News Releases

CALGARY, ALBERTA-- NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR DISSEMINATION IN THE U.S.

 Newalta Income Fund announces that it has entered into an
agreement to sell, to Canaccord Capital Corporation and Sprott
Securities Inc. as co-lead underwriters, 5,479,453 common shares
at $3.65 per common share for aggregate gross proceeds of
approximately $20,000,000 on a bought-deal basis. Closing is
expected to occur on or about April 4, 2002.

Newalta has granted the underwriters an option, exercisable in
whole or in part prior to closing, to purchase up to an additional
2,739,726 common shares at the same offering price. Should the
underwriters' option be fully exercised, the total gross proceeds
of the issue would be approximately $30,000,000.

Net proceeds from the issue will be used for working capital, debt
reduction and to strengthen the Company's financial position to
allow it to pursue its growth strategy involving entry into
eastern Canada.

The common shares offered have not and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") or any state securities laws and may not be
offered or sold in the United States except in certain
transactions exempt from the registration requirements of the U.S.
Securities Act and applicable state securities laws. This news
release shall not constitute an offer to sell or the solicitation
of an offer to buy the securities in any jurisdiction in the
United States.

Newalta is a Canadian resource recovery and recycling company.