|May 27, 2010|
Reservoir Elects Not to Pursue Turkey Agreement
Vancouver, British Columbia (TSX Venture: REO) -- Reservoir Capital Corp. ("Reservoir" or the "Company") has elected not to pursue the acquisition from Ahmet Caliskan and Burcin Tunca of a 75% interest in their 30.4 megawatt ("MW") portfolio of six small-scale hydroelectric projects in western and northwestern Turkey (see Company news release of March 24, 2010).
A review of the projects, carried out on behalf of the Company by Tractebel Engineering and Coyne et Bellier (both subsidiaries of GDF Suez Group), considered that the capital estimates were too low and that due to recent changes in the Turkish Laws regarding minimum biological flow, the predicted output estimates were too high. The Company will thus not be able to complete the acquisition on the terms agreed.
"While we are disappointed to be walking away from this deal," commented Miles Thompson, Chairman of the Company, "discussions with Mr. Caliskan and Mr. Burcin, on possible alternative terms, have been encouraging and we intend to monitor progress of the projects in the coming months."
Reservoir Capital Corp. is a southeast Europe focused project generator, investing primarily in renewable energy. The Company holds two hydroelectric licenses, Brodarevo 1 and 2, with 55 MW of potential capacity that are undergoing pre-feasibility studies and an application in process for a third license at Vrutci with 32 MW potential capacity, all in southwest Serbia. Reservoir currently holds four geothermal licenses and a portfolio of precious and base metal exploration projects. Reservoir's common shares trade on the TSX Venture Exchange under the symbol "REO" and on the Frankfurt and Berlin exchanges under the symbol "ROC".
For further information on Reservoir Capital Corp. please consult the Company's website www.reservoircapital.ca or contact: Miles Thompson, Chairman, at +1 604 662-8448, or Chris MacIntyre, VP Corporate Development, at +1 416 346-7660 or +381 63 571-425
Investor Relations: Julia Maxwell, +1 (604) 662-8448
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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