SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934

Filed by Registrant [ X ]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:

[ X ]    Preliminary Proxy Statement
[   ]    Confidential, for Use of the Commission Only (as permitted by
         Rule 14a-6(e)(2))
[   ]    Definitive Proxy Statement
[   ]    Definitive Additional Materials
[   ]    Soliciting Material Pursuant to Sec. 240.14a-12

                         BOULDER TOTAL RETURN FUND, INC.
                (Name of Registrant as Specified In Its Charter)


                   (Name of Person(s) Filing Proxy Statement)

Payment of Filing Fee (Check the appropriate box):

[ X ]   No fee required.

[   ]   Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

         1)       Title of each class of securities to which transactions
                  applies:

         2)       Aggregate number of securities to which transaction applies:

         3)       Per unit price or other underlying value of transaction
                  computed pursuant to Exchange Act Rule 0-11 (Set forth the
                  amount on which the filing fee is calculated and state how it
                  was determined):

         4)       Proposed maximum aggregate value of transaction:

         5)       Total fee paid:

[   ]   Fee paid previously with preliminary materials.

[   ]    Check box if any part of the fee is offset as provided by Exchange
         Act Rule 0-11(a)(2) and identity the filing for which the offsetting
         fee was paid previously. Identify the previous filing by registration
         statement number, or the Form or Schedule and the date of its filing.

         1) Amount Previously Paid:
         2) Form, Schedule or Registration Statement No.:
         3) Filing Party:
         4) Date Filed:




[GRAPHIC OMITTED]                                BOULDER TOTAL RETURN FUND, INC.
                                                     1680 38TH STREET, SUITE 800
                                                         BOULDER, COLORADO 80301


March ___, 2006

Dear Fellow Stockholder,

     You are cordially invited to attend the 2006 Annual Meeting of Stockholders
of Boulder Total Return Fund, Inc., a Maryland corporation (the "Fund"), which
will be held on April 24, 2006 at 9:00 a.m. Mountain Standard Time (local time),
at the Scottsdale Plaza Resort, 7200 North Scottsdale Road, Scottsdale, Arizona.
Details of the business to be presented at the meeting can be found in the
accompanying Notice of Annual Meeting and Proxy Statement.

     There are two non-routine proposals contained in this Proxy. The first is a
proposal to amend the charter of the Fund (the "Charter") to facilitate a rating
upgrade of the Fund's taxable auction market preferred stock (the "AMPS").
Presently, the Fund is leveraged with $77.5 million in AMPS. The AMPS are
auctioned every 28 days, at which time a new interest rate is set and assigned
to them. Presently the AMPS are rated by two national credit rating
organizations, Moody's Investors Services, Inc. ("Moody's") and Standard &
Poor's ("S&P"). The ratings are presently "Aa1"(Moody's) and "AA" (S&P). In
connection with this proposal, these ratings will be upgraded to "Aaa" and "AAA"
respectively. Since auction interest rates are typically lower for AMPS and
other financial instruments that have higher/better credit ratings, the Fund
anticipates that the upgraded AMPS will receive a better auction interest rate
for the Fund and thus could reduce the expenses associated with the Fund's
leverage. Passage of the proposal will require approval by the holders of a
majority of the AMPS and a majority of the common stock voting together as a
single class, and a majority of the AMPS voting as a separate class. Upgrading
the ratings as described above is not conditioned on the passage of this
proposal as the Fund has other avenues it can pursue to upgrade the ratings
without amending the Charter.

     The second  non-routine  proposal is a  housecleaning  item that resolves a
conflict  between a provision in the Fund's charter that establishes the size of
the Board of  Directors  at five,  and a provision in the terms of the AMPS that
requires  an increase  in the size of the Board when the AMPS  dividends  are in
arrears for a period of two years.  Under the  proposal,  the charter  provision
would be made subject to the provision in the terms of the AMPS.

     As Chairman of the Board, I encourage you to support each of the proposals.
After careful review by those Directors who are not "interested persons" as
defined in the Investment Company Act of 1940 (the "Independent Directors"), the
Board of Directors unanimously approved and has recommended to stockholders that
they approve each of the proposals.

     We hope you plan to attend the meeting. Your vote is important. Whether or
not you are able to attend, it is important that your shares be represented at
the Meeting. At your earliest convenience, we ask that you please complete,
sign, date and return the enclosed Proxy Card or authorize proxies via telephone
or the Internet to cast your vote at the meeting.

     On behalf of the Board of Directors and the management of the Fund, I
extend our appreciation for your continued support.


Sincerely,

/s/ Richard I. Barr

Richard I. Barr
Chairman of the Board






[GRAPHIC OMITTED]                                BOULDER TOTAL RETURN FUND, INC.
                                                     1680 38TH STREET, SUITE 800
                                                        BOULDER, COLORADO  80301


                    NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
                          To Be Held on April 24, 2006


To the Stockholders:

     Notice is hereby given that the Annual Meeting of  Stockholders  of Boulder
Total Return Fund, Inc., a Maryland  corporation  (the "Fund"),  will be held at
the Scottsdale Plaza Resort, 7200 North Scottsdale Road, Scottsdale,  Arizona at
9:00 a.m.  Mountain  Standard Time (local time),  on April 24, 2006, to consider
and vote on the following  Proposals,  all of which are more fully  described in
the accompanying Proxy Statement:

     1.   The election of Directors of the Fund (Proposal 1).

     2.   Amendments  to the  charter  of the Fund  which  will  repeal in their
          entirety all of the  currently  existing  terms of the Fund's  taxable
          auction market  preferred stock and substitute in lieu thereof the new
          terms set forth in the Form of Articles of  Amendment  attached to the
          accompanying Proxy Statement as Exhibit B (Proposal 2).

     3.   An  amendment to the charter of the Fund to provide that the number of
          directors of the Fund shall be five,  subject to the provisions of any
          class or series of Preferred Stock (Proposal 3).

     4.   To  transact  such other  business  as may  properly  come  before the
          Meeting or any adjournments and postponements thereof.

     The Board of Directors of the Fund has fixed the close of business on March
__, 2006 as the record date for the  determination  of  stockholders of the Fund
entitled to notice of and to vote at the Annual Meeting and any postponements or
adjournments thereof.  This Proxy Statement,  Notice of Annual Meeting and proxy
card are first being mailed to stockholders on or about March __, 2006.


                                  By Order of the Board of Directors,

                                  /s/ Stephanie Kelley

                                  STEPHANIE KELLEY
                                  Secretary

March ___, 2006


--------------------------------------------------------------------------------
STOCKHOLDERS ARE REQUESTED TO COMPLETE, SIGN AND DATE THE ENCLOSED PROXY CARD OR
AUTHORIZE  PROXIES  VIA  TELEPHONE  OR THE  INTERNET.  THE PROXY CARD  SHOULD BE
RETURNED  IN THE  ENCLOSED  ENVELOPE,  WHICH  NEEDS NO  POSTAGE IF MAILED IN THE
UNITED STATES. INSTRUCTIONS FOR THE PROPER EXECUTION OF PROXIES ARE SET FORTH ON
THE INSIDE COVER.
--------------------------------------------------------------------------------




                      INSTRUCTIONS FOR SIGNING PROXY CARDS


         The following general rules for signing proxy cards may be of
assistance to you and may avoid the time and expense to the Fund involved in
validating your vote if you fail to sign your proxy card properly.

         1. Individual Accounts: Sign your name exactly as it appears in the
registration on the proxy card.

         2. Joint Accounts: Either party may sign, but the name of the party
signing should conform exactly to a name shown in the registration.

         3. All Other Accounts: The capacity of the individual signing the proxy
card should be indicated unless it is reflected in the form of registration. For
example:



                                                                    

            Registration                                               Valid Signature

            Corporate Accounts
            (1)  ABC Corp.                                             ABC Corp.
            (2)  ABC Corp.                                             John Doe, Treasurer
            (3)  ABC Corp., c/o John Doe Treasurer                     John Doe
            (4)  ABC Corp. Profit Sharing Plan                         John Doe, Trustee

            Trust Accounts
            (1)  ABC Trust                                             Jane B. Doe, Trustee
            (2)  Jane B. Doe, Trustee, u/t/d 12/28/78                  Jane B. Doe

            Custodian or Estate Accounts
            (1)  John B. Smith, Cust.,                                 John B. Smith
                  f/b/o John B. Smith, Jr. UGMA
            (2)  John B. Smith                                         John B. Smith, Jr., Executor







[GRAPHIC OMITTED]                                BOULDER TOTAL RETURN FUND, INC.
                                                     1680 38TH STREET, SUITE 800
                                                        BOULDER, COLORADO  80301

             QUESTIONS & ANSWERS REGARDING THE MEETING AND PROPOSALS


Question 1: What is the purpose of the Annual Meeting?

Answer:  At the Meeting,  stockholders  will be asked to vote on the election of
directors as well as the approval of amendments to the charter of the Fund which
will repeal in their entirety all of the currently  existing terms of the Fund's
taxable  auction  market  preferred  stock (the "AMPS") and  substitute  in lieu
thereof the new terms set forth in the Form of Articles of Amendment attached to
the accompanying Proxy Statement as Exhibit B.

Question 2: Who is being nominated for election at the Meeting?

Answer:  The Board has nominated the following five  Directors,  each to serve a
one-year term until the annual  meeting in 2007 and until their  successors  are
duly elected and qualify: Richard I. Barr, Joel W. Looney, Dr. Dean L. Jacobson,
Susan L. Ciciora,  and Dennis R. Causier. The holders of Common Stock will elect
three of the five  directors  standing  for election and the holders of the AMPS
will elect the  remaining  two  directors.  Mr.  Barr and Ms.  Ciciora are being
nominated to represent the interests of the holders of the AMPS.

Question 3: Why is the Board recommending Proposal No. 2

Answer: If adopted, Proposal No. 2 would amend and restate the terms of the AMPS
to  facilitate a rating  upgrade of the AMPS.  Presently,  the Fund is leveraged
with $77.5 million of AMPS. The AMPS are auctioned  every 28 days, at which time
a new interest rate is set and assigned to them. Presently the AMPS are rated by
two national  credit rating  organizations,  Moody's  Investors  Services,  Inc.
("Moody's")   and  Standard  &  Poor's   ("S&P").   The  ratings  are  presently
"Aa1"(Moody's)  and "AA" (S&P). In connection with this proposal,  these ratings
are  expected  to be  upgraded to "Aaa" and "AAA"  respectively.  Since  auction
interest rates are typically lower for AMPS and other financial instruments that
have higher/better  credit ratings,  the Fund anticipates that the upgraded AMPS
will receive a better  auction  interest rate for the Fund and thus could reduce
the  expenses  associated  with the Fund's  leverage.  Upgrading  the ratings as
described above is not conditioned on the passage of Proposal No. 2, as the Fund
has other  avenues it can pursue to upgrade the  ratings  without  amending  the
Fund's charter.  Passage of the proposal will require approval by the holders of
a majority of the AMPS and a majority of the common stock  voting  together as a
single class, and a majority of the AMPS voting as a separate class.

