The Denali Fund Inc. Corrects Record Date for Declared Dividend

The Denali Fund Inc. (NYSE: DNY) announced today that the record date for its July 29, 2011 dividend payment has been changed to July 25, 2011. The Fund has declared a dividend of $0.24 per common share payable in cash on July 29, 2011 to holders of record on July 25, 2011. The Fund’s previously announced record date of July 22, 2011 is not valid. The dividend will consist of approximately $0.14 per share short-term capital gain and $0.10 per share long-term capital gain. The amounts and sources of distributions reported are only estimates and are not provided for tax reporting purposes. After the end of the calendar year, stockholders will receive a 1099-DIV from their broker or transfer agent informing them how to report distributions received during that year for federal income tax purposes. The Fund is now expected to trade ex-dividend on July 21, 2011.

For more information on the Fund, please visit us on the Web at www.thedenalifund.com.