Net external liabilities (the difference between Canada's external assets and foreign liabilities) reached $154.3 billion at the end of the first quarter, down $14.2 billion from the end of 2005.

The value of international assets totalled $1,053.0 billion, up 3.6% from the previous quarter. Gains in direct investment abroad and holdings of foreign bonds explained a large portion of this increase.

On the other hand, international liabilities reached $1,207.4 billion, a 1.9% increase from the 2005 year end. The gain was mostly due to increases in foreign direct investment in Canada.

Net external liabilities at the end of March represented a record low 10.9% of Canada's GDP, down a full percentage point from the end of December. As recently as the end of 2002 this ratio was 17.6%.

The Canadian dollar depreciated slightly against all major foreign currencies in the first quarter. This increased the value of international assets and foreign liabilities by $7.6 billion and $2.6 billion respectively.

Rise in Canadian portfolio investment abroad

Canadian holdings of foreign bonds continued its long-term upward trend during the first three months of this year with the strongest quarterly gain on record. In fact, Canadian holdings of foreign bonds rose $10.4 billion to a record $92.8 billion at the end of the quarter.

Canadians increased their holdings of US bonds by 11% while they increased their holdings of overseas bonds by 18%.

Driven by this increase, total Canadian portfolio (holdings of stocks, bonds and money market paper) investment abroad reached $300.8 billion at the end of March. It represented 29% of Canada's international assets at the end of the quarter, a growing proportion.

Holdings of foreign stocks reached $193.9 billion, up $4.7 billion from the end of 2005, as Canadians purchased mostly US shares in the first quarter.

While investment in foreign bonds has surged recently, holdings of foreign stocks have been more stable. These holdings represented 65% of total Canadian portfolio investment abroad at the end of the first quarter compared to 80% at the end of 2002.

Canadian holdings of foreign money market paper increased $1.0 billion to $14.1 billion at the end of the first quarter.

Canadian direct investment abroad up

Canadian direct investment abroad reached $477.8 billion at the end of March, up $12.7 billion from the end of December. This increase came mostly from injections of working capital into existing foreign affiliates and from revaluation of existing assets abroad.

Canadian direct investment in the United States reached $219.6 billion (up $5.9 billion) at the end of March. At the same time, direct investment in all other countries increased $6.9 billion to $258.2 billion.

Liabilities: Increase in foreign direct investment in Canada

Foreign direct investment in Canada rose $8.6 billion to $424.2 billion at the end of March. Foreign direct investors increased their investment position in Canada, mainly through acquisitions and reinvested earnings in existing subsidiaries.

Foreign direct investment from the United States reached $270.4 billion, up $3.9 billion from the previous quarter. The United States accounted for almost two-thirds of total foreign direct investment in Canada.

Foreign holdings of Canadian stocks increased $2.7 billion to $110.3 billion at the end of the quarter. Again, American investors held the majority of the value with 90% of the total.

Foreign investors made significant investments in Canadian money market paper for a second consecutive quarter. As a result, foreign holdings of Canadian money market paper increased $2.1 billion to $22.9 billion. At the same time, foreign investors slightly reduced their investment in Canadian bonds. At the end of March, foreign holdings of Canadian bonds were down by less than a billion to $379.3 billion.

As Canada's international liabilities have increased over time, the composition has changed. The proportion of debt instruments in the international liabilities has been declining while the proportion of equity investments has been increasing.

The proportion of total foreign liabilities represented by bonds and money market paper at the end of 2005 was just 34%, down from 50% at the end of 1995. The largest gain in proportion was in foreign direct investment, which increased from 22% in 1995 to 35% at the end of 2005. At the same time, portfolio holdings of Canadian shares almost doubled its proportion up from 5% to 9%.

New treatment of allowances

In the international investment position, allowances have been shown as a separate asset category. These are allowances for expected losses on loans and other credits by the federal government and financial institutions.

The availability of specific data on allowances has been reduced and there is no longer sufficient data to support a separate series on allowances. Therefore data on loans and other asset categories are now presented on a net basis as of the first quarter 2003. As a result, allowances will no longer be presented as a separate category. Data for prior years will remain available for now, pending the next historical revision of these data.

