Fording Canadian Coal Trust
TSX : FDG.UN
NYSE : FDG

Fording Canadian Coal Trust

April 25, 2005 23:59 ET

Fording's First Quarter Results Provide Strong Start to 2005

Net Income Up Substantially in the First Quarter of 2005

CALGARY--(CCNMatthews - April 25) - Fording Canadian Coal Trust (TSX: FDG.UN,
NYSE: FDG) today announced strong first quarter results. Net income was $65
million in the first quarter, up from $11 million in 2004, largely due to
higher metallurgical coal sales prices. Net income before unusual items and
future income taxes was $60 million in the first quarter of 2005 compared
with $4 million in 2004. Cash available for distribution for the first
quarter of 2005 was $72 million ($1.46 per unit) while total distributions
declared were $64 million ($1.30 per unit).

"We're pleased with the results of the first quarter," said Jim Popowich,
President of Fording Canadian Coal Trust. "Robust coal markets provided
higher sales prices for metallurgical coal and contributed to improved income
from operations. We look forward to providing improved returns to our
unitholders as new coal year prices come into effect in the second quarter
and sales volumes increase as expansion plans are completed."

Highlights for the First Quarter:

- The Trust announced its intention to seek unitholder approval of a

reorganization that would result in a flow-through structure which

would preserve the efficiency of the structure put in place with the

2003 arrangement. Through this structure, distributions received from

Elk Valley Coal and NYCO would continue to be taxed at the unitholder

level. The reorganization will not proceed unless approved by

unitholders and a favourable advance tax ruling is obtained from the

Canada Revenue Agency. Full details of the proposed reorganization

and risks associated with the transaction are disclosed in the

Trust's Management Information Circular dated April 2, 2005, which

was mailed to unitholders and filed on www.sedar.com.

- In early April, Elk Valley Coal and Canadian Pacific Railway Company

entered a new five-year agreement for the transportation of coal from

the Elk Valley to the Vancouver area ports. The agreement provides

more certainty in rail rates and includes a commitment from CPR to

move a base volume of coal sufficient for Elk Valley Coal's current

expansion plans, a framework to move additional tonnes above the base

volume in the last three years of the contract.

- Revenues were $295 million, up 20% from 2004 mainly on the strength

of higher coal sales prices, partially offset by a higher Canadian

dollar.

- Cost of product sold decreased 7% to $104 million from $112 million

due mainly to the reduction in the Trust's interest in Elk Valley

Coal.

- Transportation costs increased 5% to $104 million from $99 million in

2004 largely on higher rail and port rates for Elk Valley Coal.

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

Conference Call and Webcast

A conference call to discuss these results will be held Tuesday, April 26 at
8:00 a.m. Mountain time, 10:00 a.m. Eastern time. To participate in the
conference call, please dial 1-800-814-4859 or 416-850-1243 approximately 10
minutes prior to the call. A live and archived audio webcast of the
conference call will also be available on the Trust's website www.fording.ca.

About Fording

Fording Canadian Coal Trust is an open-ended mutual fund trust. Through
investments in metallurgical coal and industrial minerals mining and
processing operations, the Trust makes quarterly cash distributions to
unitholders. The Trust, through its wholly owned subsidiary, Fording Inc.,
holds a 60% interest in the Elk Valley Coal Partnership and is the world's
largest producer of the industrial mineral wollastonite. Elk Valley Coal,
comprised of Canada's senior metallurgical coal mining properties, is the
world's second largest exporter of metallurgical coal, and expects to supply
approximately 27 million tonnes of high-quality coal products to the
international steel industry in 2005. The Trust's shares are traded on the
Toronto Stock Exchange under the ticker symbol FDG.UN and on the New York
Stock Exchange under the symbol FDG.

Management's Discussion and Analysis April 25, 2005

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This management's discussion and analysis should be read in conjunction with
our unaudited consolidated financial statements and the notes thereto for the
quarter ended March 31, 2005, management's discussion and analysis and
consolidated financial statements for the year ended December 31, 2004, and
other public disclosure documents of the Fording Canadian Coal Trust (the
Trust).

Fording Canadian Coal Trust

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

Fording Canadian Coal Trust is an open-ended mutual fund trust created
pursuant to a declaration of trust and governed by the laws of Alberta.

The Trust does not carry on any active business. Through its wholly owned
operating subsidiary, Fording Inc., the Trust consolidates a 60% interest in
the metallurgical coal operations owned by Elk Valley Coal Partnership and a
100% interest in the industrial mineral operations owned by the NYCO
companies. The Trust uses the cash it receives from its investments to make
quarterly distributions to its unitholders.

References to "we" and "our" in management's discussion and analysis are to
the Trust and Fording Inc., and their consolidated interest in Elk Valley
Coal and NYCO as the context requires.

Elk Valley Coal

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

Elk Valley Coal is the second largest supplier of seaborne hard coking coal
in the world, with approximately 21% of the global market in 2005. Hard
coking coal is a premium coal used primarily for making coke by integrated
steel mills, which account for approximately 60% of worldwide steel
production. The seaborne hard coking coal market is characterized by the
global nature of international steel-making, the relative concentration of
quality metallurgical coal deposits in Australia, Canada and the United
States and the comparatively low cost of seaborne transportation.

Elk Valley Coal has six operating mines. The Fording River, Coal Mountain,
Elkview and Line Creek mines and the Greenhills mine (which is operated by a
joint venture in which Elk Valley Coal has an 80% interest) are located in
the Elk Valley region of southeast British Columbia. The Cardinal River mine
operates in west central Alberta. Elk Valley Coal also owns numerous other
properties, including the coal preparation plant and coal resources at the
former Quintette mine and other coal resources in British Columbia as well as
a 46% interest in Neptune Terminals in Vancouver, British Columbia.

The Trust's results pertaining to Elk Valley Coal consist of our
proportionate interest in the operations of the six mines as well as
corporate costs related to these operations. Also included are hedging gains
and losses, and mineral taxes that are recorded in Fording Inc. but
attributable to Elk Valley Coal's earnings.

NYCO

----

NYCO consists of the subsidiaries of Fording Inc. that operate wollastonite
mining operations in New York State and Mexico and a tripoli mining operation
in Missouri. NYCO is the world's leading producer of wollastonite.

Wollastonite is an industrial mineral that is used in the manufacture of
automotive composites, adhesives and sealants, metallurgical fluxes, friction
material, paints and corrosion-resistant coatings, fire-resistant
construction wallboard, cement-based products and ceramics. Tripoli is an
industrial mineral that is used primarily in buffing and polishing
applications.

Important Information Regarding Comparative Financial Statements

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When the Elk Valley Coal Partnership was formed in February 2003, the Trust
had a 65% interest with the remainder being held by Teck Cominco, the
managing partner. The partnership agreement permitted Teck Cominco to
increase its interest in Elk Valley Coal by achieving a certain level of
synergies through its management of the partnership assets. Teck Cominco
achieved the synergy objectives and the partners agreed that the Trust's
interest would be reduced to 62% effective April 1, 2004, 61% on April 1,
2005, and to 60% on April 1, 2006.

