CHEMTRADE LOGISTICS INCOME FUND ANNOUNCES THAT DECLARATION OF FORCE MAJEURE BY SALT SUPPLIER IS LIKELY TO IMPACT FOURTH QUARTER RESULTS

TORONTO, December 12, 2006 – Chemtrade Logistics Income Fund (TSX: CHE.UN) announced today that production of sodium chlorate at its Prince George, B.C. facility has been and may continue to be affected by the declaration of Force Majeure by its existing supplier of salt, an essential raw material in the production of sodium chlorate.  The supplier has advised Chemtrade that recent severe weather and operating problems at its plant has disrupted production and supply.  As a result of this, Chemtrade in turn issued a notification of Force Majeure to its sodium chlorate customers.  Although the supplier appears to have recently resolved its operational issues, the resumption of normal supply conditions will take some time as the supply chain is restocked.

Chief Executive Officer of Chemtrade, Mark Davis, said Chemtrade is working closely with its customers, its existing salt supplier and alternative suppliers.  “While the full impact on our operations is still uncertain, we currently believe that this may result in December’s production being about 70% of normal, which affects our ability to supply customers and adversely impacts our fourth quarter results.  We are confident, however, that normal operations will resume by the end of December.” 

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world.  Chemtrade is one of the world's largest suppliers of sulphuric acid, liquid sulphur dioxide and sodium hydrosulphite, and a leading processor of spent acid.  Chemtrade is also a leading regional supplier of sulphur, sodium chlorate, phosphorous pentasulphide, and zinc oxide.

This news release contains certain statements which may constitute “forward-looking” statements within the meaning of certain securities laws, including the “safe harbour” provisions of the Securities Act (Ontario).  The use of any of the words “anticipate”, “continue”, estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements.

This news release contains forward-looking statements about the objectives, strategies, financial condition, results of operations and businesses of the Fund.  These statements are “forward-looking” as they are based on current expectations about our business and the markets we operate in, and on various estimates and assumptions.

• Forward-looking statements in this news release describe our expectations as of the date of this news release.
• Our actual results could be materially different from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate.  As a result, we cannot guarantee that any forward-looking statement will materialize.
• Forward-looking statements do not take into account the effect that transactions or non-recurring items announced or occurring after the statements are made may have on our business.
• We disclaim any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
• Risks that could cause our actual results to differ materially from our current expectations are discussed in the Risks and Uncertainties section of our MD&A.

Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedar.com.

For further information: