The Board of Trustees of Bancroft Fund Ltd. (NYSE MKT:BCV) (the "Fund") reaffirmed its 5% minimum distribution policy and declared a $0.52 per share cash distribution payable on December 29, 2016 to shareholders of record on November 28, 2016. Shareholders who are not members of the Fund's Automatic Dividend Investment Plan will be given the option to receive the distribution either in cash or in beneficial shares of the Fund. Because of this option, the dividend is taxable to all shareholders whether or not they choose to receive cash. The expiration date of the option is December 20, 2016. Shareholders who do not make an election will receive the distribution in beneficial shares. The number of shares that holders will be entitled to receive under the share option will be determined on December 21, 2016, either on the basis of the closing market price of the Fund's beneficial shares or its net asset value, whichever is lower on that date. The Fund intends to pay a quarterly distribution of an amount determined each quarter by the Board of Trustees. Under the Fund's current distribution policy, the Fund intends to pay a minimum annual distribution of 5% of the Fund's trailing 12-month average month-end market price or an amount sufficient to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies. Each quarter, the Board of Trustees reviews the amount of any potential distribution and the income, realized capital gain, or capital available. The Board of Trustees will continue to monitor the Fund's distribution level, taking into consideration the Fund's net asset value and the financial market environment. If necessary, the Fund will pay an adjusting distribution in December which includes any additional income and net realized capital gains in excess of the quarterly distributions for that year to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies. The Fund's distribution policy is subject to modification or termination by the Board of Trustees at any time, and there can be no guarantee that the policy will continue. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.