Independent Review Committee Recommendations on the Blue Ribbon Proposal

As previously announced, Citadel Fund Administrator ("Citadel') has proposed special meetings (the "Special Meetings") of unitholders for Series S-1 Income Fund and Citadel Diversified Investment Trust (the "Blue Ribbon Funds") to consider proposals to merge the funds together to create a new fund (the "Merger Proposal") and to reorganize the Blue Ribbon Funds (the "Reorganization Proposal") by changing the administrator from Citadel to Blue Ribbon Fund Management Ltd. ("Blue Ribbon").

As indicated in the Joint Management Information Circular dated October 21, 2009, both the Merger Proposal and Reorganization Proposal were considered by the Independent Review Committee of the Citadel Funds (the "IRC").

After reviewing the terms of the Merger Proposal, the IRC unanimously concluded that the Merger Proposal will achieve a fair and reasonable result for the Blue Ribbon Funds.

The Reorganization Proposal will result in the payment by the Blue Ribbon Funds of break fee payments to Citadel for terminating the current administrative services agreements. This related party matter was considered by the IRC separately and it determined that the Reorganization Proposal will not achieve a fair and reasonable result for either of the Blue Ribbon Funds.

Both the Merger Proposal and the Reorganization Proposal will be submitted to Unitholders for their consideration at meetings to be held on November 17, 2009.

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SOURCE: CITADEL DIVERSIFIED INVESTMENT TRUST

SOURCE: Series S-1 Income Fund

Investor Relations, Citadel Funds, (416) 361-9673 or (877) 261-9674; For information
about Blue Ribbon and the proposals before the Blue Ribbon Funds at the special
meetings, contact: Mark Caranci - (416) 642-6004; Lorne Zeiler - (416) 642-9058;
David Roode - (416) 642-6008; Chris Cullen - (416) 642-9064; Toll-free:
1-866-642-6001; Email: info@bromptongroup.com

Related terms: investment, merger