Mr. John Germain reports

PREMIUM INCOME CORPORATION ANNOUNCES CLASS A SHARE SPLIT

Premium Income Corp. intends to complete a share split of its Class A shares due to the fund's strong performance. The holders of Class A shares of record on the close of business on May 1, 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.

As a result of the share split, the total dollar amount of distributions to be paid to the holders of Class A shares is expected to increase by approximately 10 per cent.

The Class A shares are expected to commence trading on an ex split basis at the opening of trading on May 1, 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 share split will be reflected in the net asset value per Class A share as of May 7, 2026.