Question 4: How do the Horejsi Affiliates (as defined below at Page 2) intend to
vote on Proposal No. 2?

Answer:  The Horejsi Affiliates intend to vote in favor of the proposals.

Question 5: How does the Board recommend that stockholders vote on the various
proposals?

Answer: If no instructions are indicated on your proxy, the representatives
holding proxies will vote in accordance with the recommendations of the Board.
The Board, including all of the non-interested Directors, has unanimously
recommended that stockholders vote FOR all of the Proposals.

Question 6: Who is entitled to vote?

Answer: Stockholders of record at the close of business on [March 21, 2006] (the
"Record  Date") are  entitled  to notice of and to vote at the  Meeting  and any
postponements  or adjournments  thereof.  Each of the shares  outstanding on the
Record Date is entitled to one vote on each of the Proposals.

Question 7: What is the required quorum for the Meeting?

Answer:  The holders of at least a majority of the  outstanding  shares of stock
(without regard to class) of the Fund must be represented at the Meeting, either
in person or by proxy, in order to constitute a quorum permitting business to be
conducted at the Meeting.  If you have  completed,  executed and returned  valid
proxies (in writing,  by phone or by Internet) or attend the Meeting and vote in
person, your shares will be counted for purposes of determining whether there is
a quorum,  even if you abstain from voting on any or all matters  introduced  at
the Meeting.


Question 8: How do I vote?

Answer:  Your  vote is very  important.  Stockholders  can vote in person at the
Meeting or authorize proxies to cast their votes ("proxy voting") by proxy. Most
stockholders   will  have  a  choice  of  proxy  voting  over  the  Internet  at
http://www.proxyvote.com, by using a toll-free telephone number or by completing
and signing a Proxy Card and mailing it in the postage-paid  envelope  provided.
Please  refer to your  Proxy  Card or the  information  forwarded  by your bank,
broker or other  nominee to see which options are available to you. If you proxy
vote by Internet or telephone, you do NOT need to return your Proxy Card. If you
vote by proxy,  the  individuals  named on the Proxy Card as proxy  holders will
vote your shares in accordance with your  instructions.  You may specify whether
your shares  should be voted for all,  some or none of the nominees for director
and whether your shares should be voted for or against the other  proposals.  If
you execute an otherwise valid proxy but do not provide voting instructions, the
persons  named as proxies or their  substitutes  will cast your votes FOR all of
the Proposals.

Question 9: Can I revoke or change my proxy?

Answer:  Yes. You may change or revoke your proxy at any time before the Meeting
by timely  delivery of a properly  executed,  later-dated  proxy  (including  an
Internet or phone  proxy),  by sending a written  revocation to the Secretary of
the Fund at the Fund's address listed on the accompanying  Notice of Meeting, or
by  attending  and  voting  in person at the  Meeting.  The  powers of the proxy
holders will be suspended  with respect to your shares if you attend the meeting
in person and revoke  your proxy,  but  attendance  at the  Meeting  will not by
itself revoke a previously granted proxy.






[GRAPHIC OMITTED]                                BOULDER TOTAL RETURN FUND, INC.
                                                     1680 38TH STREET, SUITE 800
                                                        BOULDER, COLORADO  80301

                         ANNUAL MEETING OF STOCKHOLDERS
                                 April 24, 2006

                                 PROXY STATEMENT

This proxy statement ("Proxy  Statement") for Boulder Total Return Fund, Inc., a
Maryland  corporation ("BTF" or the "Fund"), is furnished in connection with the
solicitation  of proxies by the Fund's  Board of  Directors  (collectively,  the
"Board" and  individually,  the  "Directors")  for use at the Annual  Meeting of
Stockholders  of the Fund to be held on  Monday,  April 24,  2006,  at 9:00 a.m.
Mountain  Standard Time (local time),  at the Scottsdale  Plaza Resort,  7200 N.
Scottsdale Drive, Scottsdale, Arizona, and at any adjournments and postponements
thereof (the  "Meeting").  A Notice of Annual Meeting of Stockholders  and proxy
card accompany this Proxy Statement. Proxy solicitations will be made, beginning
on or about March 6, 2006,  primarily by mail, but proxy  solicitations may also
be made by telephone,  by Internet on the Fund's website,  telegraph or personal
interviews  conducted by officers of the Fund and PFPC Inc.,  the transfer agent
of the Fund. Any cost of proxy  solicitation and expenses incurred in connection
with the  preparation of this Proxy Statement and its enclosures will be paid by
the Fund.  The Fund also will  reimburse  brokerage  firms and  others for their
expenses in forwarding  solicitation  material to the  beneficial  owners of its
shares.  The Board has fixed the close of business  on March  ____,  2006 as the
record date (the "Record Date") for the  determination of stockholders  entitled
to notice of and to vote at the Meeting and any  postponements  or  adjournments
thereof.

     The Annual Report of the Fund,  including audited financial  statements for
the fiscal  year ended  November  30,  2005,  has been  mailed to  stockholders.
Additional  copies  are  available  upon  request,  without  charge,  by calling
1-800-331-1710.  The report is also  viewable  online at the  Fund's  website at
www.boulderfunds.net.  The report is not to be  regarded  as proxy  solicitation
material.

     Boulder Investment Advisers,  L.L.C.  ("BIA"), 1680 38th Street, Suite 800,
Boulder,  Colorado 80301 and Stewart  Investment  Advisers  ("SIA"),  Bellerive,
Queen Street, St. Peter, Barbados,  currently serve as co-investment advisers to
the Fund.  BIA and SIA are  collectively  referred to herein as the  "Advisers".
Fund Administrative Services, L.L.C., serves as co-administrator to the Fund and
is located at 1680 38th Street,  Suite 800, Boulder,  Colorado 80301.  Investors
Bank & Trust  Company  ("IBT") acts as the  co-administrator  to the Fund and is
located at 200 Clarendon Street, Boston, Massachusetts 02116. PFPC Inc. ("PFPC")
acts as the transfer  agent to the Fund and is located at 4400  Computer  Drive,
Westborough, Massachusetts 01581.

     If the enclosed  proxy is properly  executed and returned by April 24, 2006
in time to be voted at the Meeting,  the Shares (as defined  below)  represented
thereby will be voted in accordance with the instructions marked thereon. Unless
instructions to the contrary are marked  thereon,  a proxy will be voted FOR the
election  of the  nominees  for  Directors,  FOR  Proposals  2 and 3 and, in the
discretion  of the proxy  holder,  on any other  matters that may properly  come
before  the  Meeting.  Any  stockholder  who has  given a proxy has the right to
revoke it at any time prior to its exercise  either by attending the Meeting and
casting his or her votes in person or by  submitting a letter of revocation or a
later-dated proxy to the Fund's Secretary at the above address prior to the date
of the Meeting.

     A quorum of the Fund's stockholders is required for the conduct of business
at the  Meeting.  Under the Bylaws of the Fund, a quorum is  constituted  by the
presence in person or by proxy of the  holders of a majority of the  outstanding
shares (without regard to class) of the Fund as of the Record Date. In the event
that a quorum is not  present at the  Meeting,  or in the event that a quorum is
present but sufficient  votes to approve one or more proposals are not received,
the persons  named as proxies may propose and vote for one or more  adjournments
of the Meeting to permit  further  solicitation  of proxies  with respect to any
proposal that did not receive the votes necessary for its passage.  With respect
to those  proposals for which there is represented a sufficient  number of votes
in  favor,  actions  taken  at the  Meeting  will be  approved  and  implemented
irrespective of any adjournments  with respect to any other proposals.  Any such
adjournment will require the affirmative vote of a majority of votes cast on the
matter at the Meeting. If a quorum is present, the persons named as proxies will
vote those  proxies which they are entitled to vote FOR any proposal in favor of
such an adjournment and will vote those proxies required to be voted AGAINST any
proposal against any such adjournment.


The Fund has two classes of stock:  common stock, par value $0.01 per share (the
"Common Stock"),  and preferred stock, par value $0.01 per share (the "Preferred
Stock"),  1,000 shares of which have been  designated  as AMPS (the Common Stock
and AMPS are  collectively  referred to herein as the  "Shares").  On the Record
Date, the following number of Shares of the Fund were issued and outstanding:



             Common Stock                                   AMPs
              Outstanding                               Outstanding
              -----------                               -----------
              12,338,660                                    775


     SECURITY  OWNERSHIP OF CERTAIN  BENEFICIAL OWNERS. The following table sets
forth certain information regarding the beneficial ownership of the Shares as of
the Record Date by each person who is known by the Fund to  beneficially  own 5%
or more of the Fund's outstanding  Common Stock. To the Fund's knowledge,  there
are no 5% or greater beneficial owners of the AMPS.




              Name of Owner*                   Number of Shares          Number of Shares            Percentage
                                              Directly Owned (1)      Beneficially Owned (2)     Beneficially Owned
------------------------------------------- ------------------------ -------------------------- ----------------------
                                                                                               
Badlands Trust Company, LLC  (1)(3)                          0               5,382,982                  43.63%
Stewart R. Horejsi Trust No. 2A (4)                          0               5,382,982                  43.63%
Ernest Horejsi Trust  No. 1B (1)                     3,413,138               3,413,138                  27.66%
Lola Brown Trust No. 1B (1)                          1,370,515               1,370,515                  11.11%
Evergreen Atlantic LLC (1)                             343,748                 343,748                   2.79%
Stewart West Indies Trust (1)(2)                       104,627                 255,876                   2.07%
Susan L. Ciciora Trust (1)(2)                           72,176                 175,300                   1.42%
John S. Horejsi Trust (1)(2)                            53,080                 104,642                   0.85%
Evergreen Trust (1)(2)                                  25,698                  63,510                   0.51%

                                            ------------------------ -------------------------- ----------------------
Aggregate Shares Owned by Horejsi                    5,382,982               5,382,982                  43.63%
Affiliates (defined below) **
------------------------------------------- ------------------------ -------------------------- ----------------------
Alter Asset Management, Inc.***                      1,167,234               1,167,234                   9.5%



*    The  address of  Evergreen  Atlantic  LLC is 1680 38th  Street,  Suite 800,
     Boulder, Colorado 80301. The address of each other listed owner is Badlands
     Trust  Company,  LLC,  c/o Ron Kukes,  Alaska  First  Bank & Trust,  3301 C
     Street, Suite 100, Anchorage, AK 99503.

