NORANDA INCOME FUND REPORTS FIRST QUARTER RESULTS AND ANNOUNCES ITS MONTHLY CASH DISTRIBTUION FOR APRIL TORONTO, ONTARIO, April 21, 2003 – Noranda Income Fund (the “Fund”) today announced the financial results for its first quarter ending March 31, 2003. The Fund reported earnings of $2.2 million for the three months ended March 31, 2003 compared to earnings of $2.2 million for the first quarter of 2002. First Quarter Highlights Production was 1% below the first quarter of 2002 and below the planned levels principally due to unscheduled downtime of certain parts of the operation and lower operations stability due to cold winter months. Sales were 4% below the first quarter of 2002 due to production shortfalls, however, premiums were on target due to a favourable product mix The operating reserves were partially utilized to provide the monthly distribution. January distributions to unitholders were declared at the forecast rate of $0.08333 per unit Monthly cash distributions increased by 2% to $0.085 per unit in February 2003 April Distribution Declared The Noranda Income Fund announces today the monthly cash distribution for the month of April 2003 of $0.085 per unit. The distributions will be payable on May 25, 2003 to unitholders of record at the close of business on April 30, 2003. Operating Results The zinc metal production in the first quarter of 2003 of 62,055 tonnes was less than 1% below the first quarter 2002 production of 62,348 tonnes, and below the 2003 planned production level. The principal reasons for the lower than planned production were (i) downtime of certain parts of the operation and (ii) lower operations stability due to cold winter months. The downtime is being addressed with the implementation of a “Total Plant Reliability Program”; a multi-disciplinary program for preventative and predictive maintenance involving production, maintenance, procurement and engineering employees to increase equipment availability, reduce the mean time between failures and increase overall equipment on-line time. Lower operations stability is seasonal with first quarter production traditionally being lower than the remaining quarters. Metal sales for the quarter were also 4% below the first quarter and below the 2003 sales plan mainly due to lower production levels. However, realized metal premiums were similar to those received in 2002 due to a favourable product mix. As a result, the Fund’s financial results for the quarter were $5.4 million below the forecast. The operating reserve of $12.4 million, which was established to offset the impact of variations in production and to meet the Fund’s goal of stable monthly cash distributions, was partially utilized to provide the monthly distribution , to sit at $6.9 million as of March 31, 2003). Lower than planned first quarter production is expected to be recovered during the balance of the year. Results Compared to the Financial Forecast in the Prospectus (in millions) Net Earnings Add: Depreciation, amortization and reclamation Less: Additions to capital assets and site restoration expenditures Capital expenditures and site restoration reserves Cash generated during the period** First Quarter 2003 $ 2.2 7.3 (1.5) (0.9) $ 7.1 Base Distributable Cash for the period as per $ 12.5 Financial Forecast* * Distributable Cash is not a measure defined by generally accepted accounting principles and is dependant upon the definition as contained in the trust indentures establishing the Fund. Distributable Cash under the Fund’s indenture is based on 100% of the net earnings adjusted to account for non-cash transactions such as depreciation, amortization and reclamation and reduced by additions to capital assets, site restoration expenditures, reasonable reserves and repayment of long-term debt. ** Cash generated is defined as Distributable Cash before changes in operating reserves. During the first quarter of 2003, the Noranda Income Fund’s financial results were $5.4 million below those expected from the Financial Forecast included in the final Prospectus dated April 18, 2002. Costs were higher than forecast by $0.9 million due to higher natural gas and oil prices and consumption during the winter months. Lower than forecast zinc metal production and sales resulted in a $5.4 million reduction in results. Higher zinc metal premiums and by-product credits resulted in an improvement of $0.9 million. However, since the Fund’s inception, the financial results have been better than forecast. 1st Quarter Consolidated Results – Management’s Discussion and Analysis Overview On May 3, 2002, the initial public offering of the Fund was completed. Prior to May 3, 2002, the CEZinc Division of Noranda Inc. (“CEZinc”) had previously operated the CEZinc Processing Facility (“Processing Facility”). The reorganization was accounted for under the continuity of interest method. Accordingly, these financial statements reflect the results of operations and changes in cash flows as if the Fund had always carried on the business of the Processing Facility. Please refer to the Basis of Presentation found later on in the Management Discussion and Analysis Results of Operations (First quarter 2003 compared to first quarter 2002) The revenues, after deducting transportation and distribution costs, for the quarter of $78.7 million decreased from $87.9 million in 2002. The $9.2 million decrease was mainly due to lower zinc metal sales, and a lower Canadian/U.S. exchange rate. Zinc metal sales for the quarter of 58,563 tonnes, were 4% below the sales of 60,856 tonnes made in 2002. The average realized premiums for zinc metal during the quarter were consistent with the annualized realized premiums received in 2002. The raw material purchase costs for the quarter of $25.6 million decreased by $13.6 million from the same period in 2002. The decrease was primarily attributable to the lower Canadian/U.S. exchange rate and the implementation of the Supply and Processing Agreement with Noranda that has been in effect since the Noranda Income Fund was established on May 3, 2002. Production costs for the quarter of $38.1 million were $4.7 million higher than the $33.4 million of 2002. Production costs include labour, energy, supplies and other costs directly associated with the production process. Production costs increased mainly due to higher natural gas and oil costs related to the higher prices and higher consumption, and higher supplies cost related to electrode management. Selling, general and administration costs for the