

Comstate Resources Income Trust

The conversion of Comstate Resources Ltd. (Comstate) to Comstate Resources Income Trust (Comstate Trust) was also a taxable transaction (unless the shares where held in a non taxable entity such as an RSP) which will generally result in each former shareholder of Comstate realizing a net capital gain (or a net capital loss) equal to the amount by which the proceeds of disposition (being the combined fair market value of the cash, Comaplex Minerals Corp. common shares and Comstate Trust units received) are greater (or less) than the shareholders ACB of the Comstate common shares.

The determination of the fair market value of the Comstate Trust units, in management's opinion, should be made by reference to the trading value of the Comstate common shares for a period both before and following the announcement date of the reorganization. Using such parameters, management of Comstate has determined that a reasonable fair market value received for the Comstate common shares is $2.51 per share. This value is then allocated to the three components of the consideration as follows:

Cash $0.20
Comaplex Minerals Corp. common shares (.6 of a share) 0.48
Comstate Trust Units (.25 of a Trust Unit) 1.83
-----
Total consideration paid for a Comstate common share $2.51

The Comaplex Minerals Corp. common share value is based on the closing trading price on the day immediately following the amalgamation of AcquisitionCo and Comstate. Using this value, the ACB of a Comaplex Minerals Corp. share is $0.80.

When determining the ACB of the Comstate Trust units acquired by the exchange of the Comstate common shares, the arrangement as described above resulted in .25 of a Comstate Trust unit for each Comstate common share. Therefore the ACB of the Comstate Trust units is 4 times $1.83 or $7.32 per unit.

The above determinations are not binding upon any particular shareholder of Comstate nor upon Canada Customs and Revenue Administration. Shareholders may wish to consult their own income tax advisors in determining the amount of their capital gain or loss.

Comstate Trust further advises that the breakdown of its July 1 to December 31, 2001, distributions including those paid on January 31, 2002, for the month of December 31, 2001, is as follows:

Percentage Amount
---------- ------
Taxable income 86.2% $0.845
Return of capital 13.8% $0.135
---------- ------
100% $0.980

It should be noted that the return of capital, to the extent the units are held in a taxable account, will result in a reduction of your to the extent the units are held in a taxable account, will result in a reduction of your ACB. Kindly consult your tax advisor if you require further information.