Black Diamond Income Fund Releases 2006 Canadian Tax Information

March 02 2007
CALGARY, ALBERTA--(CCNMatthews - March 2, 2007) -

Black Diamond Income Fund ("Black Diamond" or the "Fund") (TSX:BDI.UN) has announced information necessary for 2006 Canadian tax reporting. The information provided below is solely to assist Canadian individual unitholders with tax reporting information in respect of distributions declared during the calendar year 2006. This information is not intended to constitute legal or tax advice to any holder or potential holder of Black Diamond units ("Units"). Canadian unitholders should consult with a taxation or investment professional for additional tax advice. The following summary applies to unitholders who are residents of Canada under the Income Tax Act (Canada) and who hold their units as capital property.

Units held within an RRSP, RRIF, RESP or DPSP

No amounts are to be reported on the unitholders' 2006 Income Tax Return where Units are held within a Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), Registered Education Savings Plan (RESP) or a Deferred Profit Sharing Plan (DPSP).

Units held outside an RRSP, RRIF, RESP or DPSP

Unitholders who hold their Units outside of an RRSP, RRIF, RESP or DPSP and were entitled to receive distributions on a distribution record date within the calendar year 2006 will receive a T3 Statement of Trust Income Allocations and Designations Slip ("T3") directly from Olympia Trust Company or from the broker/intermediary who the unitholder holds their Units through. Distributions declared in 2006 will be 100% return of capital and reported in box 42 of the T3. The deadline for mailing the 2006 T3's to unitholders, as required by the Canada Revenue Agency is March 31, 2007.

Schedule of Tax Treatment of 2006 Distributions

The following schedule details the cash distributions declared in 2006 and the tax treatment of each distribution per Unit for income tax purposes:

Taxable Return
Amount of Capital Total
Record Date Payment Date (T3-Box 26) (T3-Box 42) Distribution
September 30, 2006 October 15, 2006 $ 0.0000 $ 0.0111 $ 0.0111
October 31, 2006 November 15, 2006 $ 0.0000 $ 0.0833 $ 0.0833
November 30, 2006 December 15, 2006 $ 0.0000 $ 0.0833 $ 0.0833
December 31, 2006 January 15, 2007 $ 0.0000 $ 0.0833 $ 0.0833
Total $ 0.0000 $ 0.2610 $ 0.2610

Adjusted cost base of Units for capital gain purposes

Canadian individual Unitholders are required to reduce the adjusted cost base ("ACB") of their Trust units by the amount reported in Box 42 "Amount Resulting in Cost Base Adjustment" of the 2006 T3, which is equal to the cumulative distributions declared during calendar 2006 that the Canadian individual Unitholder was entitled to, less the amount reported as "Other Income" in Box 26 of the 2006 T3. The ACB is then used to determine and report in the Canadian individual Unitholder's T1, the capital gain/loss, if any, in the taxation year when the Units are disposed or deemed disposed of. If the ACB is reduced to zero, any further reduction to the ACB should be reported by the Canadian individual Unitholder as a capital gain on the Canadian individual Unitholder's T1 in the taxation year that it occurs.

The Fund is an unincorporated open ended investment trust governed by the laws of the Province of Alberta. The principal undertaking of the Fund, through its indirect wholly-owned subsidiary, Black Diamond Limited Partnership, is to rent modular structures for use as workforce accommodation and temporary workspace, and to provide complementary services including transportation, installation, dismantling, repair and maintenance of modular structures, as well as related services through three operating divisions consisting of Black Diamond Camps, BOXX Modular, and Black Diamond Site Services.

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the offering has been qualified for distribution. The securities offered are not, and will not be, registered under the securities laws of the United States of America, nor any state thereof and may not be sold in the United States of America absent registration in the United States or the availability of an exemption from such registration.

Forward-Looking Statements

Certain information set forth in this press release, including a discussion of future plans and operations, contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. Actual results, performance or achievement could differ materially from those expressed in or implied by these forward-looking statements. For more information please contact Black Diamond Income Fund, by its Manager, Black Diamond Group Inc.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Black Diamond Income Fund, by its Manager;
Black Diamond Group Inc.
Trevor Haynes, President and Chief Executive Officer
(403) 206-4737
(403) 264-9281 (FAX)


Black Diamond Income Fund, by its Manager;
Black Diamond Group Inc.
Michael Burnyeat, Vice President and Chief Financial Officer
(403) 206-4740
(403) 264-9281 (FAX)

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