| þ                                                     |       | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934     |
|------------------------------------------------------------|--------------------------------|------------------------------------------------------------------------------------------|
| For the fiscal year ended November 30, 2010                |
| OR                                                         |
| o                                                          |                           | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the transition period from ____________to ____________ |

| Maryland                                                       | 20-3431375                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) |
|                                                           |                              |
| 11550 Ash Street, Suite 300                                    |                              |
| Leawood, Kansas                                                | 66211                             |
| (Address of Principal Executive Offices)                       | (Zip Code)                        |

| Title of Each Class     |   | Name Of Each Exchange On Which Registered |
|-------------------------|--------|-------------------------------------------|
| Common Stock, par value |   | New York Stock Exchange                   |
| $0.001 per share        |   |                                      |

|           Large accelerated filer  o          | Accelerated filer  o |                                          | Non-accelerated filer þ |   | Smaller reporting company  o          |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-----------------------------------------------|-----------------------------------|--------|----------------------------------------------------------------------------------------------|
|                                                                                                                                              |                           | (Do not check if a smaller reporting company) |                              |

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| TABLE OF CONTENTS |
|------------------------|
| PART I                 |       |   |   |
| Item 1.                |   | Business | 3 |
| Item 1A.               |   | Risk Factors | 9 |
| Item 1B.               |   | Unresolved Staff Comments | 16 |
| Item 2.                |   | Properties | 16 |
| Item 3.                |   | Legal Proceedings | 16 |
| Item 4.                |   | [Removed and Reserved] | 16 |
|                   |   |   |   |
| PART II                |   |   |   |
| Item 5.                |   | Market for Registrant’s Common Equity, Related Stockholder Matters and |   |
|                   |   | Issuer Purchases of Equity Securities | 16 |
| Item 6.                |   | Selected Financial Data | 18 |
| Item 7.                |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 19 |
| Item 7A.               |   | Quantitative and Qualitative Disclosures about Market Risk | 23 |
| Item 8.                |   | Financial Statements and Supplementary Data | 24 |
| Item 9.                |   | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 24 |
| Item 9A.               |   | Controls and Procedures | 24 |
| Item 9B.               |   | Other Information | 24 |
|                   |   |   |   |
| PART III               |   |   |   |
| Item 10.               |   | Directors, Executive Officers and Corporate Governance | 25 |
| Item 11.               |   | Executive Compensation | 25 |
| Item 12.               |   | Security Ownership of Certain Beneficial Owners and Management and |   |
|                   |   | Related Stockholder Matters | 25 |
| Item 13.               |   | Certain Relationships and Related Transactions, and Director Independence | 25 |
| Item 14.               |   | Principal Accounting Fees and Services | 25 |
|                   |   |   |   |
| PART IV                |   |   |   |
| Item 15.               |   | Exhibits and Financial Statement Schedules | 26 |
|                   |   | Signatures |   |

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ITEM 1. BUSINESS

- David J. Schulte  — Mr. Schulte has been a Managing Director of our Adviser since 2002 and also serves as our Chief Executive Officer. In addition, Mr. Schulte serves as Chief Executive Officer and President of Tortoise Energy Infrastructure Corporation (NYSE: TYG), Tortoise Energy Capital Corporation (NYSE: TYY) and Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE: TPZ), Chief Executive Officer of Tortoise North American Energy Corporation (NYSE: TYN), Senior Vice-President of Tortoise MLP Fund, Inc. (NYSE: NTG) and President of the privately held closed-end investment company managed by our Adviser. From 1993 to 2002, Mr. Schulte was a full-time Managing Director at Kansas City Equity Partners, L.C. (“KCEP”). While a partner at KCEP, Mr. Schulte led private financings for two growth MLPs in the energy infrastructure sector, Inergy, L.P., where he served as a director, and MarkWest Energy Partners, L.P., where he was a board observer. Prior to joining KCEP, Mr. Schulte had over five years of experience completing acquisition and public equity financings as an investment banker at the predecessor of Oppenheimer & Co., Inc.  
- Edward Russell  — Mr. Russell serves as our President. Prior to joining our Adviser in March 2006, Mr. Russell was at Stifel Nicolaus since 1999, where he headed the Energy and Power Group as a Managing Director from 2003 to March 2006, and served as Vice President-Investment Banking before that. While a Managing Director at Stifel, Nicolaus & Company, Incorporated (“Stifel Nicolaus”), Mr. Russell was responsible for all of the energy and power transactions, including debt and equity transactions for TYG, TYY and TYN and our first private placement transaction. Prior to joining Stifel Nicolaus, Mr. Russell worked for more than 15 years as an investment banker at Pauli & Company, Inc. and Arch Capital LLC and as a commercial banker with Magna Group and South Side National Bank.  
- Terry Matlack  — Mr. Matlack has been a Managing Director of our Adviser since 2002 and also serves as our Chief Financial Officer. Mr. Matlack is also the Chief Financial Officer of TYG, TYY, TYN, TPZ, and the privately held closed-end investment company managed by our Adviser, and serves as the Chief Executive Officer of NTG. From 2001 to 2002, Mr. Matlack was a full-time Managing Director at KCEP. Prior to joining KCEP, Mr. Matlack was President of GreenStreet Capital and its affiliates, which invested primarily in the telecommunications service industry. Prior to 1995, he was Executive Vice President and a member of the Board of Directors of W. K. Communications, Inc., a cable television acquisition company, and Chief Operating Officer of W. K. Cellular, a rural cellular service area operator. 

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- Lisa Marquard  — Prior to joining our Adviser in June 2007, Ms. Marquard was with Stifel Nicolaus since 2002, where she worked in the Financial Institution Investment Banking Group. Her prior experience includes executing public and private capital offerings, merger and acquisition advisory services, as well as general advisory services including valuations, strategic alternatives and shareholder reduction transactions. As of January 1, 2011, Ms. Marquard is no longer an employee of the Adviser, but has instead assumed a consulting role with the Adviser, and is also serving as the Chief Financial Officer of Mowood, LLC. 

- Midstream  — the gathering, processing, storing and transmission of energy resources and their byproducts in a form that is usable by wholesale power generation, utility, petrochemical, industrial and gasoline customers, including pipelines, gas processing plants, liquefied natural gas facilities and other energy infrastructure companies.  
- Downstream  — the refining of energy sources, and the marketing and distribution of such refined products, such as customer-ready natural gas, natural gas liquids, propane and gasoline, to end-user customers, and customers engaged in the generation, transmission and distribution of power and electricity.  
- Upstream  — the exploitation and extraction of energy resources, including natural gas and crude oil from onshore and offshore geological reservoirs as well as from renewable sources, including agricultural, thermal, solar, wind and biomass.  
- Other  — includes production and processing of coal and aggregates. 

- Long-Life Assets with Stable Cash Flows and Limited Commodity Price Sensitivity.  Most of our investments have the potential to generate stable cash flows over long periods of time. We have invested a portion of our assets in companies that own and operate assets with long useful lives and that generate cash flows by providing critical services primarily to the producers or end-users of energy. We have attempted to limit the direct exposure to energy commodity price risk in our portfolio. We have targeted companies that have a majority of their cash flows generated by contractual obligations.  
- Experienced Management Teams with Energy Infrastructure Focus.  We have targeted investments in companies with management teams that have a track record of success and that often have substantial knowledge and focus in particular segments of the energy infrastructure sector or with certain types of assets. We believe that our management team’s extensive experience and network of business relationships in the energy infrastructure sector will enable us to identify and attract portfolio company management teams that meet these criteria.  
- Fixed Asset-Intensive Investments.  Most of our investments have been made in companies with a relatively significant base of fixed assets. Compared to companies with lower relative fixed asset levels, fixed asset intensive companies often are characterized by economies of scale and barriers to entry. 

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- Limited Technological Risk.  We generally do not target investment opportunities involving the application of new technologies or significant geological, drilling or development risk.  
- Exit Opportunities.  We have focused our investments on prospective portfolio companies that we believe will generate a steady stream of cash flow to generate returns on our investments as well as allow such companies to reinvest in their respective businesses. We expect that such internally generated cash flow will lead to distributions or the repayment of the principal of our investments in portfolio companies and will be a key means by which we monetize our investments over time. In addition, we have sought to invest in companies whose business models and expected future cash flows offer attractive exit possibilities. These companies include candidates for strategic acquisition by other industry participants and companies that may repay, or provide liquidity for, our investments through an initial public offering of common stock or other capital markets transactions. We believe our Adviser’s investment experience will help us identify such companies. 

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- requiring a total return on our investments (including both interest and potential equity appreciation) that compensates us for  our credit risk;  
- incorporating “put” rights and “call” protection into the investment structure; and  
- structuring covenants in connection with our investments that afford portfolio companies as much flexibility in managing  their businesses as possible, consistent with preservation of our capital. Such restrictions may include affirmative and negative covenants, default penalties, lien protection, change of control provisions and board rights, including either observation or participation rights. 

- Increased Demand Among Small and Middle Market Private Companies for Capital.  We believe many private and micro-cap public companies have faced increased difficulty accessing the capital markets due to a continuing preference by investors for issuances in larger companies with more liquid securities. Such difficulties have been magnified in asset-focused and capital intensive industries such as the energy infrastructure sector. We believe that the U.S. energy infrastructure sector’s high level of projected capital expenditures and continuing acquisition and divestiture activity will provide us with attractive investment opportunities.  
- Finance Market for Small and Middle Market Energy Companies is Underserved by Many Capital Providers.  We believe that many lenders have, in recent years, de-emphasized their service and product offerings to small and middle market energy companies in favor of lending to large corporate clients and managing capital markets transactions. We believe, in addition, that many capital providers lack the necessary technical expertise to evaluate the quality of the underlying assets of small and middle market private companies and micro-cap public companies in the energy infrastructure sector and lack a network of relationships with such companies.  
- Attractive Companies with Limited Access to Other Capital.  We believe there are, and will continue to be, attractive companies that will benefit from private equity investments prior to a public offering of their equity, whether as an MLP or otherwise. We also believe that there are a number of companies in the midstream and downstream segments of the U.S. energy infrastructure sector with the same stable cash flow characteristics as those being acquired by MLPs or funded by private equity capital in anticipation of contribution to an MLP. We believe that many such companies are not being acquired by MLPs or attracting private equity capital because they do not produce income that qualifies for inclusion in an MLP pursuant to the applicable U.S. Federal income tax laws, are perceived by such investors as too small, or are in areas of the midstream energy infrastructure segment in which most MLPs do not have specific expertise. We believe that these companies represent attractive investment candidates for us. 

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- Existing Investment Platform and Focus on the Energy Infrastructure Sector.  We believe that our Adviser’s current investment platform provides us with significant advantages in sourcing, evaluating, executing and managing investments. Our Adviser is a registered investment adviser specializing in the energy sector and had approximately $6.1 billion of assets under management as of December 31, 2010, including the assets of five other publicly traded closed-end management investment companies and private accounts. Our Adviser created the first publicly traded closed-end management investment company focused primarily on investing in MLPs involved in the energy infrastructure sector, and its aggregate managed capital is among the largest of those closed-end management investment company advisers focused on the energy sector.  
- Experienced Management Team.  The members of our Adviser’s investment committee have an average of over 20 years of financial investment experience. Our Adviser’s investment professionals responsible for the structuring and managing of our investments have vast experience in energy, investment banking, leveraged finance and private equity investing. We believe that the members of our Adviser’s investment committee and the Adviser’s investment professionals have developed strong reputations in the capital markets, particularly in the energy infrastructure sector, that we believe affords us a competitive advantage in identifying and investing in energy infrastructure companies.  
- Disciplined Investment Philosophy.  In making its investment decisions, our Adviser intends to continue the disciplined investment approach that it has used since its founding. That investment approach emphasizes current income with the potential for enhanced returns through distribution growth, capital appreciation, low volatility and minimization of downside risk. Our Adviser’s investment process involves an assessment of the overall attractiveness of the specific subsector of the energy infrastructure sector in which a prospective portfolio company is involved; such company’s specific competitive position within that subsector; potential commodity price, supply and demand and regulatory concerns; the stability and potential growth of the prospective portfolio company’s cash flows; the prospective portfolio company’s management track record and incentive structure and our Adviser’s ability to structure an attractive investment.  
- Flexible Transaction Structuring.  We are not subject to many of the regulatory limitations that govern traditional lending institutions such as commercial banks. As a result, we can be flexible in structuring investments and selecting the types of securities in which we invest. Our Adviser’s investment professionals have substantial experience in structuring investments that balance the needs of energy infrastructure companies with appropriate risk control.  
- Extended Investment Horizon.  Unlike private equity and venture capital funds, we are not subject to standard periodic capital return requirements. These provisions often force private equity and venture capital funds to seek quicker returns on their investments through mergers, public equity offerings or other liquidity events that may otherwise be desirable, potentially resulting in both a lower overall return to investors and an adverse impact on their portfolio companies. We believe our flexibility to make investments with a long-term view and without the capital return requirements of traditional private investment funds enhance our ability to generate attractive returns on invested capital. 

- review of historical and prospective financial information, as well as off-balance sheet and/or contingent assets or liabilities;  
- review and analysis of financial models and projections;  
- for many midstream and upstream investments, review of third party engineering reserve reports and internal engineering  reviews;  
- on-site visits;  
- review of the status of the potential portfolio company’s title to any assets serving as collateral and liens on such assets; 

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- environmental diligence and assessments;  
- interviews with management, and if accessible, employees, customers and vendors of the prospective portfolio company;  
- research relating to the prospective portfolio company’s industry, regulatory environment, products and services and  competitors;  
- review of financial, accounting and operating systems;  
- review of relevant corporate, partnership and other loan documents; and  
- research relating to the prospective portfolio company’s management, including background and reference checks using our  Adviser’s industry contact base and commercial data bases and other investigative sources. 

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ITEM 1A. RISK FACTORS

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ITEM 1B. UNRESOLVED STAFF COMMENTS

ITEM 2. PROPERTIES

ITEM 3. LEGAL PROCEEDINGS

ITEM 4. [REMOVED AND RESERVED]

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

|           |       |   |   |           | Price Range                    |    | Cash Distribution |
|----------------|--------------------------------|--------|--------|---------------------------------------------------|--------------------------------|--------------|-------------------|
| 2009           |                           | NAV(1) |   | High                                              |       | Low          |              | per Share(2) |
| First quarter  |                           | $      | 8.67   |                                              | $                              | 8.28         |              | $ | 3.92 |   |        $ | 0.2300 |          |
| Second quarter |                           | $      | 8.91   |                                              | $                              | 6.93         |              | $ | 4.11 |   | $ | 0.1300 |   |
| Third quarter  |                           | $      | 8.76   |                                              | $                              | 6.67         |              | $ | 3.78 |   | $ | 0.1300 |   |
| Fourth quarter |                           | $      | 9.29   |                                              | $                              | 6.82         |              | $ | 5.33 |   | $ | 0.1300 |   |
|           |                           |
| 2010           |                           |   |   |                                              |                           |         |              |   |   |   |   |   |   |
| First quarter  |                           | $      | 9.60   |                                              | $                              | 7.58         |              | $ | 6.00 |   | $ | 0.1300 |   |
| Second quarter |                           | $      | 8.69   |                                              | $                              | 7.93         |              | $ | 5.27 |   | $ | 0.1000 |   |
| Third quarter  |                           | $      | 9.74   |                                              | $                              | 6.44         |              | $ | 5.10 |   | $ | 0.1000 |   |
| Fourth quarter |                           | $      | 10.44  |                                              | $                              | 7.42         |              | $ | 5.40 |   | $ | 0.1000 |   |

| (1) |   | Net asset value per share is generally determined as of the last day in the relevant period and therefore may not reflect the net asset value per share on the date of the high and low sales prices. The net asset values shown are based on outstanding shares at the end of each period. |
|-----|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | Represents the distribution declared in the specified period.                                                                                                                                                                                                                               |

