Mr. John Germain of Mulvihill Capital Management reports

PREMIUM INCOME CORPORATION ANNOUNCES OVERNIGHT OFFERING OF PREFERRED SHARES

Premium Income Corp. is undertaking an overnight treasury offering of preferred shares.

The sales period for the overnight offering will end tomorrow, Jan. 22, 2026. The offering is expected to close on or about Jan. 29, 2026, and is subject to certain closing conditions, including approval by the Toronto Stock Exchange. The preferred shares will be offered at a price of $16.20 per preferred share. The trading price on the Toronto Stock Exchange for the preferred shares as at the last trade on Jan. 21, 2026, was $16.46. Since the inception of the fund, the aggregate dividends declared on the preferred shares have been $25.96 per share.

The fund invests in a portfolio consisting principally of common shares of Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and Toronto-Dominion Bank. To generate additional returns above the dividend income earned on the fund's portfolio, the fund will selectively write covered call and put options in respect of some or all of the common shares in the fund's portfolio. The manager and investment manager of the fund is Mulvihill Capital Management Inc.

The preferred shares pay fixed cumulative preferential monthly cash distributions in the amount of 10.625 cents ($1.275 per annum) per preferred share representing a yield of 8.50 per cent on the original issue price of $15.

The syndicate of agents for the offering is being led by National Bank Financial Inc.

A short form base shelf prospectus containing important detailed information about the securities being offered has been filed with securities commissions or similar authorities in each of the provinces of Canada. Copies of the short form base shelf prospectus may be obtained from a member of the syndicate. The fund intends to file a supplement to the short form base shelf prospectus, and investors should read the short form base shelf prospectus and the prospectus supplement before making an investment decision. There will not be any sale or any acceptance of an offer to buy the securities being offered until the prospectus supplement has been filed with the securities commissions or similar authorities in each of the provinces of Canada.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.