August 11, 1997


Middlefield High Income Trust ("MINT") is pleased to announce it has invested substantially all of the net proceeds of $98 million the Fund raised in March of this year. In part, these investments have been funded by loans against the second instalment on MINT units, which is due in February 1998.

The following table provides information on MINT's current portfolio holdings.

Asset Class
% Weight
Morrison Facilities Income Fund Income Fund gas plant, oil pipeline 8.9
Scott Paper Limited High Yield Debt tissue products 8.2
Algoma Steel Inc. High Yield Debt steel production 7.6
AEC Pipelines, L.P. Income Fund oil pipeline 7.3
Luscar Coal Income Fund Income Fund coal production 6.7
Realfund Real Estate Investment Trust R.E.I.T. shopping centres 6.2
Riocan Real Estate Investment Trust R.E.I.T. shopping centres 5.4
Westshore Terminals Income Fund Income Fund coal handling facility 4.9
ARC Energy Trust Royalty Trust oil and gas production 4.7
Greenstone Resources Ltd. High Yield Debt gold mining 3.7
Northland Power Income Fund Income Fund cogeneration, electricity and steam 3.6
Avista Real Estate Investment Trust R.E.I.T. retail, industrial, office buildings 3.6
Trizec Hahn Corporation High Yield Debt office buildings, shopping centres 3.6
H&R Real Estate Investment Trust R.E.I.T. office and industrial buildings 3.5
Ainsworth Lumber Co. Ltd. High Yield Debt forest products 3.3
K mart Corp. High Yield Debt retailing 3.2
Rogers Cantel Inc. High Yield Debt wireless communication 3.1
Associated Freezers Income Fund Income Fund public refrigeration warehousing 2.9
Cambridge Shopping Centres Limited High Yield Debt shopping centres 2.1
KMS Power Income Fund Income Fund electricity generation 1.8
Halterm Income Fund Income Fund container handling facility 1.5
Canadian Oil Sands Trust Royalty Trust oil production 1.5
Athabasca Oil Sands Trust Royalty Trust oil production 1.4
TransCanada Power, L.P. Income Fund electricity generation 1.3


Based on the foregoing portfolio and the current favourable borrowing rates, the annualized cash yield to investors who participated in the IPO of MINT, is presently about 11% on the first instalment.

The recent buoyancy of the capital markets has enabled MINT to take advantage of new issues which meet the Fund's investment criteria. Since inception, the net asset value of MINT has appreciated by 17% to $6.32 per instalment receipt due to the favourable performance of both the fixed income and income trust components of the portfolio. The net asset value of the fund is published daily in the Mutual Funds section of Globe & Mail under Other Funds.

Unitholders of MINT can acquire additional units by participating in the Automatic Distribution Reinvestment Plan thereby achieving the benefits of compounding returns. Unitholders should contact their Investment Advisor or Middlefield to join in the plan. MINT trades on the Toronto Stock Exchange under the symbol MID.IR.

For further information contact:

Mr. W. Garth Jestley
(416) 362-0714


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