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| (1) |   | Our shares began trading on the NYSE on February 2, 2007.                                                                                                            |
|-----|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | The BDC Peer Group consists of the following closed-end investment companies that have elected to be regulated as business development companies under the 1940 Act: |

| American Capital Strategies   |        | Fifth Street Finance Corp.     |        | Horizon Technology Finance |        | PennantPark Investment Corp |
|-------------------------------|--------------------------------------|--------------------------------|--------------------------------------|----------------------------|--------------------------------------|-----------------------------|
| Ameritrans Capital Corp.      |                                 | Full Circle Capital Corp.      |                                 | Kohlberg Capital Corp.     |                                 | Prospect Capital Corp.      |
| Apollo Investment Corp.       |                                 | Gladstone Capital Corp.        |                                 | Main Street Capital Corp.  |                                 | Saratoga Investment Corp.   |
| Ares Capital Corporation      |                                 | Gladstone Investment Corp.     |                                 | MCG Capital Corp.          |                                 | Solar Capital Ltd.          |
| Blackrock Kelso Capital Corp. |                                 | Golub Capital BDC Inc.         |                                 | Medallion Financial Corp.  |                                 | THL Credit Inc.             |
| Capital Southwest Corp.       |                                 | Harris & Harris Group Inc. |                                 | MVC Capital                |                                 | TICC Capital                |
| Equus Total Return            |                                 | Hercules Tech Growth Capital   |                                 | NGP Capital Resources Co.  |                                 | Triangle Capital Corp.      |

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ITEM 6. SELECTED FINANCIAL DATA

|                                                        |         |        |         |    |         |        |         |    |   |            |    |    |   |        |   |    | Period from |
|-------------------------------------------------------------|--------------|-------------|--------------|--------------|--------------|-------------|--------------|--------------|--------|-----------------|---------|--------------|--------|-------------|--------|--------------|-------------|
|                                                        |         |        |         |         |         |        |         |         |   |            |    |         |   |        |   |         | December 8, |
|                                                        | Year Ended   |        | Year Ended   |         | Year Ended   |        | Year Ended   |         |   | 2005            |
|                                                        | November 30, |        | November 30, |         | November 30, |        | November 30, |         |   | to November 30, |
|                                                        | 2010         |        | 2009         |         | 2008         |        |         | 2007         |   |            | 2006(1) |
| Statements of operations data:                              |         |        |         |         |         |        |         |         |   |            |    |         |   |        |   |         |        |   |   |
| Investment income                                           | $            | 1,891,827   |         |         | $            | 1,804,531   |         |         | $      | 2,943,953       |    |         | $      | 3,034,944   |   |         | $           |    2,119,843 |   |
| Base management fees(2)                                     |         | 1,233,823   |         |         |         | 1,351,593   |         |         |   | 2,006,120       |    |         |   | 2,233,670   |   |         |        | 634,989 |   |
| All other expenses(3)                                       |         | 972,556     |         |         |         | 1,539,486   |         |         |   | 2,688,550       |    |         |   | 2,902,561   |   |         |        | 360,156 |   |
| Total expenses                                              | $            | 2,206,379   |         |         | $            | 2,891,079   |         |         | $      | 4,694,670       |    |         | $      | 5,136,231   |   |         | $           | 995,145 |   |
| Less expense reimbursement by Adviser                       |         | 308,003     |         |         |         | 225,266     |         |         |   | 385,622         |    |         |   | 94,181      |   |         |        | — |   |
| Current and deferred tax benefit (expense), net             |         | (4,772,648  | )            |         |         | (254,356    | )            |         |   | 9,859,785       |    |         |   | (3,671,096  | )      |         |        | (516,055 | ) |
| Net realized gain (loss) on investments                     |         |        |         |         |         |        |         |         |   |            |    |         |   |        |   |         |        |   |   |
|    before income taxes                       |         | (11,118,519 | )            |         |         | (23,120,748 | )            |         |   | 8,716,197       |    |         |   | 260,290     |   |         |        | (1,462 | ) |
| Unrealized appreciation (depreciation)                      |         |        |         |         |         |        |         |         |   |            |    |         |   |        |   |         |        |   |   |
|    of investments before income taxes        |         | 30,564,590  |         |         |         | 24,247,380  |         |         |   | (41,581,120     | )       |         |   | 10,561,888  |   |         |        | 328,858 |   |
| Increase (decrease) in net assets resulting                 |         |        |         |         |         |        |         |         |   |            |    |         |   |        |   |         |        |   |   |
|    from operations                           | $            | 14,666,874  |         |         | $            | 10,994      |         |         | $      | (24,370,233     | )       |         | $      | 5,143,976   |   |         | $           | 936,039 |   |
| Per common share data:                                      |         |        |         |         |         |        |         |         |   |            |    |         |   |        |   |         |        |   |   |
| Distributions to common stockholders(4)                     | $            | 0.43        |         |         | $            | 0.62        |         |         | $      | 1.04            |    |         | $      | 0.67        |   |         | $           | 0.34 |   |
| Net increase (decrease) in stockholder’s equity  |         |        |         |         |         |        |         |         |   |            |    |         |   |        |   |         |        |   |   |
|    resulting from operations:                |         |        |         |         |         |        |         |         |   |            |    |         |   |        |   |         |        |   |   |
|       Basic and diluted       | $            | 1.61        |         |         | $            | 0.00        |         |         | $      | (2.74           | )       |         | $      | 0.66        |   |         | $           | 0.30 |   |
| Net asset value                                             | $            | 10.44       |         |         | $            | 9.29        |         |         | $      | 9.96            |    |         | $      | 13.76       |   |         | $           | 13.70 |   |
|                                              |
|                                                        | November 30, |        | November 30, |         | November 30, |        | November 30, |         |   | November 30,    |
|                                                        | 2010         |        | 2009         |         | 2008         |        | 2007         |         |   | 2006            |
| Statements of assets and liabilities data:                  |         |        |         |         |         |        |         |         |   |            |    |         |   |        |   |         |        |   |   |
| Short-term investments                                      | $            | 1,466,193   |         |         | $            | 1,498,846   |         |         | $      | 360,372         |    |         | $      | 219,502     |   |         | $           | 5,431,414 |   |
| Long-term investments                                       |         | 93,736,230  |         |         |         | 82,483,094  |         |         |   | 105,790,858     |    |         |   | 158,416,831 |   |         |        | 37,144,100 |   |
| Other assets                                                |         | 838,970     |         |         |         | 5,496,113   |         |         |   | 6,169,827       |    |         |   | 537,987     |   |         |        | 357,498 |   |
| Total assets                                                | $            | 96,041,393  |         |         | $            | 89,478,053  |         |         | $      | 112,321,057     |    |         | $      | 159,174,320 |   |         | $           | 42,933,012 |   |
| Total liabilities                                           |         | 562,220     |         |         |         | 5,181,468   |         |         |   | 23,095,757      |    |         |   | 37,261,354  |   |         |        | 604,610 |   |
| Total net assets                                            | $            | 95,479,173  |         |         | $            | 84,296,585  |         |         | $      | 89,225,300      |    |         | $      | 121,912,966 |   |         | $           | 42,328,402 |   |
|                                                        |         |        |         |         |         |        |         |         |   |            |    |         |   |        |   |         |        |   |   |

| (1) |   | We were incorporated on September 8, 2005, but did not commence operations until December 8, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | For the year ended November 30, 2010, base management fees include $1,233,823 accrued as base management fees payable to the Adviser under the Investment Advisory Agreement. For the year ended November 30, 2009, base management fees include $1,351,593 accrued as base management fees payable to the Adviser under the Investment Advisory Agreement. For the year ended November 30, 2008, base management fees include $2,313,731 accrued as base management fees payable to the Adviser under the Investment Advisory Agreement, and $307,611 as a reduction in the provision for capital gain incentive fees payable to the Adviser. For the year ended November 30, 2007, base management fees include $1,926,059 accrued as base management fees payable to the Adviser under the Investment Advisory Agreement and $307,611 as an increase in the provision for capital gain incentive fees payable to the Adviser. For the period from December 8, 2005 to November 30, 2006, base management fees include $634,989 accrued as base management fees payable to the Adviser under the Investment Advisory Agreement. The payable for capital gain incentive fees is a result of the increase or decrease in the fair value of investments and realized gains or losses from investments. Pursuant to the Investment Advisory Agreement, the capital gain incentive fee is paid annually only if there are realization events and only if the calculation defined in the agreement results in an amount due. No capital gain incentive fees have been due or payable since the commencement of operations. |
| (3) |   | For the year ended November 30, 2010, other expenses include $926,937 in operating expenses and $45,619 in interest expense on the credit facility. For the year ended November 30, 2009, other expenses include $911,779 in operating expenses and $627,707 in interest expense on the credit facility. For the year ended November 30, 2008, other expenses include $1,037,624 in operating expenses and $1,650,926 in interest expense on the credit facility. For the year ended November 30, 2007, other expenses include $1,094,677 in operating expenses, $847,421 of interest expense on the credit facility, $228,750 in preferred stock dividends, and $731,713 of non-recurring expenses related to the loss on redemption of the previously outstanding Series A Redeemable Preferred Stock. The Series A Redeemable Preferred Stock issuance in December 2006 was utilized as bridge financing to fund portfolio investments and was fully redeemed upon completion of our initial public offering in February 2007. For the period from December 8, 2005 to November 30, 2006, other expenses include $360,156 in operating expenses. Other expenses do not include current and deferred income taxes.                                                                                                                                                                                                                                                                                                                                                                                                   |

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| (4) |   | The character of distributions made during the year may differ from the ultimate characterization for federal income tax purposes. For the year ended November 30, 2010, the company’s distributions, for book and tax purposes, were comprised of 100 percent return of capital. For the year ended November 30, 2009, the company’s distributions, for book and tax purposes, were comprised of 100 percent return of capital. For the year ended November 30, 2008, the company’s distributions, for book purposes, were comprised of 100 percent return of capital, and for tax purposes were comprised of 3.2 percent investment income and 96.8 percent return of capital. For the year ended November 30, 2007, the company’s distributions, for book and tax purposes, were comprised of 100 percent return of capital. For the period ended December 8, 2005 to November 30, 2006, the company’s distributions, for book purposes, were comprised of 87.3 percent investment income and 12.7 percent return of capital, and for tax purposes were comprised of 41.7 percent investment income and 58.3 percent return of capital. |
|-----|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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|                                                                                                                                                                                                            |                           | Year Ended        |                           | Year Ended        |                           | Year Ended        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-------------------|--------------------------------|-------------------|--------------------------------|-------------------|
| Distributable Cash Flow                                                                                                                                                                                         |       | November 30, 2010 |       | November 30, 2009 |       | November 30, 2008 |
| Total from Investments                                                                                                                                                                                          |                           |              |                           |              |                           |              |   |   |   |   |   |   |
|      Distributions from investments                                                                                                                                                         |                           | $                 | 4,196,269                      |              |                           | $                 | 7,724,577 |   |   | $ | 9,688,521 |   |
|      Distributions paid in stock                                                                                                                                                       |                           |              | 65,268                         |              |                           |              | — |   |   |   | 2,186,767 |   |
|      Interest income from investments                                                                                                                                                       |                           |              | 720,323                        |              |                           |              | 807,848 |   |   |   | 1,103,059 |   |
|      Dividends from money market mutual funds                                                                                                                                               |                           |              | 859                            |              |                           |              | 1,986 |   |   |   | 18,205 |   |
|      Other income                                                                                                                                                                           |                           |              | 38,580                         |              |                           |              | 61,514 |   |   |   | 28,987 |   |
|           Total from Investments                                                                                                                                   |                           |              | 5,021,299                      |              |                           |              | 8,595,925 |   |   |   | 13,025,539 |   |
| Operating Expenses Before Leverage Costs                                                                                                                                                                        |                           |              |                           |              |                           |              |   |   |   |   |   |   |
|      Advisory fees (net of expense reimbursement by Adviser)                                                                                                                                |                           |              | 925,820                        |              |                           |              | 1,126,327 |   |   |   | 1,928,109 |   |
|      Other operating expenses                                                                                                                                                               |                           |              | 684,739                        |              |                           |              | 911,779 |   |   |   | 1,037,624 |   |
|           Total Operating Expenses, before leverage costs                                                                                                          |                           |              | 1,610,559                      |              |                           |              | 2,038,106 |   |   |   | 2,965,733 |   |
|      Distributable cash flow before leverage costs                                                                                                                                          |                           |              | 3,410,740                      |              |                           |              | 6,557,819 |   |   |   | 10,059,806 |   |
|      Leverage Costs                                                                                                                                                                         |                           |              | 45,619                         |              |                           |              | 627,707 |   |   |   | 1,650,926 |   |
|                Distributable Cash Flow                                                                                                    |                           | $                 | 3,365,121                      |              |                           | $                 | 5,930,112 |   |   | $ | 8,408,880 |   |
|                Capital gain proceeds                                                                                                      |                           |              | 882,212                        |              |                           |              | — |   |   |   | — |   |
|                Cash Available for Distribution                                                                                            |                           | $                 | 4,247,333                      |              |                           | $                 | 5,930,112 |   |   | $ | 8,408,880 |   |
|                                                                                                                                                                                                            |
| Distributions paid on common stock                                                                                                                                                                              |                           | $                 | 3,915,124                      |              |                           | $                 | 5,582,473 |   |   | $ | 9,265,351 |   |
|                                                                                                                                                                                                            |
| Payout percentage of period(1)                                                                                                                                                                                  |                           |              | 92                             | %                 |                           |              | 94 | % |   |   | 110 | % |
|                                                                                                                                                                                                            |
| DCF/GAAP Reconciliation                                                                                                                                                                                         |                           |              |                           |              |                           |              |   |   |   |   |   |   |
|      Distributable Cash Flow                                                                                                                                                                |                           | $                 | 3,365,121                      |              |                           | $                 | 5,930,112 |   |   | $ | 8,408,880 |   |
|      Adjustments to reconcile to Net Investment Loss,           before Income Taxes:                                                           |                           |              |                           |              |                           |              |   |   |   |   |   |   |
|           Distributions paid in stock(2)                                                                                                                           |                           |              | (65,268                        | )                 |                           |              | — |   |   |   | (2,186,767 | ) |
|           Return of capital on distributions received from                equity investments |                           |              | (3,064,204                     | )                 |                           |              | (6,791,394 | ) |   |   | (7,894,819 | ) |
|           Capital gain incentive fees                                                                                                                              |                           |              | —                        |              |                           |              | — |   |   |   | 307,611 |   |
|           Non-recurring professional fees                                                                                                                          |                           |              | (242,198                       | )                 |                           |              | — |   |   |   | — |   |
|                Net Investment loss, before Income Taxes                                                                                   |                           | $                 | (6,549                         | )                 |                           | $                 | (861,282 | ) |   | $ | (1,365,095 | ) |
|                                                                                                                                                                                                            |                           |              |                           |              |                           |              |   |   |   |   |   |   |

| (1) |   | Distributions paid as a percentage of Cash Available for Distribution.                                                                                  |
|-----|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | Distributions paid in stock for the years ended November 30, 2010 and November 30, 2008 were paid as part of normal operations and are included in DCF. |

| Record Date       |   | Payment Date      |   | Amount |
|-------------------|--------|-------------------|--------|--------|
| November 22, 2010 |   | November 30, 2010 |   | $      | 0.1000 |
| August 23, 2010   |   | September 1, 2010 |   | $      | 0.1000 |
| May 21, 2010      |   | June 1, 2010      |   | $      | 0.1000 |
| February 19, 2010 |   | March 1, 2010     |   | $      | 0.1300 |
|              |
| November 23, 2009 |   | November 30, 2009 |   | $      | 0.1300 |
| August 24, 2009   |   | September 1, 2009 |   | $      | 0.1300 |
| May 22, 2009      |   | June 1, 2009      |   | $      | 0.1300 |
| February 23, 2009 |   | March 2, 2009     |   | $      | 0.2300 |
|              |
| November 20, 2008 |   | November 28, 2008 |   | $      | 0.2650 |
| August 21, 2008   |   | September 2, 2008 |   | $      | 0.2650 |
| May 22, 2008      |   | June 2, 2008      |   | $      | 0.2625 |
| February 21, 2008 |   | March 3, 2008     |   | $      | 0.2500 |

