Section 75(2) of the Securities Act (Ontario)
Section 118(1) of Securities Act (Alberta)
Section 85(1) of the Securities Act (British Columbia)

Item 1.		Reporting Issuer

Suite 301, Toronto, Ontario, M5H 1L6.

Item 2.		Date of Material Change

January 15, 2002.

Item 3.		Press Release

The Press Release was disseminated via BCE Emergis
via North American Disclosure on January 15, 2002.

Item 4.		Summary of Material Change

The Company issued a Press Release, attached hereto
as Exhibit "A".

Item 5.		Full Description of Material Change

No information other than that provided in Item 4
above is presently available.

Item 6.		Reliance on Section 75(3) of the Act

Confidentiality is not requested.

Item 7.		Omitted Information

No information has been omitted in respect of the
material change.

Item 8.		Senior Officer

Sandra J. Hall, Secretary  (416) 861-1484.

Item 9.		Statement of Senior Officer

The foregoing accurately discloses the material
changes referred to herein.

DATED at Toronto, Ontario this 15th day of January, 2002.


Per:  "Sandra J. Hall"

Exhibit "A"


Toronto, January 15, 2002. Energy Power Systems Limited (OTC BB: EYPSF,
Frankfurt Stock Exchange: EPW) ( ("Energy Power" or the
"Company") announces its participation in a natural gas test well on trend
with a major dolomitic reef formation in the Mearon/Ladyfern  area along the
Alberta and British Columbia border. The drilling location has been defined
by a 3D seismic anomaly and the test well is expected to be drilled to a
depth of approximately 9,186 feet (2,800 meters) to encounter the Devonian
Slave Point formation.
The Ladyfern/Mearon Prospect located in Township 93, Ranges 12 and 13 W6M
consists of 2 sections of land (1,280 gross acres). Energy Power has a 25%
participating interest in the test well, with a 17.5% interest until payout
and a 12.5% interest after payout in the test well and earns a 12.5% interest
in the earned section.
The Ladyfern/Slave Point gas pool in north-central Alberta and British
Columbia is being heralded as one of Western Canada's most prolific natural
gas discoveries in 15 years. The Ladyfern/Slave Point gas field was
discovered during the winter of 2000 and land sales during the years 2000 and
2001 at Ladyfern exceeded CDN $65 million. Recent industry reports estimate
the field to be up to 150 square kilometres in area with proven recoverable
reserves of 600 billion cubic feet (600 Bcf) and possible reserves of up to a
trillion cubic feet (1 Tcf) of gas in place. The Ladyfern/Slave Point
reservoir rock is leached, fractured and hydrothermally-dolomized carbonate
reef complex that was extensively faulted creating reservoir section with
significant gas deliverability.  Recent Ladyfern wells within this reservoir
have tested deliverability of 2 million cubic feet per day (MMcf/d) to in
excess of 100 MMcf/d. Energy Power's drilling location is within 2 miles of
prolific Slave Point production and within 4 miles of a previously announced
discovery well producing at 60 MMcf/d.  The Ladyfern/Slave Point gas pool is
estimated to be producing at a current rate of approximately 600 MMcf/d.
Similar gas fields in the area include the Hamburg/Slave Point gas field to
the north with an estimated 490 Bcf original gas in place and the
Cranberry/Slave Point gas field to the east with an estimated 595 Bcf
original gas in place.
Sandra Hall, VP Corporate Affairs of Energy Power stated, "We are excited
with the opportunity to explore in one of the richest and most prolific on-
shore natural gas plays in Canada. Although the total drilling and completing
cost of this one test well could exceed CDN $3.0 million for the joint
interest holders we are pleased with the quality and extent of geology and
geophysics that went into preparing the prospect and identifying the drilling
location by all parties concerned.  Exploration drilling for oil and gas is
risky but the joint interest holders feel that we have applied all the best
skills and latest techniques available so that this Mearon/Ladyfern prospect
could be the cornerstone of our winter drilling program."

About Energy Power Systems Limited

Energy Power is an integrated energy source and service company operating as
an Engineering & Offshore Division and an Oil & Gas Division.

The Engineering and Offshore Division is currently working on a backlog of
contracts which should carry over to the next fiscal year and beyond. Further
development of Atlantic Canada's offshore infrastructure could feed
additional growth for the Engineering & Offshore Division. In addition the
Oil & Gas Division is adding positive cash flow to fund corporate operations
and future development and growth strategies. At present the Company is
expanding its exploration, drilling and development program to increase oil
and gas reserves and production.

At present there are approximately 8.8 million shares issued and outstanding
in the capital of the Company.


For further information contact:	Sandra J. Hall
					VP Corporate Affairs
					Telephone: (416) 861-1484

Certain of the statements contained in this news release are forward-
looking statements.  While these statements reflect the Corporation's
current beliefs, they are subject to uncertainties and risks that
could cause actual results to differ materially.  These factors
include, but are not limited to, the demand for the Corporation's
products and services, economic and competitive conditions, access to
debt or equity capital on favorable terms, and other risks detailed in
the Corporation's Form 20-F and Annual Report.