General

Chemtrade Logistics Income Fund (the "Fund") is a limited purpose trust established under the laws of Ontario. The Fund's income is derived from its wholly-owned subsidiary, Chemtrade Logistics Inc. ("Chemtrade" or the "Company"). Distributions to unitholders of the Fund, currently made monthly, are entirely dependent on the cash flow of Chemtrade, which in turn is used to pay interest on $101.2 million of 12.5% unsecured, subordinated promissory notes, and dividends to the Fund.

Chemtrade commenced operations on July 18, 2001 when the Fund completed an Initial Public Offering (IPO), raising approximately $130 million (before expenses related to the issue). The Fund then completed the purchase of Chemtrade from Marsulex Inc. ("Marsulex").

Chemtrade is one of the world's largest independent providers of chemical by-product removal services and a leading distributor of these by-products. Chemtrade provides removal services and markets removed by-products for base metal smelters and oil refineries in North America, and through its wholly-owned subsidiary, BCT Chemtrade Corporation ("BCT"), in Europe and South America.

The Fund purchased Chemtrade on July 18, 2001, and therefore the consolidated financial statements as at and for the period ended December 31, 2001 reflect the results of operations for a period of approximately 5.5 months and no comparative figures are presented.