The following pilot repurchase operation will be conducted by the Bank of Canada on behalf of the Government of Canada, subject to the "Standard Terms for Repurchase Operations of Government of Canada Marketable Bonds."

Pilot Repurchase Date 1 December 1998
Settlement Date 4 December 1998
Offering Deadline 12:30 E.T.
Maximum Total Repurchase $500,000,000
Type of Operation Multiple Yield
Maturity Date Coupon Rate Outstanding Prior
to Operation
ISIN
15 December 2002 11.25% $1,625,000,000 CA135087-KY91
1 February 2003 11.600 $2,700,000,000 CA135087-KZ66
1 October 2003 9.50% $670,500,000 CA135087-KC71
1 February 2004 10.25% $2,200,000,000 CA135087-KN37
1 June 2004 13.50% $550,000,000 CA135087-PK43

Note to Government Securities Distributors:

The official offer form Competitive Tender for Repurchase Operations of Government of Canada Marketable Bonds and the Standard Terms for Repurchase Operations of Government of Canada Marketable Bonds are available on the Bank of Canada Web site.

Contact:

Robert White
613 782-7860