Foremost Income Fund Confirms Amount of Special Non-Cash Distribution

CALGARY, ALBERTA--(Marketwired - Feb. 25, 2016) - Via press releases on December 7^th, 14^th, and 31^st of 2015, Foremost Income Fund (the "Fund") announced that it would distribute its 2015 taxable income by a non‐cash distribution in the form of units of the Fund. The units distributed were thereafter immediately consolidated, with the result that taxable unitholders received income in respect of the distribution estimated in the December 31, 2015 press release to be $0.54 per unit held prior to the distribution and consolidation (collectively the "distribution and consolidation").

The Fund undertook, in the press releases referenced above, to confirm the amount distributed pursuant to the distribution and consolidation upon final determination of the Fund's income in February 2016.

This press release confirms that the 2015 taxable income per unit for the year ended December 31, 2015 is $0.54 per unit held prior to the distribution and consolidation, being the same as the amount previously estimated.

This information is intended for summary purposes only and is subject in all respects to the Deed of Trust. All dollar amounts are in Canadian dollars. The income and other tax consequences of holding, redeeming or disposing of units will vary depending on the unitholder's particular circumstances, including the jurisdiction(s) in which the unitholder resides or carries on business, and whether the unitholder is an RRSP, RESP, RRIF, PPSP or TFSA. Accordingly, this information is of a summary nature only and is not intended to be legal or tax advice to any prospective purchaser or any unitholder. All unitholders should consult their own legal and tax advisors.

On behalf of the Trustees Foremost Income Fund

Bevan May, Trustee

FORWARD‐LOOKING STATEMENT

Certain statements in this news release may constitute "forward‐looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to be materially different from any future results, performance or achievements expressed or implied by such forward‐looking statements. When used in this news release, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements include the expected date for determination of the 2015 income of the fund, the tax implications to unitholders of the distribution, the Trustees' views of the future prospects and tax treatment of the Fund and the future cash redemption limits of the Fund. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this news release. These forward‐looking statements involve a number of risks and uncertainties, including: the impact of general economic conditions, industry conditions, changes in laws and regulations, increased competition, fluctuations in commodity prices and foreign exchange, and interest rates and stock market volatility. Accordingly, unitholders should not place undue reliance on the forward‐ looking statements. The Fund undertakes no obligation to update the forward‐looking statements except in accordance with applicable laws.