quarter were $3.6 million. These costs represent sales and marketing, research and development and administration costs and they were $0.5 million lower than last year. Depreciation, amortization and reclamation for the quarter of $7.3 million decreased by $0.6 million. Interest expense for the quarter was $1.9 million. Interest expense relates to a secured term loan and a secured operating line of credit. During the 1st quarter of 2002, CEZinc’s financing requirements were provided by Noranda as reflected through Noranda’s net investment account. No debt or related interest expense at the Noranda level has been allocated to CEZinc. Income taxes for CEZinc prior to the establishment of the Fund have been recorded as though CEZinc was a separate tax paying entity. Income taxes payable has been included in Noranda’s net investment. In the first quarter of 2002, the provision for income taxes was $1.2 million. Basis of Presentation Prior to May 3, 2002, the accompanying unaudited interim consolidated financial statements have been prepared from the books and records of CEZinc. CEZinc’s surplus funds were transferred to Noranda and CEZinc financing requirements were provided by Noranda as reflected through Noranda’s net investment account. No debt or related interest expense at the Noranda level has been allocated to CEZinc. These unaudited interim consolidated financial statements present the financial position, results from operations, changes in Noranda’s net investment and cash flows of CEZinc as if it had operated as a stand-alone entity. From January 1, 2003 to March 31, 2003 the accompanying unaudited interim consolidated financial statements represent the results under the supply and processing agreement (the “Supply and Processing Agreement”) between Noranda and the Partnership. Pursuant to a 15-year Supply and Processing Agreement between Noranda and the Partnership, Noranda is obligated to sell to the Processing Facility up to 550,000 tonnes of zinc concentrate annually at a concentrate price based on the price of zinc metal on the London Metal Exchange for “Payable zinc metal” contained in the concentrate less a processing fee initially set at $0.352 per pound of that Payable zinc metal. “Payable zinc metal” in respect of a quantity of concentrate will be equal to 96% of the assayed zinc metal content on that concentrate under the Supply and Processing Agreement. Distributions Declared During the quarter ending March 31, 2003, the Fund declared the following cash distributions: Month Record Date Distribution Date Per Unit Total (in $ 000’s) January February March January 31 February 28 March 31 February 25 March 25 April 25 $0.08333 $0.085 $0.085 $0.25333 $ 4,166.5 $ 4,250 $ 4,250 $12,666.5 During the quarter, $12.6 million of distributions were paid to Unitholders; $9.4 million paid to Priority Unitholders and $3.2 million paid to Ordinary Unitholders. Financial Resources and Liquidity Cash realized from operations for the first quarter decreased to $9.5 million versus $10.2 million in the first quarter of 2002 before changes in non-cash working capital. Non-cash working capital decreased by $6.8 million during the quarter as the lower sales volumes translated into lower accounts receivable. Capital expenditures for the quarter totaled $1.4 million compared to $2.1 million in the first quarter of 2002. There are no major capital expenditures currently underway. The Noranda Income Fund has a $150 million secured term loan that matures May 3, 2005 and bears interest at market rates. The Fund also has a $55 million secured operating line of credit, maturing May 3, 2005. As of March 31, 2003, the Noranda Income Fund had $173 million of debt outstanding ($150 million secured term loan and $23 million from the secured operating line of credit). Distribution Policy The Fund makes monthly distributions to its Unitholders based on the monthly Distributable Cash declarations. Distributable Cash is based on 100% of the net earnings adjusted to account for noncash transactions such as depreciation, amortization and reclamation and reduced by additions to capital assets, site restoration expenditures, reasonable reserves and repayment of long-term debt. The Fund’s goal is to provide a stable monthly distribution and will seek to increase distributions through sustainable improvements, such as operating efficiencies, increases in revenues from value-added products and the expansion of the production facility. Outlook “Our production levels for the quarter were similar to last year but below our planned targets. Cold winter weather and unscheduled downtime of certain parts of the operation caused the shortfall. Corrective measures are in place with production now restored to planned levels and the shortfall in the first quarter is expected to be recovered during the balance of the year,” said Lucy Rosato, President and Chief Executive Officer of the Noranda Income Fund’s Manager. “We remain confident that we will continue to make stable monthly cash distributions at the planned rate as a result of our focus on maximizing production and productivity improvements to maximize the processing fee revenues, together with a disciplined use of capital.” Statistics First Quarter 2003 2002 Zinc metal production (tonnes) Zinc metal sales (tonnes) Realized average metal premiums (US$/pound) 62,055 58,563 0.05 62,348 60,856 0.05 This news release contains forward-looking statements concerning the Noranda Income Fund (“Fund”)’s business and operations. The Fund cautions that, by their nature, forward-looking statements involve risk and uncertainty and the Fund’s actual results could differ materially from those expressed or implied in such statements. Reference should be made to the Fund’s Final Prospectus, that was issued on April 18, 2002, for a description of the major risk factors. Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol “NIF.UN”. The Noranda Income Fund was created to acquire Noranda Inc.’s CEZ processing facility and ancillary assets (the “CEZ processing facility”) located in Salaberryde-Valleyfield, Quebec. The CEZ processing facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America, where the majority of its customers are located. It produces refined zinc metal and various by-products from zinc concentrates purchased from mining operations. – 30 – Contacts: Hélène V. Gagnon Director, Communications Noranda Income Fund’s Manager (514) 640- 2020 Michael Boone Chief Financial Officer, Noranda Income Fund’s Manager (416) 982-7188