CHEMTRADE EXPECTS TO MAINTAIN DISTRIBUTIONS DESPITE INCO STRIKE

TORONTO, June 2, 2003 - Chemtrade Logistics Income Fund (TSX: CHE.UN) announced today that it expects to maintain its 2003 annual distribution rate of $1.76 per unit notwithstanding the shutdown of Inco’s Sudbury smelter.

As of May 31, 2003, Inco had not reached agreement with the United Steelworkers of America union representing workers at its Sudbury, Ontario smelter. Inco is Chemtrade’s largest supplier of sulphuric acid. Under its agreement with Chemtrade, Inco is required to mitigate the financial impact of any strike greater than 28 days.

Mark Davis, President and CEO of Chemtrade said, “While Chemtrade’s product supply will be reduced for the duration of the shutdown, we have built up some inventory as a precaution for this possibility and for planned turnarounds in the second quarter. Chemtrade has always followed a conservative distribution policy, holding back some distributable cash to protect consistent distributions in the event of unforeseen interruptions to normal course business. Accordingly, although a protracted shutdown would adversely affect distributable cash earned, Chemtrade expects to be able to maintain its indicated distribution rate.”

Mr. Davis added that if there are other unforeseen financial consequences of the strike, then Chemtrade may reconsider its distribution rate.

Chemtrade Logistics is one of the world’s largest marketers of three major products – sulphuric acid, liquid SO2 and sodium hydrosulphite. Chemtrade also markets elemental sulphur. Chemtrade removes commercial by-products for producer customers, and produces and markets acid, SO2 and SHS to customers around the world.

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