The Denali Fund Inc. Declares Dividend

BOULDER, Colo.--(BUSINESS WIRE)-- The Denali Fund Inc. (NYSE: DNY) announced today that it has declared a distribution of $0.78 per common share payable in cash on January 11, 2012 to holders of record on December 30, 2011. The dividend will consist of approximately $0.02 net investment income, $0.16 per share short-term capital gain and $0.60 per share long-term capital gain. The amounts and sources of distributions reported are only estimates and are not provided for tax reporting purposes. Stockholders will receive a 1099-DIV from their broker or transfer agent informing them how to report distributions received during the year for federal income tax purposes. The Fund is expected to trade ex-dividend on December 28, 2011.

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

The Denali Fund Inc.Fund Administrative Services, LLCBrandon Krinhop, 303-449-0426

Source: The Denali Fund Inc.