CALGARY, Feb. 25 /CNW/ - Bonterra Oil and Gas Ltd. (Formally Bonterra
Energy Income Trust - "the Trust") (www.bonterraenergy.com) (TSX: BNE
(formally BNE.UN)) is pleased to provide the following tax information to
assist the Trust's former Unitholders in the preparation of their 2008 income
tax returns.Canadian Tax Information
                           ------------------------

    The tax breakdown of the distributions is as follows:

                                 Percentage
                                 ----------

    Taxable Income (Other Income)    85.16%
    Return of Capital                14.84%
                                     ------
                                    100.00%
                                    -------
                                    -------

    It should be noted that the return of capital, to the extent the units are
in a taxable account, reduces the adjusted cost basis of your units. Kindly
consult your tax advisor if you require further information.

                         Joint Tax Election Package
                         --------------------------Bonterra Oil & Gas Ltd. (Bonterra) has made available a Joint Tax
Election package which contains a letter of instruction for eligible former
Bonterra Energy Income Trust Unitholders. A Unitholder who is an Eligible
Holder (see definition below), and under the Bonterra Arrangement, exchanged
Trust Units for Bonterra Shares, may make a joint election with Bonterra
pursuant to subsection 85(1) of the Tax Act (Form T2057) (or, in the case of a
holder that is a partnership (Form T2058), pursuant to subsection 85(2) of the
Tax Act) and thereby obtain a full or partial tax-deferred "rollover" for
Canadian income tax purposes, depending on the amount specified in that
election (the "Elected Amount") and the adjusted cost base to the Unitholder
of such Trust Units at the time of the Bonterra Arrangement. Eligible Holders
may elect so as not to realize any capital gain for the purposes of the Tax
Act on the Bonterra Arrangement.
    Only Eligible Holders are permitted to make this election jointly with
Bonterra. An Eligible Holder is a former holder of Trust Units who is:-   A resident of Canada for purposes of the Tax Act, other than those
        exempt from tax under the Act, such as an RRSP, RRIF, RESP or pension
        plan; or
    -   A partnership that is a Canadian partnership for the purposes of the
        Tax Act and if one or more of the partners would be an Eligible
        Holder if such partner held the Trust Units directly.The Joint Tax Election package has been mailed to all registered
shareholders. For beneficial holders, please contact your broker or brokerage
representative to receive a copy of the Joint Tax Election package. In
addition, you may contact Bonterra Oil & Gas Ltd. at (403) 262-5307 or visit
www.bonterraenergy.com to obtain a copy of the Joint Tax Election package.
    Each Eligible Holder, who chooses to make a Joint Tax Election, is solely
responsible for ensuring Form T2057 or T2058, as applicable, is properly
completed.THIS MATTER REQUIRES YOUR IMMEDIATE ATTENTION. BONTERRA AGREES ONLY TO
    EXECUTE AND FILE DULY COMPLETED FORMS RECEIVED BY IT ON OR BEFORE MARCH
    31, 2009.

                             US Tax Information
                             ------------------

    Trust Units Held Outside a Qualified Retirement Plan
    ----------------------------------------------------

    With respect to cash distributions paid during the year to U.S. individual
Unitholders, 17.71 percent should be reported as a return of capital (to the
extent of the Unitholder's U.S. tax basis in their respective units) and 82.29
percent should be reported as "qualified dividends".
    Kindly consult your tax advisor for further information.

    Trust Units Held Within a Qualified Retirement Plan
    ---------------------------------------------------No amounts are required to be reported on a Form 1040 where Bonterra
trust units are held within a qualified retirement plan.

    Bonterra Oil and Gas Ltd. (Formally Bonterra Energy Income Trust) is a
conventional oil and gas corporation with operations in Alberta, Saskatchewan
and British Columbia. Its common shares are listed on The Toronto Stock
Exchange under the symbol "BNE".

    %SEDAR: 00003132E