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

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Subtitle: Pre-Feasibility Studies Completed for the Brodarevo Hydroelectric
Projects in Serbia

VANCOUVER, Canada (euro adhoc) - (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:

<<
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License Project Water Gross Discharge
Site Level Head (Qins)
(m.a.s.l.) (m) (m(3)/s)
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Brodarevo 1 Junakovina 519 19.73 150.00
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Brodarevo 2 Lucice 488 24.70 150.00
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Capacity Output Construction
(MW) (GWh/year) Cost(Euro m)(x)
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Brodavero 1 Junakovina 26.0 102.33 71.099
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Brodavero 2 Lucice 32.4 130.59 68.830
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Total 58.4 232.84 139.929
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(x) includes contingencies of 10% on the civil works, moving sections of
the road, anticipated expropriation costs and transmission grid
connection.
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>>

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.

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
end of announcement euro adhoc
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issuer: Reservoir Capital Corp.
570 Granville Street Suite 300
CA-V6C 3P1 Vancouver
phone: +001 (604) -696-3183
mail: [email protected]
WWW: http://www.reservoircapitalcorp.com/s/Home.asp
sector: Metals & Minerals
ISIN: CA7611251033
indexes:
stockmarkets: free trade: Berlin, Frankfurt
language: English

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