**   Aggregate  number  and  percentage  are less than the sum total of  amounts
     shown for each owner  because  the same  shares may be deemed  beneficially
     owned by more than one party (see Footnotes 1 through 4 below).

***  As  stated  in a  Schedule  13G  filed  with the  Securities  and  Exchange
     Commission on February 13, 2006.

(1)  Direct Ownership.  Evergreen Atlantic,  LLC ("EALLC"),  The Evergreen Trust
     (the "Evergreen  Trust"),  John S. Horejsi Trust ("John  Trust"),  Susan L.
     Ciciora Trust ("Susan Trust"), Stewart West Indies Trust ("SWI Trust"), the
     Lola Brown Trust No. 1B (the "Brown  Trust"),  the Ernest Horejsi Trust No.
     1B (the "EH Trust"), Badlands Trust Company, LLC ("Badlands"),  the Stewart
     R. Horejsi  Trust No. 2A (the "SRH Trust") and Stewart R. Horejsi are, as a
     group,  considered  to be a  "control  person" of the Fund (as that term is
     defined in Section 2(a)(9) of the 1940 Act).  EALLC,  the Evergreen  Trust,
     John Trust,  Susan  Trust,  SWI Trust,  the Brown  Trust,  the EH Trust and
     Badlands  (for the  purposed of this Proxy are  collectively  the  "Horejsi
     Affiliates") directly own the shares indicated for such entity in the table
     above,  totaling  5,382,982  (43.63%).  However,  these  entities and other
     trusts or companies with  interlocking  management  and/or common ownership
     may be deemed to indirectly own additional Fund shares,  which are included
     in the table above.

(2)  Indirect Ownership through EALLC. Numbers shown in the table include shares
     held  directly  (see  Footnote  No. 1) and shares  that may be deemed to be
     beneficially  owned indirectly  through ownership of EALLC. The outstanding
     membership  interests in EALLC are owned by the Evergreen  Trust, the Susan
     Trust, the John Trust and the SWI Trust in the following percentages - 11%,
     30%,  15% and 44%.  The  Trustees  of the  Evergreen  Trust are  Stephen C.
     Miller, Larry Dunlap and Badlands. Badlands is the sole trustee for each of
     the Susan  Trust,  the John Trust and the SWI Trust.  Mr.  Horejsi is not a
     beneficiary under any of the foregoing trusts. Badlands has sole discretion
     with respect to the Susan Trust,  John Trust and SWI Trust while any action
     by  the  Evergreen   Trust  requires  a  majority  vote  of  the  trustees.
     Consequently,   both  the  trusts  and  each  trustee  disclaim  beneficial
     ownership of shares owned by EALLC. Mr. Horejsi is the manager of EALLC.


(3)  Ownership by Badlands.  The number shown includes shares that may be deemed
     to be beneficially  owned indirectly by Badlands through direct or indirect
     ownership by the Brown Trust,  the EH Trust,  EALLC,  Evergreen  Trust, the
     Susan Trust, the John Trust and the SWI Trust. Badlands is the sole trustee
     of the Susan Trust,  the John Trust and the SWI Trust,  which together with
     the  Evergreen  Trust  control  EALLC (see  Footnote  No. 2), the other two
     trustees  of  Evergreen  Trust being  Stephen C.  Miller and Larry  Dunlap.
     Badlands,  together  with Larry  Dunlap and Susan  Ciciora  (Mr.  Horejsi's
     daughter),  is one of three  trustees  of both the  Brown  Trust and the EH
     Trust.

     Badlands is a limited  liability company organized under the laws of Alaska
     authorized to do business as a trust company,  which is wholly owned by the
     SRH Trust,  an irrevocable  trust  organized by Mr. Stewart Horejsi for the
     benefit of his issue. The Managers of Badlands are Larry Dunlap, Stephen C.
     Miller, Laura Tatooles,  Laura Rhodenbaugh and Ron Kukes.  Badlands and its
     managers  disclaim  beneficial  ownership of shares  owned  directly by the
     EALLC, the Evergreen Trust, the Susan Trust, the John Trust, the SWI Trust,
     the Brown Trust and the EH Trust.

(4)  Indirect  Ownership by SRH Trust.  The number  shown in the table  reflects
     shares that may be deemed to be beneficially  owned indirectly  through the
     SRH  Trust's  ownership  of  Badlands.  The  trustees  of the SRH Trust are
     Badlands,  Laura Tatooles and Brian Sippy.  Both the Trust and its trustees
     disclaim  beneficial  ownership of shares  beneficially  owned  directly or
     indirectly by Badlands.

----------------------------

     Information as to beneficial  ownership in the previous  paragraph has been
obtained from a representative of the beneficial  owners;  all other information
as to  beneficial  ownership is based on reports filed with the  Securities  and
Exchange Commission (the "SEC") by such beneficial owners.

     As of the Record Date, Cede & Co., a nominee  partnership of the Depository
Trust Company, held of record, but not beneficially, 12,278,256 shares or 99.51%
of Common Stock outstanding and 775 shares or 100% of AMPS outstanding.

     As of the Record Date, the executive officers and directors of the Fund, as
a group,  owned  5,410,381  shares of Common  Stock (this  amount  includes  the
aggregate  shares of Common  Stock  owned by the  Horejsi  Affiliates  set forth
above) and 0 shares of AMPS, representing 43.85% of Common Stock outstanding and
0% of AMPS.

     In order  that your  Shares  may be  represented  at the  Meeting,  you are
requested to vote on the following matters:



                                   PROPOSAL 1

                        ELECTION OF DIRECTORS OF THE FUND

     The Charter  provides  that all of the  Directors  stand for election  each
year. The Board has nominated the following five Director  nominees to stand for
election,  each for a one-year term and until their  successors are duly elected
and  qualify:  Richard I. Barr,  Joel W.  Looney,  Dennis R.  Causier,  Susan L.
Ciciora and Dr. Dean L. Jacobson.  Only the Common Stock holders are entitled to
vote on the election of Messrs.  Looney,  Causier and Jacobson and only the AMPS
holders are entitled to vote on the election of Mr. Barr and Ms.  Ciciora.  At a
regularly  scheduled meeting of the Board of Directors held on January 26, 2006,
Alfred  G.  Aldridge,  Jr.  notified  the  Board  that he would  not  stand  for
re-election as a Director of the Fund and the Board (upon  recommendation of the
Nominating  Committee) nominated Dennis R. Causier to fill his upcoming vacancy.
The above  nominees  have  consented  to serve as  Directors  if  elected at the
Meeting for the one-year term. If the designated  nominees  decline or otherwise
become unavailable for election,  however, the proxy confers discretionary power
on the  persons  named  therein  to vote in favor  of a  substitute  nominee  or
nominees for the Board.





     INFORMATION ABOUT DIRECTORS AND OFFICERS.  Set forth in the following table
is information about the nominees for election to the Board of Directors:



--------------------------------- ------------------------ ------------------------------------------------ -----------------
Name, Address*, Age                 Position, Length of           Principal Occupation(s) and Other         Number of Funds
                                   Term Served, and Term    Directorships Held During the Past Five Years       in Fund
                                         of Office                                                              Complex+
                                                                                                              Overseen by
                                                                                                                Director
--------------------------------- ------------------------ ------------------------------------------------ -----------------
                                                                                                          

Independent Directors
Richard I. Barr                   Director of the Fund     Retired.    Manager,    Advantage   Sales   and         3
Chairman                          since 1999.  Chairman    Marketing,  Inc. (food  brokerage),  1963-2001;
Age:  67                          of the Board since       Director,  Boulder Growth & Income Fund,  Inc.,
                                  2003. Current Nominee    since 2002; Director, First Financial Fund,
                                  for a term to expire     Inc., since 2001.
                                  at the 2007 annual
                                  meeting.

Joel W. Looney,                   Director of the Fund     Partner,   Financial   Management   Group,  LLC         3
Age:  43                          since 2001. Current      (investment  adviser),  since July  1999;  CFO,
                                  Nominee for a term to    Bethany College,  1995-1999;  Director, Boulder
                                  expire at the 2007       Growth  & Income  Fund,  Inc.,  since  2002 and
                                  annual meeting.          Chairman of the Board since 2004;  Director and
                                                           Chairman of the Board,  First  Financial  Fund,
                                                           Inc., since 2003.

Dennis R. Causier**               Current Nominee for a    Retired.  Managing Director and Chairman,  P.S.         2
Age: 57                           term to expire at the    Group,  PLC  (engineering  and   construction),
                                  2007 annual meeting.     1966-2001;     Owner,     Professional    Yacht
                                                           Management    Services   (yacht    management),
                                                           2002-present.   Director,   Boulder   Growth  &
                                                           Income Fund, Inc., since 2004; Director,  First
                                                           Financial Fund, Inc., since 2004.

Dr. Dean L. Jacobson              Director of the Fund     Founder and President of Forensic  Engineering,         2
Age:  67                          since October 2004.      Inc. (engineering investigations);  since 1997,
                                  Current Nominee for a    Professor    Emeritus    at    Arizona    State
                                  term to expire at the    University;   prior  to  1997,   Professor   of
                                  2007 annual meeting.     Engineering   at  Arizona   State   University;
                                                           Director,  First  Financial Fund,  Inc.,  since
                                                           2003.
--------------------------------- ------------------------ ------------------------------------------------ -----------------
Interested Director***
--------------------------------- ------------------------ ------------------------------------------------ -----------------
Susan L. Ciciora                  Director of the Fund     Trustee  of the  Brown  Trust and the EH Trust;         1
Age:  41                          since 2001.  Current     Director  of  Horejsi  Charitable   Foundation,
                                  nominee for a term to    Inc.  (private  charitable  foundation),  since
                                  expire at the 2007       1997;  Director,  Boulder Growth & Income Fund,
                                  annual meeting.          Inc.,  January 2002 to October 2004;  Director,
                                                           First Financial Fund, Inc., since 2003.


* Unless  otherwise  specified,  the  Directors'  respective  addresses  are c/o
Boulder Total Return Fund, Inc., 1680 38th Street, Suite 800, Boulder,  Colorado
80301.