The financial results and other information presented in this report reflect
the Trust's 65% interest in Elk Valley Coal from January 1, 2004 to March 31,
2004, and 60% interest commencing with the second quarter of 2004. Readers
are cautioned that certain information included in this news release for
prior periods may not be directly comparable due to the reduction of the
Trust's interest in Elk Valley Coal effective April 1, 2004.

The Trust accounted for the entire 5% reduction in its interest in Elk Valley
Coal in its financial results in the second quarter of 2004. The additional
distribution entitlement of 2% for the twelve month period ended March 31,
2005 was included in cash available for distribution over the period ending
March 31, 2005. Similarly, the estimated additional distribution entitlement
of 1% for the twelve month period ended March 31, 2006 will be included in
cash available for distribution over the period ending March 31, 2006.

All financial information in this management's discussion and analysis and
financial statements is unaudited. The Trust reports its financial
information in Canadian dollars and all monetary amounts set forth herein are
expressed in Canadian dollars unless otherwise stated.

Non-GAAP Financial Measures

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

This management's discussion and analysis refers to certain financial
measures that are not determined in accordance with GAAP in Canada or the
United States. Financial measures such as cash available for distribution,
distributable cash and net income before unusual items and future income
taxes are not measures recognized under GAAP and do not have standardized
meanings prescribed by GAAP. We discuss these measures, which have been
derived from our financial statements and applied on a consistent basis,
because we believe that they facilitate the understanding of the results of
our operations and financial position and are relevant measures of the
ability of the Trust to earn and distribute cash returns to unitholders.
These measures may differ from those made by other issuers and accordingly,
may not be comparable to such measures as reported by other trusts or
corporations.

Caution on Forward-looking Information

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

Certain information included in this document is of a forward-looking nature.
Forward-looking information is subject to known and unknown risks, as well as
uncertainties and other factors. Accordingly, actual results may differ
materially from those expressed or implied in forward-looking information.
Some of the risks, uncertainties and other factors affecting Fording Canadian
Coal Trust are discussed in our public filings with the securities regulatory
authorities in Canada and the United States. Copies of Fording Canadian Coal
Trust's Canadian filings, including our most recent management information
circular, annual information form, annual report, quarterly reports, material
change reports and news releases, are available online at www.sedar.com, and
copies of our U.S. filings, including our most recent annual report on Form
40-F as supplemented by submissions under Form 6-K, are available at
www.sec.gov. Information in this document is presented as of April 25, 2005
and is subject to change after this date. However, Fording Canadian Coal
Trust disclaims any intention or obligation to update or revise any forward-
looking statements, whether as a result of new information, future events or
otherwise.

Overview

The table below summarizes our financial results and some of our key
operating statistics on a consolidated basis.



Three months ended

March 31

(millions of Canadian dollars, -----------------

except as noted) 2005 2004

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

Revenue $ 294.9 $ 245.2

Income from operations $ 67.6 $ 9.0

Net income $ 65.3 $ 10.7

Income before unusual items and future income taxes $ 60.4 $ 4.0

Basic and diluted earnings per unit:

Net income $ 1.33 $ 0.23

Net income before unusual items and future income

taxes $ 1.23 $ 0.09

Metallurgical Coal Statistics:

Coal sales (million tonnes) 3.4 3.6

Average sales price

U.S.$/tonne $ 61.30 $ 44.90

CDN$/tonne $ 83.30 $ 63.80

Operating expenses

Cost of product sold (CDN$/tonne) $ 28.30 $ 28.80

Transportation (CDN$/tonne) $ 30.00 $ 26.60

Industrial Minerals Statistics (Wollastonite):

Sales (thousands of tonnes) 22 21

Average sales price (U.S.$/tonne) $ 395 $ 446

Proposed Trust Re-Organization


Partially as a result of increasing metallurgical coal prices, Elk Valley
Coal has generated strong cash flows from its production and sale of coal.
This in turn has resulted in increased distributions to the partners of Elk
Valley coal including Fording Inc. and, indirectly through its ownership of
Fording Inc., to the Trust. The current organizational structure of the Trust
creates the potential for corporate income taxation at the Fording Inc.
level, which would reduce the cash available for distribution to unitholders.
The Trustees believe that reorganizing the Trust's structure as announced in
March 2005 will address this potential reduction in cash available for
distribution to unitholders. This would result in the units being a more
competitive currency comparable to other flow-through structures should the
Trust decide to issue units for future acquisitions, expansions or other
opportunities.

The proposed reorganization is intended to create a flow-through structure
that effectively results in distributions received from Elk Valley Coal and
NYCO not being taxed at the Fording Inc. level. Instead, distributions
received by Fording Inc., and indirectly by the Trust, would be taxed at the
unitholder level when distributions are paid to the unitholder. If it
proceeds, the reorganization takes the current structure from a "trust on
corporation on partnership" structure to a "trust on partnership on
partnership" structure.

The reorganization is contingent on the following: a favourable advance tax
ruling from the Canadian Revenue Agency (CRA); approval by 66 2/3% of votes
cast by unitholders at the Annual and Special Meeting of unitholders to be
held on May 4, 2005; and certain other judicial, regulatory and third- party
approvals. In addition, the Trustees may decide, at their discretion, not to
proceed with the reorganization should factors or events occur that, in the
opinion of the Trustees, would reduce or eliminate the expected benefits of
the reorganization. Such conditions, factors and events as well as
information regarding the reorganization are described in detail in the
Trust's Management Information Circular dated April 2, 2005.

The reorganization is not expected to have a material impact on the manner in
which the Trust's distributable cash is calculated and distributed to
unitholders. It is anticipated that unitholders should not recognize any
income, gain or loss as a result of the reorganization for Canadian and/or
U.S. income tax purposes.

Cash Available for Distribution

Cash available for distribution in the first quarter of 2005 generally
reflects higher sales prices and earnings from Elk Valley Coal's
metallurgical coal operations. Distributions declared in the first quarter
were $1.30 per unit.



Three months ended

March 31

(millions of Canadian dollars, -----------------

except as noted) 2005 2004

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

Cash available for distribution $ 71.5 $ 19.4

Distributions declared $ 63.7 $ 47.0

Weighted average number of units

outstanding (in millions) 49.0 47.0

Per unit amounts:

Cash available for distribution $ 1.46 $ 0.41

Distributions declared $ 1.30 $ 1.00


In 2004, the difference between cash available for distribution and
distributions declared and paid was due mainly to the carry over of the
balance of available cash from the fourth quarter of 2003.

