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For Immediate Release

TECHPACIFIC CONFIRMS GAS DISCOVERY

Drilling has been successfully completed at Millrich Properties LLC ＃1
well on the 4,500 acre Big Mouth Bayou property

The indications are that the Big Mouth property is a prolific gas
containing area at multiple depths, that may be exploited by a multi-well system

Existing infrastructure will enable early production from gas discoveries

Production scheduled for the first quarter of 2007 from the CR Sands
with initial flow rates estimated at a minimum of 15mmcf to 20mmcf per
day from this first well, leading to strong cashflow on a sustained basis

■Background

Hong Kong, July 14, 2006 ＆＃8211; Techpacific Capital Limited (“Techpacific” ＆＃8211; HK GEM
8088) today confirmed the completion of drilling of the Millrich Properties LLC ＃1
well on the 4,500 acre Big Mouth Bayou prospect, and announced that the operator of
the well, Pel-Tex Oil Company, LLC, plans to bring the well into production from the
CR sands by the first quarter of 2007. The CR sands are currently estimated to contain
between 10bcf and over 100bcf of gas, although the joint venture partners believe that
this estimate may be revised upwards once mapping of the CR sands’ reservoir has
been completed.

■The Millrich Properties LLC ＃1 Well

The well has been drilled to a total depth of 19,490 feet (5,940 metres).
A number of oil and gas bearing sands have been encountered during the drilling
process, and after a period of review and study of the extensive data that has been
acquired, the operators have recommended that the gas bearing sands referred to as CR
sands, which occurred at a depth of approximately 15,400 feet, should be bought into
production from this well.

■The CR Sands

The CR sands extend over an area of several hundred acres and it is estimated that a
further development well, or wells, may be required to fully exploit the reserves that
have already been identified. At this stage the operators estimate that gas from the
well will flow at a minimum rate of 15mmcf to 20mmcf per day, which translates into
strong cashflows over a sustained period. We will be able to confirm the actual gasflow
rates, and the full extent of the reserves contained in the CR sands, once
production has started. There are early signs that the original forecast estimate of
reserves from the CR sands may be increased once all data has been analysed.
Cashflow will be enhanced once additional wells are drilled to exploit this exciting
discovery.

■Other Sands discovered in this well and the impact on the lease area as a whole

Other than the CR sands, data gathered from drilling the Millrich Properties LLC ＃1
well confirmed the existence of extensive sands in the Camerina and Miogyp areas.
This data continues to be analysed in order to prepare a longer term development
programme through a multi-well system that will cover the 4,500 acre Big Mouth
Bayou project. This analysis, as well as the necessary mapping processes, will take a
few months, and will enable us to produce an improved estimate of the reserves
contained in the overall lease area (encompassing the CR sands that have been
discovered, possible other CR sand prospects, and deeper prospects from the Camerina,
Miogyp and even deeper areas that have been identified as a result of this well).
Techpacific will endeavour to provide the market with an estimate of reserves that
may be contained in the Big Mouth Bayou property as soon as this information
becomes available. Techpacific also confirms that it will retain an independent reserve
auditor to provide a thorough report on reserves arising from the Millrich Properties
LLC ＃1 well as soon as it is practical to do so.

■Techpacific’s portfolio

Techpacific has a direct 35% interest in the Big Mouth Bayou prospect area, and an
additional indirect 7.8% working interest (through its holding in Crosby Capital
Partners), in the Big Mouth Bayou prospect. Techpacific also has a similar interest in
the North West Kaplan prospect that is expected to commence drilling in August. The
larger and more extensive Endeavor project area, in which Techpacific also has a
similar interest, will be drilled later in 2006.

■Management Comment

Johnny Chan, Chief Executive Officer, commented: “We are extremely pleased to
announce such a significant discovery, and that from the first well to be drilled on the
first prospect in our portfolio. The Millrich Properties LLC ＃1 well will not only
provide us with substantial cashflow and an immediate increase in our value of our
assets in the near term, but we will also look forward to exploiting the invaluable
information gained through the drilling process, including the precise location and
nature of the deeper sands, and are planning a series of development and other wells
across the Big Mouth Bayou lease area. Our shareholders can take great comfort from
the strong cashflow from this first well, secure in the knowledge that this will only be
enhanced by another well on the CR sands, which of course means that the rest of this
increasingly important part of our portfolio can now be developed without capital risk.
At current prices, and assuming a gas-flow rate of 20mmcf per day, we can expect just
this well alone to generate approximately US$44million a year in gross terms, for a
number of years, showing just how valuable it is to own producing oil and gas assets
in the United States”

He added: “It is also very encouraging for the future success of our joint venture that
Lodore and Pel-Tex are proving to be such strong technical partners. As a team they
have great experience in this part of the world, especially in the deep zones which are
the next frontier for hydrocarbon development. During the drilling of this well they
have overcome some major engineering challenges, and have demonstrated an
exceptional understanding of the geology of the area. This is the second well they have
drilled in the past 12 months, and the second discovery of commercially exploitable
gas. Due to the availability of rigs, it looks as if we will commence drilling at NW
Kaplan before drilling on the Big Mouth Bayou property again, and there is every
chance that NW Kaplan will also be a success as it is a prospect that has strong “PUD”
like characteristics. The cumulative value of these properties in Louisiana now looks
very substantial, especially in relation to our market capitalization.”

■About Techpacific

Techpacific is an independent merchant banking and asset management and direct
investment group listed on the Hong Kong Stock Exchange’s GEM board (HK GEM
8088), with offices in China, Singapore, Indonesia, the United Kingdom and
representation in other parts of Asia. The Group operates the following lines of
business:

i) The Techpacific Business ＆＃8211; an investment company that holds direct
investments and also manages a venture capital fund with technology focus.
www.techpacific.com
ii) The Crosby Business ＆＃8211; a leading independent, deal-focused, Asia-oriented
merchant banking and asset management business. These activities are
carried out by Crosby Capital Partners Inc. (“Crosby”) and its subsidiaries.
Crosby is quoted on London’s Alternative Investment Market (CSB LN).
www.crosby.com

■Contact:

Johnny Chan, Chief Executive Officer, Hong Kong +852 2169 2888
Martin Angus, Chief Financial Officer, Hong Kong +852 2169 2826