"In the third quarter of 2009, the Fund saw an improvement in zinc, sulphuric acid and copper fundamentals over the previous quarter. Increased orders from both spot and contract customers translated into higher zinc metal sales and higher realized sulphuric acid netbacks; copper prices were also 25% higher than in the second quarter of 2009. The plant operated at 80% capacity during the quarter and this negatively impacted third quarter profitability and cash flow," said Mario Chapados, President and Chief Executive Officer of the Noranda Income Fund's Manager.

At the beginning of October, the plant returned to full capacity. In addition, the Fund has secured the required lender support from the Revolving Facility syndicate to amend the Revolving Facility. With the plant now operating at full capacity and with the amendment, the risk of breaching the Leverage ratio has been significantly reduced.

Going forward, the Fund still faces some challenges, such as low zinc premiums and a stronger Canadian dollar. The Fund is also preparing to renew its debt in 2010. The return to full capacity should support discussions on the debt refinancing.

The Board of Trustees will continue to assess these factors as they consider any change to the current monthly distribution policy. At this point in time, the monthly cash distribution remains suspended.

Outlook

Recent leading indicators, such as the ISM Purchasing Managers survey, point to the start of an economic recovery in the North American and global economy. This has been confirmed with a significant improvement in the demand and the prices for our products. Part of the rebound has been due to the impact of government programs such as the Cash for Clunkers car trade-in incentives. In addition, the supply pipeline is restocking after having been virtually depleted during the first half of the year. The steel industry, which is the major consumer of zinc in the US, has seen a steady improvement in operating rates. While some short-term weakness may occur at year-end, our customers are cautiously optimistic for moderate growth during 2010. Sulphuric acid demand continues to be supported by improved contract and spot sales and by the strike at Vale Inco's Sudbury operations.

Conference Call

The Noranda Income Fund will host an Investor Conference Call to discuss its Q3/2009 financial results at 08:00 AM Eastern time on Tuesday, November 10, 2009. For those preferring to listen by phone, please dial 416-340-8018 or toll free 1-866-223-7781. A live audio webcast of the conference call, together with supporting presentation slides, will be available on our website at www.norandaincomefund.com.

A recording of the webcast will be available at 416-695-5800 or toll free at 1-800-408-3053 with the pass code of 2287 087# until midnight on November 24, 2009.

Financial Results

This press release of the financial position and results of operations of the Fund should be read in conjunction with the unaudited consolidated interim financial statements of the Fund for the three and nine months ended September 30, 2009 and with the audited consolidated financial statements of the Fund and the notes thereto for the period ended December 31, 2008. The financial statements have been prepared in accordance with Canadian generally accepted accounting principles ("GAAP").

This press release is based on various assumptions (see "Forward-looking Information" below.) All dollar amounts are shown in Canadian dollars unless otherwise specified. The press release has been prepared as of November 9, 2009. Additional information relating to the Fund, including the Fund's annual information form is available on SEDAR at www.sedar.com.

Q3 2009 Highlights
                                          Third Quarter        Year-to-date
                                          2009     2008       2009     2008
                                        ------   ------    -------  -------
Zinc metal production (tonnes)          51,871   63,676    163,013  195,091
Zinc metal sales (tonnes)               65,793   65,459    178,632  201,463
Processing fee (cents/pound)              38.0     37.5       38.0     37.5
Zinc metal premiums (US$/pound)          0.038    0.060      0.035    0.063
Byproduct revenues ($ millions)            6.6     10.7       21.0     36.1
Average US/Cdn. exchange rate            1.097    1.042      1.170    1.019
 - Sulphuric acid netbacks recovered to US$32 per tonne from the low level
   of US$3 per tonne in the second quarter.
 - The Fund completed the expansion of zinc slab production capacity.
 - Finished inventory was reduced by almost 14,000 tonnes due to improved
   customer orders and increased production flexibility resulting from the
   slab capacity expansion.
 - On September 28, 2009 market conditions for sulphuric acid had improved
   to enable the plant to return to full capacity by the beginning of
   October.
 - The Fund has secured the required lender support from the Revolving
   Facility syndicate to amend the Revolving Facility.

RESULTS OF OPERATIONS

Consolidated Net Earnings (Third quarter 2009 compared to third quarter 2008)

Revenues less raw material purchase costs ("Net Revenues") in the third quarter of 2009 were $56.1 million, compared to $75.8 million in the same quarter of 2008. The $19.7 million decrease was due to lower premiums, recoveries and byproduct revenues partially offset by a weaker Canadian dollar.

