Oceanic Iron Ore 20F/A 2005 Annual report (foreign) (amended)

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 20-F/A

REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g)

OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

For the fiscal year ended March 31, 2005

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

For the transition period from ________ to ________

Commission file number: 2-27608

PACIFIC HARBOUR CAPITAL LTD.

(Exact name of Registrant as specified in its charter)

PROVINCE OF BRITISH COLUMBIA, CANADA

(Jurisdiction of incorporation or organization)

Suite 1502 - 543 Granville Street

Vancouver, British Columbia, Canada V6C 1X8

(Address of principal executive offices)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

NONE

(Title of each class)

Name of each exchange on which registered

Not applicable

Securities registered or to be registered pursuant to Section 12(g) of the Act.

Common Shares without par value

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.

NONE

(Title of each class)

Indicate the number of outstanding shares of each of the issuer's classes of capital or common

stock as of the close of the period covered by the annual report:

7,247,703 Common Shares without par value

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark which financial statement item the registrant has elected to follow.

Item 17 x Item 18 o

TABLE OF CONTENTS

PART I

ITEM 1	Identity of Directors, Senior Management and Advisors	4

ITEM 2	Offer Statistics and Expected Timetable	4

ITEM 3	Key Information	4

ITEM 4	Information on the Company	7

ITEM 5	Operating and Financial Review and Prospects	12

ITEM 6	Legal Proceedings	15

ITEM 7	Directors, Senior Management and Employees	16

ITEM 8	Major Shareholders and Related Party Transactions	19

ITEM 9	Financial Information	20

ITEM 10	The Offer and Listing	20

ITEM 11	Additional Information	22

ITEM 12	Quantitative and Qualitative Disclosures About Market Risk	27

ITEM 13	Description of Securities Other Than Equity Securities	27

PART II

ITEM 14	Defaults, Dividends Arrearages and delinquencies	28

ITEM 15	Material Modifications to the Rights of Securitiy Holders,
	Use of Proceeds	28

ITEM 16	Reserved	28

PART III

ITEM 17	Reserved	29

ITEM 18	Financial Statements	29

ITEM 19	Exhibits to Form 20-F Annual Report	29

The information contained in this Annual Report is current at September 20, 2005 except where a different date is specified.

Enforcement of Legal Remedies

Certain officers, directors and persons involved with the Registrant as professional advisors are resident in Canada. As a result, it may be difficult to effect service within the United States upon such persons or to realize on any judgment by any court of the United States which is predicated on civil liabilities under the Securities Exchange Act of 1934, as amended (the "Exchange Act'). The Registrant's Canadian counsel has advised that there is doubt as to the enforceability in Canada, either in original actions or through enforcement of United States judgments, of liabilities predicated solely upon violations of the Exchange Act or the rules and regulations promulgated thereunder.

Forward Looking Statements

This Annual Report contains forward-looking statements based on the Registrant's current expectations about the Company and its industry. These forward-looking statements can be identified within text containing words such as "expect", "anticipate", "estimate" and other similar expressions. These forward-looking statements involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forwardlooking statements as a result of risk factors as discussed in Item 3: Key Information and elsewhere in this report. The Registrant undertakes no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future.

PART I

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

See "Item 7 - Directors, Senior Management and Employees"

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

A. OFFER STATISTICS

Not applicable

B. METHOD AND EXPECTED TIMETABLE

Not applicable

ITEM 3. KEY INFORMATION

A. SELECTED FINANCIAL DATA

The following table sets forth selected consolidated financial data for Pacific Harbour Capital Ltd., (hereinafter the "Company" or the "Registrant"). Insofar as it relates to the Company as of and for each of the years in the five year period ended March 31, 2005, the data has been derived from financial statements prepared in accordance with Canadian Generally Accepted Accounting Principles ("GAAP") and reconciliation between Canadian and United States GAAP (See Note 14 in the Consolidated Financial Statements) that have been audited by Amisano Hanson, Chartered Accountants of Vancouver, Canada as to the five years ended March 31, 2005. The data set forth below should be read in conjunction with the Company's consolidated financial statements and notes thereto and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included elsewhere herein.

	2005			2004			2003			2002			2001
							(Restated)			(Restated)
(All Canadian Dollars)
Operating Data
Revene(l)	$	17,063		$	37,965		$	1,058,230		$	3,152,174		$	2,895,095
Cost of land held for resale		-			-			-			-			-
Cost of townhouse
condominiums for resale		-			-			-			-			-
Cost of convenience store goods
for resale		-			-			(363,561	)		(1,984,594	)		(1,715,681	)
Net Revenue	$	17,063		$	37,965		$	694,669		$	1,167,580		$	1,179,414


Administrative expenses		(420,124	)		(509,732			(1,091,061	)		(2,653,807	)		(2,427,021	)
Gain(loss) on investments & Other Items		25,415			(1,179,067	)		-			-			-
Severence Costs & Other Items		(80,000	)		-			323,421			(378,401	)		(15,908	)

Net Income (loss)		($ 457,646	)		($ 1,650,834	)		($ 72,971	)		($1,864,628	)		($1,263,515	)

Earnings (loss) per share		($0.06	)		($0.22	)		($0.01	)		($0.28	)		(0.18	)

Balance Sheet Data
Working Capital		764,758			1,201,490			(1,299,839	)		(1,335,579	)		(954,187	)
Total assets (2)		998,144			1,609,085			5,262,866			6,286,021			6,477,127
Long term debt		-			-			298,234			1,079,520			424,915
Shareholders' equity		792,310			1,249,956			2,900,790			2,826,452			4,691,080

Summary of differences between generally accepted accounting principles ("GAAP") in Canada and in the United States (US)

	2005			2004			2003			2002			2001
							(Restated)			(Restated)

Net income (loss) - Canadian GAAP Differences:		($ 457,646	)		($ 1,650,834	)		($ 72,971	)		($1,864,628	)		($1,263,515	)
Other deferred development costs		-			1,396,844			(75,092	)		(78,680	)		(91,105	)

Write-down of other deferred Development costs		-			-			-			11,688			11,408

Unrealized gain on trading securities		242,450			-			-			-			-

Capital holding costs Expensed under US GAAP		(5,780	)		(4,914	)		(14,388	)		(11,688	)		(11,408	)

Net income (loss) - US GAAP		($ 220,976	)		($ 258,904	)		($ 162,451	)		($1,943,308	)		($1,354,620	)

	2005			2004			2003			2002			2001
							(Restated)			(Restated)

Earnings (loss) per share - US GAAP (l)		($0.03	)		($0.03	)		($0.02	)		($0.30	)		($0.22	)
Weighted average number of shares Outstanding under US GAAP (1)		7,247,703			7,247,712			6,979,397			6,520,172			6,065,972

Shareholder's equity - Canadian	$	792,310		$	1,249,956		$	2,900,790		$	2,826,452		$	4,691,080
Stock Based Compensation		(35,600	)		(35,600	)		-			-			-

Other deferred costs, expensed under US GAAP		-			-			(1,498,334	)		(1,423,242	)		(1,344,562	)

Contributed Surplus		35,600			35,600			-			-			-
Unrealized gain on trading securities		242,450			-			-			-			-

Capitalized holding costs, expensed Under US GAAP		(10,694	)		(4,914	)		(101,396	)		(87,008	)		(87,008	)

Shareholders' equity - US GAAP	$	1,024,006		$	1,245,042		$	1,301,060		$	1,316,202		$	3,259,510

(1)

Revenues for all periods disclosed comprised sales revenue of the corporation's interest in PJSJV, land sales, net vehicle lease and sale income, interest and other miscellaneous income. Under US GAAP these amounts would be considered "Other income" rather than "Revenue". There is no effect on reported net income (loss).

(2)	Total assets would be reduced for the adjustments noted under "Shareholders Equity" resulting in the following amounts under US GAAP: 2005 - $ 1,229,900; 2004 - $1,604,171; 2003 - $3,663,136; 2002 - $4,775,771 and 2001 - $5,045,557.

Currency and Exchange Rates

In this Form 20-F all references to dollars ($) are expressed in Canadian funds unless otherwise noted. As of August 22, 2005, the exchange rate for conversion to U.S. Dollars was $1.2040 Canadian = $1.00 U.S. Exchange rates represent the noon buying rate in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York. The average rates presented in the table below represent the average of the exchange rates on the last day of each month during the calendar year for the past 5 years. Rates quoted are the Canadian Dollar exchange for US $1.00

Year	Period End		Average		High		Low
2005		1.2040		1.2302		1.2703		1.1946
2004		1.3081		1.3531		1.4940		1.2679
2003		1.4716		1.5493		1.6050		1.4584
2002		1.5769		1.5702		1.6190		1.5024
2001		1.5958		1.5490		1.6058		1.4895

On March 31, 2005, the noon buying rate in New York City for cable transfer in Canadian dollars as certified for customs purposes by the Federal Reserve Bank of New York (the "Exchange Rate") was $1.00 U.S. = $1.2094 Canadian.

B. CAPITALIZATION AND INDEBTNESS

Not applicable

C. REASONS FOR THE OFFER AND USE OF PROCEEDS

Not applicable

D. RISK FACTORS

History of losses and expected losses in the future:

The Corporation reported a loss of $1,263,515 for the year ended March 31, 2001; $1,864,628 for the year ended March 31, 2002; $72,971 for the year ended March 31, 2003; $1,650,834 for the year ended March 31, 2004 and $457,646 for the year ended March 31, 2005. The Corporation expects to continue to incur losses in the near future and possibly longer. The Corporation cannot predict when it will achieve profitability, and if it does the Corporation may not be able to sustain or increase its profitability.

Availability of capital:

The Corporation may not have sufficient capital to fund its operations and additional capital may not be available on acceptable terms, if at all. Any of these outcomes could adversely impact the Corporation's ability to respond to competitive pressures or prevent it from conducting all or a portion of its planned operations. The Corporation may also require additional capital to develope its property and existing business or to acquire or invest in complimentary business or products. If the Corporation issues additional equity securities to raise funds, the ownership percentage of existing shareholders of the Corporation will be reduced.

Risk Factors Related to Ownership and Trading Market

Volatility of stock price:

Stock markets have recently experienced extreme price and volume fluctuations. Since the Company's initial public offering, the market value of its common shares has fluctuated significantly. These fluctuations are often unrelated to the operating performance of particular companies, including the Company. The broad market fluctuations may adversely affect the market price of the Company's common shares. This may adversely affect the ability of the Company to use its common shares as consideration in acquisition transactions. In addition, when the market price of a company's stock drops significantly, shareholders often commence securities class action lawsuits against the company. A lawsuit against the Company could cause it to incur substantial costs and could divert the time and attention of management and other resources.

Future sales of common shares:

If the Company's shareholders sell substantial amounts of common shares in the public market, the market price of the common shares could fall. The perception among investors that these sales will occur could also produce this effect.

General unforeseen and non-controllable risks:

In future years it is anticipated that the following will continue to have an effect on the results reported: the sale of the remaining parcel of land held by the Company's subsidiary, there would then be a gain or loss recognized on the sale of the land. At this time it is difficult to quantify such a gain or loss as it is dependent on the economic conditions in effect at the time of the sale. The Company's real estate property is subject to the risks generally associated with the ownership of real property, including liquidity, the need to meet fixed obligations, uncertainty regarding adverse local market conditions due to changes in general or local economic conditions, zoning laws, neighborhood characteristics, interest rates, availability of mortgage funds, availability of water and sewer services, changes in real estate property tax rates and other operating expenses, governmental rules and fiscal policies, acts of God (which may result in uninsured losses) and other factors which are beyond the control of the Company. The Company may be unable to resell its property at a profit or at all as a result of adverse conditions in local real estate markets or other factors or the imposition of regulations governing the use of the properties which have an adverse impact on the value of the properties. Many of these inherent risks may be intensified by economic recession and by other potential economic developments and uncertainties.

Real estate development is an intensely competitive and highly cyclical business, typically involving "boom and bust" cycles. While location is one of the most important factors in real estate ownership, development is also critically affected by the availability of financing and general economic conditions.

ITEM 4. INFORMATION ON THE COMPANY

A. HISTORY AND DEVELOPMENT ON THE COMPANY

Pacific Harbour Capital Ltd.'s, principal office is located at Suite 1502 - 543 Granville Street, Vancouver, BC, V6C 1X8 (T) 604 697-0687 (F) 604 697-0686. The Company's separate subsidiaries incorporated in British Columbia are private, non-reporting companies, (i.e. these companies are not publicly traded on any stock exchange) as are the U.S. subsidiaries, Venture Pacific Development Corporation (USA) and VenPac Nevada I, Inc. All references to the Company herein include its subsidiaries unless otherwise noted or unless the context would indicate otherwise. The Company's Consolidated Financial Statements for the fiscal year ended March 31, 2005 referred to herein also include its subsidiaries.

