APCFY Atlas Pacific

Atlas South Sea Pearl Ltd., formerly Atlas Pacific Ltd., operates as a pearl producer with operations in Indonesia and Australia. During the year ended December 31, 2005, the Company seeded over 390,000 oysters at Alyui Bay and Penyabangan (North Bali). The Bacan joint operation hatchery was finalized in October 2005, with a new venture in West Lombok taking its place to provide an alternative center for juvenile oyster production. The Banyupoh joint operation hatchery was terminated in September 2005, with Penyabangan taking over this production. The Company has increased its interest in Bali by opening a farm site at Karang Asem on Bali's east coast. The Company has also established a pearl oyster lease on Nusa Lembongan Island in the south of Bali. Almost 50,000 pearl oysters were seeded in Bali in 2005.