Estimates at market value

As of the first quarter of 2005, total portfolio investment (equities, bonds and money market instruments) are available at market value. Annual market value estimates of foreign direct investment are also available and were released earlier this year. These additional series are part of a multi-year initiative to improve the international investment position information. The following analysis focuses on the book value series, however, and this practice will continue until a full set of market value estimates becomes available.

Currency valuation

The value of assets and liabilities denominated in foreign currency are converted to Canadian dollars at the end of each period for which a balance sheet is calculated. Most of Canada's foreign assets are denominated in foreign currencies while less than half of our international liabilities are in foreign currencies.

When the Canadian dollar is appreciating in value, the restatement of the value of these assets and liabilities in Canadian dollars lowers the recorded value. The opposite is true when the dollar is depreciating.

On Thursday, June 15th, Institutional Investor will release a detailed profile on NYSE's John Thain. Thain restored the image of the NYSE following two of the worst scandals in its history and now must deal with the even more difficult challenge of ensuring the NYSE's continued relevance as serious threats to its longtime dominance gather on the horizon.

The event will begin with opening remarks from Dominic D'Alessandro, President and Chief Executive Officer. Mr. D'Alessandro will describe the Company's recent successes and will answer questions from investors.

Also at the Manulife Financial Investor Day event, Simon Curtis, Executive Vice President and Chief Actuary, will provide an update on the Company's actuarial liabilities. The review will include additional disclosure related to the actuarial liabilities including components of the provisions for adverse deviations. Peter Rubenovitch, Chief Financial Officer, will conclude the event with an overview of the Company's key financial results and current strategic positioning.

A live audio feed and PowerPoint presentations will be accessible via the Manulife Financial Website at www.manulife.com/Presentations. An archived version of the Webcast will be available at the same URL for at least 90 days.

Investor Day schedule

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

9:00 - 9:30 Opening Remarks & Dominic President & CEO
Strategic Review D'Alessandro

9:30 - 10:15 Asia and Japan Victor Apps SEVP & GM, Asia &
Japan

ASEAN operations Philip EVP & GM, South
Hampden-Smith East Asia

10:15 - 10:45 Reinsurance Steve Mannik EVP, Reinsurance

11:00 - 12:15 Canada

Introduction and Bruce Gordon SEVP & GM, Canada
Group Savings &
Retirement
Solutions

Individual Paul Rooney EVP, Individual
Insurance Insurance &
Canadian Division
CFO

Wealth Roy Firth EVP, Individual
Management Wealth Management

Group Benefits Rick Brunet EVP, Group
Benefits

1:30 - 2:15 Actuarial Review Simon Curtis EVP & Chief
Actuary

2:15 - 3:30 U.S. Division

Introduction John DesPrez President & CEO,
John Hancock
Financial
Services

U.S. Insurance Robert Cook EVP, Insurance
Group U.S. Group

U.S. Wealth James Boyle EVP, John Hancock
Management Wealth Management

Fixed Products Ronald McHugh SVP, U.S. Fixed
Products

3:30 - 4:00 Financial Review Peter Rubenovitch SEVP & CFO
& Closing Remarks

1 James Simons Renaissance Technologies Corp. $1.5 billion
2 T. Boone Pickens Jr. BP Capital Management $1.4 billion
3 George Soros Soros Fund Management $840 million
4 Steven Cohen SAC Capital Advisors $550 million
5 Paul Tudor Jones II Tudor Investment Corp. $500 million
6 Edward Lampert ESL Investments $425 million
7 Bruce Kovner Caxton Associates $400 million
7 David Tepper Appaloosa Management $400 million
9 David Shaw D.E. Shaw & Co. $340 million
10 Stephen Mandel Jr. Lone Pine Capital $275 million

Alpha’s formula for determining the highest-earning hedge fund managers are based on two key metrics: gains on a manager’s own capital in his or her funds and the share of the fees generated by those funds that goes to the manager. These numbers are based on Alpha’s knowledge or estimates of each firm’s capital at the beginning of the year, the performance of its funds, their fee structure and the manager’s ownership stake. In making these judgments, Alpha tried to choose conservative estimates.