Production Cost Breakdown
($ millions)                                       Third Quarter   Increase/
                                                    2009    2008  (Decrease)
                                                   -----    ----  ----------
Labour                                              12.6    15.1       (2.5)
Energy                                              12.2    14.9       (2.7)
Operating supplies                                   7.8     9.3       (1.5)
Other                                                3.5     3.3        0.2
                                                   -----    ----      ------
Production cost before changes in inventory         36.1    42.6       (6.5)
Change in inventory                                  8.7     1.4        7.3
                                                   -----    ----      ------
                                                    44.8    44.0        0.8

Production costs in the third quarter of 2009 were $44.8 million, compared to $44.0 million recorded in the third quarter of 2008. Production during the quarter ran at 80% of the 2008 level, resulting in lower energy and operating supplies costs. During the quarter Hydro-Quebec reduced certain electricity costs to industrial users as a result of the recession, and this resulted in a $0.8 million saving in our energy costs. Labour costs were reduced as a result of the initiatives introduced in March to cut manpower costs. The $7.3 million increase from the change in inventory resulted from the significant drawdown in finished zinc metal inventory in the third quarter of 2009.

Selling, general and administration costs in the third quarter of 2009 were $3.8 million, compared to $4.6 million in the same period of 2008 due to cost reduction measures that were undertaken during the quarter.

The foreign exchange gain for the third quarter of 2009 was $6.7 million, compared to a loss of $2.9 million in the third quarter of 2008. The foreign exchange gain was a result of a strengthening Canadian dollar against the US dollar on the Fund's net monetary liabilities. The foreign exchange gain was offset by a decrease in the value of in-process and finished inventory. The decrease in the value of inventory is realized in Net Revenues as the metal is sold to customers (thereby decreasing the Net Revenue recorded by the Fund). The Fund maintains cash and cash equivalents, accounts receivable and accounts payable and debt in US dollars.

In the third quarter of 2009, the commodity hedging loss was $0.1 million and the commodity financial instruments loss was $2.7 million. In the third quarter of 2008, the commodity hedging loss was $0.1 million and the commodity financial instruments gain was $1.4 million. During the period, the change in the market value of the Fund's financial instruments resulted in these amounts being recorded.

In the third quarter of 2009, amortization was $10.4 million compared to $8.3 million in the third quarter of 2008. The increase was due to the significant drawdown in zinc metal inventory during the third quarter of 2009, as amortization that was previously recorded in inventory was realized upon the sale of the zinc metal.

The reclamation expense for the three months ended September 30, 2009 was $0.2 million compared to $0.3 million in the same period of 2008.

In third quarter of 2009, net interest expense was $2.5 million compared to $3.4 million in the third quarter of 2008. The decrease in interest expense was due to lower average outstanding debt and variable interest rates during the third quarter of 2009 compared to the third quarter of 2008.

Minority interest in earnings of subsidiaries in the third quarter of 2009 was a credit of $0.4 million, down from an expense of $3.4 million in the third quarter of 2008. The decline was due to the Fund's lower earnings in 2009.

Consolidated Net Earnings (Nine months 2009 compared to nine months of 2008)

The net loss for the first nine months of 2009 totalled $4.7 million, compared to net earnings of $20.1 million for the same period in 2008. The $24.8 million decrease was mainly due to lower production, sales, byproduct revenues and premiums, partially offset by lower interest expense, reclamation recovery and a weaker Canadian dollar. Net Revenues the first nine months of 2009 were $154.6 million, compared to $220.0 million in the first nine months of 2008. The $65.4 million decrease was due to lower sales volumes, byproduct revenues, and premiums, partially offset by the impact of a weaker Canadian dollar.

