These gains don't cause pain. A capital gain is the amount of money you pocket by selling one of your investments for more than you paid for it. Technically, capital gains only count for what's called a capital asset, but that's really just anything you own for investment purposes. Stocks and bonds obviously qualify, but your house and household furnishings can also count.

For tax purposes, capital gains are classified as either long-term (held for more than one year) or short-term (held for less than one year) and there are different tax implications for how long you hold onto a capital asset. For most long-term capital gains, you're taxed no more than 15% of the value of the asset. Short-term gains get taxed as regular income, so you pay the rate for the tax bracket you're in.

Capital gains can also be realized or unrealized. When you physically sell an asset like a stock, you've realized the capital gain. When you're holding the stock, and it has a value over its purchase price, but you're not selling it, you've got an unrealized gain, and you won't realize it until you sell.

In a perfect world, we'd all have capital gains. But no one¿s that smart or lucky. When the value of an asset at sale is below what you've paid for it, it's called a capital loss. The good news is that the government lets you count that loss against any gains you've had, lowering the taxes you pay. In fact, many people who sell a stock that has risen far over their purchase price tend to sell some stinkers, too, at the same time for the tax benefit. This is known as a capital-loss offset.

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Thursday, July 17, 2008

Cadence Announces Intention to Execute Support Agreement to Implement Superior Proposal with Barrick Gold Corporation

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Comtex

CALGARY, Jul 17, 2008 (Canada NewsWire via COMTEX) ----(CDS - TSX) Cadence Energy Inc. ("Cadence") announces today that it has received an unconditional support agreement (the "Support Agreement") providing for the acquisition by Barrick Gold Corporation ("Barrick") of all of the issued and outstanding common shares of Cadence ("Cadence Shares") at a cash price of Cdn. $6.75 per Cadence Share (the "Barrick Offer"). Under the Barrick Offer, Barrick will make a take-over bid to all shareholders of Cadence ("Cadence Shareholders") open for acceptance for 35 days subject to customary conditions, including that 66 2/3% of the Cadence Shares, calculated on an in-the-money fully diluted basis, are tendered to the take-over bid.

The Board of Directors of Cadence has unanimously resolved to enter into the Support Agreement after determining that: (1) the funds necessary for the consummation of the Barrick Offer are available; (2) after consultation with its financial advisor, Tristone Capital Inc. ("Tristone"), the Barrick Offer, if consummated in accordance with its terms, will result in a transaction financially superior for Cadence Shareholders than the transaction contemplated by the Plan of Arrangement involving Daylight Resources Trust and Daylight Energy Ltd. (collectively, "Daylight") (the "Daylight Arrangement"); (3) Barrick Offer is reasonably capable of completion in accordance with its terms taking into account all legal, financial, regulatory and other aspects of the Barrick Offer; and (4) after receiving the advice of its counsel, Burnet, Duckworth & Palmer LLP, that entering into the Support Agreement with Barrick is necessary for the Board of Directors of Cadence in discharging their fiduciary duties under applicable law. Tristone has provided the Board of Directors of Cadence with its opinion that, subject to review of final documentation, that the consideration to be received by Cadence Shareholders under the Barrick Offer is fair, from a financial point of view.

In accordance with the terms of the Daylight Arrangement, Cadence has provided Daylight with a notice period ending at 5:00 p.m. (Calgary time) on Monday, July 21, 2008 (the "Notice Period") that the Board of Directors of Cadence intends to enter into the Support Agreement. Pursuant to the provisions of the Daylight Arrangement, until the expiry of the Notice Period, Cadence has agreed to negotiate in good faith with Daylight to make such adjustments to the terms and conditions of the Daylight Arrangement as would enable Cadence to proceed with the Daylight Arrangement rather than the Barrick Offer.

Full details of the Daylight Arrangement and the Arrangement Agreement are contained in Cadence's Notice of Special Meeting of Cadence Shareholders, Notice of Petition to the Court of Queen's Bench of Alberta and Information Circular and Proxy Statement dated June 20, 2008, which has been mailed to Cadence Shareholders and is available at www.sedar.com.

With respect to Cadence's 4.75% convertible unsecured subordinated debentures due June 30, 2012 (the "Cadence Debentures"), Barrick has notified Cadence that it intends to designate the common shares of Barrick as Public Acquiror Shares (as defined in the Cadence Debenture Indenture) and accordingly the Barrick Offer and any compulsory acquisition or subsequent acquisition transaction will be a Public Acquiror Change of Control (as defined in the Cadence Debenture Indenture) which will result in the Cadence Debentures becoming convertible into common shares of Barrick. As a result Cadence will not be required to make a change of control offer to holders of the Cadence Debentures.

Advisory Regarding Forward-Looking Statements and Forward-Looking

Information

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information concerning the timing of or whether Cadence will enter into the Support Agreement which will result in Barrick making the Barrick Offer to the Cadence Shareholders or whether Cadence and Daylight will make adjustments to the Daylight Arrangement..

The forward-looking statements and information are based on certain key expectations and assumptions made by Cadence including expectations and assumptions concerning the timing of and satisfaction of the conditions in the Barrick Offer and receipt of all third party approvals. Although Cadence believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Cadence can give no assurance that they will prove to be correct

Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this material change report concerning these times.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Cadence's operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

The forward-looking statements and information contained in this material change report are made as of the date hereof and Cadence undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

%SEDAR: 00021661E

SOURCE: Cadence Energy Inc.

Cadence
   Energy Inc., Grant Fagerheim, President and Chief Executive Officer, Phone (403) 290-3401

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