Foreign direct investment in Canada increased by more than 9% while Canadian direct investment abroad rose by only 3%.

Foreign direct investment in Canada reached $415.6 billion at the end of 2005, up $34.6 billion from a year earlier. This increase mostly came from acquisitions and injections of funds from the parents in the working capital of Canadian affiliates. Foreign direct investment in Canada has continually increased since the mid-1930s.

At the same time, Canadian direct investment abroad reached $465.1 billion, up from $451.4 billion at the end of 2004. The appreciation of the Canadian dollar lowered the position by $30.0 billion as Canadian direct investments abroad are denominated in foreign currencies. However, the value of capital transactions during the year more than offset this effect.

As a result, the net direct investment position (the difference between Canadian direct investment abroad and foreign direct investment in Canada) decreased to $49.5 billion at the end of 2005, down from a revised $70.4 billion a year earlier.

In 2005, the Canadian dollar gained 3.4% against the US dollar, 15.2% against the pound sterling, 19.0% on the Japanese yen and 18.3% on the Euro.

Direct investment up in the United States, down in European countries

Direct investment assets in the United States increased $17.4 billion to $213.7 billion, mostly as a result of capital outflows to existing operations located south of the border.

The share of US investment increased for a second consecutive year, accounting for 46% of total direct investment abroad at the end of 2005, up from 43% a year earlier.

The strengthening Canadian dollar against the euro and the pound sterling had a negative impact on direct investment assets in European countries. The value of Canadian direct investment in the United Kingdom fell $1.7 billion to $42.7 billion although the United Kingdom remained the second most popular destination for Canadian direct investment abroad.

Canadian direct investment in France fell a significant 14%, as did investment in the Netherlands (-19%). However, these countries are still favourites for Canadian direct investors abroad. France, the Netherlands, Ireland and United Kingdom were the only European nations in the 10 top countries for Canadian direct investment abroad at the end of 2005.

Canadian direct investors continued to invest in Caribbean countries at the end of 2005. Barbados with $34.7 billion of direct investment, a 13% gain, was the third most popular country for direct investment after the United States and the United Kingdom.

Brazil was the only new country in the top 10 at the end of 2005, replacing Japan where investments declined 13% to $7.4 billion. Canadian direct investment in Brazil increased 14% to $8.0 billion.

Canadian direct investments at the end of 2005 were spread over 150 countries on all continents, including more than 30 countries with at least $1 billion in investment.

At the end of 2005, foreign direct investment assets were mainly in the finance and insurance industry (44%), in the energy industry (12%) and in the metallic minerals industry (11%). The share of Canadian direct investment in finance and insurance sector has doubled in the past two decades while the share of the metallic minerals sector decreased from 17% to 11%.

United States holds nearly two-thirds of foreign direct investment in Canada

American investors held $266.5 billion in the form of direct investment at the end of 2005, up $18.0 billion from 2004.

About $11.6 billion of this gain went to the energy sector, which is the favourite for American direct investors. American direct investors have increased their position in the Canadian energy sector by more than 150% since 2000.

American direct investors were still by far the most important in Canada, holding nearly two-thirds (64%) of the total. Four European countries followed in order — the United Kingdom with $29.9 billion in foreign direct investment in Canada; France, $28.4 billion; the Netherlands, $21.7 billion; and Switzerland, $13.0 billion.

As it did for direct investment abroad, Brazil was the only new country to join the top 10 list of Canada's major partners for direct investment in Canada.

The 10 major investor countries accounted for 95% of the total, suggesting foreign direct investment in Canada is concentrated among major developed countries. However, almost 100 countries had direct investment positions in Canada at the end of 2005.

The finance and insurance sector accounted for 21% of foreign direct investment in Canada at the end of 2005, followed by the energy sector at 20%. The share of the energy sector in foreign direct investment has almost doubled since 1999, going from 11% to 20%, the same as it was in 1987.

Decline in Canada's net direct investment position

Canada's net direct investment position declined $20.9 billion to $49.5 billion at the end of 2005. The nation's net direct investment position has been positive for the last nine years and has contributed positively to the increase in Canada's net international investment position.