** Mr.  Causier is a British  citizen and a resident of Spain and  substantially
all of his assets are located outside of the United States.  As a result, it may
be difficult to realize  claims in courts of the United States  predicated  upon
civil liabilities under federal  securities laws of the United States.  The Fund
has been advised that there is substantial doubt as to (i) the enforceability in
Spain of such civil  remedies  and  criminal  penalties  as are  afforded by the
federal  securities  laws of the United States,  (ii) whether the Spanish courts
would enforce  judgments of United States courts obtained in actions against Mr.
Causier predicated upon the civil liability provisions of the federal securities
laws, or (iii) whether  Spanish  courts would  enforce,  in an original  action,
liabilities  against Mr. Causier  predicated solely on federal  securities laws.
Mr. Causier has appointed the Secretary of the Fund (presently  Stephanie Kelley
in Boulder, Colorado) as his agent for service of process in any legal action in
the United States,  thus subjecting him to the jurisdiction of the United States
courts

*** Ms.  Ciciora  is an  "interested  person"  as a result of the  extent of her
beneficial  ownership  of Fund shares and by virtue of her  indirect  beneficial
ownership of BIA and FAS.

+ Includes  the Fund,  Boulder  Growth & Income Fund,  Inc. and First  Financial
Fund, Inc.

----------------------------

     From the late 1980's  until  January,  2001,  Mr.  Looney  served,  without
compensation,  as  one of  three  trustees  of the  Mildred  Horejsi  Trust,  an
affiliate of the EH Trust.




     The names of the  executive  officers  of the Fund are  listed in the table
below.  Each  officer  was  elected to office by the Board at a meeting  held on
April 26, 2005. This table also shows certain additional  information.  Officers
are elected  annually  and each  officer will hold such office until a successor
has been elected by the Board.



------------------------------ -------------------------- ----------------------------------------------------------
                                  Position, Length of
Name, Address, Age             Term Served, and Term of     Principal Occupation(s) and Other Directorships held
                        Office During the Past Five Years
------------------------------ -------------------------- ----------------------------------------------------------
                                                    

Stephen C. Miller              President of the Fund      President  of and  General  Counsel  for BIA since  1999;
1680 38th Street,              since 1999 and Director    Manager, Fund Administrative  Services, LLC ("FAS") since
Suite 800                      from 1999 through          1999;  Vice  President  of SIA since 1999;  Director  and
Boulder, CO 80301              October 2004.  Appointed   President of Boulder  Growth & Income Fund,  Inc.,  since
Age:  53                       annually.                  2002  (resigned  as  Director  in  2004);   Director  and
                                                          President of First Financial Fund, Inc. since 2003 (resigned
                                                          as Director and Chairman in 2004); President and General
                                                          Counsel, Horejsi, Inc. (liquidated in 1999); General Counsel,
                                                          Brown Welding Supply, LLC (sold in 1999); officer of various
                                                          other Horejsi Affiliates; Of Counsel, Krassa & Miller, LLC
                                                          since 1991.

Carl D. Johns                  Chief Financial Officer,   Vice President and Treasurer of BIA and Assistant
1680 38th Street,              Chief Accounting           Manager of FAS, since April, 1999; Vice President, Chief
Suite 800                      Officer, Vice President    Financial Officer and Chief Accounting Officer, Boulder
Boulder, CO 80301              and Treasurer since        Growth & Income Fund, Inc., since January 2002 and First
Age: 43                        1999.  Appointed           Financial Fund, Inc., since August 2003.
                               annually.

Stephanie J. Kelley            Secretary since 2000.      Secretary, Boulder Growth & Income Fund, Inc., since
1680 38th Street,              Appointed annually.        January 2002 and First Financial Fund, Inc., since
Suite 800                                                 August 2003; Assistant Secretary and Assistant Treasurer
Boulder, CO 80301                                         of various other entities affiliated with the Horejsi
Age:  49                                                  family; employee of FAS since March 1999.

Nicole L. Murphey              Assistant Secretary        Assistant Secretary, Boulder Growth & Income Fund, Inc.
1680 38th Street,              since 2000.  Appointed     since January 2002 and First Financial Fund, Inc. since
Suite 800                      annually.                  August 2003; employee of FAS since July 1999.
Boulder, CO 80301
Age:  29



     Set forth in the following table are the nominees for election to the Board
together with the dollar range of equity securities  beneficially  owned by each
Director as of the Record  Date,  as well as the  aggregate  dollar range of the
Fund's  equity  securities  in all  funds  overseen  in a family  of  investment
companies  (i.e.,  other  funds  managed  by  BIA  and  SIA  (collectively,  the
"Advisers")).




                                   OWNERSHIP OF THE FUND BY DIRECTORS
---------------------------------------------------------------------------------------------------------
-------------------------------------- -------------------------------- ---------------------------------
 Independent Directors and Nominees        Dollar Range of Equity          Aggregate Dollar Range of
                                           Securities in the Fund        Equity Securities in All Funds
                                                                          in the Family of Investment
                                                                                   Companies
-------------------------------------- -------------------------------- ---------------------------------

                                                                        
           Richard I. Barr                      Over $100,000                    Over $100,000
           Joel W. Looney                    $50,001 to $100,000                 Over $100,000
          Dean L. Jacobson                   $10,001 to $50,000                $10,001 to $50,000
          Dennis R. Causier                     Under $10,000                 $50,001 to $100,000

  Interested Directors and Nominees
-------------------------------------- -------------------------------- ---------------------------------

          Susan L. Ciciora                     Over $100,000+                    Over $100,000



+ 3,413,138,  343,748 and 1,370,515 Shares of the Fund are held by the EH Trust,
EALLC and the Lola Trust, respectively.  Accordingly,  Ms. Ciciora may be deemed
to have indirect beneficial  ownership of such Shares. Ms. Ciciora disclaims all
such beneficial ownership. Ms. Ciciora directly owns 6,267 shares of the Fund.

---------------------------

     None  of  the   independent   Directors  or  their  family   members  owned
beneficially  or of record any securities of the Advisers or any person directly
or  indirectly  controlling,  controlled  by, or under  common  control with the
Advisers.


     DIRECTOR AND OFFICER  COMPENSATION.  The following table sets forth certain
information  regarding the  compensation of the Fund's  Directors for the fiscal
year ended November 30, 2005. No persons (other than the independent  Directors,
as set forth below) currently receive compensation from the Fund for acting as a
Director or officer. Directors and executive officers of the Fund do not receive
pension or retirement benefits from the Fund.  Non-interested  Directors receive
reimbursement for travel and other out of pocket expenses incurred in connection
with Board meetings.




                                              Aggregate
                                             Compensation
Name of Person and Position with the        from the Fund       Total Compensation from
Fund                                           Paid to         the Fund and Fund Complex
                                              Directors            Paid to Directors
----------------------------------------- ------------------- ----------------------------
                                                                  
Alfred G. Aldridge, Jr., Director              $29,000                  $54,000
                                                                       (2 funds)

Richard I. Barr, Director and Chairman         $33,000                  $87,000
of the Board                                                           (3 funds)

Joel W. Looney, Director                       $32,000                 $100,000
                                                                       (3 funds)

Dr. Dean Jacobson, Director                    $29,000                  $57,500
                                                                       (2 funds)

Dennis R. Causier, Director Nominee               $0                    $53,500
                                                                       (2 funds)

Susan L. Ciciora, Director                        $0                      $0



     Each  Director of the Fund who was not a  Director,  officer or employee of
one of the Advisers,  or any of their  affiliates,  receives a fee of $8,000 per
annum plus  $4,000  for each in person  meeting,  $500 for each Audit  Committee
meeting and $500 for each  telephonic  meeting of the Board.  In  addition,  the
Chairman of the Board and the Chairman of the Audit  Committee  receives  $1,000
per meeting.  Each non-interested  Director of the Fund is reimbursed for travel
and  out-of-pocket  expenses  associated  with  attending  Board  and  Committee
meetings.  The Board  held ten  meetings  (six of which  were held by  telephone
conference  call) during the fiscal year ended November 30, 2005.  Each Director
currently  serving in such capacity for the entire fiscal year attended at least
75% of the  meetings of  Directors  and any  Committee  of which he is a member.
Directors  currently  serving  and who served  less than the entire  fiscal year
attended at least 75% of such  meetings  held during their tenure as a Director.
The aggregate  remuneration paid to the Directors of the Fund for acting as such
during the fiscal year ended November 30, 2005 amounted to $123,000.


                      COMMITTEES OF THE BOARD OF DIRECTORS

     AUDIT  COMMITTEE;  REPORT  OF AUDIT  COMMITTEE.  The  purpose  of the Audit
Committee is to assist Board oversight of the integrity of the Fund's  financial
statements,  the Fund's compliance with legal and regulatory  requirements,  the
independent auditor's qualifications and independence and the performance of the
Fund's independent  auditors.  The Audit Committee reviews the scope and results
of  the  Fund's  annual  audit  with  the  Fund's  independent  accountants  and
recommends  the  engagement  of  such  accountants.   Management,   however,  is
responsible  for the  preparation,  presentation  and  integrity  of the  Fund's
financial  statements,  and the  independent  accountants  are  responsible  for
planning  and carrying  out proper  audits and  reviews.  The Board of Directors
adopted a written  charter for the Audit  Committee on January 23, 2002 and most
recently  amended the Charter on January 23, 2004. A copy of the Audit Committee
Charter was attached as an appendix to the Fund's 2004 annual proxy statement.

     The  Audit  Committee  is  composed  entirely  of  the  Fund's  independent
Directors,  consisting of Messrs. Aldridge, Barr, Jacobson and Looney. The Board
of Directors has determined  that Joel Looney  qualifies as an "audit  committee
financial  expert," as defined under the  Securities  and Exchange  Commission's
Regulation  S-K,  Item  401(h).  The  Audit  Committee  is  in  compliance  with
applicable  rules  of  the  listing   requirements  for  closed-end  fund  audit
committees, including the requirement that all members of the audit committee be
"financially  literate" and that at least one member of the audit committee have
"accounting  or related  financial  management  expertise," as determined by the
Board.  The Audit  Committee is required to conduct its operations in accordance
with applicable  requirements of the  Sarbanes-Oxley  Act and the Public Company
Accounting  Oversight  Board, and the members of the Audit Committee are subject
to the fiduciary duty to exercise  reasonable care in carrying out their duties.
Each member of the Audit  Committee is  independent,  as that term is defined by
the NYSE Listing Standards. The Audit Committee met four times during the fiscal
year ended November 30, 2005.

     In  connection  with the  audited  financial  statements  as of and for the
period ended  November 30, 2005,  included in the Fund's  Annual  Report for the
period  ended  November  30, 2005 (the  "Annual  Report"),  at a meeting held on
January 26, 2006,  the Audit  Committee  considered  and  discussed  the audited
financial  statements  with  management  and the  independent  accountants,  and
discussed  the  audit  of  such  financial   statements   with  the  independent
accountants.

