Reservoir Capital Corp.

TSX VENTURE : REO
FRANKFURT : ROC
BERLIN : ROC


Reservoir Capital Corp.

December 18, 2012 18:47 ET

Reservoir Capital Corp.: Completion of First Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 18, 2012) - Reservoir Capital Corp. (TSX VENTURE:REO)(FRANKFURT:ROC)(BERLIN:ROC) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Reservoir Capital Corp. ("Reservoir" or the "Company") is pleased to announce that it is has completed the first tranche of a non-brokered private placement financing (the "Private Placement") raising $2,785,000 by the issuance of 27,850,000 units at $0.10 per unit. Each unit was comprised of one common share (a "Share") and one non-transferable, common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase an additional Share at $0.25 until December 18, 2014. If, after April 18, 2013, the closing price of the Company's shares on the TSX Venture Exchange is $0.35 or greater for 10 consecutive trading days, the Company may, by notice given within five trading days thereof, accelerate the expiry of the warrants to the 21st trading day after such notice.

The Company paid finders' fees of $148,500 (8%) in respect of subscriptions from investors introduced by various finders. The fees were paid in cash ($41,600), or at the finder's election, through the issuance of that number of units equal to 8% of the number of units issued pursuant to such subscriptions (1,068,000 units). Insiders of the Company purchased 1,200,000 units and Pro Group members a further 1,350,000 units of the first tranche.

The Shares, and any Shares issued on the exercise of the Warrants, are subject to a restricted resale period under Canadian securities law and Exchange policy until April 19, 2013.

The proceeds of the offering will be used by Reservoir to support continued permitting work on its Brodarevo Hydroelectric Project in Serbia, new business efforts in Bosnia and Montenegro and for general corporate purposes.

About Reservoir

Reservoir is a renewable energy company that is engaged in the development of a 59.1 MW hydroelectric project at Brodarevo in southwest Serbia, for which a positive Feasibility Study was completed in June 2012. Reservoir holds four geothermal exploration licenses in Serbia and has applied for three hydroelectric concessions on the Cehotina River in Bosnia (17.75 MW). Reservoir's common shares trade on the TSX Venture Exchange (symbol "REO") and on the Frankfurt and Berlin Exchanges (symbol "ROC").

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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