Daylight Energy Provides 2010 Tax Information for Canadian Shareholders

Daylight Energy Ltd. ("Daylight") (TSX:DAY) is pleased to provide 2010 tax
information for its Canadian shareholders.


The information contained herein is intended to provide general guidance to
assist in 2010 income tax reporting for Canadian resident individuals. It is not
intended to constitute legal or tax advice to any investor or potential
investor. Readers should consult their own legal or tax advisors as to their
particular tax consequences and reporting obligations.


On May 7th, 2010, Daylight Resources Trust (the "Trust") converted from a trust
to a corporation, named Daylight Energy Ltd. Unitholders of the Trust received,
for each trust unit held, one common share of Daylight. A Canadian taxpayer will
be deemed to have disposed of its trust units at their adjusted cost base
("ACB"); therefore, the conversion should not trigger a capital gain or loss.
Following the conversion, the Trust discontinued cash distributions and Daylight
commenced paying cash dividends with the final trust distribution paid on May
17, 2010 to unitholders of record on April 30, 2010. 


DIVIDENDS PAID AS A CORPORATION

Effective for the cash dividend paid on June 15, 2010 to shareholders of record
on May 31, 2010, Daylight will designate all dividends paid on its common shares
as "eligible dividends" to the extent permitted under the Income Tax Act of
Canada (the "Tax Act") such that shareholders who are Canadian resident
individuals will benefit from the enhanced gross-up and dividend tax credit
mechanism under the Tax Act. This designation will apply until Daylight
otherwise notifies its shareholders. 


Shareholders who received dividends from Daylight for the 2010 calendar year
should receive a "T5 Supplementary" slip directly from their broker, other
intermediary or from Daylight's transfer agent (if they were registered
shareholders). The deadline for mailing all T5 Supplementary Information slips
to Shareholders is February 28, 2011, as required under the Tax Act. 


A historic listing of dividends declared and paid by Daylight can be found on
Daylight's website.


DIVIDEND REINVESTMENT AND OPTIONAL COMMON SHARE PURCHASE PLAN

The following information applies to shareholders who participated
("Participant") in Daylight's Dividend Reinvestment and Optional Common Share
Purchase Plan (the "Plan"). 


The reinvestment of dividends under the Plan does not relieve a Participant of
any liability for income taxes that may otherwise be payable in respect of the
cash dividends reinvested in new shares under the Plan. 


On each dividend payment date, Participants will be treated, for tax purposes,
as having received a taxable dividend equal to the amount of the cash dividend
otherwise payable. The dividend will be subject to the same tax treatment
accorded to taxable dividends received by the Participant from a taxable
Canadian corporation (i.e. the amount of the dividend payable will be subject to
the gross-up and dividend tax credit rules contained in the Tax Act). 


The CRA generally takes the position that the amount, if any, by which the fair
market value of any shares acquired pursuant to a dividend reinvestment plan
exceeds the purchase price need not be included in the income of the shareholder
provided that the amount paid is not less than 95% of the share's fair market
value, which is the case under the dividend reinvestment component of the Plan.


The new shares acquired will have an initial cost for tax purposes equal to the
cash equivalent amount of the dividend. Shareholders are responsible for
calculating and monitoring the ACB of their shares for income tax purposes. For
the purposes of determining the amount of any capital gain (or loss) which may
result from the disposition of shares, the ACB of the shares owned by a
Participant at a particular time will be the average cost of all shares owned by
the Participant at that time, whether acquired through the Plan or otherwise
acquired outside the Plan. 


The Plan provides a further description of certain Canadian federal income tax
considerations relevant to participation in the Plan. The description is,
however, a summary only and does not constitute legal or tax advice to any
particular shareholder. You are urged to consult your own tax advisors
concerning the implications of your participation in the Plan having regard to
your particular circumstances.


DISTRIBUTIONS PAID AS A TRUST

Distributions paid by the Trust can be either tax-deferred (return of capital)
or taxable (income). Unitholders who received cash distributions for the 2010
calendar year should receive a "T3 Supplementary" slip directly from their
broker, other intermediary or from Daylight's transfer agent (if they were
registered unitholders). The T3 Supplementary will indicate the unitholder's
total cash distributions received for the 2010 calendar year and its allocation
between income and return of capital. The deadline for mailing all T3
Supplementary Information slips to unitholders is March 31, 2011, as required
under the Tax Act.


From January to April 2010, the Trust made cash distributions totaling $0.32 per
unit. The following table provides the breakdown for Canadian income tax
purposes of cash distributions on a per unit basis. 




----------------------------------------------------------------------------
                                                                   Return of
                               Payment         Total     Taxable     Capital
Record Date                       Date  Distribution      Amount      Amount
----------------------------------------------------------------------------
January 29, 2010              February                                      
                              15, 2010    $     0.08    $   0.00    $   0.08
----------------------------------------------------------------------------
February 26, 2010            March 15,                                      
                                  2010    $     0.08    $   0.00    $   0.08
----------------------------------------------------------------------------
March 31, 2010               April 15,                                      
                                  2010    $     0.08    $   0.00    $   0.08
----------------------------------------------------------------------------
April 30, 2010                 May 17,                                      
                                  2010    $     0.08    $   0.00    $   0.08
----------------------------------------------------------------------------
Total                                     $     0.32    $   0.00    $   0.32
----------------------------------------------------------------------------



Units Held outside an TFSAs, RRSPs, RRIFs, RESPs or DPSPs

Daylight has determined that 100% of the trust distributions from January to
April 2010 are a tax-deferred return of capital.


Unitholders are required to reduce the ACB of their units by the cumulative
return of capital portion of the distributions. The ACB of a unit generally
equals the purchase price of the unit (including commissions) less any return of
capital (tax deferred) distributions received or receivable from the date of
acquisition. To the extent the ACB of a trust unit is negative, unitholders
should report such amount as a capital gain in their income tax return and the
unitholder's ACB will be reset to zero. 


The ACB is used in calculating capital gains and losses on the disposition of
the trust units if the trust units were held as capital property by the owner.
On conversion from a trust to a corporation, the initial ACB of the Daylight
common shares received by former unitholders is generally equal to the ACB of
their trust units on May 7, 2010. 


Units Held within an TFSAs, RRSPs, RRIFs, RESPs or DPSPs

The Trust qualified as a mutual fund trust under the Tax Act and therefore trust
units of the Trust are qualified investments for Tax Free Savings Accounts
("TFSAs"), Registered Retirement Savings Plans ("RRSPs"), Registered Retirement
Income Funds ("RRIFs"), Registered Education Savings Plans ("RESPs"), and
Deferred Profit Sharing Plans ("DPSPs").


Individuals who held their units in TFSAs, RRSPs, RRIFs, RESPs or DPSPs should
not report any amount on their 2010 Income Tax Return. 


Daylight is a growing intermediate oil and natural gas producing company with a
high quality suite of resource play assets in Western Canada. Our highly focused
team utilizes our technical expertise in exploitation, development, and
acquisitions to create long-term value for our shareholders. Our team has
developed a multi-year inventory of repeatable, low risk exploitation resource
play projects with substantial potential reserve additions on assets we
currently own and control in the premier Pembina Cardium light oil fairway and
in the premier Deep Basin area of Alberta and British Columbia. 


Daylight has approximately 210 million common shares outstanding which trade on
the TSX under the symbol DAY. Daylight Series C and D convertible debentures
trade on the TSX under the symbols DAY.DB.C and DAY.DB.D, respectively.
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