----

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

----

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9A. CONTROLS AND PROCEDURES

ITEM 9B. OTHER INFORMATION

----

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 11. EXECUTIVE COMPENSATION

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

----

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

| Exhibit No. |         | Description of Document                                                                                                                                                                             |
|-------------|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1         |                                       | Articles of Incorporation(1)                                                                                                                                                                        |
|        |                                       |                                                                                                                                                                                                |
| 3.2         |                                       | Articles Supplementary(2)                                                                                                                                                                           |
|        |                                       |                                                                                                                                                                                                |
| 3.3         |                                       | Bylaws(3)                                                                                                                                                                                           |
|        |                                       |                                                                                                                                                                                                |
| 4.1         |                                       | Form of Stock Certificate(2)                                                                                                                                                                        |
|        |                                       |                                                                                                                                                                                                |
| 4.2         |                                       | Form of Warrant dated December 2006(2)                                                                                                                                                              |
|        |                                       |                                                                                                                                                                                                |
| 4.3         |                                       | Registration Rights Agreements with Merrill Lynch & Co; Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Stifel, Nicolaus & Company, Incorporated dated January 9, 2006(1)       |
|        |                                       |                                                                                                                                                                                                |
| 4.4         |                                       | Registration Rights Agreement dated April 2007(4)                                                                                                                                                   |
|        |                                       |                                                                                                                                                                                                |
| 10.1        |                                       | Dividend Reinvestment Plan(5)                                                                                                                                                                       |
|        |                                       |                                                                                                                                                                                                |
| 10.2        |                                       | Investment Advisory Agreement, dated September 15, 2009, between Tortoise Capital Resources Corporation and Tortoise Capital Advisors, L.L.C.(6)                                                    |
|        |                                       |                                                                                                                                                                                                |
| 10.3        |                                       | Expense Reimbursement Agreement dated as of November 8, 2010 by and between Tortoise Capital Resources Corporation and Tortoise Capital Advisors, LLC(7)                                            |
|        |                                       |                                                                                                                                                                                                |
| 10.4        |                                       | Sub-Advisory Agreement with Kenmont Investments Management, L.P. dated September 15, 2009(8)                                                                                                        |
|        |                                       |                                                                                                                                                                                                |
| 10.5        |                                       | Custody Agreement with U.S. Bank National Association dated September 13, 2005(1)                                                                                                                   |
|        |                                       |                                                                                                                                                                                                |
| 10.5.1      |                                       | First Amendment to the Custody Agreement with U.S. Bank National Association dated May 24, 2010—filed herewith                                                                                |
|        |                                       |                                                                                                                                                                                                |
| 10.6        |                                       | Stock Transfer Agency Agreement with Computershare Investor Services, LLC dated September 13, 2005(1)                                                                                               |
|        |                                       |                                                                                                                                                                                                |
| 10.7        |                                       | Amended Administration Agreement with Tortoise Capital Advisors, L.L.C. dated December 1, 2010(9)                                                                                                   |
|        |                                       |                                                                                                                                                                                                |
| 10.8        |                                       | Warrant Agreement with Computershare Investor Services, LLC as Warrant Agent dated December 8, 2005(1)                                                                                              |
|        |                                       |                                                                                                                                                                                                |
| 14.1        |                                       | Code of Ethics for Principal Executive Officer and Principal Financial Officer—filed herewith                                                                                                 |
|        |                                       |                                                                                                                                                                                                |
| 24          |                                       | Power of Attorney (included on the signature page)                                                                                                                                                  |
|        |                                       |                                                                                                                                                                                                |
| 31.1        |                                       | Certification by Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002—filed herewith.                        |
|        |                                       |                                                                                                                                                                                                |
| 31.2        |                                       | Certification by Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002—filed herewith.                        |
|        |                                       |                                                                                                                                                                                                |
| 32.1        |                                       | Certification by Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002—filed herewith. |

| (1) |   | Incorporated by reference to the Registrant’s Registration Statement on Form N-2, filed August 28, 2006 (File No. 333-136923).                                  |
|-----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | Incorporated by reference to Pre-Effective Amendment No. 2 to the Registrant’s Registration Statement on Form N-2, filed January 9, 2007 (File No. 333-136923). |
| (3) |   | Incorporated by reference to the Registrant’s current report on Form 8-K, filed January 21, 2009.                                                               |
| (4) |   | Incorporated by reference to Pre-Effective Amendment No. 1 to the Registrant’s Registration Statement on Form N-2, filed July 3, 2007 (File No. 333-142859).    |
| (5) |   | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended August 31, 2007 and filed on October 12, 2007.                |
| (6) |   | Incorporated by reference to the Registrant’s current report on Form 8-K, filed September 18, 2009.                                                             |
| (7) |   | Incorporated by reference to the Registrant’s current report on Form 8-K, filed November 10, 2010.                                                              |
| (8) |   | Incorporated by reference to the Registrant’s annual report on Form 10-K, filed February 16, 2010.                                                              |
| (9) |   | Incorporated by reference to the Registrant’s current report on Form 8-K, filed December 1, 2010.                                                               |

----

| INDEX TO FINANCIAL STATEMENTS |
|-------------------------------|

|                                                                                                      | Page   |
|-----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                      |
| Report of Independent Registered Public Accounting Firm                                                   | F-2    |
| Statements of Assets and Liabilities as of November 30, 2010 and November 30, 2009                        | F-3    |
| Schedule of Investments as of November 30, 2010                                                           | F-4    |
| Schedule of Investments as of November 30, 2009                                                           | F-5    |
| Statements of Operations for the years ended November 30, 2010, November 30, 2009 and                     |   |
|      November 30, 2008                                                                | F-6    |
| Statements of Changes in Net Assets for the years ended November 30, 2010, November 30, 2009              |   |
|      and November 30, 2008                                                            | F-8    |
| Statements of Cash Flows for the years ended November 30, 2010, November 30, 2009 and                     |   |
|      November 30, 2008                                                                | F-9    |
| Financial Highlights for the years ended November 30, 2010, November 30, 2009, November 30, 2008,    |   |
|      November 30, 2007 and the period from December 8, 2005 through November 30, 2006 | F-10   |
| Notes to Financial Statements                                                                             | F-12   |
| Company Officers and Directors (Unaudited)                                                                | F-24   |
| Additional Information (Unaudited)                                                                        | F-26   |
| EXHIBIT 14.1                                                                                              |   |
| EXHIBIT 31.1                                                                                              |   |
| EXHIBIT 31.2                                                                                              |   |
| EXHIBIT 32.1                                                                                              |   |

----

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

|                  | /s/ Ernst & Young LLP |
|-----------------------|---------------------------|
|                  |
| Kansas City, Missouri |                      |
| January 26, 2011      |                      |

----

|  | Tortoise Capital Resources Corporation |
|--|----------------------------------------|

| STATEMENTS OF ASSETS & LIABILITIES                                                                                                                                                                                      |               |                       |          |              |   |                 |        |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|----------------------------|---------------|-------------------|--------|----------------------|-------------|--------|
|                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                        |     | November 30, 2010          |     | November 30, 2009 |
| Assets                                                                                                                                                                                                                      |               |                       |          |              |   |                 |        |   |
|      Investments at fair value, control          (cost $18,122,054 and $28,180,070, respectively)                                                          |               | $                          | 23,260,566    |              |   | $                    | 33,458,046  |   |
|      Investments at fair value, affiliated          (cost $31,329,809 and $52,676,299, respectively)                                                       |               |                       | 49,066,009    |              |   |                 | 41,658,847  |   |
|      Investments at fair value, non-affiliated          (cost $21,628,965 and $9,568,566, respectively)                                                    |               |                       | 22,875,848    |              |   |                 | 8,865,047   |   |
|           Total investments (cost $71,080,828 and $90,424,935, respectively)                                                                                                   |               |                       | 95,202,423    |              |   |                 | 83,981,940  |   |
|      Receivable for Adviser expense reimbursement                                                                                                                                                       |               |                       | 109,145       |              |   |                 | 49,843      |   |
|      Receivable for investments sold                                                                                                                                                                    |               |                       | 5,198         |              |   |                 | —     |   |
|      Interest receivable from control investments                                                                                                                                                       |               |                       | 42,778        |              |   |                 | —     |   |
|      Dividends receivable                                                                                                                                                                               |               |                       | 83            |              |   |                 | 87          |   |
|      Deferred tax asset                                                                                                                                                                                 |               |                       | 656,743       |              |   |                 | 5,429,391   |   |
|      Prepaid expenses and other assets                                                                                                                                                                  |               |                       | 25,023        |              |   |                 | 16,792      |   |
|           Total assets                                                                                                                                                         |               |                       | 96,041,393    |              |   |                 | 89,478,053  |   |
|                                                                                                                                                                                                                        |
| Liabilities                                                                                                                                                                                                                 |               |                       |          |              |   |                 |        |   |
|      Base management fees payable to Adviser                                                                                                                                                            |               |                       | 327,436       |              |   |                 | 299,060     |   |
|      Accrued expenses and other liabilities                                                                                                                                                             |               |                       | 234,784       |              |   |                 | 282,408     |   |
|      Short-term borrowings                                                                                                                                                                              |               |                       | —       |              |   |                 | 4,600,000   |   |
|           Total liabilities                                                                                                                                                    |               |                       | 562,220       |              |   |                 | 5,181,468   |   |
|                Net assets applicable to common stockholders                                                                                           |               | $                          | 95,479,173    |              |   | $                    | 84,296,585  |   |
|                                                                                                                                                                                                                        |
| Net Assets Applicable to Common Stockholders Consist of:                                                                                                                                                                    |               |                       |          |              |   |                 |        |   |
|      Warrants, no par value; 945,594 issued and outstanding                                                                                                                                             |               |                       |          |              |   |                 |        |   |
|           at November 30, 2010 and November 30, 2009                                                                                                                           |               |                       |          |              |   |                 |        |   |
|           (5,000,000 authorized)                                                                                                                                               |               | $                          | 1,370,700     |              |   | $                    | 1,370,700   |   |
|      Capital stock, $0.001 par value; 9,146,506 shares issued and outstanding                                                                                                                           |               |                       |          |              |   |                 |        |   |
|           at November 30, 2010 and 9,078,090 issued and outstanding          at November 30, 2009 (100,000,000 shares authorized) |               |                       |  9,147   |              |   |                 | 9,078       |   |
|      Additional paid-in capital                                                                                                                                                                         |               |                       | 98,444,952    |              |   |                 | 101,929,307 |   |
|      Accumulated net investment loss, net of income taxes                                                                                                                                               |               |                       | (3,308,522    | )                 |   |                 | (3,304,416  | )      |
|      Accumulated realized loss, net of income taxes                                                                                                                                                     |               |                       | (18,532,648   | )                 |   |                 | (14,041,614 | )      |
|      Net unrealized appreciation (depreciation) of investments, net of income taxes                                                                                                                     |               |                       | 17,495,544    |              |   |                 | (1,666,470  | )      |
|                Net assets applicable to common stockholders                                                                                           |               | $                          | 95,479,173    |              |   | $                    | 84,296,585  |   |
|                                                                                                                                                                                                                        |
|      Net Asset Value per common share outstanding (net assets applicable                                                                                                                                |               |                       |          |              |   |                 |        |   |
|           to common stock, divided by common shares outstanding)                                                                                                               |               | $      | 10.44         |              |   | $     | 9.29        |   |
|                                                                                                                                                                                                                        |               |                       |          |              |   |                 |        |   |

----

|  | Tortoise Capital Resources Corporation |
|--|----------------------------------------|

| SCHEDULE OF INVESTMENTS                           |   |                                |   |                                      |         |   |         |       |   |       |
|---------------------------------------------------|--------|-------------------------------------|--------|-------------------------------------------|--------------|--------|--------------|------------|--------|------------|
| November 30, 2010                                 |   |                                |   |                                      |         |   |         |       |   |       |
|                                              |
|                                              |   | Energy                              |   |                                      |         |   |         |       |   |       |
|                                              |   | Infrastructure                      |   |                                      |         |   |         |       |   |       |
| Company                                           |   | Segment                             |   | Type of Investment                        |    | Cost   |    | Fair Value |
| Control Investments(1)                            |   |                                |   |                                      |         |   |         |       |   |       |
| Mowood, LLC                                       |   | Midstream/                          |   | Equity Interest (100%)(2)                 |         | $      | 793,000      |       | $      | 5,492,247  |
|                                              |   |      Downstream |   | Subordinated Debt (14.0% Due 12/31/11)(2) |         |   | 3,800,000    |       |   | 3,800,000  |
| VantaCore Partners LP                             |   | Aggregates                          |   | Common Units (933,430)(2)                 |         |   | 13,385,113   |       |   | 13,814,764 |
|                                              |   |                                |   | Incentive Distribution Rights (988)(2)(5) |         |   | 143,941      |       |   | 153,555    |
| Total Control Investments — 24.3%(3)        |   |                                |   |                                      | 18,122,054   |   |         | 23,260,566 |
| Affiliated Investments(4)                         |   |                                |   |                                      |         |   |         |       |   |       |
| High Sierra Energy, LP                            |   | Midstream                           |   | Common Units (1,042,685)(2)(5)            |         |   | 19,823,161   |       |   | 20,666,009 |
| International Resource Partners LP                |   | Coal                                |   | Class A Units (500,000)(2)                |         |   | 9,237,333    |       |   | 28,155,000 |
| LONESTAR Midstream Partners, LP                   |   | Midstream                           |   | Class A Units (1,327,900)(2)(5)(6)        |         |   | 2,149,269    |       |   | 208,000    |
| LSMP GP, LP                                       |   | Midstream                           |   | GP LP Units (180)(2)(5)(6)                |         |   | 120,046      |       |   | 37,000     |
| Total Affiliated Investments — 51.4%(3)     |   |                                |   |                                      | 31,329,809   |   |         | 49,066,009 |
| Non-affiliated Investments                        |   |                                |   |                                      |         |   |         |       |   |       |
| Abraxas Petroleum Corporation                     |   | Upstream                            |   | Common Units (1,646,376)(5)(7)            |         |   | 2,448,984    |       |   | 7,013,562  |
| Energy Transfer Partners, L.P.                    |   | Midstream                           |   | Common Units (50,900)(7)                  |         |   | 2,431,551    |       |   | 2,579,103  |
| Enterprise Products Partners L.P.                 |   | Midstream                           |   | Common Units (37,600)(7)                  |         |   | 1,227,913    |       |   | 1,582,208  |
| EV Energy Partners, L.P.                          |   | Upstream                            |   | Common Units (78,900)(7)                  |         |   | 2,291,374    |       |   | 3,011,613  |
| High Sierra Energy GP, LLC                        |   | Midstream                           |   | Equity Interest (2.37%)(2)(5)             |         |   | 1,999,275    |       |   | 602,834    |
| Inergy, L.P.                                      |   | Midstream                           |   | Common Units (7,100)(7)                   |         |   | 288,864      |       |   | 277,042    |
| Kinder Morgan Management, LLC                     |   | Midstream                           |   | Common Units (20,678)(7)(8)               |         |   | 1,139,279    |       |   | 1,323,212  |
| ONEOK Partners, L.P.                              |   | Midstream                           |   | Common Units (17,100)(7)                  |         |   | 991,807      |       |   | 1,354,491  |
| PostRock Energy Corporation                       |   | Upstream                            |   | Common Units (260,500)(5)(7)              |         |   | 4,949,500    |       |   | 950,825    |
| Regency Energy Partners LP                        |   | Midstream                           |   | Common Units (46,500)(7)                  |         |   | 1,165,596    |       |   | 1,195,050  |
| Williams Partners L.P.                            |   | Midstream                           |   | Common Units (32,300)(7)                  |         |   | 1,228,629    |       |   | 1,519,715  |
| Fidelity Institutional Government                 |   | Short-term                          |   | Class I Shares                            |         |   | 1,466,193    |       |   | 1,466,193  |
|      Portfolio                |   |      investment |   |                                      |         |   |         |       |   |       |
| Total Non-affiliated Investments — 24.0%(3) |   |                                |   |                                      | 21,628,965   |   |         | 22,875,848 |
| Total Investments — 99.7%(3)                |   |                                |   |                                      |         | $      | 71,080,828   |       | $      | 95,202,423 |
|                                              |   |                                |   |                                      |         |   |         |       |   |       |

| (1) |    | Control investments are generally defined under the Investment Company Act of 1940 as companies in which at least 25% of the voting securities are owned; see Note 8 to the financial statements for further disclosure.                                                                                                                                                                                 |
|-----|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |    | Restricted securities have been fair valued in accordance with procedures approved by the Board of Directors and have a total fair value of $72,929,409, which represents 76.4% of net assets applicable to common stockholders; see Note 7 to the financial statements for further disclosure.                                                                                                          |
| (3) |         | Calculated as a percentage of net assets applicable to common stockholders.                                                                                                                                                                                                                                                                                                                              |
| (4) |         | Affiliated investments are generally defined under the Investment Company Act of 1940 as companies in which at least 5% of the voting securities are owned. Affiliated investments in which at least 25% of the voting securities are owned are generally defined as control investments as described in footnote 1; see Note 8 to the financial statements for further disclosure.                      |
| (5) |         | Currently non-income producing.                                                                                                                                                                                                                                                                                                                                                                          |
| (6) |         | In July 2008, LONESTAR Midstream Partners, LP sold its assets to Penn Virginia Resource Partners, L.P. (PVR). LONESTAR has no continuing operations, but currently holds certain rights to receive future payments from PVR relative to the sale. LSMP GP, LP indirectly owns the general partner of LONESTAR Midstream Partners, LP. See Note 9 to the financial statements for additional information. |
| (7) |         | Publicly-traded company.                                                                                                                                                                                                                                                                                                                                                                                 |
| (8) |         | Security distributions are paid-in-kind.                                                                                                                                                                                                                                                                                                                                                                 |

