Arctic Glacier Issues Default Announcement Pursuant to National Policy 12-203

Arctic Glacier Income Fund (CNSX:AG.UN) (the "Fund") announced today that it
will not be able to file an interim financial report and interim management's
discussion and analysis for the period ended June 30, 2012, together with the
related certification of filings under National Instrument 52-109 Certification
of Disclosure in Issuers' Annual and Interim Filings (collectively, the
"Continuous Disclosure Documents") by August 29, 2012, the deadline prescribed
by securities legislation (the "Specified Requirement").


As previously disclosed, on February 22, 2012, the Fund and its subsidiaries
(collectively, "Arctic Glacier") commenced proceedings in the Manitoba Court of
Queen's Bench (the "Court") under the Companies' Creditors Arrangement Act (the
"CCAA"). In the CCAA proceedings, Arctic Glacier continued its business under
the protection of a stay of creditor claims and Arctic Glacier conducted a court
supervised recapitalization of its business through the initiation of a sale and
investment solicitation process. The CCAA proceedings were recognized in the
United States Bankruptcy Court for the District of Delaware (the "US Court").
Under the CCAA, Alvarez & Marsal Canada Inc. was appointed by the Court as
Monitor. Since the CCAA proceedings commenced, in compliance with the CCAA and
the orders of the Court in the CCAA proceedings, Arctic Glacier has provided the
Monitor with full access to its accounting records. The Monitor has filed with
the Court periodic reports which have included Arctic Glacier's cash flow
projections and other financial information concerning Arctic Glacier. Arctic
Glacier anticipates that the Monitor will continue to file reports with the
Court (and post them on its website) updating relevant financial information
concerning Arctic Glacier. The Monitor's reports and Court records are available
on line on its website at www.alvarezandmarsal.com/arcticglacier.


As previously disclosed, with the approval of the Court and the US Court, on
July 27, 2012, Arctic Glacier sold substantially all of its business and assets
(the "Sale") to affiliates of H.I.G. Capital (the "Purchaser") for cash
consideration and the assumption of certain current liabilities. On closing the
Sale, the Purchaser hired substantially all of Arctic Glacier's employees and is
continuing the business formerly carried on by Arctic Glacier. The remaining
cash proceeds of the Sale are being held by the Monitor pending further order of
the Court, the satisfaction of tax liabilities, if any, the determination and
payment of creditor claims, including outstanding litigation claims, and such
other matters considered relevant by the Trustees of the Fund.


As a consequence of the Sale, Arctic Glacier has not had the requisite time or
resources to prepare and file the Continuous Disclosure Documents reflecting its
financial position as of June 30, 2012. Arctic Glacier intends to file the
Continuous Disclosure Documents as soon as is commercially reasonable, or as
required by the Court.


Arctic Glacier intends to satisfy the provisions of the alternative information
guidelines set out in National Policy 12-203 Cease Trade Orders for Continuous
Disclosure Defaults so long as it remains in default of the Specified
Requirement. It also intends to file with the applicable securities regulatory
authorities throughout the period in which it is in default of the Specified
Requirement, the same information it or its subsidiaries provide to their
creditors when the information is provided to their creditors and in the same
manner as it would file a material change report under part 7 of National
Instrument 51-102 Continuous Disclosure Requirements.


Forward-Looking Statements

Certain statements included herein constitute "forward-looking statements". All
statements, other than statements of historical fact, included in this release
that address future activities, events, developments or financial performance
are forward-looking statements. These forward-looking statements can be
identified by the use of forward-looking words such as "may", "should", "will",
"could", "expect", "intend", "plan", "estimate", "anticipate", "believe",
"future" or "continue" or the negative thereof or similar variations. In
particular, statements about Arctic Glacier's intentions to satisfy the
provisions of the alternative information guidelines and file information with
the applicable securities regulatory authorities, as well as the expected
timetable for satisfying the Specified Requirement, are or involve
forward-looking information. These forward-looking statements are based on
certain assumptions and analyses made by Arctic Glacier and its management, in
light of their experiences and their perception of historical trends, current
conditions and expected future developments, as well as other factors they
believe are appropriate in the circumstances. Investors are cautioned not to put
undue reliance on such forward-looking statements, which are not a guarantee of
performance and are subject to a number of uncertainties, assumptions and other
factors, many of which are outside the control of Arctic Glacier, which could
cause actual results to differ materially from those expressed or implied by
such forward-looking statements. Important factors that could cause actual
results to differ materially from those expressed or implied by such
forward-looking statements include, among other things, the CCAA Process and
Arctic Glacier's ability to secure sufficient resources to prepare the
Continuous Disclosure Documents. Readers are cautioned that the foregoing list
is not exhaustive. Such forward-looking statements should, therefore, be
construed in light of such factors. If any of these risks or uncertainties were
to materialize, or if the factors and assumptions underlying the forward-looking
information were to prove incorrect, actual results could vary materially from
those that are expressed or implied by the forward-looking information contained
herein.

All forward-looking statements attributable to Arctic Glacier, or persons acting
on its behalf, are expressly qualified in their entirety by the cautionary
statements set forth above. Readers are cautioned not to place undue reliance on
forward-looking statements contained herein, which reflect the analysis of the
management of Arctic Glacier, as appropriate, only as of the date of this
release. For more information regarding these and other risks, readers should
consult Arctic Glacier's reports on file with applicable securities regulatory
authorities accessible online by going to SEDAR at www.sedar.com or by going to
the Arctic Glacier website at www.arcticglacier.com. Arctic Glacier is under no
obligation, and Arctic Glacier expressly disclaims any intention or obligation,
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by applicable law.


About Arctic Glacier

Arctic Glacier Income Fund trust units are listed on the Canadian National Stock
Exchange under the trading symbol AG.UN. There are 350.3 million trust units
outstanding.