Radar Acquisitions Corp.

Radar Acquisitions Corp.

March 16, 2007 09:00 ET

Radar Enters LOI With West Hawk for Development of Clean Coal Gasification Project in Colorado; Grants Options

CALGARY, ALBERTA--(CCNMatthews - March 16, 2007) - Tim Bergen, President and CEO of Radar Acquisitions Corp. ("Radar") (TSX VENTURE:RAC)(RDAQF-0) is pleased to announce that Radar has signed a Letter of Intent ("LOI") with West Hawk Development Corp. (TSX VENTURE:WHD) in order to explore the possibility of developing a clean coal gasification project in Colorado for the Company's Buick Coal Property.

The LOI sets out terms whereby the companies will carry out testing and joint participation in the potential development of a gasification project. West Hawk Development Corp. will invest the required capital to test the coal, and should the coal be found acceptable for gasification, West Hawk Development Corp. will purchase the rights to 50% of the project from Radar to become joint development partners with Radar. Radar will also retain a $0.10 per ton overriding coal royalty in the project.

Radar and West Hawk intend to immediately begin testing the coal for gasification ability and have already contacted various service providers for Sasol-Lurgi Fixed Bed Dry Bottom Gasifiers quotes and testing time. The goal of this property development is to utilize environmentally friendly clean coal gasification technology to transform coal and other potential feedstock to gasification products. The gasification technology will be located at the coal mine site thereby eliminating the cost of transportation and passing potential savings onto our shareholders. The goal of the project is to use proven technology to produce coal gasification products such as pipeline quality gas - CTG, liquids - CTL, and power - IGCC. This product stream will be finalized after successful completion of the gasification tests and completion of a market analysis.

Both the Boards of Directors of Radar and West Hawk Development Corp. have approved the above transaction and the LOI, subject to certain conditions and subject to the approval of the TSX Venture Exchange Inc. Furthermore, the major coal lessor has approved the assignment of the coal leases to the joint development venture. The final details of the West Hawk-Radar Joint Venture agreement will be decided upon once all pertinent tests are successfully and satisfactorily completed.

Radar's Management Team worked very diligently to bring this project to West Hawk Development over the last four (4) months and are extremely excited about this potential opportunity for the respective shareholders at West Hawk and Radar.

Radar also announces that, subject to regulatory approval, on February 2, 2007 Radar granted 200,000 options to Trent Fedak, the recently appointed Chief Financial Officer of Radar, at a price of $0.25 and with an expiry date of February 2, 2012. The options vest as to 1/6th of the options granted every three months from the issuance date, with the first options vesting 3 months from February 2, 2007. Radar has determined that exemptions from the various requirements of TSX Venture Exchange Policy 5.9 are available for the grant of options.

Radar's Buick Coal Property is located 90 miles southeast of Denver, Colorado, and encompasses over 22,500 acres of leases held by Radar. These leases include 15,360 acres of land leased from RME Land Corp., a subsidiary of Anadarko Petroleum Corporation. A measured resource of 216 million tons plus an indicated resource of 45 million tons for a measured plus indicated resource of over 260 million tons of coal has been reported within the leases (see the engineering report filed on www.sedar.com August 8, 2002 by Garry Smith, an independent qualified person).

Radar will continue to update shareholders on the progress of future corporate news, financings, and project developments. Management welcomes the opportunity to present detailed project information to shareholders or other interested parties.

Foreign Purchase Information:
CUSIP # 7499231
IBM Security Code - 565656
Stock Symbol RAC on the TSX Venture Exchange

All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX-Venture Exchange, the Alberta Securities Commission, and the British Columbia Securities Commission.

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Radar Acquisitions Corp.
    Peter Leger
    Corporate Information
    (403) 262-3797 or Toll Free: 1-877-262-5888
    Email: pleger@radar.ab.ca
    Radar Acquisitions Corp.
    Gordon Beach
    Investor inquiries
    (403) 262-3797 or Toll Free: 1-877-262-5888
    (403) 233-2344 (FAX)
    Email: gbeach@radar.ab.ca