Overlord Financial Inc. Announces the Signature of a Letter Agreement for the Creation of a Collateralized Fund Obligation

CALGARY, March 31, 2006 - Overlord Financial Inc. (the "Corporation") is pleased to announce the signature of a Letter Agreement with a leading Canadian underwriter. Overlord has entered into a Letter Agreement with a leading Canadian underwriter to structure, arrange and market a collateralized fund obligation transaction of income trust equity. Overlord and the underwriter intend to raise non-recourse term financing for a limited purpose vehicle that will invest the net proceeds in Canadian income trust equities. In addition, Overlord has entered into a Letter Agreement with a prominent Montreal based portfolio management company with experience in income trust management to provide portfolio management and administrative services for this transaction. Overlord will act as sub-advisor to the portfolio manager.

Overlord Financial Inc. was founded by Mr. Marcel Tremblay, creator of the royalty trust structure. Overlord is a Canadian specialty fund manager focused on providing all classes of investors in Canada and throughout the world with a new generation of investment vehicles offering superior rates of return, preservation of capital, liquidity, and capital appreciation.

The securities referred to herein have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to a U.S. Person (as defined in Regulation S under the Securities Act) absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

For further information regarding this press release or the company, please visit our website at www.overlordfinancial.com or contact:

Claude Blanchet
President and CEO
Overlord Financial Inc.
(514) 236-360

Larry Titley
Vice President and CFO
Overlord Financial Inc.
(403) 770-4808

Renmark Financial Communications
Barry Mire: bmire@renmarkfinancial.com;
Chris Goth: cgoth@renmarkfinancial.com;
(514) 939-3989
Fax : (514) 939-3717,
www.renmarkfinancial.com

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

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