The Denali Fund Inc. (NYSE: DNY) announced today that it has declared a dividend of $0.20 per common share payable in cash on January 11, 2013 to holders of record on December 31, 2012. The dividend will consist of approximately $0.05 per share of short-term capital gain and $0.15 per share of 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 expected to trade ex-dividend on December 27, 2012. For more information on the Fund, please visit us on the web at www.thedenalifund.com.