The Denali Fund Inc. Announces Intent to Redeem its Auction Preferred Shares, Series A

The Denali Fund Inc. (NYSE: DNY) (the “Fund”) is pleased to announce that it intends to redeem all 878 outstanding shares of its Auction Preferred Shares, Series A (CUSIP No. 24823A201) (the “APS”). The Fund will redeem the APS on March 10, 2015 at a redemption price per share equal to the sum of $25,000 plus an amount equal to accumulated but unpaid dividends thereon (whether or not earned or declared) to (but not including) the date fixed for redemption.

The Fund is entering into a Committed Facility Agreement with a financial institution to provide the financing to redeem the APS.

The Fund’s obligation to redeem the APS is contingent upon it having sufficient funds available to it through a borrowing arrangement to fund the redemption.

For more information on the Fund, please visit us on the web at www.boulderfunds.net.