John F. Driscoll files Early Warning Report Following Acquisition of Rights to Acquire Units of Strategic Energy Fund.

TORONTO -- John F. Driscoll ("JFD") and J.F. Driscoll Investment Corp. ("JFDI"), a corporation controlled by JFD, have entered into a standby commitment (the "Standby Commitment") with Strategic Energy Fund (TSX:SEF.UN) ("Strategic") pursuant to which JFD and JFDI have agreed to purchase up to a maximum of $3,000,000 of units of Strategic ("Units"), pursuant to a rights offering prospectus filed by Strategic on March 18, 2005 (the "Rights Offering"). Pursuant to the Rights Offering, Unitholders of record as of April 1, 2005 will be entitled to receive one Right for each Unit held on that date. Three Rights entitle the holder thereof to purchase one Unit at a price of $12.00. The Strategic Units are listed on the Toronto Stock Exchange (TSX: SEF.UN).

As at April 1, 2005, JFD owned beneficially or of record, directly or indirectly (through JFDI) 375,989 Units and JFD's associate, Merrilyn Driscoll, owned 1,576 Units, representing in the aggregate 11.6 % of the total issued and outstanding Units, which entitled them to receive 377,565 Rights pursuant to the Rights Offering. In accordance with the Standby Commitment, JFD and JFDI have agreed to purchase 125,330 Units in accordance with the basic subscription right under the Rights Offering, as well as up to an additional 124,670 Units, if any, remaining which are not subscribed for pursuant to the basic subscription right or the additional subscription privilege under the Rights Offering.

The Rights Offering expires on April 29, 2005 and the closing of the Rights Offering is expected to occur on or about May 4, 2005.

Assuming the completion of the Rights Offering and the acquisition by JFD and JFDI of 250,000 Units as provided for in the Standby Commitment, JFD will own beneficially or of record, directly or indirectly (through JFDI) and with Merrilyn Driscoll, 627,565 Units representing 17.9% of the total issued and outstanding Units, assuming no one other than JFD, JFDI and Merrilyn Driscoll exercises any Rights.

JFD and JFDI have acquired the above-noted Rights and will acquire the above-noted Units for investment purposes and may, depending on market and other conditions, increase their beneficial ownership, control or direction over the Units, Rights or other securities of the Fund, through market transactions, private agreements, treasury issuances, exercise of convertible securities or otherwise.

An early warning report is respect of the above noted transaction will be filed on SEDAR and will be available at www.sedar.com.

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