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Strategic Energy Fund (TSX: SEF.UN) announces meeting results and provides additional information relating to its NAV

Toronto/Calgary: Strategic Energy Fund (the “Fund”) is pleased to announce the results of the Annual and Special Meeting of its unitholders held on June 28, 2007. The unitholders of the Fund approved a resolution authorizing the manager of the Fund to change the market price criterion required to initiate the Fund’s mandatory market purchase program. The Fund will now purchase units for cancellation when the market price of its units is at or less than 95 per cent of the most recently calculated net asset value (NAV) per unit. Previously, the program could only be initiated when the market price of the units of the Fund was less than 90 per cent of the most recently calculated NAV per unit. The mandatory market purchase program is an important element of the Fund’s strategy to reduce the discount-to-NAV of its units. “As Manager, we have little control over the market price,” said Glenn MacNeill, the Fund’s portfolio manager. “However, we believe it is important to have a comprehensive program to provide liquidity to our unitholders, and the mandatory market purchase program is a key component of that,” he added.

Net Asset Value: The Fund has also completed a review of the recently closed Exchange Offer and can now provide additional information relating to its impact on the Fund’s NAV. The Fund’s NAV on June 6, 2007 was $11.22 per unit and on June 13, 2007, the NAV was $9.98. The Exchange Offer closed on June 8, 2007. Several factors contributed to the lower NAV, some of which stemmed from the Exchange Offer and some of which were market related. Specifically, the decline of $1.24 can be broken down as follows: • The costs of acquiring new securities and issuing new units of the Fund through the Exchange Offer: $0.844 per unit; • The decline in the market value of the Fund’s portfolio holdings: $0.209 per unit; • The decline in the market value of the exchanged securities: $0.092 per unit; • The accrued distributions payable to unitholders of the Fund: $0.080 per unit; and • The revaluation of private securities held in the Fund’s portfolio: $0.015 per unit. Based on its analysis, management is able to confirm that the costs of acquiring new securities and issuing new units of the Fund through the Exchange Offer on a per-unit basis was in fact lower than the historical average for previous offerings by the Fund. Despite its short-term dilutive effect, management believes the additional assets acquired through the Exchange Offer can provide long-term value to the Fund’s unitholders. “The Fund’s security selection and portfolio allocation strategy is in part value oriented,” said Mr. MacNeill. “We believe the timing was right for the Exchange Offer as many oil and gas companies and trusts were undervalued and trading at attractive ‘Price-to-Earnings’ and ‘Price-to-Cash Flow’ multiples and the Exchange Offer provided an efficient mechanism by which the Fund and its unitholders could take advantage of those investment opportunities.”

In evaluating the decision to proceed with an exchange offer, management was mindful of dilution, but also believes that in the long term, unitholders will greatly benefit if the undervalued companies converge to their intrinsic values.

Performance of the Fund: The Fund’s annualized compound performance as of June 14, 2007*: 1 year                        3 year                  5 year -17.56%                   13.18%                7.87%

Strategic Energy Fund: Strategic 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.

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., the investment advisor to the Fund, believes that capital appreciation can be realized.

Trading information: Strategic Energy Fund units trade on the Toronto Stock Exchange under the symbol SEF.UN.

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

This news release contains or refers to certain forward-looking statements relating, but not limited, to the expectations, intentions, plans and assumptions of the Fund, Strategic Energy Management Corp. (the “Manager”) and Sentry Select Capital Corp. (the “Investment Advisor”) (as applicable) with respect to capital appreciation of, realization on and revenues generated by the investments within the Fund’s portfolio, the effect of the mandatory market purchase program on the trading price of units of the Fund, the value of the Fund’s securities, the future performance of the Fund and the long-term value of the securities acquired pursuant to the Exchange Offer to unitholders of the Fund. Forward-looking statements can often be identified by forward-looking words such as “believe”, “plan”, “may”, “potential” and “will” or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking statements are not historical facts but reflect, as applicable, the Manager’s, the Fund’s and the Investment Advisor’s current expectations regarding future results or events. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, the Fund’s ability to liquidate its position in its investments within its portfolio at estimated and/or expected levels and prices, distributions paid and revenues generated by issuers in which the Fund invests being at or above current and/or expected levels, the ability of undervalued issuers in which the Fund invests to converge to their intrinsic values, the volume of trading of units of the Fund, from time to time, when the mandatory market purchase program is in effect and other factors which are not currently known by the Fund, Manager or Investment Advisor. Although the Manager, the Fund and the Investment Advisor believe that the assumptions inherent in their respective forward-looking statements are reasonable, forward-looking statements are not guarantees of future events or performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Neither the Fund, the Investment Advisor nor the Manager undertakes any obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law. *Performance figures are based on the market price of the units of the Fund, assuming reinvested distributions (source: Bloomberg). Such figures are historical and for illustrative purposes only and should not be construed as a forecast or projection or as a representation concerning the future performance of the Fund.

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 (