FIRST QUARTER 1998
For the period ending March 31, 1998

Press Release

MINT ANNOUNCES FIRST QUARTER RESULTS

Message to Shareholders

Middlefield High Income Trust ("MINT") today announced its unaudited financial results for the first quarter ended March 31, 1998 which are attached. On February 26, 1998, MINT received the proceeds of the final instalment totaling $37.8 million. These funds have been fully invested and total assets now exceed $100 million.

During the first quarter, the Trust generated net investment income of $1,581,000 and a net realized gain from securities transactions of $234,000. On April 15, 1998, MINT made a distribution of $0.22 per unit. It is anticipated that distributions for the remainder of 1998 will continue at approximately this level.

Against a backdrop of low interest rates and continuing economic growth, North American and European equity markets experienced renewed strength during the first quarter of 1998. This generally positive economic environment is beneficial for the investments in MINT's portfolio which, for the most part, continue to generate strong operating cash flows and distributions. An exceptional number of new U.S. corporate issues characterized the high yield debt market during the quarter as institutional and individual investors sought higher yields.

After several months of weakness in the income trust sector, many of the securities in which MINT invests have recovered. Some of these income funds are organized as limited partnerships. These partnerships sold off earlier this year because of concerns that they might not be eligible investments for mutual fund trusts. The Minister of Finance has recently issued assurances that these are eligible and, as a result, the share prices of these funds have recovered. Because of the foregoing, the net asset value of the MINT portfolio had recovered to $9.35 as of May 22, 1998.

We believe that the current high level of market volatility and low interest rates make MINT an attractive investment vehicle. The securities in which MINT invests should be less volatile than the broad equity market over time due in part to their high and relatively stable level of cash distributions. Broad diversification by industry and issuer as well as active management and low management fees provide unitholders with a cost effective way to invest in these sectors.

MINT trades on the Toronto Stock Exchange under the symbol "MID.UN".

For further information, contact:

Mr. W. Garth Jestley
Director
May 26, 1998

Trust Profile

MINT raised $98 million in March of 1997 through an initial public offering. The primary objectives of the Fund are to produce a high level of sustainable income and to minimize the risk of investing in high income securities on a cost effective basis. MINT comprises four classes of assets: income funds, high yield debt, real estate investment trusts and royalty trusts. Unitholders can acquire additional units by participating in the Distribution Reinvestment Plan. The Plan enables unitholders to reinvest their quarterly distributions in additional units of MINT thereby achieving the benefit of compounding returns.