     The Audit  Committee has received the written  disclosures  and letter from
the independent  accountants  required by Independence  Standards Board Standard
No. 1 (Independence  Discussions  with Audit  Committees) and has discussed with
independent  accountants their independence.  The Audit Committee discussed with
the independent  accountants the accounting  principles  applied by the Fund and
such  other  matters  brought to the  attention  of the Audit  Committee  by the
independent  accountants  required by  Statement of Auditing  Standards  No. 61,
Communications With Audit Committees, as currently modified or supplemented.


     The members of the Audit  Committee are not  professionally  engaged in the
practice  of  auditing  or  accounting  and are not  employed by the Fund in any
accounting,  financial  management or internal control capacity.  Moreover,  the
Audit  Committee  relies on and makes no independent  verification  of the facts
presented  to it or  representations  made  by  management  or  the  independent
accountants.  Accordingly,  the Audit Committee's  oversight does not provide an
independent  basis to  determine  that  management  has  maintained  appropriate
accounting and financial reporting principles and policies, or internal controls
and procedures,  designed to assure  compliance  with  accounting  standards and
applicable   laws  and   regulations.   Furthermore,   the   Audit   Committee's
considerations  and discussions  referred to above do not provide assurance that
the audit of the Fund's financial  statements has been carried out in accordance
with generally accepted  accounting  standards or that the financial  statements
are presented in accordance with generally accepted accounting principles.

     Based on its  consideration  of the audited  financial  statements  and the
discussions  referred to above with management and the  independent  accountants
and  subject to the  limitation  on the  responsibilities  and role of the Audit
Committee  set  forth in the  charter  and  those  discussed  above,  the  Audit
Committee  of the Fund  recommended  to the  Board  that the  audited  financial
statements be included in the Fund's Annual Report and be mailed to stockholders
and filed with the SEC.

     Submitted by the Audit Committee of the Fund's Board of Directors:

                  Alfred G. Aldridge, Jr.
                  Richard I. Barr
                  Dean L. Jacobson
                  Joel W. Looney

     NOMINATING  COMMITTEE.  The Board of Directors  has a nominating  committee
(the "Nominating  Committee") consisting of Messrs. Looney,  Jacobson,  Aldridge
and Barr,  which is responsible for  considering  candidates for election to the
Board in the  event a  position  is  vacated  or  created.  Each  member  of the
Nominating Committee is independent, as that term is defined by the NYSE Listing
Standards.  The  Nominating  Committee did not meet during the fiscal year ended
November 30, 2005. The Nominating Committee met on January 16, 2006 and again on
January 26, 2006, to consider the  nomination  of Dennis R.  Causier.  Dennis R.
Causier was being  considered to fill a vacancy on the Board  resulting from the
resignation of Alfred G. Aldridge, Jr. At this meeting, the Nominating Committee
considered  the  qualifications  and  determined  the  suitability  of Dennis R.
Causier  to  be  Director  and  resolved  to  recommend  Dennis  R.  Causier  to
stockholders for election at the 2006 Annual Meeting.

The Board of Directors has adopted a charter for the  Nominating  Committee that
is  available  on  the  Fund's  website,  www.boulderfunds.net.  The  Nominating
Committee  does  not have a  formal  process  for  identifying  candidates.  The
Nominating   Committee  takes  into  consideration  such  factors  as  it  deems
appropriate  when  nominating  candidates.  These factors may include  judgment,
skill,  diversity,  experience with investment companies and other organizations
of  comparable   purpose,   complexity,   size  and  subject  to  similar  legal
restrictions and oversight, the interplay of the candidate's experience with the
experience of other Board members,  and the extent to which the candidate  would
be a desirable addition to the Board and any committees thereof.  The Nominating
Committee  will  consider  all  qualified  candidates  in the same  manner.  The
Nominating  Committee  may modify  its  policies  and  procedures  for  director
nominees and recommendations in response to changes in the Fund's circumstances,
and as applicable legal or listing standards change.

     The Nominating Committee would consider director candidates  recommended by
stockholders  (if a vacancy  were to exist) and  submitted  in  accordance  with
applicable  law and  procedures  as  described  in  this  Proxy  Statement  (see
"Submission of Stockholder  Proposals" below).  Such  recommendations  should be
forwarded to the Secretary of the Fund.

     The Fund does not have a compensation committee.





                           OTHER BOARD-RELATED MATTERS

     Stockholders who wish to send  communications to the Board should send them
to the  address  of  the  Fund  and to the  attention  of the  Board.  All  such
communications will be directed to the Board's attention.

     The Fund does not have a formal policy regarding Board member attendance at
the Annual Meeting of Stockholders;  however,  all of the Directors of the Fund,
who were  Directors at the time,  attended the April 26, 2005 Annual  Meeting of
Stockholders.

     Vote  Required.  The  election of Messrs.  Looney,  Jacobson and Causier as
Directors  of the Fund will require the  affirmative  vote of a plurality of the
votes cast by holders of the Common  Stock at the  Meeting in person or by proxy
on Proposal 1. The election of Mr. Barr and Ms. Ciciora as Directors of the Fund
will  require  the  affirmative  vote of a  plurality  of the votes  cast by the
holders of the AMPS at the Meeting in person or by proxy on Proposal 1.

THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS,  UNANIMOUSLY
RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" THE ELECTION OF ALL THE NOMINEES.


                                   PROPOSAL 2

              CHARTER AMENDMENTS RELATING TO THE TERMS OF THE AMPS

The second proposal to be considered at the Meeting is approval of amendments to
the  charter  of the  Fund,  which  will  repeal  in their  entirety  all of the
currently  existing terms of the Fund's taxable  auction market  preferred stock
(the  "AMPS")  and  substitute  in lieu  thereof  the new terms set forth in the
proposed Form of Articles of Amendment for the Fund (the  "Articles")  described
below and attached to this Proxy  Statement  as Exhibit [B] (the  "Amendments").
The Board proposes and  unanimously  recommends  that  stockholders  approve the
Amendments.

Purpose of the Amendments.  Presently,  the Fund is leveraged with $77.5 million
of taxable  auction market  preferred  stock.  The AMPS are auctioned  through a
Dutch  auction  process  every 28 days at which time a new interest rate is set.
Presently  the  AMPS are  rated by two  national  credit  rating  organizations,
Moody's  Investors  Services,  Inc.  ("Moody's")  and Standard & Poor's  ("S&P")
(Moody's and S&P are  collectively  referred to as the "Rating  Agencies").  The
ratings are  presently  "Aa1" from  Moody's  and "AA" from S&P (the  "Ratings").
Since auction  market  preferred  rates are typically  lower for auction  market
preferred stocks that have  higher/better  credit ratings,  the Fund anticipates
that, if upgraded, the AMPS will typically receive better auction interest rates
for the Fund,  thus reducing the dividend  expenses  associated  with the Fund's
leverage.  Accordingly,  management has recommended that the Ratings be upgraded
to "Aaa" and "AAA" respectively.

Because  the  conditions  for  upgrading  the  AMPS to  "Aaa"  and  "AAA"  rated
instruments  are largely a factor of asset  coverage,  and  because  most of the
asset coverage  definitions and calculations are set forth in the charter of the
Fund, including the Articles  Supplementary  setting forth the terms of the AMPS
(the "Current AMPS Terms"),  upgrading the AMPS will require extensive revisions
to the Current AMPS Terms. In addition to amending the coverage  definitions and
calculation  provisions of the Current AMPS Terms,  management  has  recommended
that  the  Fund  also  amend  the  Current   AMPS  Terms  to  deal  with  market
interruptions  resulting  from force majeure  events such as the 9-11  terrorist
attacks and the termination of  AMPS-elected  directors upon the Fund's complete
redemption  of the  AMPS.  These  last two  provisions  are  commonplace  in the
governing documents for recently issued auction market preferred stock. Finally,
the Current AMPS Terms are amended  versions  from an original that is almost 20
years old which were  extensively  revised in 2000 to deal with changing  rating
agencies and changing from a  dividend-received-deduction-eligible  product to a
taxable product.  Management  believes that, since it must extensively amend the
Current  AMPS Terms in any event in  connection  with  upgrading  the AMPS,  the
Amendments  will vastly simplify the Current AMPS Terms,  eliminate  ambiguities
and  inconsistencies,  and bring the  Current  AMPS Terms into  conformity  with
current  rating agency and auction  market  preferred  practices.  Upgrading the
Ratings as described above is not conditioned on the passage of this Proposal as
the Fund has other avenues it can pursue to upgrade the Ratings without amending
the Current AMPS Terms.

At Board  Meetings held in July and October of 2005 and January 2006,  the Board
considered  recommendations  from  management  to upgrade the AMPS as  discussed
above.  At the January 2006 Board meeting,  the Board approved a  recommendation
from  management  to upgrade  the  Ratings  and, in  connection  therewith,  the
Amendments,  subject to  shareholder  approval and subject to receipt of certain
confirmations from the Rating Agencies. The Board considered a number of factors
in its  deliberations,  including  that (i)  upgrading the AMPS from the current
"Aa1" and "AA" ratings to "Aaa" and "AAA" should reduce the Fund's relative cost
of leverage;  (ii) extensive amendment of the Current AMPS Terms is necessary to
facilitate  the  upgrade of the AMPS in any  event;  (iii) the  Amendments  will
modernize  the  Current  AMPS Terms and  simplify  and  streamline  the  auction
procedures,  coverage calculations and other testing and oversight procedures of
the Current AMPS Terms;  (iv) the Amendments will not adversely  affect the AMPS
or the contract  rights of the AMPS nor will it impair the ratings by the Rating
Agencies,  indeed it will  enhance the  ratings;  (v) with respect to changes to
deal with force  majeure  events,  the  Amendments  ensure that,  if a terrorist
attack or other  force  majeure  event were to occur,  the AMPS  auction  can be
conducted  pursuant to clear  procedures set forth in the Amendments and without
detriment to the Fund or its holders of Common  Stock;  and (vi) with respect to
termination of the AMPS directors upon redemption of the AMPS, in the event of a
redemption  in full of the AMPS,  separate  representatives  for the AMPS  would
serve no valid business  purpose.  Finally,  the Board found that the Amendments
were consistent with current market practice for new issuances of auction market
preferred stock.  Indeed,  the Fund's sister fund, Boulder Growth & Income Fund,
Inc.   recently   issued  "AAA"  rated  auction  market   preferred  stock  with
substantially the same terms as those proposed under this Proposal. Accordingly,
for the foregoing reasons,  the Board found that the Amendments were in the best
interest of the Fund. The Fund has had  conversations  with both Rating Agencies
about the Amendments.  The Rating Agencies have indicated preliminarily that the
changes would not impair their ratings on the AMPS. In any event, the Amendments
will not be implemented  unless both Rating Agencies confirm that the Amendments
will not impair the Ratings.