Canada has a positive net direct investment position with most of its partners. However, at the end of 2005, the net direct investment position of Canada with the United States was a negative $52.8 billion.

Net direct investment with the United States has never been positive. In other words, American direct investors have always held more assets in Canada than Canadian direct investors have held assets south of the border.

Note to readers

Direct investment is a category in the financial account of the international investment position, which refers to investment of a resident entity in one country obtaining a lasting interest in an enterprise resident in another country. The lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence by the investor on the management of the enterprise.

In practice, direct investment is deemed to occur when a company owns at least 10% of the voting equity in a foreign enterprise. In this report, direct investment represents the cumulative year-end positions.

In the Canadian statistics, direct investment is measured as the total value of equity, net long-term claims and net short-term claims held by the enterprise across the border.

Direct investment is often channelled through intermediate holding companies or other legal entities before reaching its ultimate destination. Since these entities are generally in the financial sector, this sector accounts for a larger share on an immediate investor basis than if the ultimate destination were known.

Market value estimates

Direct investment position series are at book value. However with this annual release, we introduce for the first time provisional aggregate estimates of foreign direct investment at market value. The estimates and more details are available in the publication Latest Developments in the Canadian Economic Accounts (13-605-XIE2006002, free).

“The World Bank on Tuesday set out a new five-year plan for its development projects in China, lending up to $1.5 billion per year and focusing on poverty reduction as well as easing the environmental and social fallout of the country's economic boom,” reports Reuters.

“The Bank on Tuesday said its Board of Directors backed the … Country Partnership Strategy for China for 2006-10 and endorsed a range of goals topped by China's further integration into the world economy. The plan, which is synchronized to run in parallel with China's own five-year economic plans, had also been approved by the Chinese government, the Bank said. … The World Bank said continued involvement in China, despite the economy there having mushroomed into the fourth largest in the world, was rooted in a need for World Bank expertise in dealing with what was still a mammoth development task. …

“Five areas of focus included reducing internal and external trade barriers; promoting balanced urbanization and sustaining rural livelihoods; projects to cut air pollution, conserve water use and optimize energy consumption; developing the financial system and reforming key institutions. The Bank said about 70 percent of the proposed projects would be in the poorer inland provinces of China. …”

Xinhua (China) and AFX Asia (Hong Kong) add that “…in a statement, the … Bank added that … the International Finance Corporation (IFC), expects new investments to exceed $500 million per year. … ‘The new Country Partnership Strategy recognizes clearly that helping China to strengthen its economy, manage its resources and environment, and improve governance, are important not only for the Chinese people but also for people all over the world,’ Bank president Paul Wolfowitz said in a statement. …”

Agence France Press notes that “… David Dollar, the World Bank's Country Director for China, said that with 10 million people leaving the countryside every year to hunt for work in the big cities, the pressure on strained urban infrastructure is intensifying. ‘City life is much more energy-intensive,’ he told reporters. ‘It raises whole new environmental issues. So urban management is a critical issue for China.’

“China is home to 20 of the 30 cities in the world with the worst air pollution, and that risks getting worse as more and more Chinese buy cars, Dollar noted. ‘If China does not control emissions the whole world will suffer for that,’ he said. Many of the country's waterways are clogged with industrial and household waste, the official added. China's leaders do recognize the problem, he said, describing tough new targets to reduce gas emissions and improve water quality. …”

Reuters writes that Dollar further said “a big change in China's yuan exchange rate could have unpredictable effects on the country's booming economy and Beijing's cautious approach to currency reform is understandable. [He further noted that] China is still a developing country with a weak financial sector and a lot of weak institutions.

“‘For the exchange rate, I have a lot of sympathy for the Chinese government approaching that cautiously,’ he said. ‘I agree with the macro-economists who think that it's in China's interests to allow some appreciation of the currency but I respect the government wanting to make that move gradual.’ ‘A big change in the exchange rate really could have unpredictable effects on economic growth,’ he said.”