----

|  | Tortoise Capital Resources Corporation |
|--|----------------------------------------|

| SCHEDULE OF INVESTMENTS                           |          |                                        |          |                                                                   |       |   |          |       |   |       |
|---------------------------------------------------|---------------|---------------------------------------------|---------------|------------------------------------------------------------------------|------------|--------|---------------|------------|--------|------------|
| November 30, 2009                                 |          |                                        |          |                                                                   |       |   |          |       |   |       |
|                                              |
|                                              |          | Energy                                      |          |                                                                   |       |   |          |       |   |       |
|                                              |          | Infrastructure                              |          |                                                                   |       |   |          |       |   |       |
| Company                                           |     | Segment                                     |     | Type of Investment                                                     |       | Cost   |     | Fair Value |
| Control Investments(1)                            |          |                                        |          |                                                                   |       |   |          |       |   |       |
| Mowood, LLC                                       |          | Midstream/                                  |          | Equity Interest (99.5%)(2)                                             |       | $      | 4,077,499     |       | $      | 8,253,910  |
|                                              |          |      Downstream         |          | Subordinated Debt (9% Due 12/31/09)(2)                                 |       |   | 8,800,000     |       |   | 8,800,000  |
| VantaCore Partners LP                             |          | Aggregates                                  |          | Common Units (933,430)(2)                                              |       |   | 15,158,630    |       |   | 16,256,482 |
|                                              |          |                                        |          | Incentive Distribution Rights (988)(2)(5)                              |       |   | 143,941       |       |   | 147,654    |
| Total Control Investments — 39.7%(3)        |          |                                        |          |                                                                   | 28,180,070 |   |          | 33,458,046 |
| Affiliated Investments(4)                         |          |                                        |          |                                                                   |       |   |          |       |   |       |
| High Sierra Energy, LP                            |          | Midstream                                   |          | Common Units (1,042,685)(2)                                            |       |   | 20,729,255    |       |   | 24,461,390 |
| International Resource Partners LP                |          | Coal                                        |          | Class A Units (500,000)(2)                                             |       |   | 9,333,333     |       |   | 9,984,402  |
| LONESTAR Midstream Partners, LP                   |          | Midstream                                   |          | Class A Units (1,327,900)(2)(5)(6)                                     |       |   | 2,952,626     |       |   | 1,102,000  |
| LSMP GP, LP                                       |          | Midstream                                   |          | GP LP Units (180)(2)(5)(6)                                             |       |   | 138,521       |       |   | 124,000    |
| Quest Midstream Partners, L.P.                    |          | Midstream                                   |          | Common Units (1,216,881)(2)(5)                                         |       |   | 19,522,564    |       |   | 5,987,055  |
| Total Affiliated Investments — 49.4%(3)     |          |                                        |          |                                                                   | 52,676,299 |   |          | 41,658,847 |
| Non-affiliated Investments                        |          |                                        |          |                                                                   |       |   |          |       |   |       |
| Abraxas Petroleum Corporation                     |          | Upstream                                    |          | Unregistered Common Units     (1,946,376)(2)(5)(7) |       |   | 2,895,234     |       |   | 3,297,009  |
| Eagle Rock Energy Partners, L.P.                  |          | Midstream/     Upstream |          | Unregistered Common Units     (54,474)(2)(7)(8)    |       |   | 723,447       |       |   | 253,559    |
| EV Energy Partners, L.P.                          |          | Upstream                                    |          | Common Units (78,900)(7)                                               |       |   | 2,447,552     |       |   | 2,039,565  |
| High Sierra Energy GP, LLC                        |          | Midstream                                   |          | Equity Interest (2.37%)(2)                                             |       |   | 2,003,487     |       |   | 1,776,068  |
| Fidelity Institutional Government                 |          | Short-term                                  |          | Class I Shares                                                         |       |   | 1,498,846     |       |   | 1,498,846  |
|      Portfolio                |          |      investment         |          |                                                                   |       |   |          |       |   |       |
| Total Non-affiliated Investments — 10.5%(3) |          |                                        |          |                                                                   | 9,568,566  |   |          | 8,865,047  |
| Total Investments — 99.6%(3)                |          |                                        |          |                                                                   |       | $      | 90,424,935    |       | $      | 83,981,940 |
|                                              |          |                                        |          |                                                                   |       |   |          |       |   |       |

| (1) |    | Control investments are generally defined under the Investment Company Act of 1940 as companies in which at least 25% of the voting securities are owned; see Note 8 to the financial statements for further disclosure.                                                                                                                                                                                 |
|-----|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |         | Restricted securities have been fair valued in accordance with procedures approved by the Board of Directors and have a total fair value of $80,443,529, which represents 95.4% of net assets applicable to common stockholders; see Note 7 to the financial statements for further disclosure.                                                                                                          |
| (3) |         | Calculated as a percentage of net assets applicable to common stockholders.                                                                                                                                                                                                                                                                                                                              |
| (4) |         | Affiliated investments are generally defined under the Investment Company Act of 1940 as companies in which at least 5% of the voting securities are owned. Affiliated investments in which at least 25% of the voting securities are owned are generally defined as control investments as described in footnote 1; see Note 8 to the financial statements for further disclosure.                      |
| (5) |         | Currently non-income producing.                                                                                                                                                                                                                                                                                                                                                                          |
| (6) |         | In July 2008, LONESTAR Midstream Partners, LP sold its assets to Penn Virginia Resource Partners, L.P. (PVR). LONESTAR has no continuing operations, but currently holds certain rights to receive future payments from PVR relative to the sale. LSMP GP, LP indirectly owns the general partner of LONESTAR Midstream Partners, LP. See Note 9 to the financial statements for additional information. |
| (7) |         | Publicly-traded company.                                                                                                                                                                                                                                                                                                                                                                                 |
| (8) |         | Units are held in an escrow account to satisfy any potential claims from the purchaser of Millennium Midstream Partners, L.P. The escrow agreement terminates April 1, 2010. See Note 9 to the financial statements for additional information.                                                                                                                                                          |

----

|  | Tortoise Capital Resources Corporation |
|--|----------------------------------------|

| STATEMENTS OF OPERATIONS                                                                                                |                           |                             |                           |              |                           |                             |       |   |   |                             |       |   |
|-------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------------------------------|--------------------------------|-------------------|--------------------------------|----------------------------------|------------|--------|--------|----------------------------------|------------|--------|
|                                                                                                                    |
|                                                                                                                    |                           | Year Ended                       |                           | Year Ended        |                           | Year Ended                       |
|                                                                                                                    |       | November 30, 2010                |       | November 30, 2009 |       | November 30, 2008                |
| Investment Income                                                                                                       |                           |                             |                           |              |                           |                             |       |   |   |                             |       |   |
|      Distributions from investments                                                                 |                           |                             |                           |              |                           |                             |       |   |   |                             |       |   |
|           Control investments                                              |                           | $       | 2,021,943                      |              |                           | $       | 2,270,189  |   |   | $       | 1,576,716  |   |
|           Affiliated investments                                           |                           |                             | 1,606,891                      |              |                           |                             | 3,379,159  |   |   |                             | 4,699,082  |   |
|           Non-affiliated investments                                       |                           |                             | 567,435                        |              |                           |                             | 2,075,229  |   |   |                             | 3,412,723  |   |
|      Total distributions from investments                                                           |                           |                             | 4,196,269                      |              |                           |                             | 7,724,577  |   |   |                             | 9,688,521  |   |
|      Less return of capital on distributions                                                        |                           |                             | (3,064,204                     | )                 |                           |                             | (6,791,394 | )      |   |                             | (7,894,819 | )      |
|                Net distributions from investments |                           |                             | 1,132,065                      |              |                           |                             | 933,183    |   |   |                             | 1,793,702  |   |
|      Interest income from control investments                                                       |                           |                             | 720,323                        |              |                           |                             | 807,848    |   |   |                             | 1,103,059  |   |
|      Dividends from money market mutual funds                                                       |                           |                             | 859                            |              |                           |                             | 1,986      |   |   |                             | 18,205     |   |
|      Fee income                                                                                     |                           |                             | 38,580                         |              |                           |                             | 61,514     |   |   |                             | —    |   |
|      Other income                                                                                   |                           |                             | —                        |              |                           |                             | —    |   |   |                             | 28,987     |   |
|                Total Investment Income            |                           |                             | 1,891,827                      |              |                           |                             | 1,804,531  |   |   |                             | 2,943,953  |   |
| Operating Expenses                                                                                                      |                           |                             |                           |              |                           |                             |       |   |   |                             |       |   |
|      Base management fees                                                                           |                           |                             | 1,233,823                      |              |                           |                             | 1,351,593  |   |   |                             | 2,313,731  |   |
|      Capital gain incentive fees (Note 4)                                                           |                           |                             | —                        |              |                           |                             | —    |   |   |                             | (307,611   | )      |
|      Professional fees                                                                              |                           |                             | 590,486                        |              |                           |                             | 553,856    |   |   |                             | 642,615    |   |
|      Directors’ fees                                                                          |                           |                             | 92,053                         |              |                           |                             | 90,257     |   |   |                             | 86,406     |   |
|      Stockholder communication expenses                                                             |                           |                             | 53,807                         |              |                           |                             | 61,130     |   |   |                             | 58,943     |   |
|      Administrator fees                                                                             |                           |                             | 57,578                         |              |                           |                             | 63,074     |   |   |                             | 107,325    |   |
|      Fund accounting fees                                                                           |                           |                             | 27,723                         |              |                           |                             | 31,968     |   |   |                             | 34,546     |   |
|      Registration fees                                                                              |                           |                             | 25,889                         |              |                           |                             | 31,306     |   |   |                             | 29,668     |   |
|      Stock transfer agent fees                                                                      |                           |                             | 13,421                         |              |                           |                             | 13,506     |   |   |                             | 13,538     |   |
|      Franchise tax expense                                                                          |                           |                             | 9,470                          |              |                           |                             | —    |   |   |                             | —    |   |
|      Custodian fees and expenses                                                                    |                           |                             | 6,361                          |              |                           |                             | 16,928     |   |   |                             | 17,426     |   |
|      Other expenses                                                                                 |                           |                             | 50,149                         |              |                           |                             | 49,754     |   |   |                             | 47,157     |   |
|                Total Operating Expenses           |                           |                             | 2,160,760                      |              |                           |                             | 2,263,372  |   |   |                             | 3,043,744  |   |
|      Interest expense                                                                               |                           |                             | 45,619                         |              |                           |                             | 627,707    |   |   |                             | 1,650,926  |   |
|                Total Expenses                     |                           |                             | 2,206,379                      |              |                           |                             | 2,891,079  |   |   |                             | 4,694,670  |   |
|      Less expense reimbursement by Adviser                                                          |                           |                             | (308,003                       | )                 |                           |                             | (225,266   | )      |   |                             | (385,622   | )      |
|                Net Expenses                       |                           |                             | 1,898,376                      |              |                           |                             | 2,665,813  |   |   |                             | 4,309,048  |   |
| Net Investment Loss, before Income Taxes                                                                                |                           |                             | (6,549                         | )                 |                           |                             | (861,282   | )      |   |                             | (1,365,095 | )      |
|      Current tax expense                                                                            |                           |                             | —                        |              |                           |                             | —    |   |   |                             | (6,881     | )      |
|      Deferred tax benefit                                                                           |                           |                             | 2,443                          |              |                           |                             | 101,133    |   |   |                             | 393,483    |   |
|                Income tax benefit, net            |                           |                             | 2,443                          |              |                           |                             | 101,133    |   |   |                             | 386,602    |   |
| Net Investment Loss                                                                                                     |                           |                             | (4,106                         | )                 |                           |                             | (760,149   | )      |   |                             | (978,493   | )      |

----

|  | Tortoise Capital Resources Corporation |
|--|----------------------------------------|

| STATEMENTS OF OPERATIONS                                                                                                                                                                                                                                                                                                     |                |                            |                     |              |                     |                                  |        |   |   |                            |        |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|---------------------------------|--------------------------|-------------------|--------------------------|---------------------------------------|-------------|--------|--------|---------------------------------|-------------|--------|
| (Continued)                                                                                                                                                                                                                                                                                                                  |                |                            |                     |              |                     |                                  |        |   |   |                            |        |   |
|                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                         |                | Year Ended                      |                     | Year Ended        |                     | Year Ended                            |
|                                                                                                                                                                                                                                                                                                                         |      | November 30, 2010               |      | November 30, 2009 |      | November 30, 2008                     |
| Realized and Unrealized Gain (Loss) on Investments                                                                                                                                                                                                                                                                           |                |                            |                     |              |                     |                                  |        |   |   |                            |        |   |
|      Net realized gain on control investments                                                                                                                                                                                                                                                            |                | $      | 2,356,404                |              |                     | $       | —     |   |   | $      | 112,500     |   |
|      Net realized gain (loss) on affiliated investments                                                                                                                                                                                                                                                  |                |                            | (9,520,748               | )                 |                     |                                  | (338,572    | )      |   |                            | 8,603,697   |   |
|      Net realized loss on non-affiliated investments                                                                                                                                                                                                                                                     |                |                            | (3,954,175               | )                 |                     |                                  | (22,782,176 | )      |   |                            | —     |   |
|           Net realized gain (loss), before income taxes                                                                                                                                                                                                                         |                |                            | (11,118,519              | )                 |                     |                                  | (23,120,748 | )      |   |                            | 8,716,197   |   |
|                Deferred tax benefit (expense)                                                                                                                                                                                                          |                |                            | 6,627,485                |              |                     |                                  | 2,714,872   |   |   |                            | (2,512,409  | )      |
|                     Net realized gain (loss) on investments                                                                                                                                                                   |                |                            | (4,491,034               | )                 |                     |                                  | (20,405,876 | )      |   |                            | 6,203,788   |   |
|      Net unrealized appreciation (depreciation)          of control investments                                                                                                                                                                             |                |                            | (139,464                 | )                 |                     |                                  | 5,483,497   |   |   |                            | (2,976,609  | )      |
|      Net unrealized appreciation (depreciation)          of affiliated investments                                                                                                                                                                          |                |                            | 28,753,652               |              |                     |                                  | (2,371,877  | )      |   |                            | (11,145,652 | )      |
|      Net unrealized appreciation (depreciation)          of non-affiliated investments                                                                                                                                                                      |                |                            | 1,950,402                |              |                     |                                  | 21,135,760  |   |   |                            | (27,458,859 | )      |
|      Net unrealized appreciation (depreciation),          before income taxes                                                                                                                                                                               |                |                            | 30,564,590               |              |                     |                                  | 24,247,380  |   |   |                            | (41,581,120 | )      |
|                Deferred tax benefit (expense)                                                                                                                                                                                                          |                |                            | (11,402,576              | )                 |                     |                                  | (3,070,361  | )      |   |                            | 11,985,592  |   |
|                     Net unrealized appreciation (depreciation)                         of investments |                |                            | 19,162,014               |              |                     |                                  | 21,177,019  |   |   |                            | (29,595,528 | )      |
| Net Realized and Unrealized Gain (Loss) on Investments                                                                                                                                                                                                                                                                       |                |                            | 14,670,980               |              |                     |                                  | 771,143     |   |   |                            | (23,391,740 | )      |
| Net Increase (Decrease) in Net Assets Applicable                                                                                                                                                                                                                                                                             |                |                            |                     |              |                     |                                  |        |   |   |                            |        |   |
|      to Common Stockholders Resulting from Operations                                                                                                                                                                                                                                                    |                | $                               | 14,666,874               |              |                     | $                                     | 10,994      |   |   | $                               | (24,370,233 | )      |
|                                                                                                                                                                                                                                                                                                                         |
| Net Increase (Decrease) in Net Assets Applicable     to Common Stockholders Resulting from                                                                                                                                                                                                               |                |                            |                     |              |                     |                                  |        |   |   |                            |        |   |
|      Operations Per Common Share:                                                                                                                                                                                                                                                                        |                |                            |                     |              |                     |                                  |        |   |   |                            |        |   |
|      Basic and Diluted                                                                                                                                                                                                                                                                                   |                | $                               | 1.61                     |              |                     | $                                     | 0.00        | (1)    |   | $                               | (2.74       | )      |
|                                                                                                                                                                                                                                                                                                                         |
| Weighted Average Shares of Common Stock Outstanding:                                                                                                                                                                                                                                                                         |                |                            |                     |              |                     |                                  |        |   |   |                            |        |   |
|      Basic and Diluted                                                                                                                                                                                                                                                                                   |                |                            | 9,107,070                |              |                     |                                  | 8,997,145   |   |   |                            | 8,887,085   |   |

| (1) |    | Less than $0.01 per share. |
|-----|--------------|----------------------------|