Production Cost Breakdown
($ millions)                                        Year-to-date   Increase/
                                                   2009     2008  (Decrease)
                                                   ----     ----   ---------
Labour                                             41.4     47.4       (6.0)
Energy                                             42.0     47.3       (5.3)
Operating supplies                                 23.8     26.9       (3.1)
Other                                               9.8     10.4       (0.6)
                                                  -----    -----      ------
Production cost before changes in inventory       117.0    132.0      (15.0)
Change in inventory                                 7.5      5.1        2.4
                                                  -----    -----      ------
                                                  124.5    137.1      (12.6)

Production costs the first nine months of 2009 were $124.5 million, $12.6 million lower than the $137.1 million recorded in the same period of 2008. Production in 2009 ran at 80% of the 2008 level from March until the end of September, resulting in lower energy and operating supplies costs. Labour costs were reduced as a result of the initiatives introduced in March to cut manpower costs. The $2.4 million increase from the change in inventory resulted from a higher inventory drawdown during the first nine months of 2009 compared to the same period of 2008.

Selling, general and administration costs the first nine months of 2009 were $13.2 million, compared to $14.3 million in the first nine months of 2008 due to cost reduction measures that were undertaken during 2009.

The foreign exchange gain in the first nine months of 2009 was $7.7 million, compared to a loss of $5.2 million in 2008. The foreign exchange gain was a result of a strengthening Canadian dollar on the Fund's net US dollar monetary liability. The foreign exchange gain was largely offset by a decrease in the value of in-process and finished inventory. The decrease in the value of inventory is realized in Net Revenues as the metal is sold to customers (thereby decreasing the Net Revenue recorded by the Fund).

In the first nine months of 2009, the commodity financial instrument loss was $0.6 million and the commodity hedging loss was $0.1 million. During the period, the change in the market value of the Fund's financial instruments resulted in these amounts being recorded.

In the first nine months of 2009, amortization was $26.9 million, compared to $25.6 million which incurred in the first nine months of 2008. The increase in amortization was due to the higher drawdown in zinc metal inventory during 2009 compared to 2008, as amortization that was previously recorded in inventory was realized upon the sale of the zinc metal.

In the first nine months of 2009, the reclamation recovery was $3.9 million, compared to an expense of $0.7 million which was recorded in the same period of 2008. During the second quarter of 2009, a review of the site restoration and reclamation expenditures was completed by the Fund, including work from a third-party engineering firm. The recovery was due to a decline in the expected future reclamation spending, which has resulted in a reduction in the present value of future site restoration and reclamation liabilities. The sources of the reduced reclamation spending came from the following items:

- The Fund identified opportunities to recycle some of the residues in operations, therefore, reducing the amount of residues that need to be treated; and

- The projected life of some of the residue ponds was extended by optimizing their storage capacity, thereby deferring the timing of some of the expenditures for the projects.

In the first nine months of 2009, net interest expense was $7.3 million compared to $10.7 million in the same period of 2008. The decrease in interest expense was due to a lower average amount of debt outstanding, as well as lower variable interest rates.

Minority interest in earnings of subsidiaries in the first nine months of 2009 was a credit of $1.6 million, down from an expense of $6.7 million in the first nine months of 2008. The decline was due to the Fund's lower earnings in 2009.

KEY PERFORMANCE DRIVERS

The following table provides a summary of the key performance drivers for the third quarter and nine months 2009 and 2008:

-----------------------------------------------------------------------
-----
                                                                 Nine months
                                             Third Quarter     Ended Sept 30
                                             2009     2008     2009     2008
----------------------------------------------------------------------------
Zinc metal production (tonnes)             51,871   63,676  163,013  195,091
Zinc metal sales (tonnes)                  65,793   65,459  178,632  201,463
Zinc concentrate processed (tonnes)        99,790  123,913  322,151  379,337
Zinc recovery (%)                            96.9     97.7     97.4     97.8
Processing fee (cents/pound)                 38.0     37.5     38.0     37.5
Zinc metal premiums (US$/pound)             0.038    0.060    0.035    0.063
Byproduct revenues ($ millions)               6.6     10.7     21.0     36.1
Copper in copper cake production (tonnes)     653      827    2,085    2,375
Copper in copper cake sales (tonnes)          584      922    1,858    2,596
Sulphuric acid production (tonnes)         80,502  104,131  266,657  315,881
Sulphuric acid sales (tonnes)              79,675   99,595  260,217  318,809
Average LME zinc price (US$/pound)           0.80     0.80     0.67     0.96
Average LME copper price (US$/pound)         2.67     3.48     2.11     3.62
Sulphuric acid netback (US$/tonne)             32       59       33       54
Average US/Cdn. exchange rate               1.097    1.042    1.170    1.019
----------------------------------------------------------------------------

PRODUCTION

In the third quarter of 2009, zinc metal production was 51,871 tonnes, compared to 63,676 tonnes in the third quarter of 2008. Production was negatively impacted by the 20% reduction in production that remained in effect during the quarter. The reduction in output was due to weak sulphuric acid sales and the lack of sulphuric acid storage capacity at the plant and at third party storage facilities.

