SOURCE: Reddi Brake Supply Corporation

April 30, 2007 17:38 ET

Reddi Brake Supply Corporation Announces a Multimillion Dollar Reverse Merger With Hidden Splendor Resources, Inc. Deal to Close on May 14, 2007

SALT LAKE CITY, UT -- (MARKET WIRE) -- April 30, 2007 -- Reddi Brake Supply Corporation (OTCBB: RDDI) company President / CEO Michael J. Zwebner announced today that The Board of Directors of the company have unanimously voted to approve a multimillion dollar reverse merger transaction with Hidden Splendor Resources, Inc., a Nevada corporation which operates a coal mining operation in Utah. The transaction which is an all share deal, calls for the issuance of 26,538,000 pre split common stock shares of Reddi to the existing shareholders representing 100% of the outstanding stock 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

As of January 2007, the company has approximately 12 million remaining mineable tons under lease and the company has a permit 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 mineable tons are tons of fee coal which is owned by Hidden Splendor. At anticipated rates of mining, the company believes the current leased reverses will take 6 to 8 years to mine. The company stresses that reserve estimates are just that, estimates, and actual tonnages likely will vary. More detailed information will be contained in the company's future filings with the Securities and Exchange Commission.

ADDITIONAL UNLEASED RESERVES ADJACENT TO THE MINE ARE AVAILABLE

From drill hole information available from the Bureau of Land Management, we estimate that at least 36 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 average selling price per ton of coal ranges between $27 and $30 per ton.

More information relating to our company will be made available in due course.

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
    (801) 269-8535