What differentiates Vermilion from the other Canadian energy trusts available to investors?

A significant portion of Vermilion’s operations are based internationally. Our Canadian production represents approximately 36% of our volumes with the balance emanating from properties in Western Europe 43% (France and the Netherlands) and Australia 21%. Vermilion also maintains a more conservative business model than most of its peers, maintaining total spending including distributions within funds generated from operations. Vermilion has been one of the top performing trusts over the past five years, generating a five-year compound average rate of return of 30.4%.

What will be the impact of the Canadian government’s new tax treatment of income trusts on Vermilion in 2011?

The Canadian government announced significant changes to the taxation of income trusts in October 2006, creating a cloud of uncertainty over the sector. We believe that Vermilion’s business model is ideally suited to withstand the impact of these changes with minimal impact to our unitholders. Vermilion’s significant generation of earnings and cash flow from its international operations, combined with a conservative payout ratio and a strong financial position, should enable the Trust to maintain its current distribution levels now and beyond 2011, provided commodity prices remain intact.

How else do unitholders benefit from Vermilion's pursuit of an international strategy?

Historically, Vermilion has been able to purchase production internationally at prices significantly below those being paid for similar properties in Western Canada. Vermilion’s international production base has also provided significant shelter from recent changes in Canadian government tax policies and the Alberta government’s royalty policies.

Can Vermilion recapture corporate taxes paid in foreign jurisdictions?

Vermilion pays corporate income taxes on its international production that is not recoverable to unitholders. We evaluate the cost of acquiring production internationally and the netbacks generated on those assets on an after-tax basis compared to pre-tax valuations on available Canadian assets. If the comparison is not attractive, we do not pursue the acquisition. Conversely, Vermilion enjoys some advantages in those jurisdictions as we are able to execute tax-effective capital programs.

Does Vermilion have set policies on financial leverage, growth targets or payout ratios?

Vermilion aims to keep debt levels at or below 1.5 times forward cash flow, depending on the commodity price environment. At the high end of a commodity price cycle, the Trust will keep a tighter rein on debt levels. At the bottom end of the cycle, debt may be allowed to exceed these targets to take advantage of attractive acquisition opportunities. Vermilion does not have any specific growth targets, but strives to maintain or grow production and reserves on a per-unit basis. Over the past five years, Vermilion has delivered top decile per-unit growth in both reserves and production.

Does Vermilion have any plans to further increase distributions?

Vermilion Energy Trust paid a steady stream of $0.17 per unit per month for almost five years, before announcing a 12% increase in cash distributions to $0.19 beginning with the January 15, 2008 payment date. Our objectives are to deliver stable distributions, maintain a strong balance sheet, and reinvest capital to maximize production and asset value.

What is the anticipated level and taxability of distributions in 2007?

In 2007 Vermilion’s distributions were considered to be 100% taxable. For U.S. unitholders 100% of the distributions were considered as qualifying dividend income. We anticipate similar levels of taxation in 2008. We encourage unitholders to consult their own income tax advisors as to the particular income tax consequences of holding the trust units. Please see our Taxability section under Investor Relations for further information.

How will unitholders benefit from Vermilion's equity position in Verenex Energy Inc.?

Vermilion holds a 42.2% equity position in Verenex Energy Inc. an independent global exploration and production company, which trades on the Toronto Stock Exchange. In 2006 Verenex commenced an active drilling program on its 1.4 million acre concession in the Ghadames Basin in Libya. Verenex’s continued success should be reflected in Verenex's share price and accordingly would increase the value of Vermilion's holding.

What are the key risks facing Vermilion over the next twelve to eighteen months?

Most of the risks facing Vermilion are external risks, including the potential for rising interest rates, lower commodity prices and government policy changes. Oil companies are dependent on policies that allow access to prospective lands, and Vermilion works closely with all its stakeholders to ensure that it maintains environmental practices and procedures that comply with regulatory requirements and industry standards.

What is Vermilion's policy on hedging commodities and currencies?

The key objective of a hedging program is to manage fluctuations in the prices of crude oil and natural gas, and also in U.S./Canadian dollar exchange rates to provide a measure of certainty in distributions to unitholders. We consider our risk management program as a form of insurance to minimize variability in cash distributions over a period of time, as well as to protect/support benefits of any accretive acquisitions we may make. Vermilion’s board governs and approves the hedging program.

What percentage of Vermilion's unitholders are non-resident?

Approximately 25% of Vermilion’s unitholders are non-resident, well below our statutory limit of 50%.

How often and how does the Trust monitor the non-resident ownership levels and does Vermilion have any plans to control this ownership?

Vermilion monitors the geographical distribution of unitholders on a quarterly basis. In the event non-resident ownership were to approach 50%, future buyers of Vermilion Energy Trust units would be required to declare their residency status prior to being allowed to purchase additional units. Vermilion will continue to review alternatives with respect to managing its non-resident ownership. Canada's Federal government temporarily suspended the limits on non-resident ownership. Vermilion's trust indenture restricts non-resident ownership to less than 50% of the total ownership base. Vermilion will adjust its guidelines to reflect government norms once the government provides further clarity to its position.

Collection:
Vermilion deems that information provided by unitholders (primarily contact information including but not limited to name, personal addresse(s), personal telephone number(s) and personal e-mail addresse(s)) is provided on a voluntary basis and therefore is provided with deemed consent to the company. Individuals may refuse to consent to the collection, use or disclosure of their personal information by Vermilion or withdraw a previously given consent at any time. Should consent for use and/or disclosure of personal information provided to Vermilion be withdrawn or insufficient in order for Vermilion to manage an ordinary business relationship, Vermilion may be prevented from proceeding with the relationship.

Accuracy:
Vermilion maintains the accuracy of the information it collects and therefore, the type and accuracy of information collected is solely contingent upon what is provided to Vermilion. Notification must be provided to Vermilion to update or make any changes to the personal information.

Use:
Personal information collected by Vermilion will be used solely for the purposes of carrying on ordinary business relationships with employees and third parties.

Disclosure & Retention:
All personal information collected by Vermilion will be stored in a secure manner that restricts the right of access to only those people who have a need to know. Vermilion will NOT disclose, reveal, share or otherwise disseminate any personal information to any one without consent unless the disclosure is

Required by law or within the course of legal undertakings;

Provided by the individual by formal or deemed consent or if the individual has chosen to not opt out if the option has been provided;

Otherwise compliant with privacy legislation.

Vermilion will retain personal information for a reasonable period of time and follow various retention schedules as required to effectively carry out its business in accordance with privacy legislation and other laws. Vermilion will use care in disposing of or destroying personal information to prevent unauthorized parties from gaining access to the information.

Access to information:
Employees and third parties may access personal information pertaining to themselves on record by providing a written request to Vermilion’s privacy officer. Vermilion will make every reasonable effort to respond to the request within 45 calendar days of receiving the request. To the extent the individual can demonstrate that any objective information is out-of-date or inaccurate, Vermilion will update or correct it.

For further information regarding the company’s privacy policy please contact the Privacy Officer by calling 403-269-4884.