Radiant Energy Corporation
TSX VENTURE : RDT

Radiant Energy Corporation

January 16, 2008 10:14 ET

Radiant Conditionally Settles Debt for Shares

PORT COLBORNE, ONTARIO--(Marketwire - Jan. 16, 2008) - Radiant Energy Corporation ("Radiant" or the "Company") (TSX VENTURE:RDT) developer and marketer of InfraTek®, the environmentally friendly, patented, infrared pre-flight aircraft deicing system, announced today that it has entered into Creditor Settlement Agreements with 954740 Ontario Limited ("954740"), a corporation controlled by John Marsh, an insider to the Company, and with Hara Enterprises Limited ("Hara"), a corporation control by Gregory O'Hara, an insider to the Company, for the settlement of certain short-term and secured loans with an aggregate principal balance of $2,445,000 and the forgiveness of accrued interest equal to $344,692 in return for 18,111,111 common shares of the Company. The completion of the settlement of these loans is conditional on acceptance of the TSX Venture Exchange.

Over the past eighteen months the Company's financial goal has been to reduce debt. From June 2006 to the present and prior to theses transaction, the consolidated debt decreased from $17.0 million to $9.2 million. The settlement of the loans between Radiant and it's subsidiaries is a significant step in accomplishing the Company's financial goals. The Company anticipates closing this transaction immediately after receipt of the acceptance of the TSX Venture Exchange which is expected by January 31, 2008.

Settlement of Short-term Loans

Currently, the aggregate principal amount of the Short-term Loans between REC and 954740 and Hara is $445,000 and the accrued interest is $49,598. Each of 954740 and Hara has signed Creditor Settlement Agreements to settle the principal amount of the debt for the issuance of 3,296,296 common shares (representing $0.135 per common share). Each of 954740 and Hara has also agreed to forgive payment of the accrued interest.

Settlement of the Secured Loans with RAS Europe

Currently, the aggregate principal amount of the Secured Loans between RAS Europe, a wholly-owned subsidiary of REC, and 954740 and Hara is $2,000,000 and the accrued interest is $295,094. Each of 954740 and Hara has signed Creditor Settlement Agreements to settle the principal amount of debt for the issuance of 14,814,815 common shares (representing $0.135 per common share). The two creditors also agreed to forgive payment of the accrued interest.

Related Party Transactions

Each of John Marsh and Gregory O'Hara are insiders of the Company under Canadian securities laws and the settlement of the debt for shares is considered to be a related partly transaction under Canadian securities laws. The Company has determined that it is exempt under the Ontario Securities Commission Rule 61-501 from the requirements to obtain a formal valuation and minority approval for this settlement of debt. Upon completion of the settlement of the debt for shares of the Company, John Marsh and Gregory O'Hara will beneficially own and control 41,723,973 and 30,102,334 shares of the Company, respectively, representing 24.3% and 19.0%, respectively, of the issued and outstanding shares of the Company, including convertible securities.

The Board of Directors first determined that all three members of the Board are independent of the transaction. The Board reviewed recent market prices for Radiant shares and determined that the effective conversion price taking into account the forgiveness of accrued interest was approximately $0.155 per share representing a 3.3% premium to the closing price of the common shares on January 14, 2008, the day prior to the execution of the Creditor Settlement Agreements. The Board unanimously approved the settlement of the debt for shares of the Company. The Board considered the significant reduction of debt the transactions represent, the improvement of the financial condition of the Company and the corresponding decrease in the shareholders' deficit and concluded the transaction to be fair for all shareholders and in the best interests of the Company.

Radiant trades on the TSX Venture Exchange (symbol RDT). The InfraTek Deicing System is the only FAA-approved for use, non-glycol based alternative to the conventional pre-flight ground deicing process. InfraTek offers savings to airports and airlines by reducing treatment costs and by significantly reducing the negative environmental impact of spent glycol.

This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Radiant Energy Corporation, which involve risks and uncertainties. These risks and uncertainties may cause Radiant's actual results to differ materially from those contemplated by the forward-looking statements. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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