The following Comparison Table summarizes the proposed Amendments to the Current
AMPS Terms.  This  summary is  qualified  in its  entirety by  reference  to the
Amendments  as set forth in the Form of Articles of  Amendment  attached to this
Proxy Statement as Exhibit B.



                                Comparison Table

                  Current AMPS Terms versus Amended AMPS Terms



Provision or Subject         Current AMPS Terms                                 Proposed Amended AMPS Terms
---------------------------- -------------------------------------------------- -------------------------------------------------

                                                                          
Determination and Payment    The Fund's auctions are held every fourth          There are no substantive changes.
of Dividends                 Tuesday and dividends for the preceding period
                             are paid on the Wednesday immediately following
                             each auction date.  The dividend rate is set by
                             auction.
Auction Procedures                                                              There are no substantive changes.

Force Majeure Events         The Current AMPS Terms do not provide for          The Amendments contain provisions establishing
                             auction procedures in the event of a terrorist     procedures to be followed in instances where an
                             attack or other force majeure event that affects   AMPS auction cannot be held, or the auction
                             the national markets.                              agent for the Fund is not able to conduct an
                                                                                auction in accordance with the established
                                                                                auction procedures, or the dividend payable
                                                                                on such date cannot be paid because
                                                                                the date on which the auction normally would be held
                                                                                (or thedividend  would be paid) is not a business
                                                                                day  because the NYSE is closed because of an
                                                                                Extraordinary  Event (e.g., an act of God, natural
                                                                                disaster,  extreme weather,  act of war, civil or
                                                                                military disturbance,  act of terrorism,  sabotage,
                                                                                riots   or  a  loss   or   malfunction   of
                                                                                utilities or communications  services).  The
                                                                                Amendments establish how the dividend rate is
                                                                                determined, when the dividend will be paid,
                                                                                and  how  a  dividend  period  will  be  established
                                                                                if  an Extraordinary Event occurs.

Termination of AMPS          The Current AMPS Terms do not provide for          Under the Current AMPS Terms and the 1940
Directors upon Redemption    termination of the AMPS Directors upon a           Act, holders of the AMPS, voting as a single
of the AMPS                  redemption of the AMPS.                            class, are entitled to elect two of the Fund's
                                                                                directors  while holders of the Common Stock are
                                                                                entitled to elect the remaining  directors.  The
                                                                                Amendment provides that directors  elected  by
                                                                                holders  of the AMPS will  terminate automatically
                                                                                upon full redemption of the AMPS.  Notably, in
                                                                                such a  redemption  in  full,  all  obligations  to
                                                                                the AMPS holders  will cease and  separate
                                                                                representatives for them would serve no valid
                                                                                business  purpose.  Moreover,  in this circumstance,
                                                                                the 1940  Act  provision  requiring  separate
                                                                                representatives  for  holders of  preferred  stock
                                                                                would no longer apply.

Rating Agency
Guidelines                   The Rating Agency guidelines were                  The Rating Agency guidelines are only referenced in
                             incorporated in various provisions throughout      the Amendment, thus giving the Rating Agencies the
                             the text of the Current AMPS Terms.                ability to amend the guidelines without amending the
                                                                                terms of the AMPS.


Amendment or Modification    Without the affirmative vote of at least a         The provisions in the Amendment are
- Stockholder Approval       majority of the AMPS shares, the Fund may not      substantially the same as those in the Current
Required                     amend, alter or repeal the AMPS terms so as to     AMPS Terms.
                             adversely affect in any material respect any of the
                             contract rights associated with the AMPS or alter,
                             modify or eliminate any of the rights, preferences
                             or privileges of the AMPS so as to adversely affect
                             the AMPS.

Amendment or Modification    The Board, without the vote or consent of the      The Amendments provide that the rights of the
- No Stockholder Approval    AMPS stockholders, may from time to time amend     AMPS or the holders thereof, including, without
Required                     the Current AMPS Terms, if (A) such amendment,     limitation, the interpretation or applicability
                             alteration or repeal is at the request of a        of any or all covenants or other obligations of
                             Rating Agency and (B) it is determined by the      the Fund contained in the AMPS terms or of
                             Board that the amendment will not adversely        certain definitions in the AMPS terms, may from
                             affect the contract rights of shares of AMPS or    time to time be modified, altered or repealed
                             adversely affect the AMPS as supported by the      by the Board of Directors in its sole
                             Fund's counsel's opinion.                          discretion, based on a determination by the
                                                                                Board  of  Directors   that  such  action  is
                                                                                necessary  or appropriate in connection  with
                                                                                obtaining or maintaining the rating of any  Rating
                                                                                Agency  with  respect  to the AMPS or revising  the
                                                                                Fund's  investment  restrictions  or  policies
                                                                                consistent  with  guidelines of any Rating  Agency,
                                                                                and any such  modification,  alteration or repeal
                                                                                will not be deemed to affect the  preferences,
                                                                                rights or powers of AMPS or the holders  thereof,
                                                                                provided  that  the  Board  of  Directors
                                                                                receives  written  confirmation  from each  relevant
                                                                                Rating  Agency  that any such  modification,
                                                                                alteration  or  repeal would not adversely  affect
                                                                                the rating then assigned by such Rating Agency.

Amendment of Certain         The Board, without the vote or consent of the      The Amendment contains substantially similar
Rating Agency Definitions    AMPS stockholders, may from time to time amend     language. However, in addition, the Rating
                             certain rating agency definitions provided that    Agency guidelines, which contain most of the the
                             Board receives confirmation from the               Rating Rating Agency definitions, may be amended by
                             Agencies that the amendment does not impair the    the respective Rating Agency without the vote,
                             Ratings then assigned.                             consent or approval of the Board, or any holder
                                                                                of shares of the AMPS, including any series
                                                                                of AMPS, or any other stockholder of  the Fund.

Increases in Capitalization  The affirmative vote of at least 80% of the AMPS   The Board is permitted to cause the issuance of
                             shares is required to authorize, create or issue   additional shares of the AMPS or other
                             any class or series of stock ranking prior to or   preferred stock ranking on a parity with the
                             on a parity with the AMPS with respect to          the AMPS if the Fund obtains written confirmation
                             payment of dividends or the distribution of        from the Rating Agencies that the issuance of a
                             assets upon dissolution, liquidation or winding    class or series would not impair the rating
                             up of the affairs of the Fund.                     then assigned by such rating agency to the
                                                                                AMPS.  Otherwise,  the  affirmative  vote of a
                                                                                majority  of outstanding AMPS shares is required to
                                                                                issue additional AMPS or other preferred shares.

Dividend Payment Dates       Every fourth Wednesday, subject to adjustments     No changes.
                             for special rate periods.

Maximum Length of Special    There is no express limit on the length of a       Designation of special dividend periods longer
Rate Periods                 special rate period.                               than 28 days are limited to a maximum of 5
                                                                                years.

Late Charge on Any Failure   The late charge is calculated using 275% of the    The late charge is calculated using 300% of the
to Deposit                   "AA" composite commercial paper rate.              LIBOR rate.

Designation of AMPS          There are no provisions regarding how AMPS         The Board determines which Directors are to be
Directors                    Directors are designated or which Directors are    designated AMPS Directors and elected by the
                             to be AMPS Directors and elected by the holders    holders of the AMPS.
                             of the AMPS.

Special Meetings to Elect    Special meetings for the election of additional    Special meetings for the election of additional
Additional AMPS Directors    AMPS directors (e.g., if the Fund fails to pay     AMPS directors are to be held not less than 10
                             its AMPS dividend) are to be held not less than    nor more than 20 days after mailing the notice.
                             10 nor more than 30 days after mailing the
                             notice.

Restrictions on Dividends    No dividends may be declared or paid or set        No substantive changes.
                             apart for payment on any of the Fund's
                             securities ranking, as to the payment of
                             dividends, on a parity with the AMPS unless full
                             cumulative dividends have been or
                             contemporaneously are declared and paid on the
                             shares of AMPS and any other parity stock
                             through the most recent dividend payment date.
                             When dividends are not so paid on the AMPS or
                             other parity stock, all dividends declared upon
                             shares of AMPS and any other such parity stock
                             shall be declared pro rata.  The AMPS  shall not
                             be entitled to any dividend, whether payable in
                             cash, property or stock, in excess of full
                             cumulative dividends.


                             As long as any the AMPS are outstanding, the Fund
                             may not declare, pay or set apart for payment any
                             dividend or other distribution in respect of the
                             Common Stock or any other stock of the Fund ranking
                             junior to the AMPS or call for redemption, redeem,
                             purchase or otherwise acquire for consideration any
                             Common Stock or any other shares of the Corporation
                             ranking junior to the AMPS as to dividends or upon
                             liquidation, unless (i) immediately thereafter, the
                             1940 Act asset coverage is met and the various
                             Rating Agency asset coverage ratios are met, (ii)
                             full cumulative dividends on all shares of AMPS for
                             all past rate periods have been paid or declared
                             and a sum sufficient for the payment of such
                             dividends set apart for payment; and (iii) the Fund
                             the Corporation has redeemed the full number of
                             shares of AMPS required to be redeemed by any
                             provision for mandatory redemption.

Redemption                   The Fund may redeem the AMPS in whole but not in   The Fund may redeem in whole or part upon prior
                             part upon prior notice (i.e., not less than 3      notice (i.e., not less than 15 calendar days
                             nor more than 33 days).                            and not more than 40 calendar days).

                             Notice for mandatory redemption is not less than   Notice for mandatory redemption is not less than 15
                             3 nor more than 33 days.                           calendar days nor more than 40 calendar days.

Status of AMPS Redeemed      Redeemed AMPS return to the status of authorized   Redeemed AMPS return to the status of
                             and unissued shares of AMPS.                       authorized and unissued shares of preferred
                                                                                stock, without further designation.

Liquidation Rights                                                              No substantive changes.



Vote Required.  Approval of the Amendments will require the affirmative  vote of
(a) a majority of the votes  entitled to be cast by the holders of Common  Stock
and AMPS,  voting  together  as a single  class and (b) a majority  of the votes
entitled to be cast by the holders of the AMPS, voting as a separate class.

THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS,  UNANIMOUSLY
RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" PROPOSAL 2.