Le Figaro (France) adds that “the plan to issue up to $1.5 billion in loans puts China alongside India as the Bank’s largest beneficiary.”

BOSTON - State Street Global Markets, the investment research and trading arm of State Street Corporation (NYSE:STT), released today the results of the State Street Investor Confidence Index(R) for May 2006.

According to the May index, investor confidence increased by 2.9 points to 85.9 from April's revised reading of 83.0. Looking regionally, the confidence of North American institutional investors displayed a solid increase from 93.1 to 98.8. By contrast, the confidence of European investors declined from 96.4 to 91.9, and the confidence of Asian investors slid to 76.1 from 78.5.

Developed through State Street Global Markets' research partnership, State Street Associates, by Harvard University professor Ken Froot and State Street Associates Director Paul O'Connell, the State Street Investor Confidence Index(R) measures investor confidence on a quantitative basis, analyzing actual buying and selling patterns of institutional investors. The index is based on financial theory that assigns precise meaning to changes in investor risk sentiment, or the willingness of investors to hold proportionally more or less of their portfolio in equities. The more of their portfolio that institutional investors are willing to devote to equities, the greater their risk appetite or confidence.

"Globally, investor confidence has bounced solidly off the lows it attained in January and February of this year," commented Froot. "While we have seen some nervousness very recently associated with volatility in commodities prices and inflation expectations, the overall backdrop is one that suggests institutional investors see improved opportunities in the medium term."

"The increase in global confidence masks some regional divergence," added O'Connell. "European investors, who have been ebullient this year, showed a tendency toward consolidation this month. Asian investors continued to display a diminished appetite for risky assets, as yield differentials continue to improve the relative attractiveness of cash. North American institutional investors saw a continuation of the improvement in confidence that began last March."

Since its launch in September of 2003, the State Street Investor Confidence Index(R) has become a key economic indicator for asset owners, investment managers and central banks. As the only index providing a quantitative measure tracking the common buying patterns of institutional investors around the world, the State Street Investor Confidence Index(R) offers a unique look into the investment behavior and decisions of thousands of professional investors and their investment decisions.

"Delegates at the World Economic Forum (WEF) meeting on the Middle East are confident the region's ailing stock markets are set for recovery, but say further reform is needed to reduce volatility," reports Dow Jones.

"Stock markets in the region have fallen sharply since March, despite rapid economic growth across the region fueled by high oil prices. Delegates at the conference, which opened in Egypt's Red Sea resort of Sharm El Sheikh at the weekend, agreed companies in the region need to be more transparent, but were optimistic that high oil prices would help markets recover. ... Delegates said the sharp market falls despite strong fundamentals were essentially the result of speculation. ... Apart from transparency, confidence can also be stimulated through an increase in foreign investment, delegates agreed. ..."

Reuters notes that "Egypt has agreed to consider an 'open skies' policy to allow foreign airlines greater access to the Arab world's largest tourism market, a WEF statement said on Monday. ... The Egyptians were happy to give foreign airlines free access to all the country's airports except Cairo, hub of national carrier Egypt Air, Stelios Haji-Ioannou, founder of UK budget airline easy Jet , told Reuters. ..."

Al-Bawaba News (UK) adds that "Egypt announced the adoption of the WEF's Education Initiative, which aims to improve schooling in the country through the effective use of Information and Communication Technologies. ... the Egyptian Education Initiative (EEI) was announced on the opening day of the WEF. ... The EEI will focus on four tracks: pre-university education, higher education, lifelong learning and e-learning industry development. The first phase of the EEI will impact 820,000 students in 2,000 schools, and over 300 colleges. ..."

Agence France Press concludes that "... The official focus of the WEF's 2006 meeting was on making the Middle East's oil windfall benefit youth employment, and ensuring continued future growth. Jordan's Queen Rania attended the closing session, which saw calls for better education to strengthen manpower, and to engage women in building the economies of Middle Eastern states. WEF chairman Klaus Schwab said Jordan will host the 2007 meeting. ..."

While some market experts suggest that the good times will continue to role, others suggest investors should be paying attention to warning signals such as the attention Canada is receiving from foreign investors, our country's concentration of resource companies, and that cash is becoming an increasingly competitive asset class.

