Mr. Hugh Adams reports

ARCTIC GLACIER ISSUES DEFAULT STATUS REPORT PURSUANT TO NATIONAL POLICY 12-203

Arctic Glacier Income Fund is providing a default status report, in accordance with the alternative information guidelines set out in National Policy 12-203 -- Cease Trade Orders for Continuous Disclosure Defaults.

On Aug. 15, 2012, the fund announced that it would not be able to file an interim financial report and interim management's discussion and analysis for the period ended June 30, 2012, together with the related certification of filings under National Instrument 52-109 -- Certification of Disclosure in Issuers' Annual and Interim Filings by Aug. 29, 2012, the deadline prescribed by securities legislation.

Except as discussed below, there have been no material changes to the information contained in the default announcement or any other changes required to be disclosed under National Policy 12-203.

The fund still intends to file the continuous disclosure documents as soon as is commercially reasonable, or as required by the Manitoba Court of Queen's Bench pursuant to the Fund's Companies' Creditors Arrangement Act proceedings. More information about the Arctic Glacier Parties' CCAA proceeding can be found on the website of its Court-appointed monitor.

About Glacier Income Fund

Arctic Glacier trust units are listed on the Canadian National Stock Exchange under the trading symbol AG.UN. There are 350.3 million trust units outstanding.

We seek Safe Harbor.