Saba Capital Files Dissident Proxy Circular in Connection with Citadel Income Fund's Special Meeting Scheduled for September 11, 2023

Provides Unitholders a Superior Alternative to the Status Quo of Abysmal Underperformance, Prolonged Discounts, High Redemption Rates and Poor Corporate Governance

Proposes Replacing the Fund’s Current Trustee and Manager at the Special Meeting to Facilitate a Timely Liquidation of the Fund to Deliver Value for Long-Suffering Unitholders

Saba Capital Management, L.P. (“Saba” or “we”), as manager of certain investment funds collectively holding more than 20% of the outstanding Units (“Units”) of the Citadel Income Fund (TSX: CTF.UN) (“Citadel” or the “Fund”), today announced that it has filed an initial information circular in connection with its successful requisition of Citadel’s 2023 Special Meeting of Unitholders (the “Special Meeting”), which has been scheduled for September 11, 2023. Saba requisitioned the Special Meeting for the purpose of replacing the current trustee and manager of Citadel, Artemis Investment Management Limited (“Artemis”), and approving the Fund’s timely wind-up and liquidation, among other things, as outlined in Saba’s February 27th letter to unitholders.

Saba’s initial circular is available on Citadel’s issuer profile on SEDAR+. Once Citadel has formally called the Special Meeting and announced the record date for voting at the Special Meeting, Saba expects to issue an amended and restated version of the initial circular containing, among other things, additional details concerning the completion and return of proxy and voting instruction forms to be provided by Saba for use at the Special Meeting.

Boaz Weinstein, Founder and Chief Investment Officer of Saba, commented:

“After nearly seven months, we are pleased that Citadel has finally scheduled the Special Meeting so unitholders can have a voice in determining the future of their Fund. Since our prior attempts to engage constructively were effectively ignored, it is clear to us that management has had no plans to address the Fund’s status quo of sustained underperformance, prolonged discounts and poor corporate governance.

Over the past decade, investors have watched helplessly while management has destroyed the value of their investments with the Fund’s discount to NAV plummeting -24.3%.¹ Investors, such as Saba, have been unable to express our views or raise concerns due to management’s unprecedented entrenchment provisions and self-serving governance structure. As a result, the dissatisfaction among Citadel unitholders is so high that approximately 75% of the outstanding units were submitted for redemption last year alone.

Rarely in the countless situations where Saba has advocated for closed-end fund investor rights have we ever encountered a governance structure so deeply flawed and obviously designed to entrench management as it is at Citadel. It is impossible to see any way in which Artemis could argue that it is acting in the best interests of anyone other than itself.

We believe the best path forward for maximizing value for all unitholders is through replacing Artemis as the Fund’s manager at the upcoming Special Meeting to facilitate a timely liquidation of the Citadel Income Fund. Based on current estimates, our proposal would deliver an immediate 15.2% return² to long-suffering unitholders. We look forward to continuing to advocate for and engage with our fellow Citadel unitholders in the weeks leading up to the Special Meeting.”

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Shareholders interested in learning more about the Special Meeting process should contact Saba Capital’s proxy solicitor and tabulation agent, Carson Proxy Advisors, at North American toll free phone at 1-800-530-5189, local phone (collect outside North America) at 416-751-2066 or by email at info@carsonproxy.com.

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About Saba Capital

Saba Capital Management, L.P. is a global alternative asset management firm that seeks to deliver superior risk-adjusted returns for a diverse group of clients. Founded in 2009 by Boaz Weinstein, Saba is a pioneer of credit relative value strategies and capital structure arbitrage. Saba is headquartered in New York City. Learn more at www.sabacapital.com.

Disclaimer for Forward-Looking Information

Certain information in this news release may constitute “forward-looking information” within the meaning of applicable securities legislation. Forward-looking statements and information generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans”, “continue”, or similar expressions suggesting future outcomes or events. Forward-looking information in this news release may include, but is not limited to, statements of Saba regarding (i) the Special Meeting, (ii) the proposed replacement of Artemis as trustee and manager of Citadel, and (iii) the proposed termination and wind-up of Citadel.

Although Saba believes that the expectations reflected in any such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, the risks that (i) Special Meeting may not proceed for any reason whatsoever, and (ii) Saba’s proposed trustee and manager may cease to stand for appointment as successor trustee and manager for any reason. Except as required by law, Saba does not intend to update these forward-looking statements.

¹ Average discount to Net Asset Value (NAV) over the past 10 years, calculated as of July 28, 2023.

² Based on the current trading price of the Units, and after taking into account management fees, and other fees, that would be payable on termination.

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