----

|  | Tortoise Capital Resources Corporation |
|--|----------------------------------------|

| STATEMENTS OF CHANGES IN NET ASSETS                                                                                                       |         |                                                      |         |              |         |                                                |        |   |   |                                                |        |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------------|-----------------------------------------------------------|--------------|-------------------|--------------|-----------------------------------------------------|-------------|--------|--------|-----------------------------------------------------|-------------|--------|
|                                                                                                                                      |         | Year Ended                                                |         | Year Ended        |         | Year Ended                                          |
|                                                                                                                                      |    | November 30, 2010                                         |    | November 30, 2009 |    | November 30, 2008                                   |
| Operations                                                                                                                                |         |                                                      |         |              |         |                                                |        |   |   |                                                |        |   |
|      Net investment loss                                                                                              |         | $            | (4,106       | )                 |         | $           | (760,149    | )      |   | $           | (978,493    | )      |
|      Net realized gain (loss) on investments                                                                          |         |                                                      | (4,491,034   | )                 |         |                                                | (20,405,876 | )      |   |                                                | 6,203,788   |   |
|      Net unrealized appreciation (depreciation) of investments                                                        |         |                                                      | 19,162,014   |              |         |                                                | 21,177,019  |   |   |                                                | (29,595,528 | )      |
|           Net increase (decrease) in net assets applicable to common                         |         |                                                      |         |              |         |                                                |        |   |   |                                                |        |   |
|                 stockholders resulting from operations         |         |                                                      | 14,666,874   |              |         |                                                | 10,994      |   |   |                                                | (24,370,233 | )      |
| Distributions to Common Stockholders                                                                                                      |         |                                                      |         |              |         |                                                |        |   |   |                                                |        |   |
|      Return of capital                                                                                                |         |                                                      | (3,915,124   | )                 |         |                                                | (5,582,473  | )      |   |                                                | (9,265,351  | )      |
|           Total distributions to common stockholders                                         |         |                                                      | (3,915,124   | )                 |         |                                                | (5,582,473  | )      |   |                                                | (9,265,351  | )      |
| Capital Stock Transactions                                                                                                                |         |                                                      |         |              |         |                                                |        |   |   |                                                |        |   |
|      Proceeds from exercise of 180 warrants                                                                           |         |                                                      | —      |              |         |                                                | —     |   |   |                                                | 2,700       |   |
|      Issuance of 68,416, 115,943 and 103,799 common shares from                                                       |         |                                                      |         |              |         |                                                |        |   |   |                                                |        |   |
|           reinvestment of distributions to stockholders, respectively                        |         |                                                      | 430,838      |              |         |                                                | 642,764     |   |   |                                                | 945,218     |   |
|           Net increase in net assets, applicable to common stockholders,                     |         |                                                      |         |              |         |                                                |        |   |   |                                                |        |   |
|                from capital stock transactions                      |         |                                                      | 430,838      |              |         |                                                | 642,764     |   |   |                                                | 947,918     |   |
|                Total increase (decrease) in net assets applicable   |         |                                                      |         |              |         |                                                |        |   |   |                                                |        |   |
|                     to common stockholders |         |                                                      | 11,182,588   |              |         |                                                | (4,928,715  | )      |   |                                                | (32,687,666 | )      |
|                                                                                                                                      |
| Net Assets                                                                                                                                |         |                                                      |         |              |         |                                                |        |   |   |                                                |        |   |
|      Beginning of year                                                                                                |         |                                                      | 84,296,585   |              |         |                                                | 89,225,300  |   |   |                                                | 121,912,966 |   |
|      End of year                                                                                                      |         | $                                                         | 95,479,173   |              |         | $                                                   | 84,296,585  |   |   | $                                                   | 89,225,300  |   |
|                                                                                                                                      |
|      Accumulated net investment loss, net of income taxes,                                                            |         |                                                      |         |              |         |                                                |        |   |   |                                                |        |   |
|           at the end of year                                                                 |         | $                                                         | (3,308,522   | )                 |         | $                                                   | (3,304,416  | )      |   | $                                                   | (2,544,267  | )      |
|                                                                                                                                      |         |                                                      |         |              |         |                                                |        |   |   |                                                |        |   |

----

|  | Tortoise Capital Resources Corporation |
|--|----------------------------------------|

| STATEMENTS OF CASH FLOWS                                                                                                                                                                                                                                                                                                                 |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------------------------------------------------|--------------|-------------------|--------------|-----------------------------------------------------|-------------|--------|--------|-----------------------------------------------------|-------------|--------|
|                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                     |    | Year Ended                                     |    | Year Ended        |    | Year Ended                                          |
|                                                                                                                                                                                                                                                                                                                                     |    | November 30, 2010                              |    | November 30, 2009 |    | November 30, 2008                                   |
| Cash Flows From Operating Activities                                                                                                                                                                                                                                                                                                     |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|      Distributions received from investments                                                                                                                                                                                                                                                                         |         | $           | 4,196,269    |              |         | $           | 7,668,062   |   |   | $           | 9,688,521   |   |
|      Interest and dividend income received                                                                                                                                                                                                                                                                           |         |                                           | 678,408      |              |         |                                                | 885,284     |   |   |                                                | 1,106,776   |   |
|      Fee income received                                                                                                                                                                                                                                                                                             |         |                                           | 43,580       |              |         |                                                | 55,000      |   |   |                                                | —     |   |
|      Purchases of long-term investments                                                                                                                                                                                                                                                                              |         |                                           | (10,633,882  | )                 |         |                                                | (6,612,878  | )      |   |                                                | (37,817,772 | )      |
|      Proceeds from sales of long-term investments                                                                                                                                                                                                                                                                    |         |                                           | 15,757,414   |              |         |                                                | 24,312,558  |   |   |                                                | 48,568,485  |   |
|      Proceeds from sales (purchases) of short-term investments, net                                                                                                                                                                                                                                                  |         |                                           | 32,653       |              |         |                                                | (1,138,474  | )      |   |                                                | (140,878    | )      |
|      Interest expense paid                                                                                                                                                                                                                                                                                           |         |                                           | (66,703      | )                 |         |                                                | (674,245    | )      |   |                                                | (1,736,407  | )      |
|      Operating expenses paid                                                                                                                                                                                                                                                                                         |         |                                           | (1,923,455   | )                 |         |                                                | (1,955,510  | )      |   |                                                | (3,001,292  | )      |
|           Net cash provided by operating activities                                                                                                                                                                                                                                         |         |                                           | 8,084,284    |              |         |                                                | 22,539,797  |   |   |                                                | 16,667,433  |   |
| Cash Flows From Financing Activities                                                                                                                                                                                                                                                                                                     |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|      Issuance of common stock (including warrant exercises)                                                                                                                                                                                                                                                          |         |                                           | —      |              |         |                                                | —     |   |   |                                                | 2,700       |   |
|      Advances from revolving line of credit                                                                                                                                                                                                                                                                          |         |                                           | —      |              |         |                                                | 900,000     |   |   |                                                | 22,750,000  |   |
|      Repayments on revolving line of credit                                                                                                                                                                                                                                                                          |         |                                           | (4,600,000   | )                 |         |                                                | (18,500,000 | )      |   |                                                | (31,100,000 | )      |
|      Distributions paid to common stockholders                                                                                                                                                                                                                                                                       |         |                                           | (3,484,284   | )                 |         |                                                | (4,939,797  | )      |   |                                                | (8,320,133  | )      |
|           Net cash used in financing activities                                                                                                                                                                                                                                             |         |                                           | (8,084,284   | )                 |         |                                                | (22,539,797 | )      |   |                                                | (16,667,433 | )      |
|      Net change in cash                                                                                                                                                                                                                                                                                              |         |                                           | —      |              |         |                                                | —     |   |   |                                                | —     |   |
|      Cash — beginning of year                                                                                                                                                                                                                                                                                  |         |                                           | —      |              |         |                                                | —     |   |   |                                                | —     |   |
|      Cash — end of year                                                                                                                                                                                                                                                                                        |         | $                                              | —      |              |         | $                                                   | —     |   |   | $                                                   | —     |   |
|                                                                                                                                                                                                                                                                                                                                     |
| Reconciliation of net increase (decrease) in net assets applicable                                                                                                                                                                                                                                                                       |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|      to common stockholders resulting from operations to net cash                                                                                                                                                                                                                                                    |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|      provided by operating activities                                                                                                                                                                                                                                                                                |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|      Net increase (decrease) in net assets applicable to common                                                                                                                                                                                                                                                      |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|           stockholders resulting from operations                                                                                                                                                                                                                                            |         | $                                              | 14,666,874   |              |         | $                                                   | 10,994      |   |   | $                                                   | (24,370,233 | )      |
|      Adjustments to reconcile net increase (decrease) in net assets                                                                                                                                                                                                                                                  |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|           applicable to common stockholders resulting from operations                                                                                                                                                                                                                       |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|           to net cash provided by operating activities:                                                                                                                                                                                                                                     |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|                Purchases of long-term investments                                                                                                                                                                                                                  |         |                                           | (10,633,882  | )                 |         |                                                | (6,669,391  | )      |   |                                                | (36,592,256 | )      |
|                Return of capital on distributions received                                                                                                                                                                                                         |         |                                           | 3,064,204    |              |         |                                                | 6,791,394   |   |   |                                                | 7,894,819   |   |
|                Proceeds from sales of long-term investments                                                                                                                                                                                                        |         |                                           | 15,762,612   |              |         |                                                | 24,312,558  |   |   |                                                | 48,568,485  |   |
|                Proceeds from sales (purchases) of short-term investments, net                                                                                                                                                                                      |         |                                           | 32,653       |              |         |                                                | (1,138,474  | )      |   |                                                | (140,878    | )      |
|                Accrued capital gain incentive fees payable to Adviser                                                                                                                                                                                              |         |                                           | —      |              |         |                                                | —     |   |   |                                                | (307,611    | )      |
|                Deferred income taxes, net                                                                                                                                                                                                                          |         |                                           | 4,772,648    |              |         |                                                | 254,356     |   |   |                                                | (9,866,666  | )      |
|                Amortization of issuance costs                                                                                                                                                                                                                      |         |                                           | —      |              |         |                                                | —     |   |   |                                                | 18,553      |   |
|                Realized gain (loss) on investments                                                                                                                                                                                                                 |         |                                           | 11,118,519   |              |         |                                                | 23,120,748  |   |   |                                                | (8,716,197  | )      |
|                Net unrealized appreciation (depreciation) of investments                                                                                                                                                                                           |         |                                           | (30,564,590  | )                 |         |                                                | (24,247,380 | )      |   |                                                | 41,581,120  |   |
|                Changes in operating assets and liabilities:                                                                                                                                                                                                        |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|                     (Increase) decrease in interest, dividend and                         distribution receivable |         |                                           | (42,774      | )                 |         |                                                | 77,218      |   |   |                                                | (7,200      | )      |
|                     Decrease in income tax receivable                                                                                                                                                                                     |         |                                           | —      |              |         |                                                | 212,054     |   |   |                                                | —     |   |
|                     Increase in receivable for investments sold                                                                                                                                                                           |         |                                           | (5,198       | )                 |         |                                                | —     |   |   |                                                | —     |   |
|                     (Increase) decrease in prepaid expenses and other assets                                                                                                                                                              |         |                                           | (8,231       | )                 |         |                                                | 91,004      |   |   |                                                | (92,432     | )      |
|                     Increase in current tax liability                                                                                                                                                                                     |         |                                           | —      |              |         |                                                | —     |   |   |                                                | 6,881       |   |
|                     Decrease in base management fees payable to                                                                                                                                                                           |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|                          Adviser, net of expense reimbursement                                                                                                                                                   |         |                                           | (30,926      | )                 |         |                                                | (195,410    | )      |   |                                                | (26,278     | )      |
|                     Decrease in payable for investments purchased                                                                                                                                                                         |         |                                           | —      |              |         |                                                | —     |   |   |                                                | (1,235,994  | )      |
|                     Decrease in accrued expenses and other liabilities                                                                                                                                                                    |         |                                           | (47,625      | )                 |         |                                                | (79,874     | )      |   |                                                | (46,680     | )      |
|                          Total adjustments                                                                                                                                                                       |         |                                           | (6,582,590   | )                 |         |                                                | 22,528,803  |   |   |                                                | 41,037,666  |   |
|      Net cash provided by operating activities                                                                                                                                                                                                                                                                       |         | $                                              | 8,084,284    |              |         | $                                                   | 22,539,797  |   |   | $                                                   | 16,667,433  |   |
|                                                                                                                                                                                                                                                                                                                                     |
| Non-Cash Financing Activities                                                                                                                                                                                                                                                                                                            |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
| Reinvestment of distributions by common stockholders                                                                                                                                                                                                                                                                                     |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |
|      in additional common shares                                                                                                                                                                                                                                                                                     |         | $                                              | 430,838      |              |         | $                                                   | 642,764     |   |   | $                                                   | 945,218     |   |
|                                                                                                                                                                                                                                                                                                                                     |         |                                           |         |              |         |                                                |        |   |   |                                                |        |   |

----

|  | Tortoise Capital Resources Corporation |
|--|----------------------------------------|

