For Immediate Release

Toronto, Ontario, September 30, 2014: First National Mortgage Investment Fund (TSX: FNM.UN) (the “Fund”) today announced that in an effort to maintain its 6% targeted distribution to unitholders without taking on greater credit risk, First National Asset Management Inc. (the “promoter”) has elected to eliminate the portion of management fees collected from the Fund and paid quarterly as trailer fees to investment advisors, effective January 1st 2015.   

In May 2014, the Fund experienced the 15% maximum redemption under its annual redemption provision.  The annual redemption privilege was accrued by the Fund at June 30, 2014 and paid in July 2014 in the amount of $8.15 million. After this payment, the net asset value (“NAV”) of the Fund was reduced to $46.2 million. The lower NAV affected the economics of the Fund making this discontinuance necessary in order to maintain the 6% targeted distribution to unitholders.

The Fund will continue to pay trailer fees to investment advisors for the quarter ending December 31, 2014. 

About First National Mortgage Investment Fund

The Fund was created to obtain economic exposure to a diversified portfolio of mortgages originated by FNLP, a wholly owned subsidiary of First National Financial Corporation.   

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Forward-Looking Statements

Certain information included in this news release may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will, "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. This forward-looking information should not be read as providing guarantees of future performance or results, and will not necessarily be an accurate indication of whether or not, or the times by which, those results will be achieved. While management considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward looking-information is subject to certain factors, including risks and uncertainties. This forward-looking information is as of the date of this update, and is subject to change after such date. However, management and First National Mortgage Investment Fund disclaim any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.