The Company was incorporated as Glider Resources Inc. under the Company Act (British Columbia) on March 18, 1986. On October 21, 2002, the Company consolidated the issued and outstanding common shares resulting in two old shares of the Company being consolidated into one new common share. At the same time, the authorized capital of the Company was increased to 100,000,000 common shares without par value (the "Common Shares") and 100,000,000 Preferred Shares without par value (the "Preferred Shares"). As of the Company's year end of March 31, 2005 there were 7,247,703 Common Shares issued and outstanding and no issued Preferred Shares.

All Common Shares of the Registrant rank equally as to dividends, voting rights and participation in assets. The Registrant's dividend policy is determined by the Board of Directors and to date, the Registrant has neither declared nor paid any dividends on its Common Shares nor does the Registrant anticipate that dividends will be paid in the foreseeable future. Rather, it intends to apply earnings to the expansion and development of its business.

The Registrant became a public company on December 3, 1987 when it undertook an initial public offering of its common shares in British Columbia, Canada and was listed on the Vancouver Stock Exchange ("VSE") (now the TSX Venture Exchange ("TSX-VE"). The Registrant's listing on the TSX-VE is as a Tier 1 Company trading under the symbol "PCF". In the United States the common shares are quoted on the Over-The-Counter Bulletin Board under the symbol "PCFHF".

The Registrant has furnished its shareholders with annual reports containing audited financial statements and quarterly or other interim reports containing financial and other information to the extent required by the British Columbia Company Act, the TSX-VE and the British Columbia Securities Commission ("BCSC"), and/or other applicable authorities and has provided the reports required by the U.S. Securities Exchange Act of 1934 ("1934 Act"). The Registrant is subject to the information and reporting requirements under the British Columbia Company Act and has filed periodic reports, proxy materials and other reports with the Executive Director under the British Columbia Securities Act and with the TSX-VE. Such reports can be inspected and copied, at the expense of the person requesting the report, at the TSX-VE offices at 10" Floor - 300 5th Ave. SW , Calgary, Alta, T2P 3C4 and at the offices of the BCSC Executive Director at 9^th Floor - 701 W. Georgia St., Vancouver, BC, V7Y IL2, at prescribed rates.

The Registrant is subject to the informational requirements of the 1934 Act and in accordance therewith files reports, proxy statements and other information with the U.S. Securities and Exchange Commission ("SEC") under the 1934 Act. Such reports, proxy statements and other information can be inspected at the Public Reference Section of the Commission at Room 1024, Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549, and the Regional Offices of the Commission at Citicorp Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661-2511. Copies of such material can also be obtained from the Public Reference Section of the Commission at Room 1024, Judiciary Plaza, 450 Fifth Street, N.W. Washington, D.C. 20549, at prescribed rates. The Commission maintains a World Wide Web site on the Internet at http://www.sec.gov that contains reports, proxy and information statements and other information regarding registrants that file electronically with the Commission.

Upon request, the Registrant will provide copies of such materials on file at the SEC, the TSX-VE, and the BCSC to shareholders who do not have ready access to them. Requests should be made in writing to: Pacific Harbour Capital Ltd., at #1502 - 543 Granville Street, Vancouver, B.C., V6C 1X8.

B. BUSINESS OVERVIEW

Pacific Harbour Capital Ltd. is/was primarily engaged in the following businesses:

a)	investments; National Direct Response Marketing Canada Inc.

b)	real estate holdings in British Columbia, Canada and Pahrump, Nevada.

c)	used vehicle leasing a well as sale of pre-owned vehicles through Venture Pacific Vehicle LeaseCorp Inc.;

d)	50% joint venture in gas station and convenience store.

a) INVESTMENTS

On December 10, 2002, the Company entered into an investment agreement with National Direct Response Marketing Canada Inc., the owner and marketer of the Canadian Legal Will Kit, the American Legal Will Kit and other direct marketing products. The investment entitled the Company to invest up to $1,100,000 by way of secured convertible debentures and if fully converted would result in a 49% ownership of National Direct.

The first two debenture advances required under the agreement totaled $300,000. Subsequent advances are subject to National Direct achieving specific sales targets within 12 month and 18 month periods. The debenture bears interest at 8% per annum, payable quarterly. The investment also entitled the Company to earn royalty income based on each unit of the Canadian and American Legal Will Kit sold.

On May 11, 2004, the Company and National Direct entered into an agreement whereby the Company agreed to release National Direct from the terms of the investment agreement, including all related agreements, for a total consideration of $240,000 to be paid as follows:

$220,000 on signing of the agreement and subsequently paid on June 1, 2004; and

$20,000 payable in twelve equal monthly instaments of $1,667

As of June 30, 2004, all financial obligations under the above noted release have been met by National Direct and this matter is now finalized in its entirety.

b) REAL ESTATE HOLDINGS:

STATE OF NEVADA, USA

The Company formed two wholly-owned Nevada subsidiaries, Venture Pacific Development Corporation (USA), and VenPac Nevada 1, LLC. ("VenPac"). In 1997, VenPac acquired a 12.86 acre site and a 0.23 acre well site in Pahrump, Nevada. On August 28, 1998 VenPac purchased an additional 5.31 acres (10 individual lots) adjacent to the 12.86 acre site, for the sum of $400,000 (US$) from the Ronald E. and Charlotte A. Floyd 1983 Living Trust Agreement, with terms of 10% down, 10% interest and a 10 year amortization .

The Company was holding the property as undeveloped while actively searching for a buyer for the property. In February 2004, the Company finalized a purchase offer of $2,500,000 U.S. for the Pahrump property. A portion of the proceeds from the sale of the property was used to pay off the secured creditors and all other mortgages held on the property.

PROVINCE OF BRITISH COLUMBIA, CANADA

The Company has a fee simple interest in a real estate property in Pemberton, British Columbia. Specific information regarding this property and its stage of development and operations is set forth under "Item 4.D - Plant, properties and equipment." The Company holds its real estate interest through a wholly owned subsidiary. The Company is currently reviewing its opportunities with respect to these land holdings as the awarding of the Whistler/Vancouver 2010 Olympics has generated substantial interest in the area to kick-start a major-development in the area

c) VEHICLE LEASING AND SALES

The Company entered into the vehicle leasing market in September 1996 (fiscal year 1997) in order to diversify its business activities and to increase monthly cash flows.

On August 22, 1996 Venture Pacific Vehicle LeaseCorp Inc. ("LeaseCorp") a wholly-owned subsidiary of the Company, was formed to operate a used vehicle leasing business in the Lower Mainland of British Columbia ("BC"), with its main focus to capitalize on the untapped subprime segment of the credit market.

On January 15, 2003 the assets of Leasecorp. were sold at a price of $550,000. The sale proceeds were divided into two payments, $500,000 and $50,000, which represented a holdback on the purchase. The $500,000 amount was applied to Leasecorp.'s secured $750,000 outstanding loan, thereby reducing the loan amount to $250,000. On March 26^th, 2003, the remaining $50,000 holdback was distributed between the purchaser as to $32,024.02 and $18,101.32 which was applied to the remaining $250,000 loan, thereby reducing the loan to $231,898.68. Interest on this loan was being accrued at the rate of 12% per annum.

Proceeds from the sale of the Pahrump property were used to pay off this loan in its entirety.

d) 50% JOINT VENTURE

On May 31, 2002, the Company sold its 50% joint venture interest in the Pemberton Junction Store Joint Venture located in Pemberton, British Columbia for net proceeds of $739,249. The Company's 50% interest generated gross sales of $384,460 and $20,899 income before general and administrative expenses for the year ended March 31, 2003 as compared to $2,285,890 and $301,296 for the year ended March 31, 2002.

C. ORGANIZATIONAL STRUCTURE

The Company's wholly owned subsidiaries are as follows:

-	345384 B.C. Ltd. ("345384")

-	345385 B.C. Ltd. ("345385") - This subsidiary was dissolved on October 12, 2003.

-	371208 B.C. Ltd. ("371208") - This subsidiary was dissolved on February 7, 2003.

-	Venture Pacific Development Corporation USA ("VPDC USA") - and its wholly-owned subsidiary VenPac Nevada 1, Inc. ("Venpac Nevada") - This charter has been allowed to lapse.

-	Venture Pacific Capital Corporation ("Capital") - This subsidiary is being allowed to lapse.

-	Venture Pacific Vehicle LeaseCorp Inc. ("LeaseCorp") - Subsidiary sold with lease business.

D. PLANT, PROPERTIES AND EQUIPMENT

PAHRUMP, NEVADA - USA

The Company's real estate holdings in the United States consist of an 18.4 acre parcel of land in Pahrump, Nevada. The first purchase of 12.86 acres and a 0.23 acre well site in 1997 was augmented with the purchase of 5.31 acres adjoining the property on August 28, 1998. The 18.4 acre site is located on the east side of Highway 160, just north of Basin Road to Lockspur Road, in the town of Pahrump. The township of Pahrump has a population of approximately 30,000 residents and is located approximately 60 miles northwest of Las Vegas. It is unincorporated and there are no zoning by-laws or restrictions on the property.

On February 12, 2004 the Company announced that their wholly owned U.S. subsidiary, Venpac Nevada I, Inc., had completed their transaction with respect to the sale of the Pahrump, Nevada property. The land was sold for a total dollar value of $2,500,000 U.S. Less costs and the pay out of all secured creditors of the Company, the Company received net proceeds of $938,085.29 U.S.

PEMBERTON, BRITISH COLUMBIA - CANADA

The Company's real estate interest in Canada is a fee-simple interest located in a broad river valley surrounded by mountains in the Pemberton, British Columbia area. The Village of Pemberton enjoys a rural setting along the Sea to Sky Highway approximately 35 kilometers north of the ski resort municipality of Whister, British Columbia and 159 kilometers north of Vancouver, BC.

Pemberton (population approximately 1,700) benefits both from the continued development of the neighboring year-round ski resort of Whistler and its proximity to many natural and picturesque attractions. Skiing, hiking, golfing and fishing are just some of the activities available to residents and visitors, with at least ten recreational areas within 30 kilometers of Pemberton itself.

RIVER FRONT PROPERTY - CANADA

In December 1988, the Company, through its wholly owned subsidiary 345384 B.C. Ltd., acquired, for a purchase price of $175,000, approximately 133 acres of bare land located immediately north of Pemberton on the north side of Lillooet River.

The Company has elected to hold the property as undeveloped for the time being or to resell it should an acceptable offer be received.

CARDLOCK FUEL DEPOT

In May 1988, the Company through its wholly owned subsidiary, 345385 B.C. Ltd. acquired 0.93 acres of a vacant site located on Highway 99, approximately 325 meters from the Pemberton Junction Store site for a purchase price of $60,000 Cdn.

On October 2, 2003 the Company announced that the property was sold for a total dollar value of $265,000 Cdn. A portion of the sales proceeds were used to make a lump sum payment of $50,000 to a secured credit who held a judgement against the Company in the amount of $250,000.

40.5 ACRE SITE - CANADA

In September 1989, the Company, through its wholly owned subsidiary, 371208 B.C. Ltd., acquired an interest in 40.5 acres of bare land located in Pemberton for a purchase price of $225,000. The property is part of an Agricultural Land Reserve and as such was not immediately available for development. "Agricultural Land Reserves" were established by government legislation in April 1973 to preserve agricultural lands for present and future use and to protect them from encroachment of non-farm uses and subdivisions. Such designation greatly limits development potential of certain lands, but does permit one dwelling unit per 10 acres.

On January 30, 2003 the Company sold this parcel of land for $800,000 less costs which provided the Company with net proceeds of $766,952.61. With the proceeds from the sale of this property, which formed part of the security on this loan, the $300,000 bridge loan was repaid thereby reducing the outstanding loan amount back to $700,000.

GAS BAR AND CONVENIENCE STORE - CANADA

In July 1988, the Company, through its wholly owned subsidiary, Pemberton Junction Store Ltd., acquired 0.6 acres of land located at the junction of Portage Road and Highway 99 in The Village of Pemberton. In 1990, Pemberton Junction Store Ltd. constructed a gasbar, car wash and 24 hour convenience store on the property. The development was then leased to PetroCanada Inc. on July 1, 1990, who, in turn, sublet it back to Pemberton Junction Store Ltd.

On October 23, 1992 the Company sold 50% of its interest in the development to 341794 B.C. Ltd. ("B.C. Ltd."). On October 31, 1992 the Company entered into a Joint Venture Agreement with B.C. Ltd., forming the Pemberton Junction Store Joint Venture ("PJSJV"). The terms of the joint venture will continue until it is dissolved in accordance with specific provisions within the Co-owners Agreement, or on October 31, 2012, whichever is the earliest. By Agreement dated October 31, 1992 Nester's Market Ltd. was appointed manager of the gas bar and convenience store operations. B.C. Ltd. is a wholly owned subsidiary of Nester's Market Ltd. No affiliation exists between the Company, its directors, officers or beneficial owners and Nester's Market Ltd., and its directors, officers or beneficial owners.