The reconciliation from net income to net income before unusual items and
future income taxes, which is a non-GAAP measure, is provided in the
following table:




Three months ended

March 31

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

(millions of Canadian dollars) 2005 2004

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Net income per financial statements $ 65.3 $ 10.7

Add (deduct):

Reduction of interest in Elk Valley Coal (9.5) -

Income from change in inventory valuation - (10.8)

Future income tax expense 4.6 4.1

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

Net income before unusual items and future income

taxes $ 60.4 $ 4.0

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


INCOME FROM OPERATIONS

Elk Valley Coal

Three months ended

March 31

(millions of Canadian dollars, -----------------

except as noted) 2005 2004

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

Statistics

Coal production (millions of tonnes) 4.0 3.9

Coal sales (millions of tonnes) 3.4 3.6

Average sales price

U.S.$ per tonne $ 61.30 $ 44.90

CDN$ per tonne $ 83.30 $ 63.80

Operating expenses

Cost of product sold (per tonne) $ 28.30 $ 28.80

Transportation (per tonne) $ 30.00 $ 26.60

Income from operations

Revenue $ 283.9 $ 232.0

Cost of product sold 96.5 104.8

Transportation 102.2 96.9

Selling, general and administration 3.1 7.6

Depreciation and depletion 11.5 14.2

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

Income from operations $ 70.6 $ 8.5

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


Sales volumes decreased in the first quarter of 2005 compared with 2004
mainly as a result of the 5% reduction in the Trust's interest in Elk Valley
Coal. Elk Valley Coal also scheduled vessel arrivals over the first quarter
to lessen the potential for high demurrage costs during the normally
difficult winter railing period. This contributed to the lower sales and a
build-up of clean coal inventories at the port. First quarter revenues
benefited from higher U.S. dollar prices for the 2004 coal year, slightly
offset by a higher effective U.S./Canadian dollar exchange rate.

The mines continued to operate at high levels of productivity throughout the
first quarter of 2005. Unit cost of product sold decreased slightly from high
2004 levels. Unit costs in 2005 reflect higher diesel costs and operating
issues related to an early spring break-up as well as slightly higher start-
up costs at Cardinal River. High costs in the comparable period of 2004
resulted from difficulties with rail shipments which resulted in lower
production and unplanned maintenance shutdowns.

The most significant cost impact to income from operations was the increase
in transportation costs in the first quarter of 2005 due to higher rail and
port rates. Rail rates increased due to the new rail contract outlined below,
but were offset by a $6 million reduction for an adjustment to the estimated
rail expense accrued prior to reaching the new agreement. Port rates were
impacted by higher coal prices. These costs were up 5% to $102 million in the
first quarter from the same period in 2004. Demurrage charges decreased to
approximately $2 million in the first quarter of 2005, compared with $9
million for the same period in 2004. Transportation costs include the cost of
rail service, port charges, ocean freight costs on shipments where Elk Valley
Coal, rather than the customer, pays for the expense and other costs such as
coal testing fees and demurrage charges for vessel waiting times.

In April 2005, Elk Valley Coal and Canadian Pacific Railway Company (CPR)
resolved a contract dispute over rail rates and reached a new five-year
agreement retroactive to April 1, 2004 for the transportation of
metallurgical coal from Elk Valley Coal's mines in southeastern British
Columbia to Vancouver area ports. In this agreement, CPR has committed to
transport coal in an amount that meets Elk Valley Coal's current planned
capacity increases as well as provided a framework to transport additional
tonnes above the base volume during the 2006 to 2008 coal years at a premium
rate. This provides Elk Valley Coal confidence that its rail needs will be
met for current expansion plans. Elk Valley Coal and CPR have also agreed to
discontinue all legal and regulatory proceedings relating to their previous
contract dispute.

Selling, general and administration costs decreased 59% in the first quarter
of 2005. In the first quarter of 2004, costs incurred pursuant to change in
control agreements with certain former senior executives contributed to
higher selling, general and administration costs.

Lower depletion expense at Cardinal River and the build-up of inventory were
the main contributors to the 19% decrease in depreciation and depletion
expense in the first quarter of 2005 compared with 2004.

Elk Valley Coal is continuing with the negotiation of agreements to complete
the transaction with POSCO and Nippon Steel Corporation announced in December
that provides for 10-year sales contracts covering an aggregate of 4.9
million tonnes per annum of coal for 2005, increasing to 6.3 million tonnes
per annum for the 2007 coal year onwards. In addition, each company will
acquire a 2.5% equity investment in a new entity that will own and operate
the Elkview mine. The completion of the transaction is expected to result in
a pre-tax gain for the Trust of approximately $25 million on the sale of the
5% interest in the Elkview mine, which will be included in earnings in the
period in which the transaction closes.

Expansion Projects

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

Expansion work continued in the quarter to support Elk Valley Coal's plans.
In 2005, Elk Valley Coal is focused on increasing its annualized productive
capacity to 28 million tonnes per year by the end of the year, while
achieving its sales target of approximately 27 million tonnes.

Development of the Cheviot Creek pit at the Cardinal River operations is
progressing. However, Elk Valley Coal is experiencing delays in deliveries of
equipment from manufacturers. In addition, lower than expected sales volumes
were transported by Canadian National Railway Company (CN) in the first
quarter due to limited train availability. Cardinal River's 2005 sales
volumes are expected to be lower than planned. It is anticipated that the
full annualized production rate of 2.8 million tonnes per year will be
achieved at the mine at the end of the third quarter of 2005, but total 2005
sales volume from Cardinal River will be subject to CN's ability to transport
the coal. Total cost for the Cardinal River project is expected to be
approximately 10% higher than previously forecast due to rising mining costs
and the deferral of costs incurred during the start-up period.

Work to increase the capacity of the Fording River plant and mine from 9.5
million tonnes to 10.5 million tonnes per year is continuing although it has
also encountered delays in equipment delivery. The Trust's share of capital
spending was approximately $7 million in the first quarter of 2005. It is
anticipated that work will be completed as planned in the third quarter of
2005 during a scheduled plant shutdown.

The Trust's share of equipment purchased at Elkview in the quarter was
approximately $4 million. The new equipment will facilitate the increase in
Elkview's annual capacity from six to seven million tonnes of coal by the end
of 2007, of which our share will be approximately four million tonnes.



NYCO

Three months ended

March 31

(millions of Canadian dollars, -----------------

except as noted) 2005 2004

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

Statistics - Wollastonite

Sales (thousands of tonnes) 22 21

Average sales price (U.S.$ per tonne) $ 395 $ 446

Income from operations

Revenue $ 11.0 $ 13.2

Cost of product sold 7.7 7.0

Transportation 1.8 1.8

Selling, general and administration 1.0 0.9

Depreciation and depletion 1.1 1.3

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

Income from operations $ (0.6) $ 2.2

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


Income from NYCO's operations decreased approximately $3 million in the first
quarter of 2005 from the comparable quarter in 2004, primarily due to lower
sales prices and the impact of a higher U.S. / Canadian exchange rate. Higher
cost of product sold was primarily due to earlier than planned waste mining
and ore release, which increased direct mining costs.



