Winding up of Canadian Small Cap Resource Fund 2005 No. 1 Limited Partnership ("CSCRF 2005 LP") & cash pay-out of units



    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR UNITED STATES WIRE
    SERVICES/

    VANCOUVER, March 21 /CNW/ - Canadian Small Cap Resource Fund 2005
Management Limited, the General Partner of CSCRF 2005 LP announces that,
pursuant to the terms of the partnership agreement, CSCRF 2005 LP is to be
dissolved on March 31, 2007. The General Partner is planning to distribute the
net assets of CSCRF 2005 LP during the week commencing March 26, 2007. CSCRF
2005 LP unit holders will receive a cash distribution equal to $10.24 per unit
held or an aggregate of $4,880,261.12. The cash per unit is paid net of
closure costs, management fees and bonuses due for the current period.
Including the early distribution of cash in the amount of $2.00 per unit that
was paid to the limited partners in May 2006, the total cash to be distributed
to the unit holders of CSCRF 2005 LP amounts to $12.24 per unit or an
aggregate of $5,833,437.12.
    Stephen Wilkinson, President and CEO of the General Partner is pleased to
report that CSCRF 2005 LP was successful in achieving its investment
objectives. The original funding for CSCRF 2005 LP raised a gross amount of
$4,765,880 through the sale of partnership units priced at $10 per unit. The
General Partner estimates(1) that, net of capital gains taxes and income tax
savings, the resulting purchase cost is approximately $4.65 per unit and the
after-tax return to investors is in the order of 104%.

    The CSCRF 2005 LP was the second of the Canadian Small Cap Resource
Funds, all of which invest in Flow-Through Shares of Canadian exploration
companies with a view to preservation of capital and capital appreciation of
the partnership's investments. Since 2004 the CSCRF group has raised more than
$22 million in flow-through funds. The structure of the Canadian Small Cap
Resource Funds offers investors the added benefit of deductions from income
and non-refundable tax credits.
    For information on CSCRF 2005 LP and the other Canadian Small Cap
Resource Funds, please visit our website at: www.cscrf.ca

    
    On the behalf of the General Partner:   Stephen Wilkinson
                                            Chief Executive Officer
                                            888-350-8818

    Notes: (1) Estimates computed based on a number of assumptions including
               but not limited to the following:

                 a) The Limited Partner's adjusted cost base of a unit is
                    equal to nil. Therefore, the disposition by a Limited
                    Partner of Units held by the Limited Partner as capital
                    property will result in a capital gain.
                 b) 50% of capital gains are taxable in computing a Limited
                    Partner's income. Actual tax savings/cost will vary from
                    the estimates set forth above depending on each Limited
                    Partner's actual marginal tax rate. An assumed marginal
                    tax rate of 46% has been used in calculating the
                    applicable taxes payable as a result of the disposition.
    





For further information:

For further information: Stephen Wilkinson, Chief Executive Officer,
1-888-350-8818

Organization Profile

CANADIAN SMALL CAP RESOURCE FUND 2005 NO. 1 LIMITED PARTNERSHIP

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