The following table reports the sales and profits figures for the Pemberton Junction Store Joint Venture PJSJV for the 1999 to 2003 fiscal years.

50% Share In:	2003		2002		2001		2000		1999

Total Sales:	$	384,460	$	2,285,890	$	1,977,266	$	2,334,092	$	2,573,258
Net Profits:		6,677	$	66,394	$	8,434	$	14,701	$	45,462

On May 31, 2002, the Company sold its remaining 50% joint venture interest in the Pemberton Junction Store Joint Venture located in Pemberton, British Columbia to their joint venture partner, for net proceeds of $739,249. The Company's 50% interest generated gross sales of $384,460 and $20,899 income before general and administrative expenses for the year ended March 31, 2003 as compared to $2,285,890 and $301,296 for the year ended March 31, 2002.

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

Basis of Presentation

The consolidated financial statements for the year ended March 31, 2005 present the results from operations of the parent company, Pacific Harbour Capital Ltd., and 100% of the results of operations from all of its wholly-owned subsidiaries. These wholly-owned subsidiaries are:

-	345384 B.C. Ltd. ("345384")

-	345385 B.C. Ltd. ("345385") - This subsidiary was dissolved on October 12, 2003.

-	371208 B.C. Ltd. ("371208") - This subsidiary was dissolved on February 7, 2003.

-	Venture Pacific Development Corporation USA ("VPDC USA") - and its wholly-owned subsidiary VenPac Nevada I, Inc. ("Venpac Nevada") - This charter has been allowed to lapse.

-	Venture Pacific Capital Corporation ("Capital") - This subsidiary is being allowed to lapse

-	Venture Pacific Vehicle LeaseCorp Inc. ("LeaseCorp") - Subsidiary sold with lease business

These consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles ("Canadian GAAP"), but where application of Canadian GAAP results in differences with financial statements prepared in accordance with United States generally accepted accounting principles ("'US GAAP"), these differences have been disclosed in Item 3A.

The consolidated financial statements are denominated in Canadian dollars and have not been translated into United States dollars. The following discussion centers around the operations for the current year ended March 31, 2005 (fiscal 2005) with comparison to the prior year ended March 31, 2004 (fiscal 2004).

A. OPERATING RESULTS

The Company’s revenue from continued operations is comprised primarily of investment income. Revenue from existing resources decreased this year by $16,187 to $17,063. The decline was due to the loss of royalty and interest income from its investment in the direct marketing company.

The Company’s general and administrative expenses declined in the year from $505,196 in fiscal 2004 to $420,124 in fiscal 2005, a decline of $85,072 or 17%. The decrease was mainly attributable to management cost cutting.

As part of management cost cutting measures, the Company received $57,500 from affiliated companies for rent and administrative recovery for use of the Company's office facility and services of administrative staff compared to $24,000 recovery in fiscal 2004.

Other expenses such as audit fees, filing fees, transfer agent fees, promotion and wages were also lower in the year refelcting management's commitment to reduce expenses.

Offsetting the decreases above, legal and profession fees increased significantly to $138,687 compared to $24, 176 in fiscal 2004. The increase was mainly attributable to legal fees incurred in connection with lawsuits with former management and with a former manager of the Company's subsidiary.

In fiscal 2005, the Company paid $78,000 management fee to a company controlled by a director and officer of the Company for management services and $11,640 consulting fee to a director for service in connection with business development. In addition, the Company paid $3,012 to a law firm whose partner is a director of the Company.

During the last fiscal year, interest expenses decreased to $nil in fiscal 2005 versus $85,511 in fiscal 2004. since all debts were repaid during fiscal 2004. Rent and utilities had a decrease from $70,807 to $69,951 while corporate admin fees remained the same at $26,983 during fiscal 2004 and $26,720 during fiscal 2005.

Promotion and marketing expenses decreased significantly to $6,130 compared to $28,780 in fiscal 2004. Bad debts decreased to $nil during fiscal 2005 from $26,306 during fiscal 2004 from the write-off of a receivable from the direct marketing company. Wages and benefits decreased from $86,150 during fiscal 2004 to $63,167 during fiscal 2005.

Overall the Company reported a net loss of $457,646 or $0.06 loss per share for the year ended March 31, 2005 compared to net loss of $1,650,834 or $0.22 loss per share for the year ended March 31, 2004.

B. LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2005 working capital decreased by $436,732 to $764,578. The decrease was attributable to operting loss from operations in fiscal 2005.

For the year ended March 31, 2005, the Company had negative cash flow of $632,135 from operating activities compared to $751,379 negative cash outflow from 2004 operating activities. From an operating standpoint, the Company continues to rely on proceeds from the sale of investments or property to remedy operating deficiency. The Company has no plans for any material capital expenditure in the coming year.

The Company did not engage in any financing activities in fiscal 2005. In comparison the Company repaid loans and mortages in fiscal 2004 resulting in cash outflow of $1,417,395 from financing activities.

In fiscal 2005, the Company invested $295,101 in marketable securities and received proceeds of $1,075,336 from promissory note receivable and $43,522 from the sale of marketable securites. The Company also received $18,928 from amounts due from a related company.

Overall the Company had positive cash inflow of $204,771 for the year. Depending on future growth and investment activities, the Company may obtain equity or debt financing to support acquisition or investment activities.

Estimated

Net Book

Fair Market

Value as at

Name of

Date of

Original

March 31,

Property

Subsidiary

Acquisition

Cost

2005

2005 *

Lillooet River

345384 BC Ltd.

December1988

175,000

312,646

1,200,000

Front

Lillooet Water

371208 BC Ltd.

September 1989

225,000

Front **

Cardlock Fuel

345385 BC Ltd.

May 1988

60,000

Depot ***

Total

235,000

312,646

1,200,000

*	Note - values are based on recommended listing price supplied by third party real estate agents.

**	The sale of this 40-acre parcel of land was completed on February 12, 2003 for a total dollar value of $800,000. The Company registered an easement against this property to gain access to the Company's 133-acre parcel of land on the other side of the Lillooet River.

***	The sale of this 1-1/2 acre cardlock property was completed on October 2, 2003 for a total dollar value of $265,000.

Potential changes in other current assets (Accounts receivable, Inventory, and Prepaid expense and deposits) or current liabilities (Accounts payable, Security deposits, Deferred revenue) are not known at this time or are not considered by management to have a significant impact on the liquidity of the Company.

Long-term assets decreased in fiscal 2004 by $4,150,397 due to the sale of the Company's land assets in Pharump, Nevada.

Long-term liabilities decreased in fiscal 2004 by $298,234 due to the repayment of the mortgage that was on the Pharump property.

Venture Pacific Vehicle LeaseCorp's loan of $1,000,000 was secured by a pledge of assets (land) held by three other subsidiaries of the Company (345384 B.C. Ltd., 345385 B.C. Ltd., and 371208 B.C. Ltd.) and the Company's land holdings in Pahrump, Nevada. This loan was subsequently refinanced and LeaseCorp entered into a new loan agreement with Hartford Securities Ltd. ("Hartford") in the amount of $750,000. Hartford is owned wholly or partially by Arthur Clemiss and is located in Grand Cayman, British West Indies. This loan was also secured by the vehicle inventory held by Venture Pacific Vehicle LeaseCorp.

On January 15, 2003 the assets of LeaseCorp were sold for $550,000. The sale proceeds were divided into two payments, one for $500,000 and one for $50,000. The $500,000 payment was applied wholly to LeaseCorp's indebtedness to Hartford Securities, thereby reducing the loan amount to $250,000. 60 days after closing the remaining $50,000 was divided between the purchaser as to $31,898.68 for lease payments received by LeaseCorp during the 60-day period and $18,101.32 to Hartford Securties, thereby reducing the loan to $231,898.68. Monthly interest at 12% per annum was being accrued on this loan and the loan was due on March 31, 2004.

The mortgage on the Pahrump property for $349,395 (US$238,040) was due on August 28, 2008. Interest was fixed for that period at 10%. Payments are made monthly for both principal and interest over a ten year term. However, the mortgage payment of US$4,762 per month was due in US dollars, so that the amount recorded in the financial statements could go up or down according to changes in the exchange rate between Canadian and US dollars.

On April 5, 1999 the Company obtained a loan in the amount of $300,000. The loan was due to Hartford Securities Ltd. On April 12, 2001 the loan was increased by $100,000 to a total of $400,000. On February 22, 2002 the loan was increased by an additional $300,000 bringing the total loan payable to $700,000. On December 1, 2002 the loan was again increased by an additional $300,000 bringing the total loan payable to Hartford Securities to $1,000,000. This loan was secured by mortgages on the Company's Pemberton properties and the property in Pahrump, Nevada. This loan was due and payable by March 31^st, 2003 and beared interest at 12% per annum.

Upon completion of the sale of the Company's 40-acre parcel of land held in Pemberton, B.C. by its wholly-owned subsidiary, 371208 BC Ltd., a portion of the above loan in the amount of $300,000 was repaid to Hartford Securities. This left an outstanding balance due to Hartford Securities of $700,000 plus interest being accrued at the rate of 12% per annum.

On February 12, 2004 the Company announced the completion of their transaction with respect to the sale of the Pahrump, Nevada property. A portion of the proceeds of this sale were applied to the Company's and Leasecorp's indebtedness to Hartford Securities thereby paying the loans off in their entirety. Proceeds from the sale of the property were also used to pay off the mortgage held on the property.

Prepared in accordance with US GAAP the net loss for the year ended March 31, 2005 would be $220,976 compared to $258,904 for the year endedMarch 31, 2004. The differences between Canadian and US GAAP result mainly from the treatment of certain costs which were deferred under Canadian GAAP but are expensed under US GAAP.

Net assets in accordance with Canadian GAAP were $998,144 at March 31, 2005 and $1,609,085 at March 31, 2004. Net assets in accordance with US GAAP would be $1,229,900 at March 31, 2005 and $1,604,171 at March 31, 2004. Again the reason for these differences under Canadian and US GAAP is the timing of expensing certain costs.

In fiscal 1997, the Company abandoned plans to develop the parcels of land located in Pemberton B.C. and held by its wholly-owned subsidiaries (345384 - Lillooet River Front, 345385 - Cardlock Fuel Depot, 371208 - Lillooet Water Front). Therefore the cost of the land (original acquisition costs plus property taxes, carrying costs, legal fees and other costs expended) was reclassified from "Property held for development' 'to "Land held for resale".

The Company has decided not to pursue development of the remaining land parcel, however management feels that there are opportunities to sell the land for more than the current book value due to the proximity of Pemberton to Whistler and the granting of the 2010 Winter Olympics to Whistler/Vancouver and will hold the land until a reasonable offer is received.

C. RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES, ETC.

Not applicable

D. TREND INFORMATION

Not applicable

ITEM 6. LEGAL PROCEEDINGS

The company is currently involved with several court cases, which it plans to defend vigorously.

The first court case involved a former law firm engaged by the previous management. The law firm was claiming legal fees owing of approximately $109,000. The Company counter sued claiming the law firm was in breach of the court order prohibiting expenses of this nature. The parties involved reached a settlement prior to attending court and on March 8, 2005 a Mutual Release was signed by both parties and the payment of $35,000 by Pacific Harbour Capital Ltd.

The second court case involves another law firm engaged by the previous management. The firm claims outstanding legal fees of approximately $32,000. The Company is in the process of contesting the amount through the court and deems it unreasonable. This legal fee has been accrued in the financial statement in full.

The third court case involves former management of the company and a legal firm that was previously engaged by them. Former management of the company has purchased certain debts from this previously used law firm and is now asserting a claim of $110,067. The Company is in the process of contesting this amount through the court as it deems it unreasonable. $54,107 of this claim has been accrued within the financial statements.

The last case involved a former manager of the Company’s subsidiary, Venture Pacific Vehicle LeaseCorp Inc. The former manager was claiming $101,340 for breach of contract and wrongful dismissal along with $57,500 for a finders fee relating to a loan advanced to Venture Pacific LeaseCorp Inc. This case was settled in October 2004 and the Company paid out $80,000.

ITEM 7. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

The Directors of the Registrant are elected annually by the shareholders and hold office until the next annual general meeting of the shareholders or until their successors are duly elected and qualified, unless they resign sooner or cease to be directors in accordance with the Registrant's Articles. The Company's last annual general meeting was held on September 13, 2005 and the next meeting must be held within 13 months of that date as specified by the Registrant's Articles. The Registrant's executive officers are appointed by and serve at the pleasure of the Board of Directors. As of September 13, 2005, the following persons were directors and executive officers of the Company:

A. DIRECTORS

B. COMPENSATION

The Company has no standard arrangement pursuant to which directors are compensated by the Company for their services in their capacity as directors except for the granting from time to time of stock options in accordance with the policies of the TSX Venture Exchange.

