Arctic Glacier Income Fund is providing a default status report, in accordance with the alternative information guidelines set out in National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults (“National Policy 12-203”). On August 15, 2012, the Fund announced (the “Default Announcement”) that it would not be able to file an interim financial report and interim management's discussion and analysis for the period ended June 30, 2012, together with the related certification of filings under National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings (collectively, the “Continuous Disclosure Documents”) by August 29, 2012, the deadline prescribed by securities legislation (the “Specified Requirement”). Except as discussed below, there have been no material changes to the information contained in the Default Announcement or any other changes required to be disclosed under National Policy 12-203.

It is the current intention of the trustees of the Fund to seek to wind-up and dissolve the Fund upon the satisfaction of certain conditions including, but not limited to, receipt of a clearance certificate from CRA, final distribution of the cash assets of the Fund and termination of its Companies' Creditors Arrangement Act (“CCAA”) proceedings. There can be no guarantee that these conditions will be satisfied. The Fund will only file the Continuous Disclosure Documents if required by the Manitoba Court of Queen's Bench pursuant to the Fund's CCAA proceedings.

However, the Fund intends to continue to file bi-weekly default status reports containing the alternative information required by National Policy 12-203.