CORPORATE

Three months ended

March 31

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

(millions of dollars) 2005 2004

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

Selling, general and administration 2.1 1.0

Depreciation, depletion $ 0.3 $ 0.7

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

Loss from operations $ 2.4 $ 1.7

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


Corporate costs include general and administration expenses not allocated to
specific business segments, and depreciation on corporate assets. Selling,
general and administration expenses were higher in the first quarter of 2005
as compared with the first quarter of 2004, primarily due to additional
professional services and the timing of discretional expenditures.



OTHER INCOME AND EXPENSES

Three months ended

March 31

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

(millions of dollars) 2005 2004

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

Other income (expense), net

Interest expense $ (2.7) $ (4.9)

Other income (expense), net (0.7) 13.5

Reduction of interest in Elk Valley Coal 9.5 -

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

$ 6.1 $ 8.6

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


The decrease in interest expense is mainly due to lower average debt levels
and a lower interest rate on the new loan facility put in place in mid-
February 2005.

Other income and expenses includes interest and investment income as well as
miscellaneous income and expenses. Included in the first quarter of 2005 was
a non-cash foreign exchange translation gain on U.S. dollar denominated bank
debt, a write-off of unamortized costs related to the prior bank facility
that was refinanced in the quarter and additional costs associated with the
proposed reorganization of the Trust. The first quarter of 2004 included
unusual income of $11 million from the adoption of a change in accounting
practice related to the inclusion of depreciation and depletion in the
valuation of product inventories on hand at the start of 2004.

The loss on the reduction of the Trust's interest in Elk Valley Coal that was
recorded in the second quarter of 2004 was offset by an estimate of cash to
be received for the additional distribution entitlements of 2% for the year
ended March 31, 2005 and 1% for the year ended March 31, 2006. During the
first quarter of 2005, the estimate of cash to be received for the additional
distribution entitlement of 1% for the twelve months ended March 31, 2006 was
revised, resulting in a favourable $9.5 million non-recurring pre-tax
adjustment to the reduction of interest in Elk Valley Coal.

Income taxes

Income tax expense consists primarily of British Columbia mineral taxes and
Alberta Crown royalties assessed on the cash flows of Elk Valley Coal,
corporate income taxes and, to a lesser extent, foreign income tax related to
NYCO. In the first quarter of 2005 increases in mineral taxes and Crown
royalties were offset by lower foreign income taxes and a credit to future
income taxes resulting from lower Canadian statutory income tax rates.

In the quarter, Fording Inc. was able to offset taxable income with interest
on debt owed to the Trust and available loss carry forwards.



Three months ended

March 31

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

(millions of dollars) 2005 2004

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

Current income taxes:

Canadian corporate income taxes $ 0.4 $ -

Provincial mineral taxes and Crown royalties 3.3 1.9

Foreign income taxes 0.1 0.9

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

3.8 2.8

Future income tax expense

Canadian corporate income taxes $ 3.1 3.7

Provincial mineral taxes and Crown royalties 1.5 0.4

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

4.6 4.1

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

Total income tax expense $ 8.4 $ 6.9

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



LIQUIDITY AND CAPITAL RESOURCES

Three months ended

March 31

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

(millions of dollars) 2005 2004

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

Summary of Cash Flows

Operating activities $ 61.0 $ 47.1

Investing activities (29.6) (3.8)

Financing activities, excluding distributions 17.8 (0.4)

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

Increase in cash before distributions 49.2 42.9

Distributions to unitholders (63.7) (46.9)

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

Decrease in cash (14.5) (4.0)

Cash - beginning of period 64.5 52.5

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

Cash - end of period $ 50.0 $ 48.5

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

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


Cash flows from operating activities are largely influenced by the results of
Elk Valley Coal. Cash flows from operating activities increased substantially
in the first quarter of 2005 as compared with 2004 due to the $55 million
increase in income, driven primarily by higher coal sales prices. Cash flows
from operations include changes in working capital that can fluctuate from
period to period. In the first quarter of 2005, accounts receivable decreased
due to the adjustment to the Trust's distribution entitlement from Elk Valley
Coal. Inventories increased from the build-up of clean coal inventories at
the port.

Investing activities during the first quarter included capital expenditures
of approximately $22 million related to the Cheviot Creek pit at Cardinal
River operations and ongoing expansion at the Fording River and Elkview
operations. The remaining spending was on sustaining projects, which was $1
million higher than the $6 million spent in 2004.

In February 2005, Fording Inc. and Elk Valley Coal refinanced their bank
credit facilities with five-year revolving, floating rate, annually
extendible facilities. Fording Inc.'s new credit facility provides for
borrowings of up to $400 million and Elk Valley Coal's facility is for $150
million, both of which are available for general business purposes and can be
drawn in Canadian dollars or the U.S. dollar equivalent thereof. During the
first quarter of 2005, Fording Inc. borrowed $220 million under the new
facility to repay $201 million owing under the previously existing term debt
facility and $19 million for expansion capital. Prior to March 31, Fording
converted $202 million of these borrowings to U.S. denominated debt of
U.S.$167 million. Elk Valley Coal had utilized $71 million of its facility
for the issuance of letters of credit and guarantee.

Adequate credit facilities are available to fund working capital, expected
capital spending requirements for expansion plans and other requirements. We
anticipate that Elk Valley Coal and NYCO have the ability to generate
sufficient funds from operating and financing activities to maintain their
productive capacity and to fund planned growth and development activities.

OUTLOOK

-------

Due to continued strong demand from the global steel industry, the current
tight markets for metallurgical coal are expected to continue into 2006.
Contracted coal prices have risen significantly from 2004 levels and sales
and production of coal are expected to increase and be at or near capacity.

Elk Valley Coal is progressing with its plans to increase annualized capacity
to 28 million tonnes by the end of 2005. Elk Valley Coal expects sales
volumes to increase in the second quarter, contributing to a coal sales
volume of approximately 27 million tonnes in the year. The Trust's share of
this sales target is approximately 16 million tonnes. The results from Elk
Valley Coal's expansion plans combined with the robust coal markets are
expected to provide strong returns in 2005. However, we expect better results
in the last half of the year as the first half of 2005 will include 2004 coal
year prices until approximately mid-May.

Cash Available for Distribution

Our financial results, and therefore the amount of cash available for
distribution to unitholders, are highly dependent on key variables such as
coal prices, forward contracts, coal production and sales volumes, the
U.S./Canadian dollar exchange rate, production and transportation costs,
sustaining capital expenditures and other financial and legal requirements.
Changes in any of these factors could have a material impact on our results
and cash available for distribution to unitholders.

Coal Markets

Hard coking coal markets continue to be very tight as producers are not able
to bring new metallurgical coal production to the market quickly enough to
fully meet demand of steel producers. Demand for seaborne hard coking coal is
expected to grow at above historical rates through to 2010, driven by demand
from China, India and Brazil.