Management functions of the Company are substantially performed by directors or senior officers of the Company and not, to any substantial degree, by any other preson with whom the Company has contracted. Consulting fees totalling $78,000 were paid during the fiscal year ended March 31, 2005 to a director and officer of the Company for day-to-day management of the Company. All Management Agreements with previous directors and officers of the Company have been cancelled.

Ronald W. Downey, a former director and officer of the Company, had a contract with the Registrant and was compensated as an executive officer. His contract of employment was effective from March 1, 1998 and was to expire on December 14, 2002 at an annual salary of $150,000. (see Form 6-K, May, 1998 filing). Effective February 1, 2000, the Board of Directors of the Company accepted Mr. Downey's resignation as a director and officer of the Company and all of its subsidiaries. Mr. Downey subsequently commenced an action against the Company in the Supreme Court of British Columbia pursuant to which he alleges wrongful dismissal and claims approximately $479,807 representing the aggregate salary due for the balance of the term of his contract.

In September 2002, the Company entered into a settlement agreement, approved by the Supreme Court of British Columbia, to pay Mr. Downey a judgment in the amount of $250,000. The Company granted Mr. Downey a mortgage in the amount of $250,000 which mortgage is to be registered against the Company's properties in Nevada.

On February 12, 2004 the mortgage held by Mr. Downey was paid out in full from the proceeds of the sale of the Pahrump property.

No other cash or other compensation was paid to directors or executive officers during fiscal 2005, other than as listed above. There are no other plans in effect pursuant to which cash or non-cash compensation was paid or distributed to directors or executive officers during the most recently completed fiscal year or is proposed to be paid or distributed in a subsequent year.

No pension plan or retirement benefit plans have been instituted by the Company and none are proposed at this time.

C. BOARD PRACTICES

Each director of the Company is elected annually and holds office until the next Annual General Meeting of the members unless that person ceases to be a director before then.

The Board of Directors meets periodically to review significant developments affecting the Company and to act on matters requiring Board approval. Although the Board of Directors delegates specific matters to others, it reserves certain powers and functions to itself. The Audit Committee is constituted in accordance with requirements of the B.C. Company and Securities Law and is directed to review the scope, cost and results of the independent audit of the Company's books and records, the results of the annual audit with management and the internal accountants; and the adequacy of the Company's accounting, financial and operations controls; to recommend annually to the Board of Directors, the selection of the independent auditors; to consider proposals made by the Company's independent auditors for consulting work; and to report to the Board of Directors when so requested, on any accounting or financial matters.

The Company has an Audit Committee of which Thomas Pressello, James Heppell and Michael Reynolds are members.

D. EMPLOYEES

The Company currently employs one full time employee and two part-time employees. All employees are located at the Company's offices in Vancouver, B.C. Canada. Management elected not to replace staff as they vacated their positions and would instead pay consulting fees as required in an effort to reduce administrative expenses.

E. SHARE OWNERSHIP

The Corporation's securities are recorded on the books of its transfer agent in registered form. The majority of such shares are, however, registered in the name of intermediaries such as brokerage houses and clearing houses on behalf of their respective clients. The Corporation does not have knowledge of the beneficial owners thereof.

			Number Of Shares
			Beneficially Owned,		Principal Occupation
			Directly Or Indirectly,		And If Not At Present
			Or Over Which Control		An Elected Director,
			Or Direction Is		Occupation During
Name And Present			Exercised At March 31,		The Past Five (5)
Office Held	Director Since		2005		Years

Thomas Pressello		December 14, 2001		200,500		Businessman; Chief
Chief Executive Officer,						Executive Officer &
President & Director;						President of the Company.
Member of the Audit						Business Consultant (1994
Committee						to present) advising on
						structuring several financial
						transactions in mining, real
						estate and other sectors.

Michael Reynolds		July 26, 2005		707,000		Businessman;
Director						Director of the Company.
Member of the Audit						Investment Advisor with
Committee						Canaccord Capital from
						1986 to January 2005

James Heppell		December 14, 2001		Nil		Partner, President &
Director and						Chief Executive Officer
Member of the						of Catalyst Corporate
Audit Committee						Finance Lawyers (1992
						to present)

Adoption of Stock Option Plan

The Company previously had two stock option plans. The first plan was approved by the Board on July 30, 1997 and by the shareholder's of the Company on September 28, 1997 (the "1997 Plan"). The 1997 Plan reserved 830,565 common shares for issuance pursuant to options granted under the 1997 Plan. Since the 1997 Plan was established, options to purchase 830,000 common shares have been granted under the 1997 Plan, of which 15,000 have been exercised and 815,000 have been cancelled leaving nil options outstanding.

The second plan was approved by the Board on February 24, 2000 and by the shareholder's of the Company on October 3, 2000 (the "2000 Plan"). The 2000 Plan reserved 1,229,144 common shares for issuance pursuant to options granted under the 2000 Plan. Since the 2000 Plan was established, options to purchase 770,000 common shares have been granted under the 2000 Plan, none of which have been exercised and 770,000 have been cancelled leaving nil options outstanding.

In addition, the Company had previously granted 365,000 stock options outside the 1997 Plan and the 2000 Plan. Of the options granted outside the 1997 Plan and the 2000 Plan, 15,000 have been exercised and 350,000 have been cancelled leaving nil options outstanding.

The Company adopted a new stock option plan, approved by the Board on August 15, 2002 and by the shareholders of the Company on September 19, 2002 (the "2002 Plan") under which the maximum number of common shares reserved for issuance pursuant to the grant of stock options is 2,816,111. Subsequent to the adoption of the 2002 Plan, the shares were consolidated on a 2:1 basis and the stock option plan was consolidated by the same ratio. This is approximately 20% of the current issued and outstanding shares.

Summary of Stock Option Activity

The following table summarizes all issuances of, exercise of and termination of, options granted under the 1997 Plan, the 2000 Plan and the 2002 Plan and under option agreements issued before the adoption of the above noted plans.

	Options Outstanding
Granted Outside Option Plans
Options Granted		365,000
Options Cancelled		(350,000	)
Options Exercised		(15,000	)
Options Outstanding:		Nil

1997 Plan
Plan Maximum		830,565
Options Granted Under Plan		830,000
Options Cancelled		(815,000	)
Options Exercised		(15,000	)
Options Outstanding:		Nil

2000 Plan
Plan Maximum		1,229,414
Options Granted Under Plan		770,000
Options Cancelled		(770,000	)
Options Exercised		0
Options Outstanding		Nil

2002 Plan
Plan Maximum - Pre-Consolidation		2,816,111
Plan Maximum - Post Consolidation (2:1 Basis)		1,408,055
Options Granted Under Plan - Post Consolidation		879,028
Options Exercised		Nil
Options Cancelled		352,014

Options Available for Grant - Post Consolidtion:		881,041

ITEM 8. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

A. MAJOR SHAREHOLDERS

The following table sets forth certain information as of September 20, 2004 concerning the beneficial ownership of the voting securities of the Registrant as to each corporation or person known to the management of the Registrant that is the beneficial owner of more than 10% of the 7,247,703 outstanding shares of the Registrant's Common Shares, and the Registrant's officers and directors as a group. The percentages for each listing are calculated based on the number of outstanding shares.

	NUMBER OF SHARES
NAME AND ADDRESS	AT AUGUST 14, 2003			PERCENTAGE

Arthur Clemiss		1,232,327(1	)		17.0	%
Soverign Club Villa #11
607 West Bay Road
Cayman Islands,

Officers and Directors of the		907,500(2	)		12.52	%
Registrant as a Group (3 persons)

(1)	Mr. Clemiss is a Canadian citizen, but a permanent resident of Grand Cayman.

(2)	Information gathered from British Columbia Securities Commission website.

Based on the records of Computershare Trust Company of Canada, the Registrant's registrar and transfer agent, as at September 14, 2005 there were 7,247,703 issued and outstanding Common Shares and 25 registered shareholders of which 748,001 Common shares were held of record by 13 holders located in the United States.

The Registrant is not directly or indirectly owned or controlled by any person, corporation or foreign government.

The Registrant is unaware of any arrangements which may occur in the future to result in a change of control of the Registrant.

B. RELATED PARTY TRANSACTIONS

Except as previously described in Item 4. D. (Property, plants and equipment), Item 5. B (Liquidity and capital resources), Item 6.13 (Compensation), Item 6. E (Share Ownership) and Item 10. C (Material contracts), no director, officer, security holder or relative or spouse of any of the foregoing, had any material interest, direct or indirect, in any transaction since the commencement of the Company's last financial year or in any proposed transaction, which, in either case, has materially affected or will materially affect the Company or any of its subsidiaries other than as disclosed herein.

C. INTERESTS OF EXPERTS AND COUNSEL

Not applicable

ITEM 9. FINANCIAL INFORMATION

A. CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION

Please refer to the Corporation's Consolidated Financial Statements as at March 31, 2005 filed on Edgar on July 29, 2005.

The Directors of the Company may from time to time declare and authorize payment of dividends, as they deem advisable. Subject to the rights of members, all dividends on shares shall be declared and paid according to the number of shares held. The Company has not paid any cash dividends on its Common stock since its incorporation and anticipates that, for the foreseeable future, earnings, if any, will continue to be retained for use in its business.

B. SIGNIFICANT CHANGES

Not applicable

ITEM 10. THE OFFER AND LISTING

A. THE OFFER AND LISTING DETAILS

The Company has two classes of capital stock, Common Shares without par value and Preferred Shares without par value. The Registrant became a public company on December 3, 1987 when it undertook an initial public offering of its common shares in British Columbia, Canada and was listed on the Vancouver Stock Exchange ("VSE") (now the TSX Venture Exchange ("TSX-VE"). The Registrants listing on the TSX-VE is as a Tier I Company trading under the symbol "PCF". In the United States the common shares are quoted on the Over-The-Counter Bulletin Board under the symbol "PCFHF".

The following table sets forth, for the five fiscal years indicated, the high and low reported price of the Registrant's Common Shares on the TSX-VE and the OTC Bulletin Board:

	TSX Venture Exchange				OTC Bulletin Board
	(in Canadian $)				(in US $)

Fiscal Year	High		Low		High		Low
2005		0.35		0.155		0.225		0.125
2004		0.27		0.10		0.125		0.09
2003		0.50		0.06		0.145		0.05
2002		0.25		0.12		0.13		0.0.85
2001		0.25		0.12		0.13		0.07

The following table sets forth, for the quarters in the calendar year indicated, the last two years of high and low reported prices of the Registrant's Common Shares on the TSX-VE and the OTC Bulletin Board:

			TSX Venture Exchange				OTC Bulletin Board
			(in Canadian $)				(in US $)

Year	Quarter		High		Low		High		Low
2005		4^th		0.25		0.155		0.17		0.15
		3^rd		0.21		0.155		0.225		0.125
		2^nd		0.25		0.17		0.151		0.151
		1^st		0.35		0.21		0.16		0.15
2004		4^th		0.27		0.14		0.2		0.09
		3^rd		0.20		0.10		0.1		0.1
		2^nd		0.16		0.11		0.125		0.1
		1^st		0.24		0.17		0.122		0.12
2003		4^th		0.47		0.21		0.16		0.11
		3^rd		0.50		0.10		0.32		0.051
		2^nd		0.17		0.06		0.075		0.05
		1^st		0.15		0.10		0.10		0.085

The following table sets forth, for the months in the calendar year indicated, the high and low reported price of the Registrant's Common Shares on the TSX-VE and the OTC Bulletin Board:

	TSX Venture Exchange				OTC Bulletin Board
	(in Canadian $)				(in US $)

Month	High		Low		High		Low
March 2005		0.24		0.205		0.00		0.00
February 2005		0.25		0.17		0.17		0.15
January 2005		0.21		0.155		0.00		0.00
December 2004		0.21		0.155		0.125		0.125
November 2004		0.21		0.175		0.155		0.125
October 2004		0.185		0.17		0.225		0.144
September 2004		0.17		0.17		0.00		0.00
August 2004		0.25		0.22		0.151		0.151
July 2004		0.21		0.19		0.151		0.151
June 2004		0.30		0.21		0.151		0.15
May 2004		0.30		0.22		0.16		0.16
April 2004		0.35		0.25		0.16		0.16

B. PLAN OF DISTRIBUTION

Not applicable

C. MARKETS

The Common Shares are traded in Canada on the TSX Venture Exchange ("TSX-VE), formerly the Canadian Venture Exchange under the symbol "PCF", CUSIP #69439N105 and in the United States are quoted on the Over-the-Counter Bulletin Board under the symbol "PCFHF".

D. SELLING SHAREHOLDERS

Not applicable

E. DILUTION

Not applicable

F. EXPENSES OF THE ISSUE

Not applicable

ITEM 11. ADDITIONAL INFORMATION

A. SHARE CAPITAL AND NAME CHANGE

At the Company's Annual General Meeting held on September 19^th, 2002, the shareholders approved a special resolution consolidating the share capital on the basis of one new common share without par value for every two existing common shares without par value.