The most comprehensive and forward-looking ranking of its kind

In addition to the magazine's main ranking of Canada's largest companies by one-year return, this year's Investor 500 ranks the Top 50 companies by revenue, profit, market value, and one- and five-year return. The magazine lists the Top 10 stocks in various categories, such as growth, income and cash flow. It also ranks the best and worst industries by one-year return, profitability and revenue growth. The magazine also shares some fund managers' best stock picks in the United States, Europe, Japan and emerging markets.

The heavyweights: this year's Top 3 large-cap companies (as of April 21)

-------------------------------------------------------------------------
Rank Company Industry/head office 1-year return (%)
-------------------------------------------------------------------------
1 Goldcorp Inc. Metals & mining/Vancouver 124.8
-------------------------------------------------------------------------
2 Nexen Inc. Oil, gas & consumable fuels/Calgary 119.1
-------------------------------------------------------------------------
3 Suncor Energy Inc. Oil, gas & consumable fuels/Calgary 116.6
-------------------------------------------------------------------------

The middleweights: this year's Top 3 mid-cap companies (as of April 21)
-------------------------------------------------------------------------
Rank Company Industry/head office 1-year return (%)
-------------------------------------------------------------------------
1 UrAsia Energy Ltd. Oil, gas & consumable 481.4
fuels/Vancouver
-------------------------------------------------------------------------
2 Silver Wheaton Corp. Metals & mining/Vancouver 266.2
-------------------------------------------------------------------------
3 UTS Energy Corp. Oil, gas & consumable 243.1
fuels/Calgary
-------------------------------------------------------------------------

The lightweights: this year's Top 3 small-cap companies (as of April 21)
-------------------------------------------------------------------------
Rank Company Industry/head office 1-year return (%)
-------------------------------------------------------------------------
1 Cordy Oilfield Energy equipment & services/Calgary 11,200
Services Inc.
-------------------------------------------------------------------------
2 Silvercorp Metals and mining/Vancouver 1,035.9
Metals Inc.
-------------------------------------------------------------------------
3 ECU Silver Metals & mining/Rouyn-Noranda, Que. 984.6
Mining Inc.
-------------------------------------------------------------------------
>>

How we did it

The rankings were compiled by staff writer Calvin Leung using Bloomberg and Thomson Baseline. See the issue on newsstands for a detailed explanation of methodology.

- Watson Wyatt and Conference Board unveil preliminary results of 3rd
annual pension risk survey -

TORONTO - Sixty-one (61) per cent of Chief Financial Officers (CFOs) say the pension crisis in Canada is widespread and likely to persist beyond the next few years, a dramatic increase compared to just two years ago, according to survey findings released today by The Conference Board of Canada and Watson Wyatt Worldwide.

The preliminary findings of the third annual Watson Wyatt Worldwide- Conference Board of Canada Survey on Pension Plan Risk, released today at the 2006 Pensions Summit: Time for Action in Toronto, are based on responses from 187 organizations. Regarding the state of the pension crisis, the key highlights are as follows:

- 61 per cent of CFOs surveyed this year said the pension crisis is widespread and is likely to remain beyond the next few years, compared to 43 per cent of respondents last year and just 20 per cent in 2004;

- 19 per cent of CFOs this year said the crisis is widespread but unlikely to become permanent, down from 23 per cent in 2005 and 39 per cent two years ago;

- just 15 per cent said the pension situation is isolated to relatively few organizations, compared to 25 per cent last year and 29 per cent in 2004.

"CFOs are increasingly coming to the realization that the pension deficits of recent years have not yet turned around and they are less optimistic that plans will rebound any time soon," said Gilles Rhéaume, Vice- President, Policy, Business and Society for the Conference Board. "With the potential of labour shortages looming in the near future, due to the aging workforce, organizations and governments will have to examine ways to meet these challenges."