Global demand and production of steel has continued to grow in early 2005,
following strong annual growth in world crude steel production in 2004. This
strong demand is resulting in high levels of steel production in many
geographic areas, which in turn supports demand for hard coking coal from
producers such as Elk Valley Coal. Certain European steelmakers are
moderating production in view of rising steel inventories. However, many of
these producers have announced plans to increase steel production over the
next few years, indicating they still see a strong market for steel.

Due to the robust steel market and past variability in Chinese coke exports,
steel plants around the world are announcing plans to construct or expand
coke-making capacity for the first time in over a decade. With coal in short
supply, some steel producers have signed long-term contracts or purchased
interests in coal producers in order to secure additional supplies of hard
coking coal to meet their future needs. Higher coal prices are serving to
attract new supply to the market from Canada and Australia. However,
significant near-term growth in hard coking coal production has not yet
materialised, primarily due to a lack of sufficient infrastructure capacity
and difficulties in advancing mine development.

The infrastructure supporting transportation of metallurgical coal from mines
is at or near capacity in most parts of the world. Australia's rail and port
capacity is constrained, which is illustrated by vessel congestion and long
waits at Dalrymple Bay, located in Australia. In the United States and
Canada, the rail systems are near capacity and require investment to increase
capacity for all of their customers.

The global increase in mining activity has led to substantial lead times of
up to 18 months for delivery of large mining equipment. The availability of
tires and other parts is also limited, constraining equipment availability,
all of which affects mine production. In addition, there is a shortage of
skilled services that could delay the pace at which mines can be developed or
expanded.

The combined impact of these supply constraints indicate that significant new
greenfield mines are not expected to come on stream until at least 2007.
Should supply problems occur, it may take longer for metallurgical coal
markets to return to balance. Due to the cyclical nature of the metallurgical
coal industry and the expectation that new supply will influence market
dynamics, expansion must be managed with an understanding of future
variability in sales prices. Elk Valley Coal has other properties that have
the potential to provide additional metallurgical coal volumes in the future
if market conditions warrant their development.

Cost of Product Sold

Elk Valley Coal is focused on managing key operating variables, such as mine
and plant productivities, yields, strip ratios and haul distances, which
directly influence mining costs, in order to maximize cash flows over the
long-term. Mining and processing input costs such as fuel, steel, tires,
labour and maintenance parts and supplies can also have a significant impact
to the cost of producing metallurgical coal.

Increases in prices for petroleum products and for commodities in general
have resulted in continuing cost pressures that we expect throughout 2005. In
addition, the growth in global mining activities has created a demand for
equipment and supplies that outpaces supply. Recently, the risk of a shortage
of tires has increased substantially. In order to mitigate any potential
negative impact, Elk Valley Coal is monitoring tire availability and
undertaking steps to extend existing tire life. Future operations could be
impacted if Elk Valley Coal experiences difficulties obtaining equipment and
supplies, particularly tires, on a timely basis. Lastly, costs have increased
as the growth in the mining industry has created demand and competition for
certain skilled services. These factors could affect production, productivity
and costs at Elk Valley Coal's operations, and have a material adverse effect
on cash available for distribution to unitholders.

Taking this into account, Elk Valley Coal's cost of product sold is
anticipated to be between $29 and $30 per tonne in 2005, slightly higher than
that incurred in 2004.

Collective Agreements

Collective agreements covering production and maintenance employees at three
of Elk Valley Coal's operations will expire prior to the end of 2005. The
collective agreement at the Coal Mountain operation expired on December 31,
2004, and negotiations are ongoing. Agreements at Line Creek and Elkview
operations expire at the end of May and October 2005, respectively. The
agreement at Fording River operations expires in 2006 while Cardinal River's
agreement expires in 2007.

Should an agreement not be reached at one or more of these operations, work
stoppages could occur that may have a material adverse effect on cash
available for distribution to unitholders.

Cardinal River Operations

All licenses and approvals have been received for the Cheviot Creek pit and
the haulroad at the Cardinal River operations. A number of environmental
organizations have applied to the Federal Court seeking a further
environmental assessment of the project and challenging certain federal
authorizations that the project has received. The Federal Court is expected
to hear the applications in June 2005. In addition, Alberta Environment
received appeals regarding certain approvals in connection with the project
from local individuals. The Environmental Assessment Board issued a decision
in April related to one appeal, which is not expected to have a material
impact on operations.

While unanticipated, negative decisions related to these legal issues could
impact future operations at the site. Elk Valley Coal continues to monitor
progress on these legal issues.

Rail Service

The rail systems servicing Elk Valley Coal's mines are being pressed to meet
the current capacity requirements of all industries shipping westbound to
Vancouver. In early 2005, rail service was below Elk Valley Coal's
expectations. Taking into account the new rail contract with CP, service
levels are expected to be sufficient to move Elk Valley Coal's planned
production volumes. However, rail capacity issues, prolonged labour
stoppages, availability of trains, weather problems or other factors that
prevent CPR or CN from providing their services could seriously impact Elk
Valley Coal's sales volumes and financial results.

Foreign Exchange Hedging

To help manage exposure to currency fluctuations, foreign exchange forward
contracts are used to fix the rate at which certain future anticipated flows
of U.S. dollars are exchanged into Canadian dollars. Foreign exchange hedging
activities take into account the existing foreign exchange forward contracts
of Fording Inc. and Elk Valley Coal. Our hedging policy has no minimum
limits. In the first quarter of 2005, outstanding hedges increased by $758
million. Our outstanding foreign exchange forward contracts are disclosed in
note 9 to the Consolidated Financial Statements.

Guidance

The following table outlines the Trust's current expectations for the 2005
calendar year, except for the 2005 coal year prices. These estimates are
based on management's judgement, which are subject to known and unknown risks
as well as uncertainties and other factors. Accordingly, actual results may
differ materially from the estimated amounts disclosed in the table.



Trust at

60%

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

Coal sales (million tonnes) 16

Coal prices (U.S.$/tonne)

2005 coal year $ 122

2005 calendar year $ 100

Cost of product sold, coal (CDN$/tonne) $ 29 - 30

Transportation, coal (CDN$/tonne) $ 37 - 38

Capital expenditures (CDN$ millions)

Sustaining expenditures $ 35

Expansion expenditures $ 65


Sensitivities

The table that follows outlines the approximate sensitivity in 2005 of cash
available for distribution per unit based on changes in certain key variables
throughout the balance of the year. These sensitivities are calculated before
any cash reserve and include our distribution entitlement in Elk Valley Coal,
take into account our current foreign currency hedges, exclude any potential
impact from the proposed reorganization and are based on the weighted average
number of units expected to be outstanding throughout the balance of the year
prior to the proposed three-for-one unit split, if approved (see below).



$/

Variable Change unit

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

Cost of coal product sold CDN$1.00/tonne $ 0.19

Price of coal U.S.$1.00/tonne $ 0.21

Elk Valley Coal's sales 1 million tonnes $ 0.40

U.S./Canadian dollar exchange rate U.S. 1 cent $ 0.07

Capital expenditures of the Trust CDN$1 million $ 0.02


Number of Units Outstanding

There were approximately 49 million trust units outstanding on March 31 and
April 25, 2005. Approximately 38,000 options were outstanding under the
exchange option plan as of March 31, 2005 and 37,250 options as of April 25,
2005.

