NORREP FLOW-THROUGH LIMITED PARTNERSHIP COMPLETES ASSET TRANSFER

CALGARY, October 2, 2001 – Norrep Flow-Through Limited Partnership (the "Partnership") announced that it completed the transfer of all of its assets to the Norrep II Fund Inc. (the "Fund") at 10:00 a.m. September 29, 2001.

The Partnership received an aggregate of 744,553 Mutual Fund Shares of the Fund with a net asset value of $10.00 per share in exchange for assets with a market value of approximately $7,445,533.

As a result of the transaction each limited partner of the Partnership will receive 0.7878 Mutual Fund Shares of the Fund for each limited partnership unit, based on a net asset value of $7.88 per unit. All net asset values were calculated as at close of business on September 28, 2001.

Mutual Fund Shares plus any remaining property of the Partnership will be distributed to limited partners within the next 60 days. The Fund anticipates that it will be filing a preliminary simplified prospectus and annual information form within the next 10 days.

Norrep Inc. is the manager of the Fund. The portfolio manager is Hesperian Capital Management Ltd. who was also the portfolio manager for the Partnership.

For further information: Randal L. Oliver CFA, (403) 531-2650. randy@hesperiancaptial.com