VEGREVILLE, ALBERTA--(Marketwire - May 17, 2012) - TerraVest Income Fund (TSX:TI.UN) announced today that George Armoyan (biography below) has been appointed as a trustee of TerraVest Income Fund and director of TerraVest Industries Inc. following the resignations of Bob Phillips, Murray Wallace and Tim Rorabeck earlier today. This appointment has been approved by the Trustees of the Fund pursuant to the Declaration of Trust of the Fund which permits the Trustees to fill vacancies among the Trustees to hold office until the close of the next annual general meeting of unitholders, currently scheduled to be held on June 26, 2012.

The Trustees of the Fund would like to thank Messrs. Phillips, Wallace and Rorabeck for their valuable contributions to the Fund. Dale Laniuk, President and CEO of TerraVest Industries Inc., said, "I have truly enjoyed the opportunity to work with Bob, Murray and Tim, in the case of Bob and Murray since the inception of the Fund in 2006. Their efforts on behalf of the Fund and its unitholders are sincerely appreciated and we wish them well in their future endeavours. I also look forward to working with our continuing and new board members as we continue to pursue our strategy."

Mr. Armoyan is President of Geosam Capital Inc. and Interim President and Chief Executive Officer of Clarke Inc. Mr. Armoyan is an entrepreneur with extensive experience in mergers, acquisitions and capitalizing on turn-around opportunities. He has led a number of companies to solid business results over the last 30 years. Mr. Armoyan also serves on the Boards of Holloway Lodging REIT and General Donlee Canada Inc. Mr. Armoyan was also previously a Trustee of the Fund and director of TerraVest Industries Inc. from February 2007 to January 2010.

About TerraVest Income Fund

The Fund has investments in two remaining portfolio businesses:

• RJV Gas Field Services ("RJV"), one of Canada's largest providers of wellhead processing equipment for the natural gas industry in western Canada; and
• Diamond Energy Services ("Diamond"), a market leader in providing well servicing to the oil and natural gas sector in south-western Saskatchewan.

Caution Regarding Forward-Looking Statements

This news release contains forward-looking statements. All statements other than statements of historical fact contained in this news release are forward-looking statements, including, without limitation, statements regarding our strategic direction and evaluation of the portfolio businesses and the Fund as a whole, the sale or potential sale of portfolio businesses or assets thereof, the availability of credit, special distributions, and other plans and objectives of or involving the Fund. Readers can identify many of these statements by looking for words such as "expects" and "will" and similar words or the negative thereof. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

By their nature, forward-looking statements require us to make assumptions and, accordingly, forward looking statements are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. We caution readers of this news release not to place undue reliance on our forward-looking statements because a number of factors may cause actual future circumstances, results, conditions, actions or events to differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements and the assumptions underlying the forward-looking statements.

Assumptions and analysis about the performance of the Fund as a whole and the Fund's portfolio businesses, the markets in which the portfolio businesses compete and the prospects and values of the portfolio businesses are considered in setting the business plan for the Fund, in evaluating and forecasting availability of credit and/or ability to pay distributions, tax horizon, capital investments, outlook for operations, financial position, results and cash flow, other plans and objectives and in making related forward-looking statements. Should any of these factors or assumptions vary, actual results may differ materially from the forward-looking statements.

The information set forth under "Risk Factors" in the annual information form of the Fund dated March 1, 2011 and under "Financial Instruments" in the MD&A of the Fund for the period ended September 30, 2011, identifies risk factors that could affect the operating results and performance of the Fund and its portfolio businesses and the values of the portfolio businesses and the Fund as a whole. We caution that the lists of factors discussed in such information is not exhaustive and that, when relying on forward-looking statements to make decisions with respect to the Fund, investors and others should carefully consider the factors discussed, as well as other uncertainties and potential events, and the inherent risks and uncertainties of forward-looking statements. The forward-looking statements herein are made based on the assumption that the Fund will not be affected by such risks, but that, if the Fund is affected by such risks, the forward-looking statements may become inaccurate.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release. Except as required by applicable securities laws, the Fund does not undertake to update such forward-looking statements.

Contributing Sources

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