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 Oct. 2, 2028, 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 Sept. 3, 2026, 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 Sept. 3, 2026, to the fund's short form base shelf prospectus dated Sept. 3, 2026. The maximum gross proceeds from the issuance of the shares will be $250-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 August, 2024.

The fund invests in a portfolio consisting principally of direct and/or indirect investments in 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, and may invest directly and/or indirectly up to 10 per cent of its net asset value in other securities such as equity securities and fixed income securities (including preferred shares) and in investment funds that provide exposure to such securities (including investment funds managed by Mulvihill Capital Management Inc., the manager of the fund).