SOURCE: Reddi Brake Supply Corporation

August 13, 2007 12:51 ET

Reddi Brake Supply Corporation Announces the Closing of the Multi-Million Dollar Reverse-Merger Transaction With Hidden Splendor Resources Inc.

SALT LAKE CITY, UT--(Marketwire - August 13, 2007) - Reddi Brake Supply Corporation (OTCBB: RDDI) company President / CEO Michael J. Zwebner announced today that closing of the reverse merger transaction with Hidden Splendor Resources, Inc. was concluded on Friday, August 10th, at 5pm. The transaction, which is an all share deal, calls for the issuance of 52,945,200 post-split common stock shares of Reddi Brake Supply Corporation to the existing shareholders of Hidden Splendor Resources, Inc.

GENERAL BACKGROUND OF THE COMPANY

Hidden Splendor Resources, Inc., a Nevada corporation (the "Company" or "Hidden Splendor"), was originally incorporated on May 30, 1990. In March of 2003, the Company acquired the coal mine operations of the Horizon Mine located near Helper, Utah. The Company purchased the Horizon Mine operations at a sale of the assets of a corporation known as Lodestar Energy. The Company commenced its coal production operations at the Horizon Mine in August of 2003 and has operated the Mine as an active working coal mine since that time. The company's coal is extracted from the operations of the Horizon Mine, which is located approximately 11 miles west of Helper, in Carbon County, Utah. As of the date of this announcement we employ approximately 68 underground miners and have additional support staff of 10 persons.

Reserves Under Lease & Adjacent, Un-leased Reserves

As of January 2007, the company has approximately 8 million remaining mine-able tons under lease and we are permitted to mine in the entire leased area containing these reserves. The majority of this tonnage is part of federal lease (Lease # U-74804) given by the Bureau of Land Management. Approximately 220,000 tons of the remaining mine-able tons are tons of fee coal which is owned by Hidden Splendor. At anticipated rates of mining, we believe the current leased reverses will take 6 to 8 years to mine.

Additional un-leased reserves are adjacent to the mine are available. From drill hole information available from the Bureau of Land Management, we estimate that at least 36 million, and perhaps as many as 80 million, mineable tons of coal are available in these adjacent un-leased reserves. Acquiring leases for this additional tonnage is part of the Company's plan to extend the life of the Horizon Mine. In this regard, the Company intends to acquire additional reserves in blocks of coal over time. At this time, the current industry price for similar type coal as we produce ranges between $28-$32 per ton.

SAFE HARBOR

Statements contained in this press release that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the current views of management with respect to future events and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, or described pursuant to similar expressions.

Contact Information

  • Contact:
    Reddi Brake Supply Corporation
    Corporate Communications
    (801) 269-8535