True Energy Trust's financial plan for 2009 is focused on preserving its liquidity position and financial flexibility. On December 12, 2008, True declared a fifty percent reduction in its monthly distribution to $0.02 per unit commencing with the December 2008 distribution which was payable to unitholders on January 15, 2009.

As a result of the deterioration in economic conditions, including the significant decline in crude oil prices, a weakening outlook for natural gas demand and a heightened risk in the credit markets, True deemed it prudent to ensure alignment between the distribution level and the prevailing environment in order to preserve its liquidity and financial position.

On January 8, 2009 True announced a January 2009 distribution of $0.02 per unit, which is payable to unitholders on February 17, 2009. Distribution levels are subject to monthly confirmation by the Board of Directors, based on commodity prices, hedging program, anticipated production volumes and market conditions.

True's production and operations have been impacted by the extreme weather conditions experienced in western Canada in December 2008 and January 2009. Approximately 950 boe/d was affected through a combination of delayed servicing and freeze offs. Approximately 350 boe/d of the 950 boe/d affected is back on line and another 350 boe/d is imminent. The remaining 250 boe/d will remain shut-in awaiting improved commodity pricing and/or further moderations in the weather.

Q4 2008 field production volumes averaged approximately 10,750 boe/d, contributing to a full year average of approximately 11,900 boe/d. Based on minimal capital spending, and normal declines, 2009 production volumes are anticipated to average 10,000 boe/d to 10,500 boe/d.

During the fourth quarter of 2008, True drilled or participated in 10 (5.1 net) wells including 1.6 net natural gas wells and 2 net light oil wells. 1.5 net wells were dry and abandoned.

During the third and fourth quarters of 2008 True drilled and completed 3 100% Viking light oil horizontal wells in the Kerrobert area. The Trust is currently evaluating the results of the multi-stage fracturing completions and will defer further development until commodity prices improve. Contingent upon final well densities, up to 30 further locations have been identified.

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