                                   PROPOSAL 3

        AMENDMENT TO THE CHARTER WITH RESPECT TO THE NUMBER OF DIRECTORS

     The Board proposes and unanimously  recommends that stockholders approve an
amendment to the Fund's  Charter to provide  Section 5.1 of the  Charter,  which
states that the number of directors  of the Fund shall be five,  be made subject
to the  provisions of the AMPS or any new class or series of preferred  stock of
the Fund.  Both the Current  AMPS Terms as well as the  Amendments  contemplated
under  Proposal  2 above  provide  for  increasing  the size of the Board  under
certain  limited  circumstances  (e.g.,  if the Fund has not paid the  dividends
under the AMPS) so as to give the  holders  of the AMPS the  ability  to elect a
majority of the  Directors.  However,  given the  language of Section 5.1, it is
unclear whether the size of the Board could be legally increased under the terms
of the  Current  AMPS  Terms in order to give  the  AMPS  holders  the  majority
contemplated under the 1940 Act.

     Section 5.1 of the Charter reads as follows:

          The number of directors shall be five.

Proposal 3 would amend Section 5.1 of the Charter to read,  in its entirety,  as
follows:


     Subject to the terms of any class or series of Preferred  Stock, the number
of directors shall be five.

Purpose of the  Amendment.  The  purpose of this  Proposal is to  eliminate  the
conflict  between (i) the language of Section 5.1 of the Charter  which,  in its
present  form,   clearly  sets  the  number  of  Directors  at  five,  (ii)  the
requirements  imposed by the AMPS terms for the protection of the holders of the
AMPS and (iii) the requirements imposed by the 1940 Act which require provisions
to be made to allow the holders of the AMPS to elect a majority of the Directors
at any time dividends remain unpaid for a period of two years.

The Board  considered  this Proposal at a special meeting held on March 6, 2006.
The Board has  determined  that this  Proposal is  advisable to conform with the
1940 Act and the intent of the AMPS terms.

Vote  Required.  Approval  of  Proposal 3  requires  the  affirmative  vote of a
majority  of the votes  entitled  to be cast on the matter by the holders of the
Common Stock and AMPS, voting as a single class.

THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS,  UNANIMOUSLY
RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" PROPOSAL 3.


                       SUBMISSION OF STOCKHOLDER PROPOSALS

     Notice is hereby given that for a stockholder proposal to be considered for
inclusion in the Fund's proxy  material  relating to its 2007 annual  meeting of
stockholders,  the  stockholder  proposal  must be received by the Fund no later
than  November  15,  2006  [Based on a March 15, 2006  mailing  date].  Any such
proposal  shall set forth as to each  matter the  stockholder  proposes to bring
before the meeting (i) a brief description of the business desired to be brought
before the meeting and the reasons for conducting  such business at the meeting,
(ii)  the  name  and  address,  as  they  appear  on the  Fund's  books,  of the
stockholder proposing such business, (iii) the class and number of shares of the
capital stock of the Fund which are beneficially  owned by the stockholder,  and
(iv) any material  interest of the  stockholder  in such  business.  Stockholder
proposals,  including any accompanying supporting statement,  may not exceed 500
words.  A  stockholder  desiring  to  submit  a  proposal  must be a  record  or
beneficial owner of Shares with a market value of $2,000 and must have held such
Shares for at least one year.  Further,  the  stockholder  must continue to hold
such Shares through the date on which the meeting is held.  Documentary  support
regarding the  foregoing  must be provided  along with the  proposal.  There are
additional  requirements regarding proposals of stockholders,  and a stockholder
contemplating  submission  of a proposal is  referred to Rule 14a-8  promulgated
under the 1934 Act. The timely  submission  of a proposal does not guarantee its
inclusion in the Fund's proxy materials.

     Pursuant to the Fund's By-laws,  at any annual meeting of the stockholders,
only  business  that  has been  properly  brought  before  the  meeting  will be
conducted.  To be properly brought before the annual meeting,  the business must
be (i)  specified in the notice of meeting,  (ii) by or at the  direction of the
Board of Directors,  or (iii) otherwise properly brought before the meeting by a
stockholder.  For business to be properly brought before the annual meeting by a
stockholder, the stockholder must have given timely notice thereof in writing to
the  Secretary  of the  Fund.  To be  timely,  a  stockholder's  notice  must be
delivered to the  Secretary at 1680 38th Street,  Suite 800,  Boulder,  Colorado
80301 no later  than 5:00  p.m.,  Mountain  Time,  on the 120th day prior to the
first  anniversary of the date of mailing of the notice for the preceding year's
annual  meeting.  However,  if the date of the  annual  meeting is  advanced  or
delayed  by more  than 30 days  from the  first  anniversary  of the date of the
preceding year's annual meeting,  for notice by the stockholder to be timely, it
must be delivered not later than 5:00 p.m.,  Mountain  Time, on the later of the
120th day prior to the date of such  annual  meeting or the tenth day  following
the day on which public  announcement of the date of such meeting is first made.
The public  announcement  of a postponement  or adjournment of an annual meeting
shall not commence a new time period for the giving of a stockholder's notice as
described above.

     Pursuant to the Fund's By-laws,  such stockholder's  notice shall set forth
(i) as to each individual whom the stockholder proposes to nominate for election
or reelection as a director,  (A) the name, age,  business address and residence
address of such  individual,  (B) the class,  series and number of any shares of
stock of the Fund that are beneficially  owned by such individual,  (C) the date
such shares were acquired and the  investment  intent of such  acquisition,  (D)
whether  such  stockholder  believes  any  such  individual  is,  or is not,  an
"interested  person" of the Fund,  as  defined  in the 1940 Act and  information
regarding such individual that is sufficient,  in the discretion of the Board of
Directors or any  committee  thereof or any  authorized  officer of the Fund, to
make  such  determination  and  (E)  all  other  information  relating  to  such
individual  that is required to be  disclosed  in  solicitations  of proxies for
election of directors in an election contest (even if an election contest is not
involved), or is otherwise required, in each case pursuant to Regulation 14A (or
any  successor  provision)  under  the  Exchange  Act and the  rules  thereunder
(including  such  individual's  written  consent  to being  named  in the  proxy
statement as a nominee and to serving as a director if elected);  (ii) as to any
other  business  that the  stockholder  proposes to bring before the meeting,  a
description  of such  business,  the reasons for proposing  such business at the
meeting and any material  interest in such business of such  stockholder and any
Stockholder  Associated  Person  (as  defined  below),  individually  or in  the
aggregate,  including  any  anticipated  benefit  to  the  stockholder  and  the
Stockholder Associated Person therefrom;  (iii) as to the stockholder giving the
notice and any Stockholder  Associated Person,  the class,  series and number of
all shares of stock of the Fund which are owned by such  stockholder and by such
Stockholder  Associated  Person,  if any, and the nominee holder for, and number
of, shares owned  beneficially  but not of record by such stockholder and by any
such Stockholder Associated Person; (iv) as to the stockholder giving the notice
and any  Stockholder  Associated  Person  covered by the  immediately  preceding
clauses (ii) or (iii), the name and address of such stockholder,  as they appear
on the Fund's stock ledger and current name and address,  if  different,  and of
such  Stockholder  Associated  Person;  and  (v)  to  the  extent  known  by the
stockholder  giving the notice,  the name and  address of any other  stockholder
supporting  the nominee for election or reelection as a director or the proposal
of  other  business  on the  date of  such  stockholder's  notice.  "Stockholder
Associated  Person" of any  stockholder  shall mean (i) any person  controlling,
directly or indirectly,  or acting in concert with, such  stockholder,  (ii) any
beneficial  owner of shares of stock of the Fund owned of record or beneficially
by such  stockholder  and (iii) any person  controlling,  controlled by or under
common control with such Stockholder Associated Person.



                             ADDITIONAL INFORMATION

     INDEPENDENT  ACCOUNTANTS.  The Audit Committee of the Board,  consisting of
those Directors who are not  "interested  persons" (as defined in the 1940 Act),
will select the Fund's independent accountants for the Fund's fiscal year ending
November 30, 2006 at the Board's  regular  quarterly  meeting in July 2006. KPMG
served as independent accountants for the Fund for the Fund's fiscal year ending
November 30, 2005. A  representative  of KPMG will not be present at the Meeting
but will be  available  by  telephone  and will  have an  opportunity  to make a
statement if the  representative  so desires and will be available to respond to
appropriate questions.

     Set forth  below are audit fees and  non-audit  related  fees billed to the
Fund for  professional  services  received from KPMG for the Fund's fiscal years
ended November 30, 2004 and 2005, respectively.




              Fiscal Year Ended        Audit Fees       Audit-Related Fees*      Tax Fees**         All Other Fees

                                                                                             
                  11/30/2004             $23,600              $16,000              $5,850                $0

                  11/30/2005             $25,250              $16,800              $6,000                $0


*    "Audit  Related  Fees"  are  those  fees  billed  to the  Fund  by  KPMG in
     connection with their agreed-upon procedures reports under the terms of the
     AMPS.  Such reports are required  quarterly by Moody's  Investors  Service,
     Inc. and Standard & Poor's in connection  with  maintaining  public ratings
     for the AMPS.

**   "Tax Fees" are those fees  billed to each Fund by KPMG in  connection  with
     tax  consulting  services,  including  primarily  the review of each Fund's
     income tax returns.

     The Audit Committee  Charter requires that the Audit Committee  pre-approve
all audit and non-audit services to be provided by the auditors to the Fund, and
all non-audit  services to be provided by the auditors to the Fund's  investment
adviser and any service  providers  controlling,  controlled  by or under common
control with the Funds' investment adviser  ("affiliates") that provide on-going
services to each Fund, if the engagement  relates directly to the operations and
financial reporting of each Fund, or to establish detailed pre-approval policies
and procedures for such services in accordance with applicable  laws. All of the
audit,  audit-related and tax services described above for which KPMG billed the
Fund fees for the fiscal  years ended  November  30, 2004 and  November 30, 2005
were pre-approved by the Audit Committee.

     KPMG has  informed  the Fund that it has no direct  or  indirect  financial
interest in the Fund. For the Fund's fiscal year ended  November 30, 2005,  KPMG
did not provide any non-audit services or bill any fees for such services to the
Funds' investment adviser or any affiliates thereof that provide services to the
Fund. The Horejsi  Affiliates have engaged KPMG from time to time in the past to
provide  various  accounting,  auditing and  consulting  services and  currently
engages KPMG as a consultant with respect to ongoing tax related issues. For the
twelve months ended  November 30, 2004,  the Horejsi  Affiliates  paid $3,800 to
KPMG for their  services.  For the twelve  months ended  November 30, 2005,  the
Horejsi  Affiliates paid $0 to KPMG for their services.  The Audit Committee has
considered and concluded that the provision of non-audit  services is compatible
with maintaining the auditors' independence.

     SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING  COMPLIANCE.  Section 16(a) of
the 1934 Act and Section 30(h) of the 1940 Act requires the Fund's Directors and
officers,  persons affiliated with the Fund's investment  advisers,  and persons
who own more than 10% of a registered  class of the Fund's  securities,  to file
reports of  ownership  and  changes of  ownership  with the SEC and the New York
Stock  Exchange.  Directors,  officers  and  greater-than-10%  stockholders  are
required by SEC regulations to furnish the Fund with copies of all Section 16(a)
forms they file. Based solely upon the Fund's review of the copies of such forms
it receives and written  representations  from such  persons,  the Fund believes
that  through the date hereof all such filing  requirements  applicable  to such
persons were complied with.


     BROKER NON-VOTES AND ABSTENTIONS.  An uninstructed proxy for shares held by
brokers or nominees as to which (i) instructions have not been received from the
beneficial owners or the persons entitled to vote and (ii) the broker or nominee
does not have  discretionary  voting  power on a  particular  matter is a broker
"non-vote". Proxies that reflect abstentions or broker non-votes will be counted
as shares that are present  and  entitled to vote on the matter for  purposes of
determining the presence of a quorum. Abstentions and broker non-votes will have
no effect on the result of the vote in the  election of directors in Proposal 1.
Abstentions  and broker  non-votes  will have the same  effect as votes  against
Proposal 2 and 3.

                    OTHER MATTERS TO COME BEFORE THE MEETING

     The Fund does not intend to present any other business at the Meeting,  nor
is it aware  that any  stockholder  intends  to do so.  If,  however,  any other
matters are  properly  brought  before the  Meeting,  the  persons  named in the
accompanying   form  of  proxy  will  vote  thereon  in  accordance  with  their
discretion.




--------------------------------------------------------------------------------
STOCKHOLDERS ARE REQUESTED TO COMPLETE, SIGN AND DATE THE ENCLOSED PROXY CARD OR
AUTHORIZE  PROXIES  VIA  TELEPHONE  OR THE  INTERNET.  THE PROXY CARD  SHOULD BE
RETURNED  IN THE  ENCLOSED  ENVELOPE,  WHICH  NEEDS NO  POSTAGE IF MAILED IN THE
UNITED STATES. INSTRUCTIONS FOR THE PROPER EXECUTION OF PROXIES ARE SET FORTH ON
THE INSIDE COVER.
--------------------------------------------------------------------------------










                            INTENTIONALLY LEFT BLANK








                                      PROXY


                         BOULDER TOTAL RETURN FUND, INC.

                    PROXY SOLICITED BY THE BOARD OF DIRECTORS

The  undersigned  holder of shares of Common Stock of Boulder Total Return Fund,
Inc., a Maryland  corporation  (the "Fund"),  hereby appoints Stephen C. Miller,
Carl  D.  Johns,  and  Jon-Luc  Dupuy,  or any  of  them,  as  proxies  for  the
undersigned,  with full powers of  substitution  in each of them,  to attend the
Annual  Meeting  of  Stockholders  (the  "Annual  Meeting")  to be  held  at the
Scottsdale Plaza Resort,  7200 N. Scottsdale Road,  Scottsdale,  Arizona at 9:00
a.m.   Mountain  Standard  Time  (local  time),  on  April  24,  2006,  and  any
adjournments or postponements  thereof, to cast on behalf of the undersigned all
votes that the  undersigned  is  entitled  to cast at the Annual  Meeting and to
otherwise  represent the  undersigned  at the Annual Meeting with all the powers
possessed by the  undersigned  if personally  present at the Meeting.  The votes
entitled to be cast will be cast as instructed  below. If this Proxy is executed
but no  instruction is given,  the votes entitled to be cast by the  undersigned
will be cast "FOR" each of the nominees for Director and "FOR" each of the other
proposals described in the Proxy Statement.  The undersigned hereby acknowledges
receipt  of  the  Notice  of  Annual  Meeting  and  Proxy  Statement.  In  their
discretion,  the proxies are  authorized to vote upon such other business as may
properly come before the Meeting.  A majority of the proxies  present and acting
at the Annual  Meeting in person or by  substitute  (or, if only one shall be so
present,  then  that  one)  shall  have and may  exercise  all of the  power and
authority of said proxies  hereunder.  The undersigned  hereby revokes any proxy
previously given.


                   CONTINUED AND TO BE SIGNED ON REVERSE SIDE





Please indicate your vote by an "X" in the appropriate box below.

This proxy,  if properly  executed,  will be voted in the manner directed by the
undersigned  stockholder.  IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED FOR
PROPOSALS 1, 2 AND 3.

Please refer to the Proxy Statement for a discussion of the Proposals.

                                                                                             

------------ ------------------------------------------------------------- ----------- ----------------- -------------------------
             Election of Directors:  Nominees are Joel W. Looney,  Dennis  FOR____     WITHHOLD___       FOR ALL EXCEPT ___
 1.          R. Causier., and Dr. Dean L. Jacobson.

----------------------------------------------------------------------------------------------------------------------------------

Instruction:  If you do not wish your shares voted "for" a  particular  nominee,
mark the "For All  Except"  box and  strike a line  through  the  name(s) of the
nominee(s). Your shares will be voted "For" the remaining nominee(s).

THE BOARD OF DIRECTORS RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" ELECTION OF ALL THE NOMINEES
----------------------------------------------------------------------------------------------------------------------------------

2.             Amendments  to the Fund's  charter (the  "Charter")  which  FOR___      AGAINST ___       ABSTAIN ___
               will  repeal  in  their  entirety  all  of  the  currently
               existing  terms  of  the  Fund's  taxable  auction  market
               preferred  stock and  substitute  in lieu  thereof the new
               terms set forth in the Form of Articles of Amendment.

----------------------------------------------------------------------------------------------------------------------------------
THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS,  UNANIMOUSLY RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" THIS
PROPOSAL, AS MORE FULLY DESCRIBED IN THE PROXY STATEMENT
----------------------------------------------------------------------------------------------------------------------------------

3.             An  amendment to the Charter to provide that the number of  FOR___      AGAINST ___       ABSTAIN ___
               directors  of the  Fund  shall  be  five,  subject  to the
               provisions of any class or series of Preferred Stock.

----------------------------------------------------------------------------------------------------------------------------------
THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS,  UNANIMOUSLY RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" THIS
PROPOSAL, AS MORE FULLY DESCRIBED IN THE PROXY STATEMENT
----------------------------------------------------------------------------------------------------------------------------------


MARK HERE FOR ADDRESS CHANGE AND NOTE AT LEFT        ____

PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.

NOTE:  Please sign exactly as your name appears on this Proxy.  If joint owners,
EACH should sign this Proxy. When signing as attorney, executor,  administrator,
trustee, guardian or corporate officer, please give your full title.

Signature:
                   -------------------------

Date:
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Signature:
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Date:
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                                                               [AMPS PROXY CARD]


                                      PROXY

                         BOULDER TOTAL RETURN FUND, INC.

                    PROXY SOLICITED BY THE BOARD OF DIRECTORS

The undersigned  holder of shares of the Taxable Auction Market  Preferred Stock
("AMPS")  of Boulder  Total  Return  Fund,  Inc.,  a Maryland  corporation  (the
"Fund"), hereby appoints Stephen C. Miller, Carl D. Johns, and Jon-Luc Dupuy, or
any of them as proxies for the undersigned,  with full powers of substitution in
each of them,  to  attend  the  Annual  Meeting  of  Stockholders  (the  "Annual
Meeting") to be held at the Scottsdale  Plaza Resort,  7200 N. Scottsdale  Road,
Scottsdale,  Arizona at 9:00 a.m.  Mountain Standard Time (local time), on April
24, 2006, and any  adjournments or postponements  thereof,  to cast on behalf of
the undersigned all votes that the undersigned is entitled to cast at the Annual
Meeting and to otherwise  represent the  undersigned  at the Annual Meeting with
all the  powers  possessed  by the  undersigned  if  personally  present  at the
Meeting. The votes entitled to be cast will be cast as instructed below. If this
Proxy is executed but no instruction is given,  the votes entitled to be cast by
the  undersigned  will be cast "FOR" each of the nominees for Director and "FOR"
each of the other proposals  described in the Proxy  Statement.  The undersigned
hereby acknowledges receipt of the Notice of Annual Meeting and Proxy Statement.
In their discretion, the proxies are authorized to vote upon such other business
as may properly come before the Meeting.  A majority of the proxies  present and
acting at the Annual  Meeting in person or by substitute  (or, if only one shall
be so present,  then that one) shall have and may  exercise all of the power and
authority of said proxies  hereunder.  The undersigned  hereby revokes any proxy
previously given.


                   CONTINUED AND TO BE SIGNED ON REVERSE SIDE





Please indicate your vote by an "X" in the appropriate box below.

This proxy,  if properly  executed,  will be voted in the manner directed by the
undersigned  stockholder.  IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED FOR
PROPOSALS 1, 2 AND 3.

Please refer to the Proxy Statement for a discussion of the Proposals.

                                                                                             

------------ ------------------------------------------------------------- ----------- ----------------- -------------------------
1.           Election of  Directors:  Nominees  are Susan L.  Ciciora and  FOR____     WITHHOLD___       FOR ALL EXCEPT ___
             Richard I. Barr.
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Instruction:  If you do not wish your shares voted "for" a  particular  nominee,
mark the "For All  Except"  box and  strike a line  through  the  name(s) of the
nominee(s). Your shares will be voted "For" the remaining nominee(s).

THE BOARD OF DIRECTORS RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" ELECTION OF ALL THE NOMINEES
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2.             Amendments  to the Fund's  charter (the  "Charter")  which  FOR___      AGAINST ___       ABSTAIN ___
               will  repeal  in  their  entirety  all  of  the  currently
               existing  terms  of  the  Fund's  taxable  auction  market
               preferred  stock and  substitute  in lieu  thereof the new
               terms set forth in the Form of Articles of Amendment.

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THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS,  UNANIMOUSLY RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" THIS
PROPOSAL, AS MORE FULLY DESCRIBED IN THE PROXY STATEMENT
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3.             An  amendment to the Charter to provide that the number of  FOR___      AGAINST ___       ABSTAIN ___
               directors  of the  Fund  shall  be  five,  subject  to the
               provisions of any class or series of Preferred Stock.

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THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS,  UNANIMOUSLY RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" THIS
PROPOSAL, AS MORE FULLY DESCRIBED IN THE PROXY STATEMENT
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MARK HERE FOR ADDRESS CHANGE AND NOTE AT LEFT        ____

PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.

NOTE:  Please sign exactly as your name appears on this Proxy.  If joint owners,
EACH should sign this Proxy. When signing as attorney, executor,  administrator,
trustee, guardian or corporate officer, please give your full title.

Signature:
                   -------------------------

Date:
                   -------------------------

Signature:
                   -------------------------

Date:
                   -------------------------