FINANCIAL HIGHLIGHTS

|                                                                                                                                                                                                                                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Period from |
|                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | December 8, 2005(1) |
|                                                                                                                                                                                                                                                                                                                        |   | Year Ended |   | Year Ended |   | Year Ended |   | Year Ended |   | through |
|                                                                                                                                                                                                                                                                                                                        |    | November 30, 2010 |    | November 30, 2009 |    | November 30, 2008 |    | November 30, 2007 |    | November 30, 2006 |
| Per Common Share Data(2)                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net Asset Value, beginning          of period                                                                                                                                                                                                         |   | $ | 9.29 |   |   | $ | 9.96 |   |   | $ | 13.76 |   |   | $ | 13.70 |   |   | $ | — |   |
|      Initial offering price                                                                                                                                                                                                                                                                             |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 15.00 |   |
|      Income (loss) from Investment          Operations:                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Net investment loss(3)(4)                                                                                                                                                                                                                                            |   |   | 0.00 |   |   |   | (0.08 | ) |   |   | (0.11 | ) |   |   | (0.18 | ) |   |   | 0.21 |   |
|           Net realized and unrealized                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                gain (loss) on investments(3)                                                                                                                                                                                                          |   |   | 1.58 |   |   |   | 0.03 |   |   |   | (2.65 | ) |   |   | 0.90 |   |   |   | 0.05 |   |
|                     Total increase (decrease)                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          from investment                         operations |   |   | 1.58 |   |   |   | (0.05 | ) |   |   | (2.76 | ) |   |   | 0.72 |   |   |   | 0.26 |   |
|      Less Distributions to Common          Stockholders:                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Net investment income                                                                                                                                                                                                                                                |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (0.21 | ) |
|           Return of capital                                                                                                                                                                                                                                                    |   |   | (0.43 | ) |   |   | (0.62 | ) |   |   | (1.04 | ) |   |   | (0.67 | ) |   |   | (0.13 | ) |
|                     Total distributions to                         common stockholders               |   |   | (0.43 | ) |   |   | (0.62 | ) |   |   | (1.04 | ) |   |   | (0.67 | ) |   |   | (0.34 | ) |
|      Underwriting discounts and                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           offering costs on issuance          of common stock                                                                                                                                                           |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 0.01 |   |   |   | (1.22 | ) |
|      Net Asset Value, end of period                                                                                                                                                                                                                                                                     |   | $ | 10.44 |   |   | $ | 9.29 |   |   | $ | 9.96 |   |   | $ | 13.76 |   |   | $ | 13.70 |   |
|                                                                                                                                                                                                                                                                                                                        |
|      Per common share market          value, end of period                                                                                                                                                                                                 |   | $ | 7.28 |   |   | $ | 6.23 |   |   | $ | 5.21 |   |   | $ | 11.66 |   |   |   | N/A |   |
|      Total Investment Return,          based on net asset value(5)                                                                                                                                                                                         |   |   | 20.26 | % |   |   | 4.19 | % |   |   | (18.83 | )% |   |   | 5.35 | % |   |   | (6.39 | )% |
|      Total Investment Return,          based on market value(6)                                                                                                                                                                                            |   |   | 25.04 | % |   |   | 33.57 | % |   |   | (49.89 | )% |   |   | 19.05 | % |   |   | N/A |   |

| (1) |    | Commencement of Operations.                                                                                                                                                                                                                                                                                                                                     |
|-----|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |         | Information presented relates to a share of common stock outstanding for the entire period.                                                                                                                                                                                                                                                                     |
| (3) |         | The per common share data for the years ended November 30, 2009, 2008, and 2007 and the period from December 8, 2005 through November 30, 2006 do not reflect the change in estimate of investment income and return of capital, as described in Note 2D.                                                                                                       |
| (4) |         | Less than $0.01 per share or 0.01%.                                                                                                                                                                                                                                                                                                                             |
| (5) |         | Not annualized. Total investment return is calculated assuming a purchase of common stock at the net asset value per share as of the beginning of the period, reinvestment of distributions at actual prices pursuant to the Company’s dividend reinvestment plan and a sale at net asset value at the end of the period.                                 |
| (6) |         | Not annualized. Total investment return is calculated assuming a purchase of common stock at the market value at the beginning of the period, reinvestment of distributions at actual prices pursuant to the Company’s dividend reinvestment plan and a sale at the current market price on the last day of the period (excluding brokerage commissions). |

----

|  | Tortoise Capital Resources Corporation |
|--|----------------------------------------|

|                                                                                                                                      |              |                                               |              |    |              |                                               |              |    |              |                                         |   |    |   |                                          |   |    | Period from         |
|-------------------------------------------------------------------------------------------------------------------------------------------|-------------------|----------------------------------------------------|-------------------|--------------|-------------------|----------------------------------------------------|-------------------|--------------|-------------------|----------------------------------------------|--------|--------------|--------|-----------------------------------------------|--------|--------------|---------------------|
|                                                                                                                                      |              |                                               |              |         |              |                                               |              |         |              |                                         |   |         |   |                                          |   |         | December 8, 2005(1) |
|                                                                                                                                      | Year Ended        |                                               | Year Ended        |         | Year Ended        |                                               | Year Ended        |         | through           |
|                                                                                                                                      | November 30, 2010 |                                               | November 30, 2009 |         | November 30, 2008 |                                               | November 30, 2007 |         | November 30, 2006 |
| Supplemental Data    and Ratios                                                                                            |              |                                               |              |         |              |                                               |              |         |              |                                         |   |         |   |                                          |   |         |                |   |   |
|    Net assets applicable       to common                                                     |              |                                               |              |         |              |                                               |              |         |              |                                         |   |         |   |                                          |   |         |                |   |   |
|       stockholders, end                                                                                     |              |                                               |              |         |              |                                               |              |         |              |                                         |   |         |   |                                          |   |         |                |   |   |
|       of period (000’s)                                                                               | $                 | 95,479                                             |              |         | $                 | 84,297                                             |              |         | $                 | 89,225                                       |   |         | $      | 121,913                                       |   |         | $                   | 42,328 |   |
|    Average net assets (000’s)                                                                                        | $                 |          85,950 |              |         | $                 |          83,887 |              |         | $                 |        115,826 |   |         | $      |         107,530 |   |         | $                   |            42,338 |   |
|    Ratio of Expenses to                                                                                                    |              |                                               |              |         |              |                                               |              |         |              |                                         |   |         |   |                                          |   |         |                |   |   |
|       Average Net Assets(7)                                                                                 |              |                                               |              |         |              |                                               |              |         |              |                                         |   |         |   |                                          |   |         |                |   |   |
|       Advisory fees                                                                                         |              | 1.44                                               | %                 |         |              | 1.61                                               | %                 |         |              | 2.00                                         | %      |         |   | 1.79                                          | %      |         |                | 1.53 | % |
|       Capital gain incentive fees                                                                           |              | —                                            |              |         |              | —                                            |              |         |              | (0.27                                        | )      |         |   | 0.29                                          |   |         |                | — |   |
|       Other expenses                                                                                        |              | 1.08                                               |              |         |              | 1.09                                               |              |         |              | 0.90                                         |   |         |   | 1.02                                          |   |         |                | 0.87 |   |
|       Expense reimbursement                                                                                 |              | (0.36                                              | )                 |         |              | (0.27                                              | )                 |         |              | (0.33                                        | )      |         |   | (0.09                                         | )      |         |                | — |   |
|          Subtotal                                                                            |              | 2.16                                               |              |         |              | 2.43                                               |              |         |              | 2.30                                         |   |         |   | 3.01                                          |   |         |                | 2.40 |   |
|       Interest expense                                                                                      |              | 0.05                                               |              |         |              | 0.75                                               |              |         |              | 1.42                                         |   |         |   | 1.68                                          |   |         |                | — |   |
|       Income tax expense(8)                                                                                 |              | 5.55                                               |              |         |              | 0.30                                               |              |         |              | (8.51                                        | )      |         |   | 3.41                                          |   |         |                | 1.24 |   |
|          Total expenses                                                                      |              | 7.76                                               | %                 |         |              | 3.48                                               | %                 |         |              | (4.79                                        | )%     |         |   | 8.10                                          | %      |         |                | 3.64 | % |
|    Ratio of net investment       loss to average                                             |              |                                               |              |         |              |                                               |              |         |              |                                         |   |         |   |                                          |   |         |                |   |   |
|       net assets, before expense       reimbursement(7)                  |              | (0.36                                              | )%                |         |              | (1.18                                              | )%                |         |              | (1.18                                        | )%     |         |   | (1.54                                         | )%     |         |                | 1.77 | % |
|    Ratio of net investment       loss to average                                        |              |                                               |              |         |              |                                               |              |         |              |                                         |   |         |   |                                          |   |         |                |   |   |
|       net assets, after expense      reimbursement(4)(7)                      |              | (0.00                                              | )%                |         |              | (0.91                                              | )%                |         |              | (0.85                                        | )%     |         |   | (1.45                                         | )%     |         |                | 1.77 | % |
|    Portfolio turnover rate(7)                                                                                              |              | 12.92                                              | %                 |         |              | 7.43                                               | %                 |         |              | 24.55                                        | %      |         |   | 0.62                                          | %      |         |                | 9.51 | % |
|    Short-term borrowings, end       of period (000’s)                             |              | —                                            |              |         | $                 | 4,600                                              |              |         | $                 | 22,200                                       |   |         | $      | 30,550                                        |   |         |                | — |   |
|    Asset coverage, per $1,000                                                                                              |              |                                               |              |         |              |                                               |              |         |              |                                         |   |         |   |                                          |   |         |                |   |   |
|       of short-term borrowings(9)                                                                           |              | —                                            |              |         | $                 | 19,325                                             |              |         | $                 | 5,019                                        |   |         | $      | 4,991                                         |   |         |                | N/A |   |
|    Asset coverage ratio of       short-term      borrowings(9) |              | —                                            |              |         |              | 1,933                                              | %                 |         |              | 502                                          | %      |         |   | 499                                           | %      |         |                | N/A |   |

| (7) |   | Annualized for periods less than one full year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (8) |   | For the year ended November 30, 2010, the Company accrued $4,772,648 in net deferred income tax expense. For the year ended November 30, 2009, the Company accrued $254,356 in net deferred income tax expense. For the year ended November 30, 2008, the Company accrued $6,881 in current tax expense and $9,866,666 in net deferred tax benefit. For the year ended November 30, 2007, the Company accrued $261,667 in current income tax benefit and $3,932,763 in net deferred income tax expense. For the period from December 8, 2005 through November 30, 2006, the Company accrued $265,899 in current income tax expense and $250,156 in net deferred income tax expense. |
| (9) |   | Represents value of total assets less all liabilities and indebtedness not represented by short-term borrowings at the end of the period divided by short-term borrowings outstanding at the end of the period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

|  | Tortoise Capital Resources Corporation |
|--|----------------------------------------|

NOTES TO FINANCIAL STATEMENTS

----

-  The independent valuation firm prepares the preliminary valuations and the supporting analysis. At November 30, 2010, the independent valuation firm performed positive assurance valuation procedures on five portfolio companies comprising approximately 99.7 percent of the total fair value of restricted investments;     
-  The investment professionals of the Adviser review the preliminary valuations and supporting analyses, and consider and assess, as appropriate, any changes that may be required to the preliminary valuations;     
-  The Investment Committee of the Adviser reviews the preliminary valuations and supporting analyses, and considers and assesses, as appropriate, any changes that may be required to the preliminary valuations;     
-  The Board of Directors assesses the valuations and ultimately determines the fair value of each investment in the Company’s portfolio in good faith.  

----

----

----

|                                                                   | November 30, 2010 |                        | November 30, 2009 |
|------------------------------------------------------------------------|-------------------|-------------------------------------------------|-------------------|
| Deferred tax assets:                                                   |              |                                            |              |   |   |   |   |
|      Organization costs                            | $                 | (21,231                                         | )                 |   | $ | (24,456 | ) |
|      Net unrealized loss on investment securities  |              | —                                         |              |   |   | (2,416,767 | ) |
|      Capital loss carryforwards                    |              | (4,268,529                                      | )                 |   |   | (6,084,585 | ) |
|      Net operating loss carryforwards              |              | (6,343,988                                      | )                 |   |   | (5,112,040 | ) |
|      AMT and State of Kansas credit                |              | (5,039                                          | )                 |   |   | (5,039 | ) |
|      Valuation allowance                           |              | 558,533                                         |              |   |   | 3,038,089 |   |
|                                                                   |              | (10,080,254                                     | )                 |   |   | (10,604,798 | ) |
| Deferred tax liabilities:                                              |              |                                            |              |   |   |   |   |
|      Net unrealized gain on investment securities  |              | 8,640,355                                       |              |   |   | — |   |
|      Basis reduction of investment in partnerships |              | 783,156                                         |              |   |   | 5,175,407 |   |
|                                                                   |              |         9,423,511 |              |   |   |         5,175,407 |   |
| Total net deferred tax asset                                           | $                 | (656,743                                        | )                 |   | $ | (5,429,391 | ) |
|                                                                   |              |                                            |              |   |   |   |   |

|                                           | For the year ended |                  | For the year ended |       | For the year ended |
|------------------------------------------------|--------------------|-------------------------------------------|--------------------|--------------------------------|--------------------|
|                                           | November 30, 2010  |                                      | November 30, 2009  |                           | November 30, 2008  |
| Application of statutory income tax rate       | $                  | 6,609,437                                 |               |                           | $                  | 90,219 |   |   | $ | (11,638,206 | ) |
| State income taxes, net of federal tax benefit |               | 353,799                                   |               |                           |               | 9,314 |   |   |   | (951,595 | ) |
| Change in prior year tax expense               |               | —                                   |               |                           |               | — |   |   |   | 1,842 |   |
| Change in income tax rate                      |               | 288,968                                   |               |                           |               | (68,375 | ) |   |   | (86,717 | ) |
| Change in deferred tax valuation allowance     |               |       (2,479,556 | )                  |                           |               |           223,198 |   |   |   | 2,814,891 |   |
| Total income tax expense (benefit)             | $                  | 4,772,648                                 |               |                           | $                  | 254,356 |   |   | $ |        (9,859,785 | ) |
|                                           |               |                                      |               |                           |               |   |   |   |   |   |   |

----

|                             | Year ended        |                                   | Year ended        |       | Year ended                                                                 |
|----------------------------------|-------------------|------------------------------------------------------------|-------------------|--------------------------------|----------------------------------------------------------------------------|
|                             | November 30, 2010 |                                                       | November 30, 2009 |                           | November 30, 2008                                                          |
| Current tax expense              |              |                                                       |              |                           |                                                                       |   |   |   |   |
|      Federal | $                 | —                                                    |              | $                              | —                                                                    |   | $ | 6,361 |   |
|      State   |              | —                                                    |              |                           | —                                                                    |   |   | 520 |   |
| Total current expense            |              | —                                                    |              |                           | —                                                                    |   |   | 6,881 |   |
|                             |              |                                                       |              |                           |                                                                       |   |   |   |   |
| Deferred tax expense (benefit)   |              |                                                       |              |                           |                                                                       |   |   |   |   |
|      Federal |              |          4,530,152 |              |                           |             230,554 |   |   |       (9,120,898 | ) |
|      State   |              | 242,496                                                    |              |                           | 23,802                                                                     |   |   | (745,768 | ) |
| Total deferred expense (benefit) |              | 4,772,648                                                  |              |                           | 254,356                                                                    |   |   | (9,866,666 | ) |
| Total tax expense (benefit)      | $                 | 4,772,648                                                  |              | $                              | 254,356                                                                    |   | $ | (9,859,785 | ) |
|                             |              |                                                       |              |                           |                                                                       |   |   |   |   |

|                                           | November 30, 2010 |                  | November 30, 2009 |
|------------------------------------------------|-------------------|-------------------------------------------|-------------------|
| Aggregate cost for federal income tax purposes | $                 | 68,894,462                                |              |   | $ | 76,627,528 |   |
| Gross unrealized appreciation                  |              | 32,072,976                                |              |   |   | 15,304,091 |   |
| Gross unrealized depreciation                  |              | (5,765,015                                | )                 |   |   |       (7,949,679 | ) |
| Net unrealized appreciation                    | $                 |       26,307,961 |              |   | $ | 7,354,412 |   |
|                                           |              |                                 |              |   |   |   |   |

- Level 1 — quoted prices in active markets for identical investments 
- Level 2  — other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.) 
- Level 3 — significant unobservable inputs (including the Company’s own assumptions in determining the fair value of  investments) 

----

| November 30, 2010      |              |                                            |       |   |       |       |    |      |       |   |       |
|------------------------|-------------------|-------------------------------------------------|--------------------------------|--------|------------|--------------------------------|---------|-----------|--------------------------------|--------|------------|
|                   | Fair Value at     |                                            |                           |   |       |                           |    |      |                           |   |
| Description            | November 30, 2010 |                                            | Level 1                        |   | Level 2    |                           | Level 3 |
| Equity Investments     | $                 | 89,936,230                                      |                           | $      | 20,806,821 |                           | $       | —   |                           | $      | 69,129,409 |
| Debt Investments       |              | 3,800,000                                       |                           |   | —    |                           |    | —   |                           |   | 3,800,000  |
| Short-Term Investments |              | 1,466,193                                       |                           |   | 1,466,193  |                           |    | —   |                           |   | —    |
| Total Investments      | $                 |        95,202,423 |                           | $      | 22,273,014 |                           | $       | —   |                           | $      | 72,929,409 |
|                   |              |                                            |                           |   |       |                           |    |      |                           |   |       |
| November 30, 2009      |              |                                            |                           |   |       |                           |    |      |                           |   |       |
|                   | Fair Value at     |                                            |                           |   |       |                           |    |      |                           |   |
| Description            | November 30, 2009 |                                            | Level 1                        |   | Level 2    |                           | Level 3 |
| Equity Investments     | $                 | 73,683,094                                      |                           | $      | 2,039,565  |                           | $       | 3,297,009 |                           | $      | 68,346,520 |
| Debt Investments       |              | 8,800,000                                       |                           |   | —    |                           |    | —   |                           |   | 8,800,000  |
| Short-Term Investments |              | 1,498,846                                       |                           |   | 1,498,846  |                           |    | —   |                           |   | —    |
| Total Investments      | $                 | 83,981,940                                      |                           | $      | 3,538,411  |                           | $       | 3,297,009 |                           | $      | 77,146,520 |
|                   |              |                                            |                           |   |       |                           |    |      |                           |   |       |

|                                                                                                      | Year ended        |                                 | Year ended        |
|-----------------------------------------------------------------------------------------------------------|-------------------|--------------------------------------|-------------------|
|                                                                                                      | November 30, 2010 |             | November 30, 2009 |
| Fair value beginning balance                                                                              | $                 | 77,146,520                           |              |   | $ | 85,728,339 |   |
| Total realized and unrealized gains included in net increase in net assets                                |              |                                 |              |   |   |   |   |
|      applicable to common stockholders                                                |              | 10,473,595                           |              |   |   | 2,575,505 |   |
| Purchases                                                                                                 |              | 750,000                              |              |   |   | 56,513 |   |
| Sales                                                                                                     |              |      (12,494,034 | )                 |   |   |       (4,479,786 | ) |
| Return of capital adjustments impacting cost basis of securities                                          |              | (2,946,672                           | )                 |   |   | (6,734,051 | ) |
| Fair value ending balance                                                                                 | $                 | 72,929,409                           |              |   | $ | 77,146,520 |   |
| The amount of total gains for the period included in net increase in net assets                           |              |                                 |              |   |   |   |   |
|      applicable to common stockholders attributable to the change in unrealized gains |              |                                 |              |   |   |   |   |
|      relating to assets still held at the reporting date                              | $                 | 13,909,657                           |              |   | $ | 4,087,478 |   |

