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Strategic Energy Fund (TSX: SEF.UN) Rights Offering fully subscribed raising $64.3 million

Toronto/Calgary: Strategic Energy Management Corp. is pleased to announce that Strategic Energy Fund’s (the “Fund”) Rights Offering closed on May 8, 2006, raising gross proceeds of $64,297,860.

Rights offering resultsThe results of the Rights Offering are as follows:

Number of Fund units initially subscribed for

Number of Fund units issued underadditional subscription privilege

Total number of Fund units issued

Total gross proceeds





The Rights Offering was oversubscribed by 1,348,255 Fund units ($16,179,060)

Use of proceedsThe net proceeds of the Rights offering will be invested by the Fund in accordance with the investment objectives, subject to the investment restrictions of the Fund.

Dealer manager National Bank Financial Inc. and Blackmont Capital Inc. acted as the dealer managers for the rights offering.

Strategic Energy FundStrategic Energy Fund is an investment trust that seeks to provide unitholders with superior rates of return through a diversification strategy focused on investment opportunities within the Canadian energy sector. The Fund invests in established companies, early-stage energy companies and, to a lesser extent, special energy issuers, each with prospects for high growth in the near to medium term and the potential for long-term capital appreciation.

The Fund’s investments in established companies, including energy royalty and income trusts, are made with a view to generate sufficient income to permit the Fund to make monthly cash distributions to unitholders. The Fund expects to continue to pay monthly distributions of $0.11 per unit during the remainder of 2006. However, if the make-up of the portfolio changes or if such portfolio holdings make distributions other than in accordance with their indicated guidance, distributions may differ.

Investments in early-stage energy companies are focused on both private and public issuers with strong, experienced management teams that have proven track records of enhancing shareholder value and successfully executing exit strategies. As well, the Fund may invest in undervalued issuers where Sentry Select Capital Corp., investment advisor to the Fund, believes that capital appreciation can be realized.

Trading information and NAVStrategic Energy Fund units trade on the Toronto Stock Exchange under the symbol SEF.UN. As of May 3, 2006, the Fund’s Net Asset Value was $14.65 per unit and the closing price on the Toronto Stock Exchange was $12.44 per unit.

Sentry Select Capital Corp.The Investment Advisor is Sentry Select Capital Corp., a wealth management company with gross assets under management of approximately $8.5 billion, including more than $3 billion in resource sector-related investments.

Forward- looking statementsThis news release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, the future performance of the Fund, including the potential for future distributions. When used in this news release, the words “in the future” and “believe”, and the use of the future tense generally identify forward-looking statements. These statements reflect Sentry Select’s current expectations, but are subject to a number of risks and uncertainties. Due to the many risks and uncertainties, Sentry Select cannot assure that the forward-looking statements contained in this news release will be realized.

More information Investor Services (broker/investor inquiries) or Brian McOstrich (media inquiries)Tel: 1-888-246-6656 Fax: 416 364-1197

Documents (including press releases) regarding the various investment funds that are managed or advised by Sentry are provided for information purposes only and cannot be relied on to be complete, exhaustive or error-free unless the complete set of documents for any given investment fund with respect to which information is being sought is reviewed and then only on SEDAR (