DBRS Confirms Energy Split Corporation at Pfd-2 (low)

Dominion Bond Rating Service (“DBRS”) has today confirmed the rating of the ROC Preferred Shares issued by Energy Split Corporation (“Energy Split” or the “Company”). The Company issued Cdn$38.7 million of ROC Preferred Shares and Cdn$35.6 million of Capital Yield Shares (the ”Capital Yield Shares”) providing the holders of ROC Preferred Shares with a downside protection of approximately 45%, net of expenses, as of September 18, 2003, compared to 66% as of November 2005. The redemption date of the ROC Preferred Shares and the Capital Yield Shares is set on September 16, 2006. The proceeds from the offering were used to acquire a portfolio of common shares of Canadian public companies (the “Common Share Portfolio”) which was subject to a Forward Purchase and Sale Agreement with the Bank of Nova Scotia [the “Counterparty”, rated AA (low) as of June 20, 2005]. The Counterparty will pay to the Company the economic return provided by a portfolio of 17 Canadian Oil and Gas Income Trusts (the “Royalty Trust Portfolio”), which are held by an underlying fund (the “Royalty Fund”).

Holders of the ROC Preferred Shares will be entitled to receive fixed, quarterly distributions in an amount that will provide for an annual yield of 4.00%. The current rating confirmation of the ROC Preferred Shares is based primarily on the solid downside protection as well as the dividend coverage available, 6.4 times at inception versus 6.12 times for the year ending September 16, 2005, to the holders of the ROC Preferred Shares. The main constraint to the rating confirmation is the dependence of the Company on the value and distributions on the underlying Royalty Fund units to make distributions to the ROC Preferred Shares. These could change from time to time, since the Royalty Fund unit value and ability to make distributions is correlated to the price of crude oil and natural gas.