Mr. John Germain reports

PREMIUM INCOME CORPORATION ANNOUNCES SUCCESSFUL OVERNIGHT OFFERING OF PREFERRED SHARES

Premium Income Corp. is conducting a successful overnight treasury offering of 2,085,000 preferred shares. Gross proceeds of the offering are expected to be $34,110,600.

The offering is expected to close on or about May 14, 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 $16.36 per preferred share. The trading price on the TSX for the preferred shares as at the last trade on May 5, 2026, was $16.46. since the inception of the fund, the aggregate dividends declared on the preferred shares have been $26.27 per share.

The fund invests in a portfolio consisting principally of direct and/or indirect investments in 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, and may invest up to 10 per cent of its net asset value (NAV) in other securities such as equity securities, fixed income securities (including preferred shares) and investment funds that provide exposure to such securities (including investment funds managed by Mulvihill Capital Management Inc., the manager of the fund). The manager and investment manager of the fund is Mulvihill Capital Management.

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.