To enhance the ability of the Company to secure financing in the future, shareholders approved an increase in the authorized capital to 100,000,000 common shares (post consolidation) and the creation of a class of "blank cheque" preferred shares without par value (the "Preferred Shares") that may be issued in one or more series. The creation of the Preferred Shares will allow the directors to react quickly to market conditions and other factors and create a series of shares without the time and expense involved in calling a special meeting of the shareholders.

The rights and restrictions attached to the Preferred Shares will allow the directors to fix the number of shares in the series and to fix the preferences, special rights and restrictions, privileges, conditions and limitations attaching to the shares of that series, before the issuance of shares of any particular series.

At the same time that the share consolidation was put before the shareholders, a special resolution asking the shareholders to vote on a name change for the Company to "Pacific Harbour Capital Ltd." was also voted on and approved by the shareholders. Effective at the opening of trading on October 21, 2002, the common shares of Pacific Harbour Capital Ltd. commenced trading on the TSX Venture Exchange.

The following table is a summary of the provisions of the rights and restrictions that will attach to the Preferred Shares.


	Rights and Restrictions	Preferred Shares
1.	Creation of Series of Preferred Shares	May be issued at any time in one or more series and hold special rights and restrictions as the Board determines by resolution.
2.	Voting Rights	Holder may or may not be provided with the right to receive notice of, be present or vote at any general meeting of the shareholders of the Company, with such number of votes per Preferred Share as set out in the special rights and restrictions.
3.	Right to Dividends	May or may not have a right to receive dividends.
4.	Payment of Dividends	May or may not be paid in priority to the common shares.
5.	Priority on Liquidation	May or may not have priority over holders of common shares upon distribution of assets.

B. MEMORANDUM AND ARTICLES OF ASSOCIATION

At the September 19^th, 2002 Annual General Meeting, a new form of articles was approved by the shareholders of the Company and adopted as the Articles of the Company in substitution for, and to the exclusion of, the existing Articles of the Company.

The British Columbia Business Corporations Act (the "Act") came into force in British Columbia on March 29, 2004 and requires that every company in British Columbia file a Transition Application containing a Notice of Articles within two years of the Act coming into force. The Company filed the Transition Application/Notice of Articles with the Registrar of Companies on April 27, 2004 and the Articles were amended to the extent necesssary to ensure compliance with s.438(3) of the Act.

C. MATERIAL CONTRACTS

On March 30, 1999 the Company obtained a loan in the amount of $300,000. The loan was due to Hartford Securities Ltd. ("Hartford") located in Grand Cayman, British West Indies. Subsequent to March 31, 2001 this loan was renegotiated on April 12, 2001 and the principal amount was increased to $400,000 at a rate of interest of 16% per annurn and extended to March 31, 2004. On February 22, 2002 this loan was increased by $300,000 bringing the total principal amount to $700,000 and reducing the interest rate to 12% per annum, a 4% interest rate reduction. On December 1^st, 2002 this loan was increased by an addition $300,000 bridge loan bringing the total principal owned to Hartford to $1,000,000. In January 2003, upon completion of the sale of the Company's 40-acre parcel of land held in Pemberton, B.C. by its wholly-owned subsidiary, 371208 BC Ltd., a portion of the above loan in the amount of $300,000 was repaid to Hartford Securities. This left an outstanding balance due to Hartford Securities by Pacific Harbour Capital Ltd. of $700,000 plus interest being accrued at the rate of 12% per annum.

Venture Pacific Vehicle LeaseCorp arranged mortgage-backed debt financing in an amount totaling $575,000 which the Company had guaranteed repayment of, and had caused a first and second mortgage to be granted over the three parcels of land located in Pemberton, British Columbia (see Item 2. Description of Property). Subsequent to March 31, 2001, the Company renegotiated the terms of these loans payable by the extension of repayment to August 10, 2003 at 14% per annum in the first year and 15% per annum in the second year. An additional $425,000 was advanced bringing the loan balance to $1,000,000 (a lump sum payment of $250,000 was subsequently made).

The Company subsequently obtained new financing for the vehicle leasing loan and refinanced the remaining $750,000 loan with Hartford Securities Ltd. The loan was secured by a promissory note and collateral mortgage on the land held for resale granted by three subsidiaries of the Company and was guaranteed by the Company at an interest rate of 12% per annum, a 3% reduction over the previous loan interest rate.

D. EXCHANGE CONTROLS

There are no laws or governmental decrees or regulations in Canada that restrict the export or import of capital or that affect the payment of dividends, interest or other payments to nonresident holders of the Registrant's securities other than withholding tax requirements. For a discussion of these withholding requirements see "Itern 7. Taxation" below.

There are no limitations under the laws of Canada, the Province of British Columbia, or in the charter or other constituent documents of the Registrant on the right of a non-resident to hold or vote the Registrant's Common Shares other than as provided by the Investment Canada Act (the "Act!) enacted on June 20, 1985 and as further amended, by the North American Free Trade Agreement (NAFTA) Implementation Act (Canada) and the World Trade Organization (WTO) Agreement Implementation Act, which requires the prior notification and, in certain cases, advance review and approval by the Government of Canada of the acquisition by a "non-Canadian" of "control" of a "Canadian business," all as defined in the Act. For the purpose of the Act, "control" can be acquired through the acquisition of all or substantially all of the assets used in the Canadian business, or the direct or indirect acquisition of interests in an entity that carries on a Canadian business or which controls the entity which carries on the Canadian business. Under the Act, control of a corporation is deemed to be acquired through the acquisition of a majority of the voting shares of a corporation, and is presumed to be acquired where one-third or more, but less than a majority, of the voting shares of a corporation are acquired, unless it can be established that the corporation is not controlled in fact through the ownership of voting shares. Other rules apply with respect to the acquisition of non-corporate entities.

Investments requiring review and approval include: direct acquisitions of Canadian businesses with assets with a gross book value of $5,000,000 or more; indirect acquisitions of Canadian businesses with assets of $50,000,000 or more; and indirect acquisitions of Canadian businesses where the value of assets of the entity or entities carrying on business in Canada, control of which is indirectly being acquired, is greater that $5,000,000 and represents greater than 50% of the total value of the assets of all of the entities, control of which is being acquired.

Generally speaking, the value of the business acquisition threshold (the "Threshold") is increased from those levels outlined where the acquisition is by a member of NAFTA or a WTO Investor or by a non-Canadian other than a WTO Investor where the Canadian business that is the subject of the investment is immediately before the investment controlled by a WTO Investor. The Threshold is to be determined yearly in accordance with a formula set forth in the Act.

A WTO Investor includes an individual, other than a Canadian, who is a national of the WTO Member, or who has the right of permanent residence in relation to that WTO Member.

Different provisions and considerations apply with respect to investment to acquire control of a Canadian business that, as defined in the Act or regulations:

engages in production of uranium and owns an interest in a producing uranium property in Canada;

provides financial services;

provides transportation services; and

is a cultural business.

If an investment is reviewable, an application for review in the form prescribed by regulation is normally required to be filed with the Ministry of Industry, Director of Investment prior to the investment taking place and the investment may not be consummated until the review has been completed and ministerial approval obtained. Applications for review concerning indirect acquisitions may be filed up to 30 days after the investment is consummated. Applications concerning reviewable investments in culturally sensitive and other specified activities referred to in the preceding paragraph are required upon receipt of a notice for review. There is, moreover, provision for the Minister (a person designated as such under the Act) to permit an investment to be consummated prior to completion of review if he is satisfied that delay would cause undue hardship to the acquirer or jeopardize the operation of the Canadian business that is being acquired.

Upon review of an application for review, the Minister will then determine whether the investment is likely to be of "net benefit to Canada", taking into account the information provided and having regard to certain factors of assessment prescribed under the Act. Among the factors to be considered are:

-	the effect of the investment on the level and nature of economic activity in Canada, including the effect on employment, on resource processing, on the utilization of parts, components and services produced in Canada, and on exports from Canada;

-	the degree and significance of participation by Canadians in the Canadian business and in any industry in Canada of which it forms a part;

-	the effect of the investment on productivity, industrial efficiency, technological development, product innovation and product variety in Canada;

-	the effect of the investment with national industrial, economic and cultural objectives enunciated by the government or legislature of any province likely to be significantly affected by the investment; and

-	the contribution of the investment to Canada!s ability to compete in world markets.

E. TAXATION

Canadian Federal Income Taxation

The following discussion is a summary of the principal Canadian federal income tax considerations generally applicable to purchasers of the Company's Common Shares who, for purposes of the Income Tax Act (Canada) (the "Canadian Act"), deal at arm's length with the Company, hold Common Shares as capital property, are not residents of Canada at any time when holding Common Shares and do not use or hold and are not deemed to use or hold Common Shares in or in the course of carrying on business in Canada and, in the case of insurers who carry on insurance business in Canada and elsewhere, do not hold Common Shares that are effectively connected with an insurance business carried on in Canada.

This summary is based on the current provisions of the Canadian Act, the regulations thereunder and the Canada-United States Income Tax Convention (1980) (the "Treaty") as amended. This summary takes into account specific proposals to amend the Canadian Act and the regulations thereunder publicly announced by the Minister of Finance prior to the date hereof and the Company's understanding of the current published administrative and assessing practices of the Canada Customs and Revenue Agency (formerly Revenue Canada, Taxation). This summary does not take into account Canadian provincial income tax laws or the income tax laws of any country other than Canada.

A shareholder of the Company will generally not be subject to tax pursuant to the Canadian Act on a capital gain realized on a disposition of Common Shares unless the Common Shares are "taxable Canadian property" to the shareholder for purposes of the Canadian Act and the shareholder is not eligible for relief pursuant to an applicable bilateral tax treaty. The Common Shares will not be taxable Canadian property to a shareholder provided that the Company is listed on a stock exchange prescribed within the meaning of the Canadian Act and provided that such shareholder, or persons with whom such shareholder did not deal at arms length (within the meaning of the Canadian Act), or any combination thereof, did not own 25% or more of the issued shares of any class or series of the Company at any time within five years immediately preceding the date of disposition. The Company is listed on a prescribed stock exchange within the meaning of the Canadian Act.

Any dividend, including stock dividends, paid or credited, or deemed to be paid or credited, by the Company to a shareholder will be subject to Canadian withholding tax at the rate of 25% on the gross amount of the dividend, subject to the provisions of any applicable income tax convention. Pursuant to the Treaty, the rate of withholding tax generally will be reduced to 15% in respect of dividends paid to a shareholder who is a resident of the United States for purposes of the Treaty and further reduced to 5% if the beneficial owner of the shares is a corporation owning at least 10% of the voting shares of the Company.

The foregoing discussion of Canadian taxation is of a general and summary nature only and is not intended to be, nor should it be considered to be, legal or tax advice to any particular shareholder. Accordingly, prospective investors should consult their own tax advisors as to the tax consequences of receiving dividends from the Company or disposing of their Common Shares.

United States Federal Taxation

For federal income tax purposes, an individual who is a citizen or resident of the United States or a domestic corporation ("U.S. Taxpayee') will recognize a gain or loss on the sale of the Corporation's Common Stock equal to the difference between the proceeds from such sale and the adjusted cost basis in the Common Stock. The gain or loss will be a capital gain or capital loss if the Corporation's Common Stock is a capital asset in the hands of the U.S. Taxpayer.

For federal income tax purposes, a U.S. Taxpayer will be required to include in gross income dividends received on the Corporation's Common Stock. A U.S. Taxpayer who pays Canadian tax on a dividend on the Common Stock will be entitled, subject to certain limitations, to a credit (or alternatively, a deduction) against federal income tax liability. A domestic corporation that owns at least 10% of the voting stock of the Corporation should consult its tax advisor as to applicability of the dividends received deduction or deemed paid foreign tax credit with respect to dividends paid on the Corporation's Common Stock.

For any taxable year of the Corporation, if at least 75% of the Corporation's gross income is "Passive income" (as defined in the Internal Revenue Code of 1986, as amended (the "Code"), or if at least 50% of the Corporation's assets, by average fair market value, are assets that produce or are held for the production of passive income, the Corporation will be a Passive Foreign Investment Corporation ("PFIC"). There can be no assurance that the Corporation will not be determined to be a PFIC in its current or future taxable years.

