The Keg Royalties Income Fund and Keg Restaurants Ltd. Announce Sale of 51% Interest in Keg Restaurants Ltd.

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

The Keg Royalties Income Fund (the "Fund") (TSX:KEG.UN) and Keg Restaurants Ltd.
("KRL") have announced that Fairfax Financial Holdings Limited ("Fairfax") has
agreed to acquire 51% of the common shares of KRL from David Aisenstat. Mr.
Aisenstat will continue to own the remaining 49% of the common shares of KRL and
he, along with the rest of the current KRL management team, will remain in
operational control of KRL.


The transaction is subject to receipt of all necessary approvals and other
customary closing conditions. The transaction is anticipated to be completed in
January of 2014. 


Paul Rivett, the President of Fairfax, stated: "We are excited at this
opportunity to be partnered in one of Canada's premier restaurant brands. We
look forward to working with David and his team to build on the continued
success of The Keg." 


"Fairfax will bring additional expertise and resources to The Keg and we are
excited at the opportunities available to The Keg moving forward through this
relationship" said David Aisenstat, KRL's President and Chief Executive Officer.



Kip Woodward, Chairman of the Fund, remarked: "Fairfax is a well-known and
proven investor in the Canadian market. With the addition of Fairfax to the Keg
team, The Keg is well positioned and has a solid foundation for continued
growth, which will benefit the Fund and its unitholders." 


The Fund is a limited purpose, open-ended trust established under the laws of
the Province of Ontario that, through The Keg Rights Limited Partnership, owns
certain trademarks and other related intellectual property used by KRL. In
exchange for use of those trademarks, KRL pays the Fund a royalty of 4% of gross
sales of Keg restaurants included in the royalty pool. 


With approximately 9,500 employees, over 100 restaurants and system sales of
approximately $500 million, Vancouver-based KRL is the leading operator and
franchisor of steakhouse restaurants in Canada and has a substantial presence in
select regional markets in the United States. KRL continues to operate The Keg
restaurant system and expand that system through the addition of both corporate
and franchised Keg steakhouses. KRL has been named one of the "50 Best Employers
in Canada" by Aon Hewitt for the past twelve years. 


This press release may contain certain "forward-looking" statements reflecting
The Keg Royalties Income Fund's current expectations in the casual dining
segment of the restaurant food industry. Investors are cautioned that all
forward looking statements involve risks and uncertainties, including those
relating to the Keg's ability to continue to realize historical same store sales
growth, changes in market and existing competition, new competitive
developments, tax legislation, and potential downturns in economic conditions
generally. Additional information on these and other potential factors that
could affect the Fund's financial results are detailed in documents filed from
time to time with the provincial securities commissions in Canada. 


The Trustees of the Fund have approved the contents of this press release.

FOR FURTHER INFORMATION PLEASE CONTACT: 
The Keg Royalties Income Fund
Neil Maclean
Chief Financial Officer
[phone]
www.kegincomefund.com