In management's opinion, the accompanying consolidated financial statements of Enerplus Resources Fund (the "Fund") have been prepared within reasonable limits of materiality and in accordance with Canadian generally accepted accounting principles.   Since a precise determination of many assets and liabilities is dependent on future events, the preparation of financial statements necessarily involves the use of estimates and approximations. These have been made using careful judgement and with all information available up to February 24, 2005.   Management is responsible for all information in the annual report and for the consistency, therewith, of all other financial and operating data presented in this report.

To meet its responsibility for reliable and accurate financial statements, management has established and monitors systems of internal control which are designed to provide reasonable assurance that financial information is relevant, reliable and accurate, and that assets are safeguarded and transactions are executed in accordance with management's authorization.

The consolidated financial statements have been examined by Deloitte & Touche LLP, independent Chartered Accountants.   Their responsibility is to express a professional opinion on the fair presentation of the consolidated financial statements in accordance with Canadian generally accepted accounting principles.   The Auditors' Report outlines the scope of their examination and sets forth their opinion.  

The Audit Committee, consisting exclusively of independent directors, has reviewed these statements with management and the external auditors and has recommended their approval to the Board of Directors. The Board of Directors has approved the consolidated financial statements of the Fund.

"signed"
Gordon J. Kerr
President and Chief Executive Officer

"signed"
Robert J. Waters
Senior Vice President and Chief Financial Officer

Calgary, Alberta
February 24, 2005

AUDITORS' REPORT

To the Unitholders of Enerplus Resources Fund:

We have audited the consolidated balance sheets of Enerplus Resources Fund (the "Fund") as at December 31, 2004 and 2003 and the consolidated statements of income, accumulated income, accumulated cash distributions and cash flows for the years then ended. These financial statements are the responsibility of the Fund'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. 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 Fund as at December 31, 2004 and 2003 and the results of its operations and its cash flows for the years then ended in accordance with Canadian generally accepted accounting principles.

The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting.   Accordingly we express no such opinion.

"signed"
DELOITTE & TOUCHE LLP
Chartered Accountants
Calgary, Alberta
February 24, 2005

Signed on behalf of the Board of Directors:

"signed"
Douglas R. Martin
Director

"signed"
Robert L. Normand
Director

Consolidated Statements of Income

Consolidated Statements of Accumulated Income

Consolidated Statements of Cash Flows

Consolidated Statements of Accumulated Cash Distributions