|May 27, 2009|
Reservoir Appoints Engergoprojekt to Advance Brodarevo and Seeks Additional Projects
Reservoir Capital Corp. ("Reservoir" or the "Company") is pleased to announce that it has engaged Energoprojekt Hydroinzenjering Co. Ltd. ("EHC") to complete the Pre-Feasibility Studies for the Company's Brodarevo 1 and 2 hydroelectric power projects in southwest Serbia. The studies should be completed within 10 months and will include an analysis to increase the size of the project from the 48 MegaWatt ("MW") capacity originally planned, to 75 MW and possibly 100 MW. The Company is also working towards a Power Purchasing Agreement ("PPA") with the Ministry of Mines and Energy and the Serbian Government.
Reservoir is furthermore pleased to report that it has begun technical studies and the preparation of documentation for additional projects and project license applications. The Company has also initiated discussions with the Serbian State-owned utility Elektro Priveda Srbije ("EPS") about joint venture possibilities and future projects.
Energoprojekt is a Belgrade-based engineering company specializing in the design and construction of hydro and thermal power plants, founded in 1951. EHC, the hydro engineering division, has a permanent staff of 227 professional engineers, covering all aspects of design, planning, permitting, feasibility, construction and operation of hydroelectric projects on a global basis. EHC has designed and/or built 81 projects, 27 were completed outside of Yugoslavia (16 different countries). These projects included some 277 power plants (101 outside Yugoslavia) with a total design capacity in excess of 19,000 MW. Reservoir is confident that EHC's depth of international and local experience will permit an efficient and cost-effective development process for Brodarevo.
Lack of investment over the last ten to fifteen years has led to a fall in both generating capacity and electricity output, such that Serbia has become an importer of electricity. To encourage new investment, a series of laws have been passed to allow private investment in the sector and the free trading of energy nationally and internationally. By adopting a new Energy Law in 2004, aimed at reorganizing Serbia's energy sector and integrating it into the European Union (EU), Serbia became a member of the Energy Community of South East Europe (ECSEE), which provides for complete participation in the regional energy market of southeastern Europe. The law also created the Regulatory Agency for the Energy Sector, which controls electricity pricing as it become more in-line with EU standards, such that Serbia's laws and policies regarding energy pricing, production, and trading are all based on EU guidelines. Serbia's location, in the centre of the Balkans, with eight bordering states, makes it a critical component in any European effort to upgrade the electrical grid network in Southeast Europe.
Currently, a team of energy experts, led by the Minister of Mining and Energy, Dr Petar Skundric, is preparing the schedule of feed-in tariffs for renewable energy in Serbia; these are to be adopted in mid-2009. The Ministry of Mining and Energy has taken an active role in seeking foreign investment for Serbia's energy sector and Minister Skundric recently emphasized the State's position, that investors who wish to participate in energy projects will be able to negotiate PPA's with EPS for up to 12 years, "... in which the State will endorse a higher purchase price for the electricity."
The Company welcomes the addition of Ms. Christina Cepeliauskas as the new Chief Financial Officer replacing Michael Sadhra, who has resigned from this position to set up his own tax advisory business. Ms. Cepeliauskas is a Certified General Accountant with more than 10 years of financial accounting and treasury experience in the mineral exploration and mining industry. Ms. Cepeliauskas is currently the Chief Financial Officer of Eurasian Minerals Inc. and formerly held the position of Chief Financial Officer with Aura Minerals Inc. and Yukon Zinc Corporation.
The Company would like to thank Mr. Sadhra for his contribution to the growth and development of Reservoir.
The Company also announces that pursuant to the Company's Stock Option Plan, 70,000 incentive stock options exercisable at $0.68 per share for a period of five years have been granted to Ms. Cepeliauskas.
Reservoir Capital Corp. is a Serbian-focused company, with a mandate to acquire and develop natural resource opportunities in this emerging and resource-rich country. Reservoir is investing in renewable energy, environmental services and precious metals exploration, with currently nine mineral exploration properties in addition to the Brodarevo 1 and 2 energy projects. Reservoir's common shares trade on the TSX Venture Exchange under the symbol "REO" and the Frankfurt and Berlin stock exchanges under the symbol "ROC".
For further information on Reservoir Capital Corp. please consult the Company's website www.reservoircapitalcorp.com or contact Investor Relations:
Vancouver: Julia Maxwell, (604) 662-8448
Toronto: Chris MacIntyre, (416) 640-1932
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