Mr. John Germain reports

PREMIUM INCOME CORPORATION ESTABLISHES AT-THE-MARKET EQUITY PROGRAM

Premium Income Corp. has established an at-the-market equity program (ATM program) that allows the fund to issue shares of the fund to the public from time to time, at the fund's discretion, effective until Sept. 24, 2024, unless terminated prior to such date by the fund. Any Class A shares or preferred shares sold in the ATM program will be sold through the Toronto Stock Exchange (the TSX) or any other marketplace in Canada on which the Class A shares and preferred shares are listed, quoted or otherwise traded at the prevailing market price at the time of sale. Sales of Class A shares and preferred shares through the ATM program will be made pursuant to the terms of an equity distribution agreement dated Jan. 8, 2024, with National Bank Financial Inc. ).

Sales of Class A shares and preferred shares will be made by way of at-the-market distributions as defined in National Instrument 44-102 -- Shelf Distributions on the TSX or on any marketplace for the Class A shares and preferred shares in Canada. Since the Class A shares and preferred shares will be distributed at the prevailing market prices at the time of the sale, prices may vary among purchasers during the period of distribution. The ATM program is being offered pursuant to a prospectus supplement dated Jan. 8, 2024, to the fund's short form base shelf prospectus dated Aug. 23, 2022. The maximum gross proceeds from the issuance of the shares will be $80-million. Copies of the prospectus supplement and the short form base shelf prospectus may be obtained from your registered financial adviser using the contact information for such adviser, or from representatives of the agent and are available on SEDAR+.

The volume and timing of distributions under the ATM program, if any, will be determined at the fund's sole discretion. The fund intends to use the proceeds from the ATM program in accordance with the investment objectives and investment strategies of the fund, subject to the investment restrictions of the fund.

This ATM program replaces the prior ATM program established in September, 2022, that has terminated in accordance with its terms.

The fund invests in a portfolio consisting principally of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and the Toronto-Dominion Bank. To generate additional returns above the dividend income earned on the fund's portfolio, the fund may selectively write covered call and put options in respect of some or all of the common shares in the fund's portfolio. The fund may also purchase securities of public investment funds including exchange-traded funds and other funds managed by Mulvihill Capital Management Inc. (provided that no more than 15 per cent of the net asset value of the fund may be invested in securities of other Mulvihill funds), that provide exposure to such common shares. The manager and investment manager of the fund is Mulvihill.

We seek Safe Harbor.