PRESS RELEASE

Investment Update

PATHFINDER Income Fund (the "Fund") is pleased to announce that it is approximately 80% invested and on track to meet its monthly distribution target of $0.075 per unit. The invest-up phase has coincided with a period of trading weakness in the income trust sector reflecting in part the large volume of new issues. As a result, the Fund has benefited by buying at lower prices than prevailed earlier this year.

The Fund will make its first distribution to unitholders of record on December 31, 2002. This monthly distribution equates to an annual yield of 9% based upon the original issue price of $10.00 per unit. Overleaf please find the PATHFINDER investment portfolio as at November 15, 2002.

PATHFINDER is Middlefield’s fifth closed-end investment trust and the third combining the investment management experience of both Middlefield and Guardian Capital Inc., who act as Co-Advisors to the Fund, responsible for asset mix and security selection. The objectives of PATHFINDER Income Fund are to provide unitholders with a stable monthly income stream targeted to be 9% per annum and to return the original issue price upon termination of the Fund on December 31, 2012. The Fund intends to achieve these objectives by investing in a broadly diversified portfolio of business trusts, REITs, pipeline and power generation trusts, and oil and gas royalty trusts. Business trusts represent a variety of industries, thereby providing good diversification as well as growth opportunities. Pipeline and power generation trusts and REITs offer cash flow stability from the contractual nature of their revenue streams. Royalty trusts offer lower risk exposure to the Canadian oil and gas sector through their exploitation of mature producing properties and have historically provided investors with healthy cash distributions and total returns.

It is anticipated that when fully invested, the portfolio will comprise approximately equal weightings of each of the four asset classes in the income trust universe. This asset mix offers investors a balance of stable current income paid monthly, significant tax deferral and potential for capital appreciation.

PATHFINDER trades on the Toronto Stock Exchange under the symbol "PAZ.UN".

For further information contact the undersigned:

Nancy Tham
Vice President
(416) 362-0714, Ext. 277

November 22, 2002