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Harvest Energy Trust announces $15 million equity financing

Jan 17, 2003 - 10:56 ET

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

CALGARY - Harvest Energy Trust ("Harvest") (TSX: HTE.UN)
announces that it has entered into an underwriting agreement led by
FirstEnergy Capital Corp. and including Haywood Securities Inc. to issue
1,000,000 Special Warrants at a price of $10.00 each on a bought deal basis
and has granted to the underwriters an option to purchase an additional
500,000 special warrants at a price of $10.00 each. The underwriters may
exercise this option at any time up to 48 hours prior to closing. Each special
warrant will be exchangeable into one trust unit of Harvest at no additional
cost to the holder. This issue is subject to normal regulatory approval and is
expected to close on February 4, 2003. Harvest intends to file a prospectus to
qualify the distribution of trust units on exercise of the special warrants.
Proceeds of the offering will be used to repay debt and for general
working capital purposes.
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: The Toronto Stock Exchange has neither approved nor disapproved
of the information contained herein. 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,
Harvest Energy Trust,
2400,
500 - 4th Avenue S.W.,
Calgary,
AB T2P 2V6,
Canada,
Telephone: (403) 265-1178,
Facsimile: (403) 265-3490,
Email address: roorda@harvestenergy.ca,
TSX Symbol: HTE.UN;
David Fisher,
Vice President,
Finance,
Harvest Energy Trust,
2400,
500 - 4th Avenue S.W.,
Calgary,
AB T2P 2V6,
Canada,
Telephone: (403) 265-1178,
Facsimile: (403) 265-3490,
Email address: fisher@harvestenergy.ca,
TSX Symbol: HTE.UN