"Canadian organizations continue to divert funds from other business activities into stabilizing their pension plans, increasing the urgency of managing pension risk for most CFOs and human resource (HR) executives," said Ian Markham, Director of Pension Innovation, Watson Wyatt Canada. "Many organizations are also making significant changes to their defined benefit plans to scale back benefits and shift more responsibility to plan members." Almost half (41 per cent) of respondents with defined benefit pension plans said they made a change within the past 24 months, or plan to do so within the next 12 months. Of those making changes, the amendments included reducing early retirement benefits (27 per cent), reducing the normal retirement benefit accrual rate (26 per cent), reducing other benefits (39 per cent) or increasing required employee contributions (50 per cent).

Other organizational leaders are also concerned about the sustainability of pensions. HR executives - surveyed for the first time this year to determine the impact of pensions on recruitment and retention - shared similar levels of concern as CFOs. Sixty-seven (67) per cent of HR executives said the crisis is widespread and is likely to remain beyond the next few years.

CFOs and HR executives differed on their greatest challenge with respect to employees and plan members: for CFOs, it is the costs of an aging workforce, and for HR executives, it is getting employees to pay attention to pension issues.

Sixty-eight (68) per cent of respondents indicated their belief that a DB plan, whether alone or as part of a hybrid plan design, is a more effective retention tool than other retirement savings arrangements.

"Older workers in particular value the benefit security and flexibility of DB plans. Canadian employers are increasingly recognizing that the retention of older skilled workers not only helps mitigate labour shortages, but can be an essential ingredient of a training and development strategy to enhance labour productivity", said David Burke, Retirement Practice Director, Watson Wyatt Canada.

WINNIPEG - Interested in investing in developing countries? International Development Days 2006 will show you how to tap into a wealth of opportunities around the globe. Canadian Manufacturers & Exporters, in partnership with the Canadian International Development Agency, is pleased to present International Development Days 2006 at the Fairmont Winnipeg Hotel, Winnipeg, Manitoba from May 3 - 5, 2006.

The three-day event will feature presentations on how Canadian organizations can succeed in the developing world. Panel sessions will look at potential business opportunities from both a geographic and sectoral perspective featuring experts from Canada, the US and the developing world.

"If you do business in developing countries now or are thinking of expanding your business into new markets, International Development Days will guide you through the process of tapping into export, investment and consulting opportunities around the globe," says Deborah Turnbull, CME VP of International Trade and Development. "The reality today is that whether you are small, medium or large enterprise, you are doing business in a more integrated and global economy. Failure to plan is a plan to fail" Confirmed and invited keynote speakers include:

Hon. Josée Verner, Minister of International Cooperation, Government of Canada

Hon. Dipak Patel, Minister of Commerce Trade and Industry, Government of Zambia

Hon. Gary Doer, Premier of Manitoba (invited)

Other speakers include senior representatives from the Canadian International Development Agency, International Trade Canada, the World Bank, Inter-American Development Bank, Asian Development Bank, United Nations, USAID and major multinational corporations from both the United States and Canada. Success stories featuring Canadian companies active in the developing world will be highlighted throughout the program.

International Delegations from Indonesia, Rwanda, Zambia and Ghana will also be featured in the program and available for one-on-one meetings with conference delegates.

About The Toronto Venture Group (TVG):

The Toronto Venture Group is a non-profit organization, established in 1990 in order to bridge the gap between companies and entrepreneurs with access to investors and capital, holding monthly breakfast networking meetings, angel investor group meetings, education seminars and investment venture capital forums. For more information please visit: www.tvg.org.

Just as uranium miners were flying well below the radar screen in early 2004, coalbed methane exploration may very well be the next very hot sector later this year and next. Investors should be advised of the cautions and pitfalls, and properly evaluate their risk/reward ratio, when investing in highly speculative natural resource companies.

Dr. Marchioni's 7 Key Tips and the detailed explanations behind his advice can be found on the internet news website, StockInterview.com. Please view the entire article on this webpage:

SEVEN TIPS BY DR. DAVID MARCHIONI

We asked Dr. David Marchioni to provide our subscribers with his 7 Tips to help investors better understand what to look for, before investing in a CBM play. Dr. Marchioni helped co-author the CBM textbook, An Assessment of Coalbed Methane Exploration Projects in Canada, published by the Geological Survey of Canada. He is also president of Petro-Logic Services in Calgary, whose clients have included the Canadian divisions of Apache, BP, BHP, Burlington, Devon, El Paso Energy, and Phillips Petroleum, among others. He is also a director of Pacific Asia China Energy and is overseeing the company’s CBM exploration program in China.

