NCE Diversified Flow-Through (05) Limited Partnership

February 24, 2005 11:05 ET

NCE Diversified Flow-Through '05' Limited Partnership Raises $55 Million at Initial Close



FEBRUARY 24, 2005 - 11:05 ET

NCE Diversified Flow-Through '05' Limited Partnership
Raises $55 Million at Initial Close

TORONTO, ONTARIO--(CCNMatthews - Feb. 24, 2005) - NCE Resources Group is
pleased to announce that NCE Diversified Flow-Through (05) Limited
Partnership completed an initial close on February 24, 2005, raising
gross proceeds of $54,919,175 and issuing 2,196,767 units.

Final Close

The final close for the Partnership is scheduled to occur on or about
March 29, 2005. The maximum offering of the Partnership is $200,000,000.

Flow-through shares

The Partnership has been created for the purpose of investing in
flow-through shares of certain resource companies.

It is intended that all proceeds available for investment will be
allocated by the Partnership approximately equally between resource
companies engaged in oil and gas exploration (including resource issuers
involved in renewable energy exploration and development) development
and/or production, and resource companies engaged in mining exploration,
development and/or production.

The actual allocation of the Partnership's investment portfolio will be
determined based on the investment opportunities available at the time
of investment. The Partnership will endeavour to invest all proceeds
available for investment in flow-through shares of resource companies by
December 31, 2005.

Objective of the Partnership

The objective of the Partnership is to achieve capital appreciation
according to the investment strategies as detailed in the prospectus and
to maximize the tax benefits received by investors.

Tax benefits

Investors will be eligible to receive substantial tax benefits through
participation in the Partnership, including an approximately 100%
deduction in 2005 of the amount of their investment based on completion
of the maximum offering and on certain other assumptions set forth in
the prospectus.

Offering price

The price per unit is $25.00 with a minimum subscription of 200 units


The general partner of the Partnership is a member of the NCE Resources
Group, which is an oil and gas investment management organization
specializing in energy investments and providing a full range of
technical, operational, administrative and investor services. Since
1984, the NCE Resources Group has invested or managed the investment of
more than $2.0 billion in the acquisition, development and exploration
of resource properties and securities of resource issuers, and has
entered into drilling, joint venture and other similar arrangements with
approximately 400 oil and gas industry participants.

Investment Advisor and Industry Advisor

The general partner has retained Sentry Select Capital Corp. to select
potential investments and to provide advice on and manage the investment
portfolio of the Partnership. Sentry Select is a wealth management
company with current total assets under management of approximately $4
billion, including more than $1.2 billion in energy sector related
investments. The general partner has also retained Schachter Asset
Management Ltd., a Canadian investment management firm, to provide it
with general oil and gas industry advice.


The Agents on the offering are National Bank Financial Inc., CIBC World
Markets Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc.,
Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation,
Raymond James Ltd., Dundee Securities Corporation, HSBC Securities
(Canada) Inc., Berkshire Securities Inc., Desjardins Securities Inc.,
First Associates Investments Inc., Jory Capital Inc., Richardson
Partners Financial Ltd. and Wellington West Capital Inc.

The Exchange Tower
130 King Street West
Suite 2850, P.O. Box 104
Toronto, Ontario M5X 1A4


Contact Information

    NCE Diversified Flow-Through (05) Limited Partnership
    Investor Services (investor enquiries)
    416-861-8729 or 1-888-246-6656
    NCE Diversified Flow-Through (05) Limited Partnership
    Jason Graham/Patrick Schryburt (media enquiries)
    416-861-8729 or 1-888-246-6656