Premium Income Corporation announces a share repurchase program. Under the bid, the company will repurchase for cancellation up to 974,926 Class A shares and 974,926 Preferred shares, representing 10% of its public float. The shares will be repurchased through the facilities of the TSX or other eligible alternative market and may only be purchased together as a unit (consisting of one Class A Share and one Preferred Share) at a price per share not exceeding the last net asset value per share. The Fund may repurchase up to 194,985 of each respective class of shares in any 30 day period which is 2% of the shares issued and outstanding of each respective class. The Directors of the Fund believe that such purchases are in the best interest of the Fund and are a desirable use of its available funds. The bid will commence from October 22, 2014 and will end on October 21, 2015. As of October 17, 2014, the company has 9,749,268 Class A shares and 9,749,268 Preferred shares outstanding.

On October 20, 2014, the Board announced that it has received approval from the Toronto Stock Exchange to make the repurchases.