MRF 2005 Resource
Limited Partnership (the "Fund" or "MRF 2005") raised $55 million in March and
April 2005 that was invested in flow-through common shares of 48 Canadian
resource companies. The portfolio assets were 79% invested in TSX listed stocks
and 95% in companies with a market capitalization greater than $50 million.
Based on the initial investments, the portfolio assets were 85% invested in
companies whose principal operations were comprised of oil and gas exploration,
production and development. The Fund's initial portfolio parameters
substantially exceeded the minimum investment criteria required by the Fund's
At June 30, 2006 the
Fund's net asset value was $23.60 per unit, representing a total after-tax
return on money-at-risk of 41% for an Ontario investor taxed at the highest
marginal tax rate.