Phoenix Associates Land Syndicate (fka PBLSQ)

[Wonway]

Phoenix Associates Releases Unaudited Balance Sheet for Year Ended December 31, 2004

COVINGTON, LA--(MARKET WIRE)--Aug 3, 2005 -- Phoenix Associates Land Syndicate (Phoenix) (Other OTC:PBLS.PK - News) today announced that Dennis Kowalski of Kowalski & Associates has completed an initial review of the Company's Balance Sheet for the period ended December 31, 2004. This balance sheet, while unaudited, represents that the total stockholders equity (net worth) of Phoenix is about $39.7 million. Mr. Kowalski's firm has been contracted to audit 2003, 2004, and 2005 and will work in conjunction with the law firm of Dickinson/Wright to help make Phoenix a fully reporting company by mid to late 2006.
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As indicated by Mr. Kowalski, this unaudited compilation consists of presenting, in the form of financial statements, information that is provided by and is the representation of management. He has not audited the accompanying financial statement and, accordingly he does not express an opinion or any other form of assurance regarding the statement. It is management's intent that a full audit be performed for the years ended December 31, 2003, December 31, 2004 and December 31, 2005. It is anticipated that the audits for the years 2003, 2004 and 2005 will begin in the fourth quarter of 2005. Management does not anticipate material changes as a result of the upcoming audit.

Mr. Kowalski indicated that management elected to omit at this time, with the exception of those listed below, all disclosures and accompanying footnotes, until such time as the audits are performed. As a result, the attached unaudited balance sheet for the year ended December 31, 2004 is not designed for those who are not informed about such matters.

* Land access: consists of a rights agreement initiated on August 29, 1997, including (5) five-year renewals into 2023.

* Depletable property: a percentage of proven mineral reserves totaling $266,000,000.

Paul Alonzo, CEO of Phoenix, stated, "I have made the decision to release this preliminary balance sheet information in the spirit of providing as much information to our investors as can reasonably be made available on a timely basis, as we prepare for the full audit of our financials, and work toward Phoenix becoming a fully reporting company. We are pleased that this preliminary information provides an indication to our shareholders that Phoenix has a net worth of about $39.7 million, based on what we believe to be conservative estimates of the full value of our mineral rights."

Phoenix Associates Land Syndicate
Consolidated Balance Sheet
(Unaudited)
As of December 31, 2004

Assets
Current Assets:
Cash and cash equivalents 60,676
Accounts receivable 83,000
Inventories 9,500,000
---------------------
Total current assets 9,643,676

Fixed assets:
Property, plant & equipment 1,918,300
Accumulated depreciation (455,490)
Land access * 850,000
Accumulated depreciation (238,000)
Depletable property * 26,000,000
Accumulated depletion (6,240,000)
Leasehold improvements 18,527,500
Accumulated depreciation (4,323,083)
---------------------
Total fixed assets 36,039,227

Other assets:
Prepaid expenses 0
---------------------
Total other assets 0
Total assets 45,682,903
=====================

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable 6,382
Current portion of long term debt 0
Other current liabilities 741,467
Other accrued expenses 7,425
---------------------
Total current liabilities 755,274

Non-current liabilities
Note payable - stockholder 378,176
Interest payable 30,765
Other non-current liabilities 4,859,382
---------------------
Total non-current liabilities 5,268,323

Stockholders' equity
Preferred stock - affiliates 5,045,000
Common stock, .01 par value, 214,402,969
shares issued at December 31, 2004 2,144,030
Paid - in - capital 33,327,719
Retained earnings (857,443)
---------------------
Total stockholders' equity 39,659,306
Total liabilities and
stockholders' equity 45,682,903
=====================
Notes to accompanying statement of assets, liabilities and stockholders' equity:

Phoenix Associates Land Syndicate

(PBLS) OTC Pink Sheets

I have compiled the accompanying statement of assets, liabilities and stockholders' equity in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.

A compilation consists of presenting in the form of financial statements, information that is provided by, and the representation of management. I have not audited the accompanying financial statement and, accordingly, do not express an opinion or any other form of assurance regarding the statement. It is management's intent that a full audit be performed for years ended December 31, 2004 and December 31, 2005. It is anticipated that the audits for years 2004 and 2005 will begin in the fourth quarter of 2005. Management does not anticipate material changes as a result of the upcoming audit.

Management has elected to omit at this time, with the exception of those listed below, all disclosures and accompanying footnotes, until which time as the audits are performed. As a result, this financial statement is not designed for those who are not informed about such matters.

Land access: consists of a rights agreement initiated on August 29, 1997, including (5) five-year renewals into 2023.

Depletable property: a percentage of proven mineral reserves totaling $266,000,000.



Contact:
For More Information Contact:
Ron Blackburn
[phone]
Email Contact

Mike Mulshine
Osprey Partners
[phone]
Email Contact

KOWALSKI & ASSOCIATES
3230 Central Park West. Suite 202
Toledo, Ohio 43617
Office: 419.517.4847
Fax: [phone]


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