If the Corporation is a PFIC for any taxable year during which a U.S. Taxpayer owns any Common Stock, the U.S. Taxpayer will be subject to special U.S. federal income tax rules, set forth in Sections 1291 to 1297 of the Code, with respect to all of such U.S. Taxpayer's Common Stock. For example, gifts, exchanges pursuant to corporate reorganizations and use of the Common Stock as security for a loan may be treated as taxable disposition, and a stepped-up basis upon the death of such a U.S. Taxpayer may not be available. Furthermore, in the absence of an election by such U.S. Taxpayer to treat the Corporation as a "qualified electing fund' (the "QEF election"), as discussed below, the U.S. Taxpayer would be required to (i) report any gain on disposition of any Common Stock as ordinary income rather than capital gain, (ii) to compute the tax liability on such gain and on certain distributions as if the Items had been earned pro rata over the U.S. Taxpayer's holding period (or a certain portion thereof) for the Common Stock, and (iii) would be subject to the highest ordinary income tax rate for each taxable year of the U.S. Taxpayer in which the Items were treated as having been earned. Such U.S. Taxpayer would also be liable for interest (which may be non-deductible by certain U.S. Taxpayers) on the foregoing tax liability as if such liability had been due with respect to each such prior year.

If the Corporation is a PFIC for any taxable year during which a U.S. Taxpayer owns any Common Stock, the adverse taxation of disposition gains and certain distributions may be avoided by any U.S. Taxpayer who makes a QEF Election on or before the due date (including extensions) for filing such U.S. Taxpayer's tax return for such taxable year. Such a U.S. Taxpayer would be taxed on dividends and capital gains as if the Corporation had never been a PFIC, but would also be taxed on its pro-rata share of the Corporation's earnings and profits for the Corporation's taxable year in which it was (or was treated as) a PFIC and which ends with or within such U.S. Taxpayer's taxable year, regardless of whether such amounts are actually distributed by the Corporation. Should such an election be made (and if the Corporation is a PFIC, U.S. Taxpayers are strongly urged to consider this special election), there are a number of specific rules and requirements applicable thereto, and such an electing U.S. Taxpayer is strongly urged to consult his own tax advisor in that regard.

The foregoing discussion of Canadian taxation and United States taxation is of a general and summary nature only and is not intended to be, nor should it be considered to be, legal or tax advice to any particular shareholder. Accordingly, prospective investors should consult their own tax advisors as to the tax consequences of receiving dividends from the Corporation or disposing of their Common Stock.

H. DOCUMENTS ON DISPLAY

Exhibits and documents referred to in this Form 20-F Annual Report that are not attached have been filed with previous Form 20-F Annual Reports. These exhibits and documents can be located either at the United States Securities and Exchange Commission, Washington, D.C. or at the Corporation's head offices at #1502 - 543 Granville Street, Vancouver, B.C., V6C 1X8.

I. SUBSIDIARY INFORMATION

Not applicable

ITEM 12. QUANTITATIVE INFORMATION ABOUT MARKET RISKS

Not applicable

ITEM 13. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Not applicable

PART II

ITEM 14. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

Not applicable

ITEM 15. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

Not applicable

ITEM 16. RESERVED

PART III

ITEM 17. FINANCIAL STATEMENTS

The Corporation's financial statements are stated in Canadian Dollars and are prepared in accordance with Canadian Generally Accepted Accounting Principals (GAAP), the application of which, in the case of the Corporation, conforms in all material respects for the periods presented with the United States GAAP, except as discussed in the notes to the financial statements. The audit report of Amisano Hanson, Independent Chartered Accountants for the audited financial statements and notes thereto, have been previously filed on Edgar on July 29^th, 2005 and should be read in conjunction with this Form 20-F.

ITEM 18. FINANCIAL STATEMENTS

Not Applicable

ITEM 19. EXHIBITS TO FORM 20-F ANNUAL REPORT

		Page No.

	Cover Sheet	31
	Auditors’ Report Dated June 10, 2005	32
	Consolidated Balance Sheet as at March 31, 2004 and 2004	33
	Consolidated Statements of Loss for Years Ended
	March 31, 2005, 2004 and 2003	34
	Consolidated Statements of Defecit for Years Ended
	March 31, 2005, 2004 and 2003	35
	Consolidated Statement of Cash Flows for Years Ended
	March 31, 2005, 2004 and 2003	36
	Consolidated Statements of Shareholders Equity For Years Ended
	March 31, 2005, 2004 and 2003	38
	Consolidated Statements of Income from Discontinued Operations
	For Years Ended March 31, 2005, 2004 and 2003	39
	Consolidated Schedules of General and Administrative Expenses
	March 31, 2005, 2004 and 2003	40
	Notes To Consolidated Financial Statements for the Years Ended
	March 31, 2005, 2004 and 2003	42

12.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section
	1350 as adopted pursuant to Section 302 of the Sarbannes Oxley Act
	of 2002	57

12.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section
	1350 as adopted pursuant to Section 302 of the Sarbannes Oxley Act
	of 2002	58

13.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Secution
	1350 as adopted pursuant to Section 906 of the Sarbannes Oxley Act
	of 2002	59

13.2	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Secution
	1350 as adopted pursuant to Section 906 of the Sarbannes Oxley Act
	of 2002	60

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.


	PACIFIC HARBOUR CAPITAL LTD.

Date: September 28, 2005	By:	“Thomas Pressello”
Amended: September 28, 2006		Thomas J. Pressello
		President, Chief Executive Officer and Director

PACIFIC HARBOUR CAPITAL LTD.

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2005 and 2004

(Stated in Canadian Dollars)

A PARTNERSHIP OF INCORPORATED PROFESSIONALS	Amisano Hanson
	Chartered Accountants

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders,

Pacific Harbour Capital Ltd.

We have audited the consolidated balance sheets of Pacific Harbour Capital Ltd. as at March 31, 2005 and 2004 and the consolidated statements of loss, deficit, cash flows and shareholders’ equity for the years ended March 31, 2005, 2004 and 2003. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Company as at March 31, 2005 and 2004 and the results of its operations and its cash flows for the years ended March 31, 2005, 2004 and 2003 in accordance with Canadian generally accepted accounting principles.

Vancouver, Canada	*“AMISANO HANSON”*
June 10, 2005	Chartered Accountants

Comments by Auditors for U.S. Readers on Canada - U.S. Reporting Conflict

The Standards of the Public Company Accounting Oversight Board (United States of America) require the addition of an explanatory paragraph (following the opinion paragraph) when there are changes in accounting principles that have a material effect on the comparability of the Company’s financial statements and changes in accounting principles that have been implemented in the consolidated financial statements. As discussed in Note 2 to the accompanying consolidated financial statements, the Company changed its method of accounting for Stock-based Compensation (CICA Handbook Section 3870) in the year ended March 31, 2004.

Our report to the shareholders dated June 10, 2005 is expressed in accordance with Canadian reporting standards, which do not permit a reference to such a change in accounting policy in the Auditors’ Report when the change in accounting policy is adequately disclosed in the financial statements.

Vancouver, Canada	*“AMISANO HANSON”*
June 10, 2005	Chartered Accountants

750 WEST PENDER STREET, SUITE 604	TELEPHONE:604-689-0188
VANCOUVER CANADA	FACSIMILE: 604-689-9773
V6C 2T7	E-MAIL: AMISHAN@TELUS.NET

PACIFIC HARBOUR CAPITAL LTD.

CONSOLIDATED BALANCE SHEETS

March 31, 2005 and 2004

(Stated in Canadian Dollars)

	2005			2004
ASSETS

Current
Cash and cash equivalents	$	361,104		$	156,333
Marketable securities - Note 3		272,130			-
Prepaid expenses and deposits		19,533			17,084
Promissory note receivable		-			840,335
Land held for resale - Note 4		312,646			306,867
Investment - Note 7		4,999			240,000

		970,412			1,560,619
Advances to a related company - Note 9		-			18,928
Capital assets - Note 5		27,732			29,538

	$	998,144		$	1,609,085

LIABILITIES

Current
Accounts payable and accrued liabilities - Note 9	$	176,876		$	330,171
Current liabilities of discontinued operations - Note 6		28,958			28,958

		205,834			359,129

SHAREHOLDERS’ EQUITY

Share capital - Note 8		7,616,876			7,616,876
Contributed surplus - Note 8		202,886			202,886
Deficit		(7,027,452	)		(6,569,806	)

		792,310			1,249,956

	$	998,144		$	1,609,085

Commitments and Contingency - Notes 8 and 12

APPROVED BY THE DIRECTORS:


“Tom Pressello”	Director	“Lisa Reynolds”	Director

SEE ACCOMPANYING NOTES

PACIFIC HARBOUR CAPITAL LTD.

CONSOLIDATED STATEMENTS OF LOSS

for the years ended March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars)

	2005			2004			2003

Revenues
Interest income - Note 9	$	17,063		$	22,873		$	7,283
Royalty income - Note 9		-			10,377			18,763
Other income		-			-			10,322

		17,063			33,250			36,368
General and administrative expenses - Schedule II		420,124			505,196			624,503

Loss before other items		(403,061	)		(471,946	)		(588,135	)

Other items:
Foreign exchange gain (loss)		(63,117	)		50,276			28,785
Gain on sale of marketable securities		20,551			-			-
Gain on settlement of accounts payable		67,981			-			-
Gain on forgiveness of debt		-			-			41,299
Gain (loss) on sale of land held for resale - Note 4		-			(1,119,067	)		532,122
Legal settlement cost - Note 12		(80,000	)		-			-
Management severance costs		-			-			(250,000	)
Write-down of investment - Note 7		-			(60,000	)		-

		(54,585	)		(1,128,791	)		352,206

Loss from continuing operations		(457,646	)		(1,600,737	)		(235,929	)

Income (loss) from discontinued operations - Schedule I		-			(50,097	)		162,958

Net loss for the year	$	(457,646	)	$	(1,650,834	)	$	(72,971	)

Basic and diluted loss per share from continuing operations	$	(0.06	)	$	(0.21	)	$	(0.03	)

Basic and diluted income (loss) per share from discontinued operations	$	(0.00	)	$	(0.01	)	$	0.02

Basic and diluted loss per share for the year	$	(0.06	)	$	(0.22	)	$	(0.01	)

Weighted average number of shares outstanding		7,247,703			7,247,703			6,979,397

SEE ACCOMPANYING NOTES

PACIFIC HARBOUR CAPITAL LTD.

CONSOLIDATED STATEMENTS OF DEFICIT

for the years ended March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars)

	2005			2004			2003

Deficit, beginning of the year	$	(6,569,806	)	$	(4,716,086	)	$	(4,643,115	)

Change in accounting policy - Note 2		-			(202,886	)		-

Net loss for the year		(457,646	)		(1,650,834	)		(72,971	)

Deficit, end of the year	$	(7,027,452	)	$	(6,569,806	)	$	(4,716,086	)

SEE ACCOMPANYING NOTES

PACIFIC HARBOUR CAPITAL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

for the years ended March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars)

	2005			2004			2003
Operating Activities
Loss from continuing operations	$	(457,646	)	$	(1,600,737	)	$	(235,929	)
Non-cash items
Amortization		9,006			11,388			7,428
Finance fees		-			-			12,250
Foreign exchange		(7,200	)		9,166			(31,519	)
Gain on forgiveness of debt		-			-			(41,299	)
Gain on sale of marketable securities		(20,551	)		-			-
Gain on settlement of accounts payable		(67,981	)		-			-
Loss (gain) on sale of land held for resale		-			1,119,067			(532,122	)
Write-down of investment		-			60,000			-
Changes in non-cash working capital balances - Note 10		(87,763	)		(350,263	)		143,824

		(632,135	)		(751,379	)		(677,367	)

Financing Activities
Decrease in loans payable		-			(1,068,000	)		(21,000	)
Repayment of mortgage payable		-			(349,395	)		(48,851	)
Decrease in restricted cash		-			-			4,000

		-			(1,417,395	)		(65,851	)

Investing Activities
Advances from (to) a related company		18,928			(18,928	)		-
Purchase of investment		-			-			(300,000	)
Purchase of marketable securities		(295,101	)		-			-
Proceeds on sales of marketable securities		43,522			-			-
Proceeds from promissory note receivable and investment		1,075,336			-			-
Expenditure on land held for development		-			-			(75,092	)
Expenditure on land held for resale		(5,779	)		(53,330	)		(14,388	)
Net proceeds from sale of land held for resale		-			2,492,380			768,570
Decrease (increase) in capital assets		-			320			(47,277	)
Increase (decrease) in advances from discontinued operations		-			(281,003	)		568,956

		836,906			2,139,439			900,769

…/cont’d

SEE ACCOMPANYING NOTES

Continued

PACIFIC HARBOUR CAPITAL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

for the years ended March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars)

	2005		2004			2003

Increase (decrease) in cash from continuing operations		204,771		(29,335	)		157,551
Decrease in cash from discontinued operations - Note 6		-		(2,565	)		(37,514	)

Increase (decrease) in cash during the year		204,771		(31,900	)		120,037

Cash and equivalents, beginning of the year		156,333		188,233			68,196

Cash and equivalents, end of the year	$	361,104	$	156,333		$	188,233

Cash and equivalents, is comprised as follows:
Cash and equivalents - continuing operations	$	361,104	$	156,333		$	185,668
- discontinued operations		-		-			2,565

Cash and equivalents, end of the year	$	361,104	$	156,333		$	188,233


Supplemental disclosure of cash flow information:
Cash paid for:
Income taxes	$	-	$	-		$	-

Interest	$	-	$	75,989		$	78,509

Non-cash Transactions - Note 13

SEE ACCOMPANYING NOTES

PACIFIC HARBOUR CAPITAL LTD.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

for the years ended March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars)

								Deficit
								Accumulated
	Common Stock							During the
	Issued					Contributed		Development
	Shares			Amount		Surplus		Stage			Deficit			Total

Balance, March 31, 2002		13,040,345		$	7,469,567	$	-	$	(435,527	)	$	(4,207,588	)	$	2,826,452
Pursuant to debt settlement agreements - at $0.10		1,040,210			104,021		-		-			-			104,021
2:1 share consolidation		(7,040,269	)		-		-		-			-			-
Pursuant to bridge loan fees - at $0.35		35,000			12,250		-		-			-			12,250
Pursuant to debt settlement agreements - at $0.18		172,435			31,038		-		-			-			31,038
Net loss for the year		-			-		-		-			(72,971	)		(72,971	)

Balance, March 31, 2003		7,247,703			7,616,876		-		(435,527	)		(4,280,559	)		2,900,790
Change in accounting policy - Note 2		-			-		202,886		-			(202,886	)		-
Net loss for the year		-			-		-		-			(1,650,834	)		(1,650,834	)

Balance, March 31, 2004		7,247,703			7,616,876		202,886		(435,527	)		(6,134,279	)		1,249,956
Net loss for the year		-			-		-		-			(457,646	)		(457,646	)

Balance, March 31, 2005		7,247,703		$	7,616,876	$	202,886	$	(435,527	)	$	(6,591,925	)	$	792,310

SEE ACCOMPANYING NOTES

Schedule I

PACIFIC HARBOUR CAPITAL LTD.