----

| November 30, 2010                                           |         |                   |         | Equity          |      |         |             |         |   |       |         |       |       |         |       |     | Fair         |
|-------------------------------------------------------------|--------------|------------------------|--------------|-----------------|-----------|--------------|------------------|--------------|--------|------------|--------------|------------|------------|--------------|------------|----------|--------------|
|                                                        |         |                   |         | Interest, Units |      |         |             |         |   |       |         |       |       | Fair         |       | Value as |
|                                                        |         |                   |         | or Principal    |      | Acquisition  |             | Acquisition  |   |       |         |       | Value Per  |         | Percent of |
| Investment Security                                         |         | Amount                 |         | Date(s)         |      | Cost         |             | Fair Value   |   | Unit       |         | Net Assets |
| High Sierra Energy, LP                                      |    | Common Units           |    |            | 1,042,685 |    | 11/2/06-11/15/08 |    | $      | 24,828,836 |    | $          | 20,666,009 |    | $          | 19.82    |    |   | 21.6 | % |   |
| High Sierra Energy GP, LLC                                  |         | Equity Interest        |         |            | 2.37%     |         | 11/2/06-5/1/07   |         |   | 2,015,969  |         |       | 602,834    |         |       | N/A      |         |   | 0.6 |   |   |
| International Resource      Partners LP |         | Class A Units          |         |            | 500,000   |         | 6/12/07          |         |   | 10,000,000 |         |       | 28,155,000 |         |       | 56.31    |         |   | 29.5 |   |   |
| LONESTAR Midstream      Partners, LP(1) |         | Class A Units          |         |            | 1,327,900 |         | 7/27/07-4/2/08   |         |   | 2,149,269  |         |       | 208,000    |         |       | 0.16     |         |   | 0.2 |   |   |
| LSMP GP, LP(1)                                              |         | GP LP Units            |         |            | 180       |         | 7/27/07-4/2/08   |         |   | 120,046    |         |       | 37,000     |         |       | 205.56   |         |   | 0.1 |   |   |
| Mowood, LLC(1)                                              |         | Equity Interest        |         |            | 100%      |         | 6/5/06-8/4/08    |         |   | 1,000,000  |         |       | 5,492,247  |         |       | N/A      |         |   | 5.8 |   |   |
|                                                        |         | Subordinated Debt      |         | $               | 3,800,000 |         | 7/28/10          |         |   | 3,800,000  |         |       | 3,800,000  |         |       | N/A      |         |   | 4.0 |   |   |
| VantaCore Partners LP                                       |         | Common Units           |         |            | 933,430   |         | 5/21/07-8/4/08   |         |   | 18,270,449 |         |       | 13,814,764 |         |       | 14.80    |         |   | 14.5 |   |   |
|                                                        |         | Incentive Distribution |         |            |      |         |             |         |   |       |         |       |       |         |       |     |         |   |   |   |   |
|                                                        |         | Rights                 |         |            | 988       |         | 5/21/07-8/4/08   |         |   | 143,936    |         |       | 153,555    |         |       | 155.42   |         |   | 0.1 |   |   |
|                                                        |         |                   |         |            |      |         |             |         | $      | 62,328,505 |         | $          | 72,929,409 |         |       |     |         |   | 76.4 | % |   |
|                                                        |         |                   |         |            |      |         |             |         |   |       |         |       |       |         |       |     |         |   |   |   |   |

| November 30, 2009                                           |    |                   |    | Equity          |    |        |        |        |   |    |   |       |    |   |       |    | Fair   |
|-------------------------------------------------------------|--------------|------------------------|--------------|-----------------|--------------|-------------|------------------|-------------|--------|--------------|--------|------------|--------------|--------|------------|--------------|--------|
|                                                        |         |                   |         | Interest, Units |         |        |             |        |   |         |   |       |         | Fair   |       | Value as     |
|                                                        |         |                   |         | or Principal    |         | Acquisition |             | Acquisition |   |         |   |       | Value Per    |   | Percent of |
| Investment Security                                         |         | Amount                 |         | Date(s)         |         | Cost        |             | Fair Value  |   | Unit         |   | Net Assets |
| Abraxas Petroleum Corporation                               |         | Unregistered           |         |            | 1,946,376    |        | 10/5/09          |        | $      | 2,895,234    |   | $          | 3,297,009    |   | $          | 1.69         |   |   | 3.9 | % |   |
|                                                        |         | Common Units           |         |            |         |        |             |        |   |         |   |       |         |   |       |         |   |   |   |   |   |
| Eagle Rock Energy Partners, L.P.(1)                         |         | Unregistered           |         |            |         |        |             |        |   |         |   |       |         |   |       |         |   |   |   |   |   |
|                                                        |         | Common Units           |         |            | 54,474       |        | 10/1/08          |        |   | 749,018      |   |       | 253,559      |   |       | 4.65         |   |   | 0.3 |   |   |
| High Sierra Energy, LP                                      |         | Common Units           |         |            | 1,042,685    |        | 11/2/06-11/15/08 |        |   | 24,828,836   |   |       | 24,461,390   |   |       | 23.46        |   |   | 29.0 |   |   |
| High Sierra Energy GP, LLC                                  |         | Equity Interest        |         |            | 2.37%        |        | 11/2/06-5/1/07   |        |   | 2,015,969    |   |       | 1,776,068    |   |       | N/A          |   |   | 2.1 |   |   |
| International Resource      Partners LP |         | Class A Units          |         |            | 500,000      |        | 6/12/07          |        |   | 10,000,000   |   |       | 9,984,402    |   |       | 19.97        |   |   | 11.8 |   |   |
| LONESTAR Midstream      Partners, LP(2) |         | Class A Units          |         |            | 1,327,900    |        | 7/27/07- 4/2/08  |        |   | 2,952,626    |   |       | 1,102,000    |   |       | 0.83         |   |   | 1.3 |   |   |
| LSMP GP, LP(2)                                              |         | GP LP Units            |         |            | 180          |        | 7/27/07- 4/2/08  |        |   | 138,521      |   |       | 124,000      |   |       | 688.89       |   |   | 0.2 |   |   |
| Mowood, LLC                                                 |         | Equity Interest        |         |            | 99.5%        |        | 6/5/06-8/4/08    |        |   | 5,000,000    |   |       | 8,253,910    |   |       | N/A          |   |   | 9.8 |   |   |
|                                                        |         | Subordinated Debt      |         | $               | 8,800,000    |        | 6/5/06-12/8/08   |        |   | 8,800,000    |   |       | 8,800,000    |   |       | N/A          |   |   | 10.4 |   |   |
| Quest Midstream Partners, L.P.                              |         | Common Units           |         |            | 1,180,946    |        | 12/22/06-11/1/07 |        |   | 22,200,001   |   |       | 5,987,055    |   |       | 4.92         |   |   | 7.1 |   |   |
| VantaCore Partners LP                                       |         | Common Units           |         |            | 933,430      |        | 5/21/07-8/4/08   |        |   | 18,270,449   |   |       | 16,256,482   |   |       | 17.42        |   |   | 19.3 |   |   |
|                                                        |         | Incentive Distribution |         |            |         |        |             |        |   |         |   |       |         |   |       |         |   |   |   |   |   |
|                                                        |         | Rights                 |         |            | 988          |        | 5/21/07-8/4/08   |        |   | 143,936      |   |       | 147,654      |   |       | 149.45       |   |   | 0.2 |   |   |
|                                                        |         |                   |         |            |         |        |             |        | $      | 97,994,590   |   | $          | 80,443,529   |   |       |         |   |   | 95.4 | % |   |
|                                                        |         |                   |         |            |         |        |             |        |   |         |   |       |         |   |       |         |   |   |   |   |   |

| (1) |   | Units are held in an escrow account to satisfy any potential claims from the purchaser of Millennium Midstream Partners, L.P. The escrow agreement terminated April 1, 2010. See Note 9—Investment Transactions for additional information. |
|-----|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | See Note 9—Investment Transactions for additional information.                                                                                                                                                                              |

----

| November 30, 2010                                        | Units/Equity       |    |      |   |            |   |        |        |    |   |     |       |    | Gross         |    | Units/Equity                 |    |   |      |
|----------------------------------------------------------|--------------------|--------------|-----------|--------|----------------------|--------|-------------|-------------|--------------|--------|----------|------------|--------------|---------------|--------------|------------------------------|--------------|--------|-----------|
|                                                     | Interest/Principal |         |      |   |                 |   |        |        |         |   |     |       |         | Distributions |         | Interest/Principal           |         |   |      |
|                                                     | Balance            |         | Gross     |   | Gross                |   | Realized    |        | or Interest  |   | Balance  |       | Fair Value   |
|                                                     | 11/30/09           |         | Additions |   | Reductions           |   | Gain (loss) |        | Received     |   | 11/30/10 |       | 11/30/10     |
| High Sierra Energy, LP(1)                                |               | 1,042,685    |      | $      | —              |   | $           | —     |         |   | $        | —    |         |          | $            | 656,891                      |         |   | 1,042,685 |   | $ | 20,666,009 |
| International Resource     Partners LP    |               | 500,000      |      |   | —              |   |        | —     |         |   |     | —    |         |          |         | 950,000                      |         |   | 500,000   |   |   | 28,155,000 |
| LONESTAR Midstream     Partners, LP(1)(2) |               | 1,327,900    |      |   | —              |   |        | (890,942    | )            |   |     | 87,585     |         |          |         | —                      |         |   | 1,327,900 |   |   | 208,000 |
| LSMP GP, LP(1)(2)                                        |               | 180          |      |   | —              |   |        | (17,254     | )            |   |     | (1,221     | )            |          |         | —                      |         |   | 180       |   |   | 37,000 |
| Mowood, LLC     Subordinated Debt(2)      | $                  | 8,800,000    |      |   | 750,000              |   |        | (5,750,000  | )            |   |     | —    |         |          |         | 720,323                      |         | $      | 3,800,000 |   |   | 3,800,000 |
| Mowood, LLC     Equity Interest(2)        |               | 99.5%        |      |   | —              |   |        | (5,528,403  | )            |   |     | 2,356,404  |         |          |         | 248,426                      |         |   | 100%      |   |   | 5,492,247 |
| Quest Midstream     Partners, L.P.        |               | 1,216,881    |      |   | —              |   |        | (9,915,452  | )            |   |     | (9,607,112 | )            |          |         | —                      |         |   | —   |   |   | — |
| VantaCore Partners LP    Common Units     |               | 933,430      |      |   | —              |   |        | —     |         |   |     | —    |         |          |         | 1,773,517                    |         |   | 933,430   |   |   | 13,814,764 |
| VantaCore Partners LP    Incentive        |               |         |      |   |                 |   |        |        |         |   |     |       |         |          |         |                         |         |   |      |   |   |   |
|     Distribution Rights(1)                |               | 988          |      |   | —              |   |        | —     |         |   |     | —    |         |          |         | —                      |         |   | 988       |   |   | 153,555 |
|                                                     |               |         |      | $      |    750,000 |   | $           | (22,102,051 | )            |   | $        | (7,164,344 | )            |          | $            |     4,349,157 |         |   |      |   | $ | 72,326,575 |
|                                                     |               |         |      |   |                 |   |        |        |         |   |     |       |         |          |         |                         |         |   |      |   |   |   |

| (1)  | Currently non-income producing.                                      |
|-----------|----------------------------------------------------------------------|
| (2)       | See Note 9—Investment Transactions for additional information. |
|      |

| November 30, 2009                                        |    | Units/Equity       |    |      |   |    |   |        |       |    |   |     |            |    | Gross         |    | Units/Equity           |    |   |      |
|----------------------------------------------------------|--------------|--------------------|--------------|-----------|--------|--------------|--------|-------------|------------|--------------|--------|----------|-----------------|--------------|---------------|--------------|------------------------|--------------|--------|-----------|
|                                                     |         | Interest/Principal |         |      |   |         |   |        |       |         |   |     |            |         | Distributions |         | Interest/Principal     |         |   |      |
|                                                     |         | Balance            |         | Gross     |   | Gross        |   | Realized    |       | or Interest  |   | Balance  |            | Fair Value   |
|                                                     |         | 11/30/08           |         | Additions |   | Reductions   |   | Gain (loss) |       | Received     |   | 11/30/09 |            | 11/30/09     |
| High Sierra Energy, LP                                   |         |               | 1,042,685    |      | $      | —      |   | $           | —    |         |   | $        | —         |         |          | $            | 2,579,159              |         |   | 1,042,685 |   | $ | 24,461,390 |
| International Resource    Partners LP     |         |               | 500,000      |      |   | —      |   |        | —    |         |   |     | —         |         |          |         | 800,000                |         |   | 500,000   |   |   | 9,984,402 |
| LONESTAR Midstream     Partners, LP(1)(2) |         |               | 1,327,900    |      |   | —      |   |        | (1,128,428 | )            |   |     | (363,932        | )            |          |         | —                |         |   | 1,327,900 |   |   | 1,102,000 |
| LSMP GP, LP(1)(2)                                        |         |               | 180          |      |   | —      |   |        | (55,353    | )            |   |     | 25,360          |         |          |         | —                |         |   | 180       |   |   | 124,000 |
| Mowood, LLC     Subordinated Debt         |         | $                  | 7,050,000    |      |   | 1,750,000    |   |        | —    |         |   |     | —         |         |          |         | 807,848                |         | $      | 8,800,000 |   |   | 8,800,000 |
| Mowood, LLC     Promissory Notes          |         | $                  | 1,235,000    |      |   | —      |   |        | (1,235,000 | )            |   |     | —         |         |          |         | —                |         |   | —   |   |   | — |
| Mowood, LLC     Equity Interest           |         |               | 99.6%        |      |   | —      |   |        | —    |         |   |     | —         |         |          |         | 450,000                |         |   | 99.5%     |   |   | 8,253,910 |
| Quest Midstream     Partners, L.P.(2)     |         |               | 1,180,946    |      |   | —      |   |        | —    |         |   |     | —         |         |          |         | —                |         |   | 1,216,881 |   |   | 5,987,055 |
| VantaCore Partners     LP Common Units    |         |               | 933,430      |      |   | —      |   |        | —    |         |   |     | —         |         |          |         | 1,820,189              |         |   | 933,430   |   |   | 16,256,482 |
| VantaCore Partners     LP Incentive       |         |               |         |      |   |         |   |        |       |         |   |     |            |         |          |         |                   |         |   |      |   |   |   |
|     Distribution Rights(2)                |         |               | 988          |      |   | —      |   |        | —    |         |   |     | —         |         |          |         | —                |         |   | 988       |   |   | 147,654 |
|                                                     |         |               |         |      | $      | 1,750,000    |   | $           | (2,418,781 | )            |   | $        |   (338,572 | )            |          | $            |    6,457,196 |         |   |      |   | $ | 75,116,893 |
|                                                     |         |               |         |      |   |         |   |        |       |         |   |     |            |         |          |         |                   |         |   |      |   |   |   |

| (1)  | See Note 9—Investment Transactions for additional information.                                                                            |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)       | Currently non-income producing. Additional units held at 11/30/09 resulted from paid-in-kind distribution to private investors in October 2009. |
|      |

