Capricorn Business Acquisitions Inc.

April 01, 2011 12:03 ET

Capricorn Announces Caldera Geothermal Acquires 8,575 Acres of New Geothermal Leases in Nevada Including Rhodes Marsh Property

TORONTO, ONTARIO--(Marketwire - April 1, 2011) - Capricorn Business Acquisitions Inc. ("Capricorn") (TSX VENTURE:CAK.P), a capital pool company, is pleased to convey an update received from Caldera Geothermal Inc. ("Caldera"), with whom Capricorn has signed a binding letter of intent to complete a Qualifying Transaction as disclosed in its press release dated April 8, 2010 and amended as disclosed in its press release dated December 9, 2010. Caldera is pleased to announce the acquisition of two key geothermal lease parcels totalling 8,575 acres at the 2011 Bureau of Land Management geothermal lease auction held in Reno, Nevada on March 22, 2011. These new leases bring Caldera's total geothermal lease holdings to 28,448 acres. The total cost for the parcels was USD $54,170.

The two parcels expand Caldera's acreage at its Teels Marsh and Rhodes Marsh properties, which are both "blind" geothermal systems where thermal waters do not reach the surface. Both were identified by subtle surface indicators, including shallow (2m) temperature anomalies. Geoprobe work at Teels Marsh in 2010 confirmed the presence of a geothermal system by finding thermal waters up to 97°C at ~30m depth below the shallow temperature anomalies. Geochemistry from a thermal well at Rhodes Marsh suggests a ~150°C reservoir.

Zohrab Mawani, Caldera's CEO, commented: "We're extremely pleased to have been so successful at this year's auction, and in particular the acquisition of the Rhodes Marsh parcel now gives us a significant position over the target and gives Caldera another promising exploration asset."

Mr. Mawani further added: "Events around the world are a sobering reminder of the need for renewable energy, and despite some of the challenges the industry has faced over the past two years, geothermal's clean, secure and base load green energy will play an important part in delivering power to homes and businesses around the world. We believe we have picked up two excellent prospective geothermal exploration assets with a strong potential to host power production facilities in the next few years, and at a very low price. Over the medium and long term the value of these resources should become rationalized relative to other energy resources to the benefit of our shareholders and investors in the geothermal industry."

About Caldera Geothermal

Caldera is an early stage geothermal exploration company focusing on the identification of blind or underappreciated geothermal systems in order to expand the geothermal resource base of the western U.S. The Great Basin is attractive for geothermal development because it possesses proven geothermal resources, it is close to large markets for renewable power, and it benefits from a favourable regulatory environment. Caldera uses an innovative exploration approach to discover new geothermal systems while mitigating technical and financial risk in the early and middle phases of resource identification. Caldera currently controls 28,448 acres of geothermal leases in Nevada including its McGee Mountain project in northwestern Nevada, for which Caldera was awarded a $1.6 million Department of Energy grant to further develop the property.

About Capricorn Business Acquisitions Inc.

Capricorn is a TSX Venture Exchange listed company and classified as a Capital Pool Corporation as defined in the TSX Venture Exchange Policy 2.4. Capricorn's principal business is the identification and evaluation of assets or businesses with a view to completing a Qualifying Transaction within the meaning of Exchange policies.

In accordance with TSX Venture Exchange policies, Capricorn's common shares are currently halted from trading, and it is intended that they will remain halted until completion of the Qualifying Transaction.

The information disclosed in this press release regarding Caldera was provided by Caldera without review or investigation by Capricorn, and as such, Capricorn does not accept any responsibility for the accuracy of such disclosure.

This press release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this press release is made as of the date of this press release, and each of Capricorn and Caldera disclaim any intention or obligation to update or revise such information, except as required by applicable law.

Completion of the Qualifying Transaction is subject to a number of conditions, including but not limited to, TSX Venture Exchange acceptance and if applicable pursuant to TSX Venture Exchange Requirements, majority of the minority shareholder approval. Where applicable, the Qualifying Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Qualifying Transaction, any information released or received with respect to the Qualifying Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Qualifying Transaction and has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.

Contact Information