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carlson capital, l.p.

2100 mckinney avenue, 16th floor, dallas, texas 75201


phone 214.932.9600 fax 214.932.9602 web carlsoncapital.com

September 8, 2009

RE: Double Black Diamond

Dear Investor:

I am pleased to report that all of Carlson Capital’s funds posted solid returns in August. Based on preliminary estimates for the
month, Double Black Diamond, L.P. is up 2.6% and 20.1% year-to-date. Since inception in 1997, Double Black Diamond, L.P. has
returned an annualized 11% net of fees. We are all working hard to build on our momentum and believe we are well positioned to
deliver strong investment performance today and in the years ahead.

As you know, we have used the recent market dislocation to expand our investment team, adding 24 investment professionals since
June of 2008. Today, I am pleased to announce that Jason Karp has joined Carlson Capital as Co-Chief Investment Officer. In this
new role, Jason will focus on our investment process so that I can spend more time investing, working with our portfolio managers
and providing overall strategic direction. To this end, Jason’s responsibilities will also include identifying and executing on new
businesses that fit within the risk profile of the funds and establishing a robust process to grow our talent. Most importantly, we will
work together to further refine the unique culture of our firm. We expect all of our funds to greatly benefit from Jason’s insight and
experience and we are confident that he will help us identify and manage attractive investment ideas for our investors. I am
personally looking forward to working closely with Jason.

Jason has 12 years of investment experience across a broad range of strategies including equity pairs, risk arbitrage, activism,
long/short equity, and quantitative research/statistical arbitrage. Previously, he was the Director of Research and Portfolio Manager
of Global Equities at CR Intrinsic Investors, a division of SAC Capital. In addition to managing a large portfolio and team, Jason was
directly involved in analyst/PM development, business development, and firm management. Prior to that, Jason was a partner and
Portfolio Manager at George Weiss Associates in New York.

On the client-facing side of our business, Steve Head has joined the firm as Head of U.S. Client Development. Steve will be based
in Dallas and will work with Betsy Ewing to further enhance our development capabilities as well as our communications with
existing investors. Steve brings over 35 years of securities industry experience to Carlson, most recently as Managing Director in the
Equities Division for UBS in the Southwest. At UBS, Steve was responsible for maintaining relationships with the firm’s strategic
accounts, including Carlson Capital.

Also on the personnel front, Roy Trice will be retiring from Carlson Capital after 11 years of distinguished service. Roy’s
responsibilities will be assumed by other senior members of the firm. We wish Roy the best of luck as he moves to Santa Fe. He
will continue as a board member of two of our portfolio companies and will remain an investor in our funds.

As always, our team remains sharply focused on detailed, fundamental research applied to our core strategies. This philosophy has
been the hallmark of our business for more than 15 years and it has enabled us to generate consistent returns despite volatile
markets. 2009 has been a great year for us so far, and we hope to build on this success in the future.

Sincerely,

Clint Carlson
Chief Investment Officer & President