Unitholders will be asked to approve a three-for-one split of the Trust's
units at the Annual and Special Meeting on May 4, 2005. It is anticipated
that the unit split will result in a corresponding reduction in the market
price per unit making them more affordable for the average investor.

Risk Factors

Unitholders should refer to the 'Risk Factors' in the 2004 annual report and
in the management information circular dated April 2, 2005 for other factors
that could potentially impact the Trust's financial performance and its
ability to meet its targets.

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



CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

Three months ended

March 31

(millions of Canadian dollars, -----------------

except per unit amounts) 2005 2004

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

Revenues $ 294.9 $ 245.2

Expenses

Cost of product sold 104.2 111.8

Transportation 104.0 98.7

Selling, general and administration 6.2 9.5

Depreciation and depletion 12.9 16.2

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

227.3 236.2

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

Income from operations 67.6 9.0

Other income (expense)

Interest expense (2.7) (4.9)

Other income (expense), net (note 3) (0.7) 13.5

Reduction of interest in EVCP (note 4) 9.5 -

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

Income before taxes 73.7 17.6

Income tax expense (note 5) 8.4 6.9

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

Net income $ 65.3 $ 10.7

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

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

Weighted average number of units outstanding

(millions) (note 10) 49.0 47.0

Basic and diluted earnings per unit (note 10) $ 1.33 $ 0.23



CONSOLIDATED STATEMENTS OF ACCUMULATED EARNINGS

(unaudited)

Three months ended

March 31

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

(millions of Canadian dollars) 2005 2004

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

Balance - beginning of period $ 340.6 $ 190.4

Net income for the period 65.3 10.7

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

Balance - end of period $ 405.9 $ 201.1

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

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

The accompanying notes to the unaudited consolidated financial statements

are an integral part of these statements.



CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

Three months ended

March 31

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

(millions of Canadian dollars) 2005 2004

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

Operating activities

Net income $ 65.3 $ 10.7

Items not using (providing) cash:

Depreciation and depletion 14.4 16.4

Reduction of interest in EVCP (9.5) -

Provision for asset retirement obligations, net 1.0 0.9

Future income taxes 4.6 4.1

Income from change in inventory valuation - (10.8)

Loss on disposal of assets - 0.1

Other items, net 0.8 0.7

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

76.6 22.1

Decrease (increase) in non-cash working capital (15.6) 25.0

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

Cash from operating activities 61.0 47.1

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

Investing activities

Additions to capital assets (29.1) (5.7)

Proceeds on disposal of assets 0.1 0.3

Other investing activities, net (0.6) 1.6

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

Cash used in investing activities (29.6) (3.8)

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

Financing activities

Increase (decrease) in long-term debt 17.7 (0.6)

Issuance of units, net 0.1 0.3

Other financing activities, net - (0.1)

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

Financing activities, before distributions 17.8 (0.4)

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

Distributions declared (63.7) (47.0)

Increase in distributions payable - 0.1

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

Financing activities related to distributions (63.7) (46.9)

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

Cash used in financing activities (45.9) (47.3)

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

Decrease in cash and equivalents (14.5) (4.0)

Cash and cash equivalents

- beginning of period 64.5 52.5

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

Cash and cash equivalents - end of period $ 50.0 $ 48.5

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

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

The accompanying notes to the unaudited consolidated financial statements

are an integral part of these statements.

CONSOLIDATED BALANCE SHEETS

(unaudited) March December

31 31

(millions of Canadian dollars) 2005 2004

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

Assets

Current assets

Cash and cash equivalents $ 50.0 $ 64.5

Accounts receivable 79.3 86.8

Inventory 141.1 113.0

Prepaid expenses 4.6 2.6

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

275.0 266.9

Capital assets 646.2 635.8

Goodwill 44.4 44.4

Other assets 20.6 21.1

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

$ 986.2 $ 968.2

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

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

Liabilities

Current liabilities

Accounts payable and accrued liabilities $ 125.5 $ 132.6

Income taxes payable 13.4 10.7

Distribution payable 63.7 63.7

Current portion of long-term debt (note 7) 1.3 1.7

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

203.9 208.7

Long-term debt (note 7) 223.4 205.2

Other long-term liabilities (note 8) 89.6 91.9

Future income taxes (note 5) 185.0 180.4

Commitments and contingencies (note 9)

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

701.9 686.2

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

Unitholders' equity (note 10)

Trust units 357.8 357.7

Accumulated earnings 405.9 340.6

Accumulated cash distributions (487.4) (423.8)

Foreign currency translation adjustments 8.0 7.5

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

284.3 282.0

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

$ 986.2 $ 968.2

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

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


The accompanying notes to the unaudited consolidated financial statements

are an integral part of these statements.

Notes to Consolidated Financial Statements

(unaudited)

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

1. STRUCTURE OF FORDING CANADIAN COAL TRUST AND NATURE OF OPERATIONS

Fording Canadian Coal Trust (the Trust) is an open-ended mutual fund

trust existing under the laws of the Province of Alberta. It was created

pursuant to a Declaration of Trust in connection with a plan of

arrangement effective February 28, 2003 (the Arrangement). These

consolidated financial statements reflect the financial position, results

of operations and cash flows as if the Trust had always carried on the

businesses formerly carried on by its predecessor company, Fording Inc.,

being the public company existing prior to the Arrangement (Old Fording).

All assets and liabilities are recorded at historical cost.

The Trust holds all of the shares and subordinated notes of its operating

subsidiary company, Fording Inc. Through Fording Inc., at March 31, 2005

the Trust held a 62% interest in the metallurgical coal operations owned

by Elk Valley Coal Partnership (EVCP), and a 100% interest in the

industrial mineral operations owned by Nyco Minerals, Inc. and Minera

Nyco SA de CV (collectively NYCO).

EVCP and NYCO are separate reportable segments within the Trust. EVCP

mines and processes metallurgical coal from six mines located in British

Columbia and Alberta, Canada. NYCO mines and processes wollastonite and

other industrial minerals from two operations in the United States and

one operation in Mexico. Each segment is a distinct strategic business

unit that offers different products and services and is managed

separately due to different operational and marketing strategies.

At February 28, 2003, Fording Inc. held a 65% interest in EVCP and the

remaining 35% interest in EVCP was held by Teck Cominco and its

affiliates. The agreement governing EVCP provided for an increase in Teck

Cominco's interest to a maximum of 40% to the extent that synergies from

the combination of various metallurgical coal assets contributed to EVCP

exceed certain target levels. At April 1, 2005, the Trust's interest

decreased to 61% while Teck Cominco's interest increased to 39%, as

discussed in note 4.

These consolidated financial statements should be read in conjunction

with the annual consolidated financial statements and notes thereto

included in the Trust's Annual Report for 2004 and other public

disclosure documents of the Trust and Old Fording.