CONSOLIDATED STATEMENTS OF INCOME FROM DISCONTINUED OPERATIONS

for the years ended March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars)

	2005		2004			2003
Revenues
Convenience store sales	$	-	$	-		$	384,460
Interest income		-		-			7,082
Vehicle leases and sales, net		-		-			617,972
Other income		-		4,715			12,348

		-		4,715			1,021,862

Costs of sales
Convenience store cost of sales		-		-			363,561
Amortization - leased vehicles		-		-			231,553

		-		-			595,114

Income before general and administrative expenses		-		4,715			426,748

General and administrative expenses - Schedule III		-		(54,812	)		552,643

Loss before other items		-		(50,097	)		(125,895	)

Other items
Loss on disposal of vehicle leasing assets - Note 6		-		-			(200,525	)
Gain on disposal of convenience store assets - Note 6		-		-			489,378

		-		-			288,853

Income (loss) from discontinued operations	$	-	$	(50,097	)	$	162,958

SEE ACCOMPANYING NOTES

Schedule II

PACIFIC HARBOUR CAPITAL LTD.

CONSOLIDATED SCHEDULES OF GENERAL AND ADMINISTRATIVE EXPENSES

for the years ended March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars)

	2005			2004			2003

Accounting and audit fees	$	10,375		$	15,200		$	19,800
Administration recovery - Note 9		(57,500	)		(24,000	)		-
Amortization - capital assets		9,006			11,388			7,428
Bad debts - Note 9		-			26,306			-
Bank charges		577			1,348			2,221
Consulting and management fees - Note 9		102,071			107,500			121,000
Corporate administration fees		26,720			26,983			55,289
Filing fees		7,105			8,571			18,365
Finance fees		-			-			12,250
Interest - Note 9		-			86,511			93,529
Legal and professional fees - Note 9		138,687			24,176			138,521
Office and general		30,714			24,690			23,664
Promotion and advertising		6,130			28,780			2,089
Rent and utilities		69,951			70,807			67,407
Shareholder information and investor relations		4,714			2,584			12,607
Transfer agent fees		2,748			4,897			7,247
Travel and entertainment		5,659			3,305			4,259
Wages and benefits - Note 9		63,167			86,150			38,827

	$	420,124		$	505,196		$	624,503

SEE ACCOMPANYING NOTES

Schedule III

PACIFIC HARBOUR CAPITAL LTD.

CONSOLIDATED SCHEDULES OF GENERAL AND ADMINISTRATIVE EXPENSES FROM DISCONTINUED OPERATIONS

for the years ended March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars)

	2005		2004			2003

Accounting and audit fees	$	-	$	-		$	874
Amortization - capital assets		-		-			4,368
Bad debts (recovery)		-		(42	)		51,459
Bank charges		-		220			11,813
Convenience store expenses		-		-			6,033
Interest		-		32,500			108,085
Legal and professional fees		-		4,633			6,445
Management fees		-		-			2,598
Office and general		-		617			89,001
Promotion and advertising		-		-			31,293
Rent, property taxes and utilities		-		-			38,138
Travel and entertainment		-		-			4,262
Vehicle leasing expenses		-		-			27,504
Wages and benefits		-		16,884			170,770

	$	-	$	54,812		$	552,643

SEE ACCOMPANYING NOTES

PACIFIC HARBOUR CAPITAL LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars)

Note 1

Nature of Operations - Note 6

Pacific Harbour Capital Ltd., formerly Venture Pacific Development Corporation, is a public company, which was incorporated on March 8, 1986 under the British Columbia Business Corporations Act. Its common shares are traded on the TSX Venture Exchange and on the OTC Bulletin Board. The Company's primary business is investments. During the year ended March 31 2004, the Company, through a wholly-owned US subsidiary, disposed of its principal asset, a parcel of land located in Pahrump, Nevada.

During the year ended March 31, 2003, a subsidiary of the Company disposed of its assets relating to the vehicle leasing business and the Company disposed of its 50% joint venture interest in the Pemberton Junction gas station/convenience store. The operation of the vehicle leasing business and the joint venture interest are presented as discontinued operations within these consolidated financial statements.

Note 2

Significant Accounting Policies

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in Canada. Differences with respect to accounting principles generally accepted in the United States are described in Note 14. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates that have been made using careful judgement. Actual results may differ from these estimates.

The consolidated financial statements have, in management’s opinion, been properly prepared within the framework of the significant accounting policies summarised below:

Principles of Consolidation

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. The Company’s 50% interest in the Pemberton Junction Store Joint Venture (Note 6) is accounted for on the proportionate consolidation basis, whereby the consolidated accounts include 50% of the assets, liabilities and results of operations of the joint venture. All inter-company transactions have been eliminated.

All significant inter-company transactions and balances have been eliminated.

Cash and Cash Equivalents

The Company considers cash on hand, deposits in banks and highly liquid investments to be cash and cash equivalents.

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page 2

Note 2

Significant Accounting Policies - (cont’d)

Marketable Securities

Marketable securities are carried at the lower of cost and fair market value.

Land Held for Resale

Land held for resale is carried at the lower of cost and net realizable value. The cost of the land includes certain direct and indirect costs including property taxes. To the extent that costs are determined to exceed net realizable value they will be written down accordingly.

Capital Assets and Amortization

Capital assets are recorded at cost. Amortization has been calculated using the following annual rates and methods:

Computer equipment	30% declining balance
Office furniture	20% declining balance
Software	50% declining balance

Investment

Investment is carried at cost. To the extent that cost exceeds net realizable value it will be written down accordingly.

Basic and Diluted Loss per Share

Basic earnings or loss per share are computed by dividing the loss for the year by the weighted average number of common shares outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if potentially dilutive securities were exercised or converted to common stock. The dilutive effect of options and warrants and their equivalent is computed by application of the treasury stock method and the effect of convertible securities by the “if converted” method. Fully diluted amounts are not presented when the effect of the computations are anit-dilutive due the losses incurred. Accordingly, there is no difference in the amounts presented for basic and diluted loss per share.

Foreign Currency Translation

Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars at rates of exchange in effect at the date of the consolidated balance sheet. Non-monetary assets, liabilities and other items recorded in income arising from transactions denominated in foreign currencies, are translated at rates of exchange in effect at the date of the transaction. Resulting exchange gains or losses are included in income when incurred.

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page 3

Note 2

Significant Accounting Policies - (cont’d)

Fair Value of Financial Instruments

The carrying values of cash and cash equivalents, promissory note receivable and accounts payable and accrued liabilities approximate fair value because of the short-term maturity of those instruments. Marketable securities exceed their stated cost as disclosed in Note 3. The fair value of investment and advances to a related company also approximates their carrying amounts. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.

Income Taxes

The Company accounts for income taxes by the asset and liability method. Under this method, current income taxes are recognized for the estimated income taxes payable for the current period. Future income tax assets and liabilities are recognized for temporary differences between the tax and accounting basis of assets and liabilities as well as for the benefit of losses available to be carried forward to future years for tax purposes that are more likely-than-not to be realized.

Revenue Recognition

Revenue from royalties is recognized as it is earned and when collection is reasonably assured.

Stock-based Compensation

On April 1, 2003, the Company adopted the amended CICA Handbook Section 3870 - “Stock-based Compensation and Other Stock-based Payments”.

Under this amended standard, the Company must account for compensation expense based on the fair value of rights granted under its stock-based compensation plan. Under this method, compensation costs attributable to share options granted to employees, directors or officers is measured at fair value at the grant date, and expensed over the vesting period with a corresponding increase to contributed surplus. Upon exercise of stock options, consideration paid by the option holder, together with the amount previously recognized in contributed surplus, is recorded as an increase to share capital.

Previously, the Company accounted for stock-based compensation to employees, directors and officers using the settlement method. No compensation costs were recorded in the financial statements for stock options granted as the options had no intrinsic value at the date of grant. Consideration paid by employees, directors and officers on the exercise of stock options and purchase of stock is credited to share capital.

As a result of this change on April 1, 2003, contributed surplus and deficit increased by $202,886.

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page 4

Note 3

Marketable Securities

At March 31, 2005, the Company held the following shares of publicly traded companies:

					March 31,
					2005 Fair
	Number of		Original		Market
	Shares		Cost		Value

Southern Silver Exploration Corp.		400,000	$	40,000	$	256,000
Inovio Biomedical Corp.		20,000		70,966		72,576
Minterra Resources Corp.		500,000		105,000		135,000
Baja Mining Corp.		76,000		48,767		45,600
Cypress Development Corp.		50,000		7,397		5,404

			$	272,130	$	514,580

The Company acquired 76,000 common shares of Baja Mining Corp. which has a director in common with the Company.

Note 4

Land Held for Resale

As at March 31, 2003, the Company held three parcels of land located in Pemberton, British Columbia in three separate subsidiary companies and a parcel of land located in Pahrump, Nevada through a wholly-owned US subsidiary. One of the Pemberton land parcels was disposed of during the year ended March 31, 2003. During the 2004 fiscal year, the Pahrump, Nevada land parcel was disposed of and the Company realized a loss of $1,130,553, and another Pemberton land parcel was disposed of and the Company realized a gain of $11,486. As at March 31, 2005, the Company’s land held for resale consists of one Pemberton land parcel. The Company capitalized property taxes and other costs to these properties held for resale during the years ended March 31, 2005 and 2004 as follows:

	2005		2004

Balance, beginning of the year	$	306,866	$	4,696,197
Property taxes		5,780		26,463
Other costs		-		26,867

		312,646		4,749,527
Less: land sold during the year		-		(4,442,660	)

Current portion of land held for resale	$	312,646	$	306,867

Land held for resale is classified as a current asset as it is immediately available for sale.

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page 5

Note 5

Capital Assets

			2005				2004
			Accumulated
	Cost		Amortization		Net		Net

Computer equipment	$	31,056	$	15,634	$	15,422	$	15,065
Office furniture		20,635		9,057		11,578		14,473
Software		4,170		3,438		732		-

	$	55,861	$	28,129	$	27,732	$	29,538

Note 6

Discontinued Operations

On May 31, 2002, the Company sold its 50% interest in the Pemberton Junction Store (“PJS”). Income related to this joint venture has been disclosed as income from discontinued operations. The Company received total proceeds of $815,806 for its 50% joint venture interest resulting in a gain on sale of discontinued operations of $489,378.

On January 24, 2003 the Company sold the business and assets of its wholly owned subsidiary, Venture Pacific Vehicle LeaseCorp Inc. (“VPVL”) for $550,000 and recorded a loss of $200,525 on the sale. Losses related to VPVL have been disclosed as loss from discontinued operations.