Our series of telephone and email interviews began while Dr. Marchioni sat on a drill rig in Alberta’s foothills, the Mannville region, until he finished outlining his top 7 tips, or advices, on how to think like a CBM professional.

1) COAL SEAM THICKNESS

Is there a reasonable thickness of coal? You should find out how thick the coal seams are. With thickness, you get the regional extent of the resource. For example, there must be a minimum thickness into which one can drill a horizontal well.

2) GAS CONTENT

Typically, gas content is expressed as cubic feet of gas per ton of coal. Find how thick it is and how far it is spread. Then, you have a measure of unit gas content. Between coal seam thickness and gas content, you can determine the size of the resource. You have to look at both thickness and gas content. It’s of no use to have high gas content if you don’t have very much coal. The industry looks at resource per unit area. In other words, how much gas is in place per acre, hectare, or square mile? In the early stage of the CBM exploration, this really all you have to work with in evaluating its potential.

3) MATURITY LEVEL OF THE COAL

This is the measure of the stage the coal has reached between the mineral’s inception as peat. Peat matures to become lignite. Later, it develops into bituminous coal, then semi-anthracite and finally anthracite.

There is a progressive maturation of coal as a geological time continuum and the earth’s temperature, depending upon depth. By measuring certain parameters, you can determine where it is in the chemical process. For instance, the chemistry of lignite is different from that of anthracite. This phrasing is called “coal rank” in coal industry terminology.

4) PERMEABILITY

When you are beginning to think about CBM production, this and the next item must be evaluated. How permeable is the CBM property? You want permeability, otherwise the gas can’t flow. If the coal isn’t permeable at all, you can never generate gas. The gas has to be able to flow. If it is extremely permeable, then you can perhaps never pump enough water. The water just keeps getting replaced from the large area surrounding the well bore. The water will just keep coming, and you will never lower the pressure so the gas can be released.

5) WATER

In a very high proportion of CBM plays, the coal contains quite a lot of water. You have to pump the water off in order to reduce the pressure in the coal bed. Gas is held in coal by pressure. The deeper you go, typically the more gas you get, because the pressure is higher. The way to induce the gas to start flowing is to pump the water out of the coal and lower the “water head” of pressure. How much water are we going to produce? Are we going to have to dispose of it? If it’s fresh, then there may be problems with regulatory agencies. In Alberta, the government has restrictions on extracting fresh water because others might want to use it. One could be tapping into a zone that people use as water wells for farms and rural communities. Both water quality and water volume matter. For example, Manville water is very salient so nobody wants to put it into a river; this water is pushed back down into existing oil and gas wells in permeable zones (but which are also not connected to the coal).

6) FUNDING

To be able to access land and do some initial drilling, i.e. the first round of financing, it would cost a minimum of C$4 million. This would include some geological work and drilling at least five or six wells. In Horseshoe, that would cost around C$4 million (say 1st round of finance); in Manville, about C$9 million. This is under the assumption that the company doesn’t buy the land. The land in western Canada is very expensive and tightly held. Much of the work is done as a “farm in” drilling on land held by another for a percentage of the play. (Editor’s note: During a previous interview, Dr. Marchioni commented about his preference for Pacific Asia China Energy’s land position in China because comparable land in western Canada would have cost “$100 million or more.”)

7) INFRASTRUCTURE

The geology only tells you what’s there, and what the chances of success are. You then have to pursue it. Can we sell it? Gas prices are “local,” meaning they vary from country to country, depending whether it is locally produced and in what abundance (or lack thereof). How much can we extract? How much is it going to cost us to get it out of the ground? Are there readily available services for this property? Will you have to helicopter a rig onto the property at some incredible price just to drill it? Will you have to build a pipeline to transport the gas? Or, in China as an example, are there established convoys for trucking LNG across hundreds of kilometers?

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