The preparation of these consolidated financial statements requires

management to make certain estimates and assumptions that affect amounts

reported and disclosed in the consolidated financial statements and

related notes. Actual amounts could differ from those estimates. A

discussion of the accounting estimates that are significant in

determining the Trust's financial results is contained in the

Management's Discussion and Analysis in its 2004 Annual Report.

2. SIGNIFICANT ACCOUNTING POLICIES

These consolidated financial statements have been prepared in accordance

with Canadian generally accepted accounting principles and follow the

same accounting principles and methods of application as described in the

Trust's annual financial statements for 2004.

Certain comparative figures have been reclassified to conform to the

presentation adopted in 2005.



3. OTHER INCOME (EXPENSE), NET

Three months ended

March 31

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

(millions of Canadian dollars) 2005 2004

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

Interest and investment income $ 0.2 $ 1.0

Change in inventory valuation - 10.8

Other (0.9) 1.7

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

$ (0.7) $ 13.5

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


4. REDUCTION OF INTEREST IN EVCP

EVCP was initially owned 65% by the Trust and 35% by Teck Cominco, the

managing partner. The agreement governing EVCP provided for an increase

in Teck Cominco's interest to a maximum of 40% to the extent that

synergies from the combination of various metallurgical coal assets

contributed to EVCP exceed certain target levels. The report of an

independent expert engaged by the partners concluded that sufficient

synergies had been realized to increase Teck Cominco's interest to 40%.

The Trust and Teck Cominco agreed that substantial synergies have been

achieved. As a result, the partners agreed that the Trust's distribution

entitlement was reduced to 62% effective April 1, 2004 and to 61% on

April 1, 2005, and will be reduced to 60% on April 1, 2006, as the

benefits of synergies flow through to unitholders. Teck Cominco's

entitlements will increase correspondingly over the same period.

A $37.5 million non-cash charge to earnings, reflecting the entire 5%

reduction in the Trust's interest in EVCP was recorded in the second

quarter of 2004. This charge was reduced by an estimate of cash to be

received for the additional distribution entitlements of 2% for the year

ended March 31, 2005 and 1% for the year ended March 31, 2006. During the

first quarter of 2005, the estimate of cash to be received for the

additional distribution entitlement of 1% for the twelve months ended

March 31, 2006 was revised. This resulted in a favourable $9.5 million

pre-tax adjustment to the reduction of interest in EVCP, which has been

included in other income for the first quarter of 2005.

Results of operations commencing with the second quarter of 2004 reflect

the Trust's 60% interest in EVCP, while results for the first quarter of

2004 include the Trust's 65% interest.



5. INCOME TAXES

Income tax expense is made up of the following components:


Three months ended

March 31

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

(millions of dollars) 2005 2004

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

Current income taxes:

Canadian corporate income taxes $ 0.4 $ -

Provincial mineral taxes and Crown royalties 3.3 1.9

Foreign income taxes 0.1 0.9

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

3.8 2.8

Future income tax expense

Canadian corporate income taxes $ 3.1 3.7

Provincial mineral taxes and Crown royalties 1.5 0.4

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

4.6 4.1

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

Total income tax expense $ 8.4 $ 6.9

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

Future income taxes consist of the following:

March 31 December 31

(millions of Canadian dollars) 2005 2004

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

Canadian corporate income taxes $ 127.9 $ 124.8

Provincial mineral taxes and Crown royalties 46.3 44.8

Foreign corporate income taxes and other 10.8 10.8

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

$ 185.0 $ 180.4

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


6. DISTRIBUTABLE CASH

Distributable cash is a term defined in the Declaration of Trust and

generally refers to the net cash received by the Trust that is available

for payment to unitholders on a quarterly basis. Available cash generated

by Fording Inc. is the principal contributor to distributable cash of the

Trust. Fording Inc. distributes its available cash to the Trust in a

quarter, which is derived from results for the quarter and takes into

account other considerations such as expected future performance,

variations in levels of quarterly operating and capital activities and

other financial or legal requirements. Future distributions of available

cash will take into account these factors and any amounts paid in prior

periods that were greater or less than the actual distributable cash for

those prior periods.

Available cash generated by Fording Inc. and paid to the Trust is the

principal source of distributable cash paid to unitholders. Distributions

declared and payable in 2004 included $18.5 million of cash available for

distribution carried over from 2003.



Three months ended

March 31

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

(millions of Canadian dollars) 2005 2004

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

Cash Available for Distribution

Cash flows from operating activities $ 61.0 $ 47.1

Add (deduct):

Increase (decrease) in non-cash working capital 15.6 (25.0)

Sustaining capital expenditures, net (5.9) (2.4)

Capital lease payments (0.7) (0.4)

Other 1.5 0.1

Cash reserve - -

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

Cash available for distribution $ 71.5 $ 19.4

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

Distributions Declared and Payable $ 63.7 $ 47.0

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

Distributable cash and cash available for distribution have no

standardized meaning and are not defined by generally accepted accounting

principles in Canada. Accordingly, distributable cash and cash available

for distribution as it is presented above may not be comparable to

similarly named measures presented by other trusts.


7. LONG-TERM DEBT, BANKING FACILITIES AND FINANCIAL INSTRUMENTS

March December

31 31

(millions of Canadian dollars) 2005 2004

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

Long-term debt

Bank debt

Extendable revolving variable rate term loans:

U.S.$167 million with interest at rates varying

from 3.5% to 3.7% $ 202.0 $ -

Canadian dollar loans bearing interest at 4.3% 17.5 -

Term loan with interest at varying rates from

5.6% to 6.3% - $ 201.0

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

219.5 201.0

Other debt

Equipment financing due 2009 bearing interest

at 5.1% 5.0 5.2

Capital lease obligations expiring in 2005 with

interest rates varying from 5.0% to 7.1% 0.3 0.7

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

224.8 206.9

Less current portion (1.3) (1.7)

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

$ 223.4 $ 205.2

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



Fording Inc.'s bank credit facilities provide for a floating rate, five-

year, annually extendable $400 million facility and are supported by an

unsecured guarantee by EVCP, limited in recourse to any partner's

interest in EVCP (other than Fording Inc.) and a general security

agreement over the assets of Fording Inc. including its interest in EVCP.

The EVCP facility provides for a floating rate, five-year, annually

extendable, $150 million revolving facility, which is to be secured by a

general security interest over the assets of EVCP.

Funds available under both facilities may be drawn in either Canadian or

U.S. currency subject to the Canadian dollar limit of each facility.

At March 31, 2005, the Trust's share of other uses of bank facilities in

the form of issued and outstanding letters of credit and guarantee was

$42.5 million. The Trust's share of unused bank facilities at

March 31, 2005 was $228.0 million.


