On May 14, 2008, Vermilion announced that the board of directors of Vermilion Resources Ltd., administrator of the Trust, has determined to suspend its Distribution Reinvestment Plan (DRIP) indefinitely effective June 16, 2008 (see press release).

Given the strong commodity price environment, the Trust is generating funds from operations that exceed the requirements needed to sustain its business model. Historically, Vermilion has maintained a total payout (including net distributions, development capital, asset retirement obligations and contributions to the reclamation fund) less than or equal to funds from operations. At current commodity levels, that total payout ratio is nearing 60% of available funds. The DRIP program, designed to provide investors with an incentive to receive additional units in lieu of distributions, is currently effecting unnecessary dilution to existing unitholders.

Answers to Questions About Suspension of Distribution Reinvestment Plan (DRIPs)

1. What happens after June 16th, 2008?

As a unitholder of Vermilion Energy Trust, you will receive monthly distribution payments based on the units accumulated in your account.

2. Will I get the 5% bonus of units on the May 15, 2008 declared June 13, 2008 payment?

Yes.

3. Why is Vermilion suspending the DRIP?

Vermilion's Board of Directors chose to suspend the DRIP, recognizing the current level of commodity prices is generating funds from operations far in excess of current needs.