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Reservoir Capital Corp.

EANS-News: Reservoir Capital Corp. - Pre-Feasibility Studies Completed for the Brodarevo Hydroelectric Projects in Serbia

Vancouver, Canada (euro adhoc) -

  Corporate news transmitted by euro adhoc. The issuer/originator is solely
  responsible for the content of this announcement.
Company Information/Projects
(TSX Venture: REO) - Reservoir
Capital Corp. ("Reservoir" or the "Company") is pleased to report 
that Energoprojekt Hidroinzenjering Co. Ltd. ("EHC") has completed 
Pre-Feasibility Studies for the Company's Brodarevo 1 and Brodarevo 2
hydroelectric projects on the River Lim in southwest Serbia.      EHC
has recommended a capacity increase from the original application 
case of 48 megawatts ("MW") to 58.4 MW, with a corresponding increase
in output from 189 gigawatt hours per year ("GWh/year") to 232 
GWh/year. The study has also defined dam sites, provided 
recommendations for the design of the hydroelectric power plants and 
calculated preliminary cost estimates for their construction, as 
summarized in the table below:
     License          Project        Water          Gross       Discharge
                       Site          Level           Head         (Qins)
                                   (m.a.s.l.)        (m)         (m(3)/s)
     Brodarevo 1      Junakovina      519           19.73         150.00
     Brodarevo 2      Lucice          488           24.70         150.00
                                   Capacity        Output      Construction
                                     (MW)        (GWh/year)  Cost(Euro m)(x)
     Brodavero 1      Junakovina     26.0          102.33         71.099
     Brodavero 2      Lucice         32.4          130.59         68.830
     Total                           58.4          232.84        139.929
     (x) includes contingencies of 10% on the civil works, moving sections of
         the road, anticipated expropriation costs and transmission grid
         connection.
Miljana Vidovic, CEO & President, commented "We are very pleased to have
reached this milestone and encouraged that the Pre-Feasibility work 
has increased the capacity and overall potential of the project."
The estimated construction costs are budgeted into three areas: 
(Euro)46.3 million for construction works; (Euro)51.2 million for 
equipment purchases; and (Euro)42.4 million for other investments 
related to the hydroelectric power plant. (Euro)33.7 million of the 
(Euro)42.4 million that is anticipated to go into other investments 
is related to deviation of 7.31 km of the state road M21, on the 
section Prijepolje - Bijelo Polje. The Company is currently working 
with local authorities towards being issued the permits required for 
the relocation of parts of the road along the River Lim, acquisition 
of surface rights affected by the project and construction of the 
hydroelectric installations.
The Italian and Serbian governments have signed a bilateral agreement
whereby Serbia may export green energy into Italy and be issued green
certificates (the cost of which are paid by consumers not government)
for each kilowatt hour of electricity sold. The market price for 
electricity in Italy is presently approximately 5.5 Euro cents per 
kilowatt hour ("Euro)cent/kWh") and the green certificates 8.5 
(Euro)cent/kWh, implying a combined price for renewable energy of 
approximately 14 (Euro)cent/kWh. The electricity price and the green 
certificate price fell during the recent global recession, but 
management expects these prices to recover in the coming years with 
increased economic activity. From the Pre-Feasibility Studies EHC has
determined that the breakeven price of electricity for the Brodarevo 
project is 7.65 (Euro)cent/kWh over a 25-year exploitation period 
using a discount rate of 8%. The Company continues discussions with 
various groups with the intent of securing certification and 
indicative agreements for the transmission and sale of electricity 
into the Italian market.
The EHC report also determined that the planned construction of 
Brodarevo 1 & 2 would bring the following benefits: generation of 
"green" electricity, extremely low disturbance of hydrology regime of
the river, mitigation of the flood flow consequences, increased 
protection of low waters in dry seasons, development and economic 
effects such as: foreign capital flow during the construction period,
positive impact to national currency stabilisation, possibility of 
engaging local construction companies, social and economic 
stabilisation of the region, economic development of the region in 
terms of employment, and improvement of the living standard of the 
population living in a broader vicinity of the hydropower facility.
About Reservoir
Reservoir is a renewable energy company, engaged in development of a 
58.4 MW hydroelectric project at Brodarevo in southwest Serbia. 
Reservoir also holds four geothermal exploration licenses and a 
portfolio of precious and base metal exploration properties in 
Serbia. Reservoir's common shares trade on the TSX Venture Exchange 
(symbol "REO") and on the Frankfurt and Berlin Exchanges (symbol 
"ROC").
Neither the TSX Venture Exchange nor the Investment Industry 
Regulatory Organization of Canada accepts responsibility for the 
adequacy or accuracy of this release.
end of announcement                               euro adhoc

Further inquiry note:

On Reservoir Capital Corp. please consult the Company's website
www.reservoircapitalcorp.com or contact: Miles Thompson, Chairman, at +1 604
662-8448, or Chris MacIntyre, VP Corporate Development, at +1 416 346-7660;
Investor Relations: Julia Maxwell, +1 (604) 662-8448

Branche: Metals & Minerals
ISIN: CA7611251033
WKN: A0MWBS
Börsen: Berlin / free trade
Frankfurt / free trade

Plus de actualités: Reservoir Capital Corp.
Plus de actualités: Reservoir Capital Corp.