On September 28, 2009, however, the Fund reported that it would return to full capacity at the beginning of October because of improved market conditions for sulphuric acid.

Production in the first nine months of 2009 was 163,013 tonnes, compared to 195,091 tonnes in the same period of 2008.

The production target is 229,000 tonnes for 2009.

The target for production is subject to various risks and uncertainties. The assumptions for them can be found in the "Forward-looking Information" below.

RECOVERIES

Recoveries for the third quarter of 2009 were 96.9% compared to the 97.7% for the third quarter of 2008. The Fund pays for 96% of the zinc in the concentrate it purchases; therefore, any recovery over 96% results in metal recovery revenue for the Fund.

SALES

Zinc metal is used in a wide range of industries. Its major use, which accounts for 50% of the total zinc metal consumption in North America, is in the production of galvanized steel.

Customer demand in the third quarter improved considerably due to stronger order levels from the automotive and construction sectors and the need to replenish inventories that were depleted during the first half of the year.

Third quarter 2009 sales increased by 30% to 65,793 tonnes from 50,591 tonnes in the previous quarter, and they compared favourably to sales of 65,459 tonnes in the third quarter of 2008.

Sales in the first nine months of 2009 totalled 178,632 tonnes compared to 201,463 tonnes in the same period of 2008.

The Fund recently increased its zinc slab casting capacity to provide for more commercial flexibility. Annual capacity on the existing slab line was increased 30% to 100,000 tonnes. A second slab line was commissioned in the third quarter, adding a further 80,000 to 100,000 tonnes of annual slab capacity.

With both lines running since the beginning of the third quarter and improved demand from our customers, almost 14,000 tonnes of the forecasted 17,000 tonne inventory reduction scheduled for the second half of 2009 were completed in the third quarter. Since the beginning of the year, inventories were reduced by 15,619 tonnes. The Fund will continue to pursue spot sales opportunities to reduce inventories over the remainder of the year.

Sales for October and November remain firm as the momentum in our customer's order book improves into the fourth quarter. We expect zinc demand will slow in December as customers adjust stocks for year end and reassess market conditions.

The Fund's target for sales for 2009 is 244,000 tonnes.

The target for sales is subject to various risks and uncertainties. The assumptions can be found in the "Forward-looking Information" below.

PREMIUMS

For the third quarter of 2009, premiums averaged 3.8 cents US per pound, compared to 6.0 cents US per pound in the third quarter of 2008 and 4.7 cents US per pound in the second quarter of 2009. Realized premiums were lower in the third quarter of 2009 than the previous quarter due to a change in the product mix.

The forecast for the zinc premiums for the fourth quarter of 2009 is approximately 4.0 cents US per pound, based on the current expected sales mix. The Fund's premium target for the fourth quarter is subject to various risks and uncertainties. The assumptions can be found in the "Forward-looking Information" below.

PROCESSING FEE

In 2009, the processing fee was increased to 38.0 cents per pound, compared to 37.5 cents per pound in 2008. The processing fee is adjusted annually (i) upward by 1% and (ii) upward or downward by 10% of the year-over-year percentage change in the average cost of electricity per megawatt hour for the Processing Facility.

BYPRODUCTS

In the third quarter of 2009, the Fund generated $6.6 million in revenue from the sale of its copper cake and sulphuric acid, compared to $10.7 million in the third quarter of 2008. This is almost twice as much as was generated in the second quarter of 2009. Both sulphuric acid and copper revenues were higher.

Revenues from the sale of sulphuric acid were $2.9 million, down from $6.2 million in the third quarter of 2008 as a result of lower netbacks and sales volumes. Third quarter revenues were up significantly from the $0.3 million earned from sulphuric acid sales in the second quarter of 2009.

Copper revenues fell to $3.7 million from $4.4 million in 2008 as a result of lower copper prices and sales volumes in the third quarter of 2009 compared to the same period in 2008. As expected, copper shipments increased in the third quarter from the second quarter.

Sulphuric Acid

The Fund produces sulphuric acid as a byproduct of the zinc refining process.