The consolidated balance sheets include the following amounts related to discontinued operations of PJS and VPVL:

	2005		2004

Accounts payable	$	28,958	$	28,958

Current liabilities of discontinued operations	$	28,958	$	28,958

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page 6

Note 6

Discontinued Operations - (cont’d)

Cash flows from discontinued operations are as follows:

	2005		2004			2003

Operating Activities
Income (loss) from discontinued operations	$	-	$	(50,097	)	$	162,958
Non-cash items:
Amortization		-		-			235,921
Loss on disposal of leasing vehicle assets		-		-			200,525
Gain on disposal of store assets		-		-			(489,378	)
Deferred revenue		-		-			(9,866	)
Changes in non-cash working capital balances:
Accounts receivable		-		-			10,506
Inventory		-		-			107,392
Prepaid expenses and deposits		-		-			3,765
Accounts payable		-		(1,572	)		(127,414	)
Security deposits		-		-			(5,290	)

		-		(51,669	)		89,119

Financing Activities
Increase (decrease) in loans payable	$	-		(231,899	)		(768,101	)
Advances from (to) parent company		-		281,003			(568,956	)

		-		49,104			(1,337,057	)

Investing Activities
Proceeds from disposal of assets of PJS and VPVL		-		-			1,365,806
Purchase of capital assets		-		-			(1,650	)
Purchase of lease vehicles, net of sales		-		-			(88,138	)

		-		-			1,276,018

Increase (decrease) in cash		-		(2,565	)		28,080
Cash balance of PJS on disposal		-		-			(65,594	)

Increase (decrease) in cash from discontinued operations	$	-	$	(2,565	)	$	(37,514	)

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page 7

Note 7

Investment

On December 10, 2002, the Company entered into an investment agreement (the “Agreement”) with National Direct Response Marketing Canada Inc. (“NDRM”). Concurrent with entering into the Agreement, a director of the Company became a director of NDRM. NDRM is the owner and marketer of the Canadian Legal Will Kit, the American Legal Will Kit and other direct marketing products. The first two debenture advances by the Company required under the Agreement totalled $300,000 and bear interest at 8% per annum, payable quarterly. The investment also entitled the Company to earn royalty income based on each unit of the Canadian and American Legal Will Kit sold.

In May, 2004, the Company and NDRM entered into a full and final release agreement in which NDRM is released from any and all possible actions and future obligations that may become due under the Agreement for consideration of a total of $240,000 payable to the Company.

As at March 31, 2004, this investment was written down to its net recoverable amount of $240,000 and as at March 31, 2005, three instalments of $1,667 under the Release Agreement are due.

Note 8

Share Capital

Authorized:

100,000,000 common shares without par value

100,000,000 preferred shares without par value

Commitments:

Stock-Based Compensation Plan

From time to time, the Company grants incentive stock options to directors and employees to purchase common shares of the Company at market related prices.

As disclosed in Note 2, effective for the year ended March 31, 2004, the Company adopted the new policy to record the fair value of compensation expense on the granting of stock options. The fair value is determined using the Black-Scholes model. For the two years ended March 31, 2005, the Company recorded no compensation charge as no stock options were granted during these years. As at March 31, 2004 $202,886 related to amounts vested after January 1, 2002 have been recognized by retroactive restatement.

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page 8

Note 8

Share Capital - (cont’d)

Commitments: - (cont’d)

Stock-Based Compensation Plan - (cont’d)

The following assumptions were used for the Black-Scholes model:

	2005		2004		2003

Weighted average fair value of options granted		-		-	$	0.22-$0.41
Risk free rates		-		-		3.93	%
Dividend yield		-		-		0.0	%
Expected volatility		-		-		136%-145	%
Weighted average expected stock option life		-		-		5 yrs

Information regarding the Company’s outstanding stock options is summarized as follows:

	Number			Price Range

Outstanding and exercisable at March 31, 2003		934,528			$0.24-$1.00
Cancelled		(7,500	)		$0.80

Outstanding and exercisable at March 31, 2004		927,028			$0.24-$1.00
Expired		(48,000	)		$1.00

Outstanding and exercisable at March 31, 2005		879,028			$0.24

On March 31, 2005, there were 879,028 employee and director share purchase options outstanding entitling the holders thereof the right to purchase one common share for each option held as follows:

Number of	Exercise
Shares	Price	Expiry Date

829,028	$0.24	November 27, 2007
50,000	$0.30	December 16, 2007

879,028

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page 9

Note 9

Related Party Transactions - Notes 3 and 7

For the years ended March 31, 2005, 2004 and 2003, the Company earned the following revenues from a company with a common director and was charged the following expenses by directors or companies with common directors:

	2005			2004			2003

Interest income	$	-		$	12,000		$	5,986
Royalty income		-			10,377			18,763

	$	-		$	22,377		$	24,749

Administration recovery	$	(57,500	)	$	(24,000	)	$	-
Bad debts		-			20,907			-
Consulting and management fees		89,640			107,500			121,000
Interest		-			1,324			2,011
Legal and professional fees		3,012			907			94,739
Wages and benefits		-			32,000			28,000

	$	35,152		$	138,638		$	245,780

These charges were measured by the exchange amount, which is the amount agreed upon by the transacting parties.

Advances to a related company of $Nil (2004: $18,928) were unsecured, non-interest bearing and had no specific terms for repayment.

Included in accounts payable and accrued liabilities is $75 (2004: $25,813) owed to directors of the Company or to companies with common directors. These balances are unsecured, non-interest bearing and have no specific terms for repayment.

Note 10

Changes in Non-Cash Working Capital Balances

	2005			2004			2003

Accounts receivable	$	-		$	102		$	7,995
Prepaid expenses and deposits		(2,449	)		1,716			(747	)
Accounts payable		(85,314	)		(112,642	)		(95,435	)
Due to related parties		-			10,561			(17,989	)
Severance obligation		-			(250,000	)		250,000

	$	(87,763	)	$	(350,263	)	$	143,824

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page10

Note 11

Corporation Income Tax Losses

Future tax assets and liabilities are recognized for temporary differences between the carrying amount of the balance sheet items and their corresponding tax values as well as for the benefit of losses available to be carried forward to future years for tax purposes that are likely to be realized.

Significant components of the Company’s future tax assets and liabilities, after applying enacted corporate income tax rates, are as follows:

	2005			2004

Future income tax assets
Net tax losses carried forward	$	2,307,265		$	2,306,717
Less: valuation allowance		(2,307,265	)		(2,306,717	)

	$	-		$	-

The Company recorded a valuation allowance against its future income tax assets based on the extent to which it is more likely-than-not that sufficient taxable income will be realized during the carry forward periods to utilize all the future tax assets.

At March 31, 2005, the Company and its subsidiaries have accumulated non-capital losses of approximately $6,592,187 which may be carried forward to reduce future years income for Canadian and United States of America income tax purposes. These losses, the potential benefit of which have not been recognized in these financial statements, expire as follows:

2007	$	477,222
2008		605,620
2009		1,341,443
2010		1,252,859
2011		1,032,382
2012		476,079
2013		533,991
2014		522,051
2025		350,540

	$	6,592,187

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page 11

Note 12

Commitments and Contingency - Note 8

The Company is committed to future minimum payments under an operating lease for office space as follows:

Year ended March 31, 2006	$	62,495
2007		62,495

	$	124,990

During the year ended March 31, 2005, the Company settled a legal dispute with a former employee regarding a finder’s fee claim originating in 1998, including accrued interest, for $80,000.

Note 13

Non-cash Transactions

Investing and financing activities that do not have a direct impact on current cash flows are excluded from the statement of cash flows. The following transactions have been excluded from the statement of cash flows:

During the year ended March 31, 2004, the Company disposed of certain land held for resale and consideration received included a promissory note receivable totalling $840,335.

During the year ended March 31, 2003:

the Company issued 1,040,210 common shares at $0.10 per share to settle accounts payable totalling $104,021.

the Company issued 172,435 common shares at $0.15 per share to settle accounts payable totalling $31,038.

the Company issued 35,000 common shares at $0.35 per share pursuant to bridge loan fees totalling $12,250.

Note 14

Differences between Canadian and US Generally Accepted Accounting Principles

These consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in Canada which differ in certain respects with those principles and practices that the Company would have followed had its financial statements been prepared in accordance with GAAP in the United States of America.

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page 12

Note 14

Differences between Canadian and US Generally Accepted Accounting Principles

- (cont’d)

The material differences between Canadian and US GAAP which affect the Company’s results of operations and financial position are summarized as follows:

Accounting for Start-up Activities

Under US GAAP, the balances capitalized as deferred development costs incurred on the land held for development would not be eligible for capitalization and would be expensed as incurred.

Accounting for Capitalized Holding Costs

Under US GAAP, the carrying costs of holding properties including property taxes would not be eligible for capitalization to the properties held for resale and would be expensed as incurred.

Stock-based Compensation - Note 2

The Company grants stock options at exercise prices equal to the fair market value of the Company’s stock at the date of the grant. Pursuant to APB 25 and SFAS No. 143, the compensation charge associated with non-employees options has been recorded in reconciling items for the years ended March 31, 2003 and earlier. Subsequent to March 31, 2003, the Company has adopted the policy to expense all stock option benefits in accordance with SFAS No. 143 and to apply this change under the modified prospective method with no retroactive restatement of the prior year in accordance with the transitional provisions of SFAS No. 148. The Company has adjusted the opening Contributed Surplus (Additional paid-in capital) to reflect the cumulative expense of employee stock options previously reported on a pro forma basis.

Comprehensive Income

Under US GAAP, securities that are acquired principally for the purpose of selling them in the near term are classified as trading securities. Unrealized holding gains and losses for trading securities shall be included in earnings and reported for the period.

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page 13

Note 14

Differences between Canadian and US Generally Accepted Accounting Principles

- (cont’d)

The impact of these material differences on the consolidated financial statements is as follows:

	2005			2004			2003

Net loss for the year per Canadian GAAP	$	(457,646	)	$	(1,650,834	)	$	(72,971	)
Deferred costs (a)		-			-			(75,092	)
Capitalized holding costs (b)		(5,780	)		(4,914	)		(14,388	)
Unrealized gain on trading securities (d)		242,450			-			-
Prior years’ capitalized deferred and holding costs included in loss on sale of land held for resale		-			1,396,844			-

Net loss for the year per US GAAP	$	(220,976	)	$	(258,904	)	$	(162,451	)

Basic loss per share per US GAAP	$	(0.03	)	$	(0.03	)	$	(0.02	)

Balance Sheets

Total assets per Canadian GAAP	$	998,144		$	1,609,085		$	5,262,866
Deferred costs (a)		-			-			(1,498,334	)
Capitalized holding costs (b)		(10,694	)		(4,914	)		(101,396	)
Marketable securities increase (d)		242,450			-			-

Total assets per US GAAP	$	1,229,900		$	1,604,171		$	3,663,136

Total liabilities per Canadian and US GAAP	$	205,834		$	359,129		$	2,362,076

Shareholders’ Equity

Deficit, end of the year per Canadian GAAP	$	(7,027,452	)	$	(6,569,806	)	$	(4,716,086	)
Deferred costs (a)		-			-			(1,498,334	)
Capitalized holding costs (b)		(10,694	)		(4,914	)		(101,396	)
Stock-based compensation (c)		(35,600	)		(35,600	)		(35,600	)
Unrealized gain on trading securities (d)		242,450			-			-

Deficit, end of the year per US GAAP		(6,831,296	)		(6,610,320	)		(6,351,416	)
Share capital per Canadian and US GAAP		7,616,876			7,616,876			7,616,876
Contributed surplus (additional paid-in
capital)		202,886			202,886			-
Contributed surplus (c)		35,600			35,600			35,600

Shareholders’ equity per US GAAP	$	1,024,066		$	1,245,042		$	1,301,060

Pacific Harbour Capital Ltd.

Notes to the Consolidated Financial Statements

March 31, 2005, 2004 and 2003

(Stated in Canadian Dollars) - Page 14

Note 14

Differences between Canadian and US Generally Accepted Accounting Principles

- (cont’d)

	2005			2004			2003

Cash Flows

Cash flows used in operating activities per Canadian GAAP	$	(632,135	)	$	(751,379	)	$	(677,367	)
Deferred costs (a)		-			-			(75,092	)
Capitalized holding costs (b)		(5,780	)		(4,914	)		(14,388	)
Unrealized gain on trading securities (d)		242,450			-			-

Cash flows used in operating activities per US GAAP		(395,465	)		(756,293	)		(766,847	)

Cash flow provided by (used in) financing activities per Canadian and US GAAP		-			(1,417,395	)		(65,851	)

Cash flow provided by investing activities per Canadian GAAP		836,906			2,139,439			900,769
Expenditure on land held for development (a)		-			-			75,092
Expenditure on land held for resale (b)		5,780			4,914			14,388
Unrealized gain on marketable securities (d)		(242,450	)		-			-

Cash flows provided by investing activities per US GAAP		600,236			2,144,353			990,249

Increase (decrease) in cash from continuing activities per US GAAP		204,771			(29,335	)		157,551
Decrease in cash flows from discontinued operations for Canadian and US GAAP		-			(2,565	)		(37,514	)

Increase (decrease) in cash per US GAAP	$	204,771		$	(31,900	)	$	120,037

Oceanic Iron Ore (FEO) Inactive 20-F/A2005 FY Annual report (foreign) (amended)