TOSCANA ENERGY INCOME CORPORATION ANNOUNCES CONVERSION OF OUTSTANDING SERIES A PREFERRED SHARES AND CONFIRMS DIVIDENDS

CALGARY, Dec. 17, 2012 /CNW/ – Toscana Energy Income Corporation (“Toscana Energy” or the “Corporation”) (TSX Venture: TEI) announced that effective December 31, 2012 all 580,128 of the outstanding Series A Cumulative Preferred Shares in the capital of the Corporation (the “Preferred Shares”) will be automatically converted into 580,128 common shares in the capital of the Corporation (“Common Shares”) on a one for one basis.  Under the Articles of the Corporation, all of the Preferred Shares may be converted into Common Shares at the option of the Corporation if the weighted average trading price of the Common Shares is not less than $15.00 per share for 20 consecutive trading days.  The weighted average trading price of the Common Shares for the 20 consecutive trading day period ended December 5, 2012 was $15.37 per share.

The Corporation confirms that the holders of Preferred Shares of record on December 28, 2012 will be paid a cash dividend of $0.30 per Preferred Share on December 31, 2012 in accordance with the Articles of the Corporation.

The Corporation also confirms a cash dividend of $0.135 per Common Share (or the equivalent of $0.405 per Common Share on a quarterly basis) to be paid on January 15, 2013 in respect of December 2012 production of the Corporation for holders of Common Shares of record on December 28, 2012.  The ex-dividend date is December 26, 2012.  Once paid, total cash dividends distributed by the Corporation to its holders of Common Shares during the 2012 calendar year will be $1.605 per Common Share.

About Toscana Energy Income Corporation

Toscana Energy Income Corporation is a conventional oil and gas producer with the mandate to acquire high quality, long life oil and gas assets including royalties, non-operated working interests and unitized production for yield and capital appreciation. Toscana Energy Income Corporation is managed by Sprott Toscana through Toscana Energy Corporation. Sprott Toscana is a member of the Sprott Group of Companies.

About Sprott Toscana

Sprott Toscana (formerly Toscana Merchant Group) is a team of Calgary-based energy specialists that manage three separate businesses: Toscana Energy Income Corporation (through Toscana Energy Corporation), Toscana Financial Income Trust and Maple Leaf Energy Income LPs. In July 2012, Toscana Merchant Group joined the Sprott Group of Companies when it was acquired by Sprott Inc. (TSX: SII), Canada’s leading alternative asset manager and a global leader in resource investing.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Toscana Energy Income Corporation