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Press
Release
March 26, 1999
MRF
1996 II Limited Partnership ("MRF 1996 II")
Dear Investor:
On February 15, 1999, the Partnership was
dissolved and the net assets were transferred to Middlefield Growth Fund
("MGF") in exchange for the equivalent value of shares in MGF. We enclosed tax
information for 1998 with respect to MRF 1996 II and you will note that it
includes a capital gain for tax purposes of $420.83 per unit. This gain was
realized by the Partnership from the sale of certain of its resource
investments prior to rollover into the mutual fund. All of these investments
have an adjusted cost base of zero and, as a result, the capital gain equals
the proceeds of disposition from these investments. The Partnership took steps
to reduce this capital gain by investing a portion of the sale proceeds in
resource companies thereby generating additional Canadian Exploration Expense.
For the period January 1, 1999 to February 15, 1999, the date of the rollover,
a capital gain for tax purposes was realized amounting to $138.08 per unit. Tax
information for 1999 will be mailed to you in March 2000.
One copy of each of the following should be
included with the filing of your income tax return and the second copy should
be retained for your records:
- 1. Duplicate copies of financial statements
for MRF 1996 II for the year ended December 31, 1998
- 2. Revenue Canada Form T102 Supplementary.
Copy 2 of this form must be filed with your income tax return. Please note
that Form T102 Supplementary is located in the pouch inside the
envelope.
- 3. Duplicate copies of Revenue Canada Form
T5004 on which you should list all of your tax shelter investments.
Please refer to the reverse side of all Revenue
Canada Forms for detailed instructions on where to record the tax information
on your income tax return. Revenue Canada Form T5013, Statement of Partnership
Income, is not required for your MRF 1996 II investment because all 1998 tax
information is contained in the attached Form T102 Supplementary
Yours Truly,
J. Dennis Dunlop
Senior Vice President
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