Mr. John Germain reports

PREMIUM INCOME CORPORATION ANNOUNCES CLASS A SHARE SPLIT AND AN INCREASE TO TOTAL DISTRIBUTIONS

Premium Income Corp. intends to complete a share split of its Class A shares due to the fund's strong performance. Class A shareholders of record at the close of business on Jan. 13, 2026, will receive 10 additional Class A shares for every 100 Class A shares held, pursuant to the share split. The share split is subject to the approval by the Toronto Stock Exchange.

The fund has also declared an increase to the monthly distributions payable to Class A shareholders of nine cents per share from eight cents per share. As a result of the share split and monthly distribution increase, the total dollar amount of distributions to be paid to Class A shareholders is expected to increase by approximately 22 per cent. Since inception, Class A shareholders have received cash distributions of $41.61 per share.

The Class A shares are expected to commence trading on an ex split basis at the opening of trading on Jan. 13, 2026. No fractional Class A shares will be issued and the number of class A shares each holder shall receive will be rounded down to the nearest whole number. The share split is a non-taxable event.

The fund has declared monthly distributions payable on Jan. 30, 2026, to shareholders of record at the close of business on Jan. 15, 2026, in the amounts per share as detailed in the attached table.

To the extent that any portion of the distributions are ordinary taxable dividends and not capital gains dividends, they will be eligible dividends.