CanBanc Income Corp. Closes Initial Public Offering

CanBanc Income Corp. (the "Company") (TSX:CIC) is pleased to announce the
closing of its initial public offering. Pursuant to the offering, the Company
issued an aggregate of 23 million shares at $10 per share, for gross proceeds of
$230 million. The shares are listed on the Toronto Stock Exchange under the
symbol CIC. 


The Company will invest in a portfolio (the "Portfolio") of common shares of the
six largest Canadian banks: Bank of Montreal; Canadian Imperial Bank of
Commerce; National Bank of Canada; Royal Bank of Canada; The Bank of Nova
Scotia; and The Toronto-Dominion Bank (each, a "Bank", and collectively, the
"Banks"). First Asset Investment Management Inc. (the "Manager" or "First
Asset") will employ a covered call option writing program on approximately, and
not more than, 25% of the common shares of each Bank held in the Portfolio, in
order to seek to earn tax effective income from dividends and call option
premiums, lower the overall volatility of returns associated with owning a
portfolio of common shares of the Banks, and to generate capital appreciation
for holders of Shares of the Company (the "Shareholders").


The objectives of the Company are to provide Shareholders with:



(a)  quarterly distributions;                                               
                                                                            
(b)  the opportunity for capital appreciation; and                          
                                                                            
(c)  lower overall volatility of Portfolio returns than would be experienced
     by owning a portfolio of common shares of the Banks directly.          



The Company will not have a fixed distribution, but intends to set periodic
distribution targets. Based on the Manager's current estimates, the initial
distribution target for the Company is expected to be $0.175 per quarter ($0.70
per annum to yield 7.0% on the subscription price of $10 per Share). The
Company's initial cash distribution will be in respect of the quarter-ending
December 31, 2010, but will include a pro rated amount for the period from the
Closing.


The Company has granted the agents for the offering an over-allotment option to
acquire additional shares exercisable at any time during the next thirty days.


The syndicate of agents for this offering was led by CIBC World Markets Inc.,
National Bank Financial Inc. and RBC Capital Markets, and included BMO Capital
Markets, Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., HSBC
Securities (Canada) Inc., Raymond James Ltd., Wellington West Capital Markets
Inc., Dundee Securities Corporation, GMP Securities L.P., Macquarie Private
Wealth Inc. and Mackie Research Capital Corporation.