1 April 2005 ASX ANNOUNCEMENT – MOUNT HOPE PROJECT Mount Hope Hydro Inc.

a wholly owned subsidiary of Atlantic Pacific Infrastructure Limited (“APIL”) and its limited Partnership Mount Hope Water Project LP entered into a lease on 28 March 2005 for the Mount Hope site approximately 483 acres with Tilcon New York Inc. a wholly owned subsidiary of Oldcastle Inc. Mt. Hope Project Tilcon shall lease the premises for the annual sum of US$650,000, payable in advance. The term of the Lease is until January 1, 2010, or until such time as the Tenant is able to exercise its option to purchase the property for US$6,000,000, whichever event occurs first. The option to purchase must be exercised by January 31, 2010, at which time the option expires. The option also can be rejected by the Lessor if there is an existing challenge to the Lessor’s title. The Lease further provides that, during the term of the Lease, the Landlord shall have a license to access and use a portion of the leased property and such additional portions of the premises, to the extent necessary, for the purpose of continuing the development of a hydro electric project or any other energy related project; provided, however, that such license and Landlord's activities shall not affect or interfere in any material respect with Tenant's use of the Premises. The Lease provides for a rental reduction based upon the number of acres of the premises affected by such license. If the option to purchase the Property is exercised, the Property shall be sold free and clear of all mortgages and encumbrances. All net lease payments made by the Lessee shall be credited to the purchase price of US$6,000,000 and any mortgages on the premises shall be transferred to the Lessee or satisfied by the Lessor. The purchase price of US$6,000,000 shall be increased to reflect the percentage of increase of the cost of living between the date of the lease and the date when the sale is consummated based on the local consumer price index provided that the increase shall not exceed 3% per annum compounded annually. The Lease shall be a net lease, with the Lessee bearing all of the fixed costs of the Property, but shall exclude any cost attributed to certain management, legal, and FERC licensing expenses. If Tilcon does not exercise its option to acquire the Property and there is no legal impediment to title, it will not be reimbursed for any of its previously incurred rental payments, costs and expenses. The Lessor has the right to compel Tilcon to purchase the Property for US$6,000,000 at the end of the lease term if Tilcon fails to exercise its option to acquire the Property. MHWP will continue to promote and develop the planned Pump Storage Project and develop plans to install a small Power Generation Plant on the Property. APIL has assigned a portion of a First Mortgage, which it holds on the Property, as security for any damages which the Lessee may sustain as a result of a breach of the Lease by the Lessor. It is anticipated that the effect of the Tilcon Lease will be to contribute around AU$700,000 per annum to the Pacific Energy Limited Group of Companies until either the option to buy is exercised or the Lease is terminated.


Neil Miller Company Secretary Tel: +61(02) 9241 5018 Fax: +61(02) 9241 2175
A.C.N. 009 191 744 Suite 201, Level 2, 111 Harrington Street Sydney, NSW 2000 EMAIL: PacEnergy@bigpond.com TELEPHONE ( 61 2) 9241 5018 FACSIMILE: (61 2) 9241 2175

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