Reservoir Capital Corp.
TSX VENTURE : REO
FRANKFURT : ROC
BERLIN : ROC

Reservoir Capital Corp.

February 16, 2010 07:30 ET

Reservoir Advances Brodarevo Hydroelectric Projects in Serbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2010) - Reservoir Capital Corp. ("Reservoir" or the "Company") (TSX VENTURE:REO)(FRANKFURT:ROC)(BERLIN:ROC) is pleased to report positive progress on its feasibility studies for the Brodarevo 1 and Brodarevo 2 hydroelectric projects on the River Lim in southwest Serbia.

Fieldwork and technical studies completed by Company personnel, Energoprojekt Hidroinzenjering Co. Ltd. (Serbia) and Technum-Tractebel Engineering S.A. (Belgium), have recommended a capacity increase from 48MW to 55.2MW, defined sites, provided recommendations for the design of the hydroelectric power plants and preliminary cost estimates for their construction, as summarized in the table below:

License Project Site Water Level (m.a.s.l.) Gross Head (m) Capacity (MW) Output (GWh/year) Construction Cost (€m) *
Brodarevo 1 Junakovina 519 19.73 24.6 96.97 42.172
Brodarevo 2 Lucice 488 24.78 30.6 123.41 49.577
Total       55.2 220.38 89.749
* includes contingencies of 15% on the civil works, but does not include moving sections of the road.

The Italian and Serbian governments have signed an agreement whereby Serbia will export green energy into Italy at prices substantially above those of the local market. The Company is engaged in discussions with various energy trading groups with the intent of signing an indicative Power Purchasing Agreement for the sale of electricity into the Italian market.

The Company expects to be able to complete Pre-Feasibility Studies in the next month or two and Feasibility Studies by the end of 2010. The Company is working in parallel with the local authorities, towards being issued all the necessary permits for: relocation of parts of the road along the River Lim, acquisition of surface rights affected by the project and construction of the hydroelectric installations.

About Reservoir

Reservoir is a renewable energy company, engaged in development a 55MW hydroelectric project at Brodarevo in southwest Serbia. The Company has applied for a 32MW license at Vrutci and is studying various other hydroelectric opportunities in the region. In 2010 the Company was issued its first geothermal license at Vranjska Banja in southern Serbia and has filed applications for 3 additional licenses. Reservoir also holds a substantial portfolio of precious and base metal exploration projects, which it is looking to divest. 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.

Contact Information

  • Reservoir Capital Corp.
    Miljana Vidovic
    President
    +1 (604) 662-8448
    or
    Reservoir Capital Corp.
    Miles Thompson
    Chairman
    +1 (604) 662-8448
    or
    Reservoir Capital Corp.
    Kim Casswell
    Corporate Secretary
    +1 (604) 662-8448
    or
    Reservoir Capital Corp.
    Julia Maxwell
    Investor Relations - Vancouver
    +1 (604) 662-8448
    (604) 688-1157 (FAX)
    or
    Reservoir Capital Corp.
    Chris MacIntyre
    Investor Relations - Toronto
    +1 (416) 346-7660
    info@reservoircapitalcorp.com
    www.reservoircapitalcorp.com