----

----

| Shares at November 30, 2007                         |       | 8,858,168 |
|-----------------------------------------------------|--------------------------------|-----------|
| Shares issued through reinvestment of distributions |                           | 103,799   |
| Shares issued upon exercise of warrants             |                           | 180       |
| Shares at November 30, 2008                         |                           | 8,962,147 |
| Shares issued through reinvestment of distributions |                           | 115,943   |
| Shares at November 30, 2009                         |                           | 9,078,090 |
| Shares issued through reinvestment of distributions |                           | 68,416    |
| Shares at November 30, 2010                         |                           | 9,146,506 |
|                                                |                           |      |

|                                                                                                                                       |                           | Year Ended        |                           | Year Ended        |                           | Year Ended        |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-------------------|--------------------------------|-------------------|--------------------------------|-------------------|
|                                                                                                                                       |       | November 30, 2010 |       | November 30, 2009 |       | November 30, 2008 |
| Net increase (decrease) in net assets applicable to                                                                                        |                           |              |                           |              |                           |              |   |   |   |   |   |
|      common stockholders resulting from operations                                                                     |                           | $                 | 14,666,874                     |              | $                              | 10,994            |   |   | $     | (24,370,233 | ) |
| Basic and diluted weighted average shares(1)                                                                                               |                           |              | 9,107,070                      |              |                           | 8,997,145         |   |   |   | 8,887,085 |   |
| Basic and diluted net increase (decrease) in net                                                                                           |                           |              |                           |              |                           |              |   |   |   |   |   |
|      assets applicable to common stockholders      resulting from operations per common share |                           | $                 | 1.61                           |              | $                              | 0.00              | (2) |   | $ | (2.74 | ) |

| (1) |   | Warrants to purchase shares of common stock at $15.00 per share were outstanding during the periods reflected in the table above, but were not included in the computation of diluted earnings per share because the warrants’ exercise price was greater than the average market value of the common shares and, therefore, the effect would be anti-dilutive. |
|-----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | Less than $0.01 per share.                                                                                                                                                                                                                                                                                                                                            |

----

|                                                                                                           |         | February 28, |        | May 31, |   | August 31, |       | November 30, |   | February 28, |        | May 31, |   | August 31, |                         | November 30, |
|----------------------------------------------------------------------------------------------------------------|--------------|--------------|-------------|---------|--------|------------|------------|--------------|--------|--------------|-------------|---------|--------|------------|------------------------------|--------------|
|                                                                                                           |    | 2009         |        | 2009    |   | 2009       |       | 2009         |   | 2010         |        | 2010    |   | 2010       |                         | 2010         |
| Investment income (loss)                                                                                       |         | $            | 1,083,846   |    |   | $          | (765,793   | )            |   | $            | 777,486     |    |   | $          | 708,992                      |         |   | $ | 692,156 |   |   | $ | 389,183 |   |   | $ | 22,865 |   |   | $ | 787,623 |   |
| Base management fees                                                                                           |         |         | 392,769     |    |   |       | 338,186    |         |   |         | 321,578     |    |   |       | 299,060                      |         |   |   | 309,922 |   |   |   | 309,704 |   |   |   | 286,761 |   |   |   | 327,436 |   |
| Capital gain incentive       fees(1)                                        |         |         | —     |    |   |       | —    |         |   |         | —     |    |   |       | —                      |         |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| All other expenses                                                                                             |         |         | 388,698     |    |   |       | 492,855    |         |   |         | 401,588     |    |   |       | 256,345                      |         |   |   | 220,187 |   |   |   | 255,058 |   |   |   | 370,734 |   |   |   | 126,577 |   |
| Expense reimbursement                                                                                          |         |         |        |    |   |       |       |         |   |         |        |    |   |       |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        by Adviser                                                                |         |         | (65,461     | )       |   |       | (56,365    | )            |   |         | (53,596     | )       |   |       | (49,844                      | )            |   |   | (51,654 | ) |   |   | (51,617 | ) |   |   | (95,587 | ) |   |   | (109,145 | ) |
| Net expenses                                                                                                   |         | $            | 716,006     |    |   | $          | 774,676    |         |   | $            | 669,570     |    |   | $          | 505,561                      |         |   | $ | 478,455 |   |   | $ | 513,145 |   |   | $ | 561,908 |   |   | $ | 344,868 |   |
| Current and deferred                                                                                           |         |         |        |    |   |       |       |         |   |         |        |    |   |       |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        tax benefit       (expense), net            |         |         | 3,594,121   |    |   |       | (4,034,512 | )            |   |         | (175,449    | )       |   |       | 361,484                      |         |   |   | (725,651 | ) |   |   | (445,382 | ) |   |   | (567,618 | ) |   |   | (3,033,997 | ) |
| Net realized gain (loss)                                                                                       |         |         |        |    |   |       |       |         |   |         |        |    |   |       |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        on investments                                                            |         |         |        |    |   |       |       |         |   |         |        |    |   |       |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        before current        tax benefit           |         |         | (499,818    | )       |   |       | (7,335,157 | )            |   |         | (10,756,469 | )       |   |       | (4,529,304                   | )            |   |   | 1,588,168 |   |   |   | (10,261,613 | ) |   |   | (1,340,452 | ) |   |   | (1,104,622 | ) |
| Unrealized gain (loss)                                                                                         |         |         |        |    |   |       |       |         |   |         |        |    |   |       |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        on investments                                                            |         |         |        |    |   |       |       |         |   |         |        |    |   |       |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        before deferred        tax expense          |         |         | (12,934,058 | )       |   |       | 16,382,855 |         |   |         | 10,726,495  |    |   |       |    10,072,088 |         |   |   | 2,941,305 |   |   |   | 3,550,587 |   |   |   | 12,990,304 |   |   |   |    11,082,394 |   |
| Increase (decrease) in                                                                                         |         |         |        |    |   |       |       |         |   |         |        |    |   |       |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        net assets resulting                                                      |         |         |        |    |   |       |       |         |   |         |        |    |   |       |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        from operations                                                           |         | $            | (9,471,915  | )       |   | $          | 3,472,717  |         |   | $            | (97,507     | )       |   | $          | 6,107,699                    |         |   | $ | 4,017,523 |   |   | $ | (7,280,370 | ) |   | $ | 10,543,191 |   |   | $ | 7,386,530 |   |
| Basic per share increase                                                                                       |         |         |        |    |   |       |       |         |   |         |        |    |   |       |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        (decrease) in net                                                         |         |         |        |    |   |       |       |         |   |         |        |    |   |       |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        assets resulting       from operations |         | $            | (1.06       | )       |   | $          | 0.39       |         |   | $            | (0.01       | )       |   | $          | 0.68                         |         |   | $ | 0.44 |   |   | $ | (0.80 | ) |   | $ | 1.16 |   |   | $ | 0.81 |   |
|                                                                                                           |         |         |        |    |   |       |       |         |   |         |        |    |   |       |                         |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1) |   | Includes amounts accrued as a provision for capital gain incentive fees payable to the Adviser, net of amounts waived under the Expense Reimbursement and Partial Fee Waiver Agreement. The provision for capital gain incentive fees results from the increase or decrease in fair value and realized gains or losses on investments. Pursuant to the Investment Advisory Agreement, the capital gain incentive fee is paid annually only if there are realization events and only if the calculation defined in the agreement results in an amount due. |
|-----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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COMPANY OFFICERS AND DIRECTORS (Unaudited)

|                            |                     |                         |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                     |                    |                     | Other Public  |
|---------------------------------|--------------------------|------------------------------|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|-------------------------|--------------------------|---------------|
|                            |                     | Position(s) Held             |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                     | Number of Portfolios    |                     | Company       |
|                            |                     | With Company, Term of Office |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                     | in Fund Complex         |                     | Directorships |
| Name and Age*                   |      | and Length of Time Served    |      | Principal Occupation During Past Five Years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |      | Overseen by Director(1) |      | Held          |
| Independent Directors           |
|                       |
| Conrad S. Ciccotello(Born 1960) |                     | Director since 2005          |                     | Tenured Associate Professor of Risk Management and Insurance, Robinson College of Business, Georgia State University (faculty member since 1999); Director of Graduate Personal Financial Planning Programs; formerly, Editor, “Financial Services Review,” (2001-2007) (an academic journal dedicated to the study of individual financial management); formerly, faculty member, Pennsylvania State University (1997-1999). Published several academic and professional journal articles about energy infrastructure and oil and gas MLPs.                                                                                                                           |                     | 7                       |                     | None          |
| John R. Graham(Born 1945)       |                     | Director since 2005          |                     | Executive-in-Residence and Professor of Finance (Part-time), College of Business Administration, Kansas State University (has served as a professor or adjunct professor since 1970); Chairman of the Board, President and CEO, Graham Capital Management, Inc. (primarily a real estate development, investment and venture capital company) and Owner of Graham Ventures (a business services and venture capital firm); Part-time Vice President Investments, FB Capital Management, Inc. (a registered investment adviser), since 2007. Formerly, CEO, Kansas Farm Bureau Financial Services, including seven affiliated insurance or financial service companies (1979-2000). |                     | 7                       |                     | None          |
| Charles E. Heath(Born 1942)     |                     | Director since 2005          |                     | Retired in 1999. Formerly, Chief Investment Officer, GE Capital’s Employers Reinsurance Corporation (1989-1999); Chartered Financial Analyst (“CFA”) designation since 1974.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                     | 7                       |                     | None          |

| (1) |   | This number includes Tortoise Energy Infrastructure Corporation (“TYG”), Tortoise Energy Capital Corporation (“TYY”), Tortoise North American Energy Corporation (“TYN”), Tortoise Power and Energy Infrastructure Fund, Inc. (“TPZ”), Tortoise MLP Fund, Inc. (“NTG”), one privately held investment company and the Company. Our Adviser also serves as the investment adviser to TYG, TYY, TYN, TPZ, NTG and the privately held investment company. |
|-----|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                 |                     |                                                                                                              |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                     |                    |                     | Other Public                |
|--------------------------------------|--------------------------|-------------------------------------------------------------------------------------------------------------------|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|-------------------------|--------------------------|-----------------------------|
|                                 |                     | Position(s) Held                                                                                                  |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                     | Number of Portfolios    |                     | Company                     |
|                                 |                     | With Company, Term of Office                                                                                      |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                     | in Fund Complex         |                     | Directorships               |
| Name and Age*                        |      | and Length of Time Served                                                                                         |      | Principal Occupation During Past Five Years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |      | Overseen by Director(1) |      | Held                        |
| Interested Directors and Officers(2) |
|                                 |                     |                                                                                                              |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                     |                    |                     |                        |
| H. Kevin Birzer(Born 1959)           |                     | Director and Chairman ofthe Board since 2005                                                                      |                     | Managing Director of our Adviser since 2002; Member, Fountain Capital Management (1990-May 2009); Vice President, Corporate Finance Department, Drexel Burnham Lambert (1986-1989); formerly, Vice President, F. Martin Koenig & Co., an investment management firm (1983-1986); Director and Chairman of the Board of each of TYN, TYG, TYY, TPZ, NTG and the privately held investment company since its inception; CFA designation since 1988.                                                                                                                                                                                                                                                                         |                     | 7                       |                     | None                        |
| Terry Matlack(Born 1956)             |                     | Chief Financial Officersince 2005; Director from2005 to September 2009;Assistant Treasurer from2005 to April 2008 |                     | Managing Director of our Adviser since 2002; Full-time Managing Director, Kansas City Equity Partners, L.C. (“KCEP”) (2001-2002); formerly, President, GreenStreet Capital, a private investment firm (1998-2001); Chief Executive Officer of NTG since 2010; Chief Financial Officer of each of TYG, TYY, TYN, TPZ and the privately held investment company since its inception. Director of each of TYG, TYY, TYN, TPZ and the privately held investment company from its inception to September 2009. CFA designation since 1985.                                                                                                                                                                             |                     | N/A                     |                     | EpiqSystems, Inc.           |
| David J. Schulte(Born 1961)          |                     | Chief Executive Officersince 2005; President2005-April 2007                                                       |                     | Managing Director of our Adviser since 2002; Full-time Managing Director, KCEP (1993-2002); President and Chief Executive Officer of TYG since 2003, TYY since 2005 and of TPZ since 2007; Chief Executive Officer of TYN since 2005 and President of TYN from 2005 to September 2008; President of the privately held investment company since 2007 and Chief Executive Officer from 2007 to December 2008; Senior Vice President of NTG since 2010; CFA designation since 1992.                                                                                                                                                                                                                                             |                     | N/A                     |                     | None                        |
| Zachary A. Hamel(Born 1965)          |                     | Senior Vice President since2005; Secretary from 2005to April 2007                                                 |                     | Managing Director of our Adviser since 2002; Partner, Fountain Capital Management (1997-present); Senior Vice President of TYY since 2005, of TYG, TYN, TPZ and the privately held investment company since 2007; and President of NTG since 2010; Secretary of each of the Company, TYY, TYN and TYG from their inception to April 2007; CFA designation since 1998.                                                                                                                                                                                                                                                                                                                                                         |                     | N/A                     |                     | None                        |
| Kenneth P. Malvey(Born 1965)         |                     | Senior Vice President andTreasurer since 2005                                                                     |                     | Managing Director of our Adviser since 2002; Partner, Fountain Capital Management (2002-present); formerly Investment Risk Manager and member of Global Office of Investments, GE Capital’s Employers Reinsurance Corporation (1996-2002); Treasurer of TYG, TYY and TYN since November 2005, of TPZ and the privately held investment company since 2007 and of NTG since 2010; Senior Vice President of TYY since 2005, of TYG, TYN, TPZ and the privately held investment company since 2007 and of NTG since 2010; Assistant Treasurer of TYG, TYY and TYN from their inception to November 2005; Chief Executive Officer of the privately held investment company since December 2008; CFA designation since 1996. |                     | N/A                     |                     | None                        |
| Edward Russell(Born 1964)            |                     | President since April 2007                                                                                        |                     | Senior Investment Professional of the Adviser since 2006; formerly with Stifel, Nicolaus & Company, Incorporated, heading the Energy and Power group as a Managing Director (2003-2006) responsible for all of the energy and power transactions, including all of the debt and equity transactions for the three closed-end publicly traded funds managed by the Adviser starting with the first public equity offering in February of 2004 and serving as Vice President-Investment Banking (1999-2003)                                                                                                                                                                                                                 |                     | N/A                     |                     | AbraxasPetroleumCorporation |

| (1) |   | This number includes TYG, TYY, TYN, TPZ, NTG, one privately held investment company and the Company. Our Adviser also serves as the investment adviser to TYG, TYY, TYN, TPZ, NTG and the privately held investment company. |
|-----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | As a result of their respective positions held with the Adviser or its affiliates, these individuals are considered “interested persons” within the meaning of the 1940 Act.                                     |

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ADDITIONAL INFORMATION (Unaudited)

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|  | Tortoise Capital Resources Corporation |
|--|----------------------------------------|

SIGNATURES

| TORTOISE CAPITAL RESOURCES CORPORATION(Registrant) |
|----------------------------------------------------|
|                                               |   |   |   |
|                                               | By:  | /s/David J. Schulte |   |
|                                               |   | David J. Schulte |   |
|                                               |   | Chief Executive Officer |   |

| Signature                                                    |                    | Capacity                                                     |
|--------------------------------------------------------------|-------------------------|--------------------------------------------------------------|
|                                                         |                    |                                                         |   |   |
|            | /s/Terry C. Matlack     |            |       | Chief Financial Officer |
|                                                         |                    |                                                         |   | (Principal Financial and Accounting Officer) |
|                                                         |                    |                                                         |   |   |
|                                                         | /s/David J. Schulte     |                                                         |   | Chief Executive Officer |
|                                                         |                    |                                                         |   | (Principal Executive Officer) |
|                                                         |                    |                                                         |   |   |
|                                                         | /s/Conrad S. Ciccotello |                                                         |   | Director |
|                                                         |                    |                                                         |   |   |
|                                                         | /s/John R. Graham       |                                                         |   | Director |
|                                                         |                    |                                                         |   |   |
|                                                         | /s/Charles E. Heath     |                                                         |   | Director |
|                                                         |                    |                                                         |   |   |
|                                                         | /s/H. Kevin Birzer      |                                                         |   | Director |

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