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Harvest Energy Trust Announces Closing of Special Warrant Financing

Feb 4, 2003 - 10:57 ET

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN 
THE UNITED STATED. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY 
CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

(HTE.UN - TSX)

CALGARY - Harvest Energy Trust ("Harvest") is pleased to
announce the closing of its offering of Special Warrants previously announced
on January 17th, 2003. In accordance with the underwriting agreement, Harvest
issued 1,500,000 Special Warrants at a price of $10.00 per Special Warrant.
Each Special Warrant will be exercisable into one trust unit of Harvest, at no
additional cost to the holder subject to adjustment in certain circumstances.
Harvest intends to file a prospectus to qualify the distribution of trust
units issuable upon the exercise of the Special Warrants. The offering was
conducted on a "bought deal" basis by a syndicate led by FirstEnergy Capital
Corp. and including Haywood Securities Inc. Certain directors and officers of
Harvest participated in the offering by acquiring 180,500 of the Special
Warrants.
Proceeds of the offering will be used to repay debt and for general
working capital purposes. Harvest currently has 9,462,500 trust units
outstanding. After giving effect to the exercise of the Special Warrants into
trust units, Harvest will have 10,962,500 trust units outstanding.
Harvest Energy Trust is a Calgary based oil and natural gas trust that
strives to deliver stable monthly cash distributions to its Unitholders
through its strategy of acquiring, enhancing and producing crude oil, natural
gas and natural gas liquids. Harvest's assets, comprised of high quality
medium and heavy gravity crude oil properties in East Central Alberta, and its
hands on operating strategy underpin Harvest's objective to deliver superior
economic returns to Unitholders. Harvest's strategy is to retain up to 50% of
its Cash Available for Distribution for capital reinvestment in the form of
existing property enhancement and new property acquisitions while maintaining
a high rate of cash distributions. Harvest currently operates approximately
99% of its production, enabling it to pursue additional asset growth through
property optimization and enhancement.

ADVISORY: Certain information regarding Harvest Energy Trust and Harvest
Operations Corp. including management's assessment of future plans and
operations, may constitute forward-looking statements under applicable
securities law and necessarily involve risks associated with oil and gas
exploration, production, marketing and transportation such as loss of market,
volatility of prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other producers and ability to access
sufficient capital from internal and external sources; as a consequence,
actual results may differ materially from those anticipated in the forward-
looking statements.
%SEDAR: 00018577E

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FOR FURTHER INFORMATION PLEASE CONTACT:

Jacob Roorda,
President

or

David Fisher,
Vice President,
Finance,
Harvest Energy Trust,
Telephone: (403) 265-1178,
Facsimile: (403) 265-3490,
Email address: information@harvestenergy.ca