8. OTHER LONG-TERM LIABILITIES

March December

31 31

(millions of Canadian dollars) 2005 2004

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

Asset retirement obligations $ 67.1 $ 68.9

Pension and other post-retirement benefits 20.9 21.4

Other, net 1.6 1.6

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

$ 89.6 $ 91.9

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



Pension and other post-retirement benefits

Substantially all employees participate in either a defined benefit or

defined contribution plan. The pension expense for the first quarter of

2005 was $2.5 million (2004 - $2.3 million).

9. COMMITMENTS AND CONTINGENCIES

Foreign exchange forward contracts

To help manage exposure to currency fluctuations, foreign exchange

forward contracts are used to fix the rate at which certain future

anticipated flows of U.S. dollars are exchanged into Canadian dollars.

The foreign exchange hedging activities of the Trust take into account

the existing foreign exchange forward contracts of EVCP and Fording Inc.

The following table summarizes the Trust's outstanding hedged positions

at March 31, 2005.


Amount Hedged (millions of U.S.$)

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

Average

Exchange Rates

EVCP (U.S.$1 (CDN$1

----------------- Fording Trust's equals equals

Year 100% 60% Inc. Total CDN$) U.S.$)

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

2005 $ 265 $ 159 $ 763 $ 922 1.28 0.78

2006 95 57 318 375 1.29 0.77

2007 - - 16 16 1.46 0.69

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

$ 360 $ 216 $ 1,097 $ 1,313

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



At March 31, 2005, the Trust's portion of unrealized gains on foreign

exchange forward contracts was $104.7 million based on the U.S./Canadian

dollar exchange rate of U.S. $0.83. The Trust's realized gain on foreign

exchange forward contracts included in revenues for the first quarter of

2005 was $27.8 million (2004 - $15.9 million).

Neptune Terminals guarantee

EVCP's proportionate share of its guarantee of the outstanding bank

indebtedness of Neptune Terminals was $17.7 million at the end of the

first quarter of 2005. The Trust's share of this guarantee was

$10.6 million.

Other

EVCP and CPR reached an agreement with respect to westbound rail rates in

April 2005, which settled the dispute outstanding at December 31, 2004.

There are no material changes to other commitments and contingencies from

those reported in the annual consolidated financial statements included

in the Trust's Annual Report for 2004.

10. UNITHOLDERS' EQUITY

Authorized

The Trust has an unlimited number of units authorized for issuance

pursuant to the Declaration of Trust. The units represent a beneficial

interest in the Trust. All units share equally in all distributions from

the Trust and carry equal voting rights.

No conversion, retraction or pre-emptive rights are attached to the

units. Trust units are redeemable at the option of the unitholder at a

price that is the lesser of 90% of the average closing price of the units

on the principal trading market for the previous 10 trading days and the

closing market price on the date of tender for redemption, subject to

restrictions on the amount to be redeemed each quarter.


Units issued and outstanding

Three months ended

March 31, 2005

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

(in millions of units and Canadian dollars) Units Amount

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

Balance, beginning of period 49.0 $ 357.7

Issued on exercise of options - 0.1

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

Balance, end of period 49.0 $ 357.8

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



Under the Arrangement, all options to purchase common shares of Old

Fording were exchanged for options to purchase units of the Trust under

the exchange option plan. The Trust has not granted any options since its

formation. At March 31, 2005, there were approximately 38,000 options

outstanding to purchase units, all of which are fully vested and

exercisable at any time. The options have a weighted average exercise

price of $14.44 per unit and the remaining weighted average contractual

life is 4.1 years. Certain exchange options also have accompanying unit

appreciation rights.


Accumulated Distributions to Unitholders

Three months ended

March 31

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

(millions of Canadian dollars) 2005 2004

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

Opening accumulated cash distributions $ 423.8 $ 210.3

Distributions declared and payable (note 6) 63.7 47.0

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

Closing accumulated cash distributions $ 487.4 $ 257.3

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



Earnings per unit

For the periods presented, in calculating diluted earnings per unit, net

income remains unchanged from the basic earnings per unit calculation and

the number of units outstanding is increased for the dilutive effect of

outstanding unit options. The treasury stock method is used to determine

the dilutive effect of unit options and other dilutive instruments. The

weighted average number of units outstanding for purposes of calculating

earnings per unit on both a basic and fully diluted basis was 49 million

units for the quarter ended March 31, 2005 and 47 million units for the

quarter ended March 31, 2004.


11. UNIT-BASED COMPENSATION

Three months ended

March 31

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

(millions of Canadian dollars) 2005 2004

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

Employee unit purchase plan $ 0.1 $ 0.1

Unit equivalent plan 0.7 0.4

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

$ 0.8 $ 0.5

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



The total number of units purchased on behalf of the employees pursuant

to the employee unit purchase plan, including the employer's

contributions, was 4,353 units for the first quarter of 2005

(2004 - 8,398).

A unit equivalent plan is in place for Trustees and Directors. Trustees

and Directors receive a portion of their compensation in unit

equivalents. The unit equivalents when granted are valued using the

five-day weighted average trading price of a unit immediately preceding

the award date and are subsequently revalued each quarter at fair market

value. The total charge to income for Unit Equivalent Plan includes the

cost of vested unit equivalents and any changes in the fair value of the

units during the year.


12. SEGMENT INFORMATION

Three months ended

March 31

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

(millions of Canadian dollars) 2005 2004

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

Elk Valley Coal

Revenues $ 283.9 $ 232.0

Cost of product sold (96.5) (104.8)

Transportation (102.2) (96.9)

Selling, general and administration (3.1) (7.6)

Depreciation and depletion (11.5) (14.2)

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

Income from operations 70.6 8.5

Interest expense (0.1) (0.2)

Other income (expense) 0.4 10.4

Income tax (expense) (8.2) (6.0)

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

Income 62.7 12.7

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

NYCO

Revenues 11.0 13.2

Cost of product sold (7.7) (7.0)

Transportation (1.8) (1.8)

Selling, general and administration (1.0) (0.9)

Depreciation and depletion (1.1) (1.3)

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

Income (loss) from operations (0.6) 2.2

Interest expense - -

Other income (expense) - 0.5

Income tax (expense) (0.2) (0.9)

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

Income (loss) (0.8) 1.8

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

Corporate

Selling, general and administration (2.1) (1.0)

Depreciation and depletion (0.3) (0.7)

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

Loss from operations (2.4) (1.7)

Interest expense (2.6) (4.9)

Other income (expense) (1.1) 2.8

Reduction of interest in EVCP 9.5 -

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

Income (loss) 3.4 (3.8)

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

Consolidated

Revenues 294.9 245.2

Cost of product sold (104.2) (111.8)

Transportation (104.0) (98.7)

Selling, general and administration (6.2) (9.5)

Depreciation and depletion (12.9) (16.2)

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

Income from operations 67.6 9.0

Interest expense (2.7) (4.9)

Other income (expense) (0.7) 13.5

Reduction of interest in EVCP 9.5 -

Net income tax expense (8.4) (6.9)

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

Net income $ 65.3 10.7

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

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

/T/

Contact Information