Reservoir Capital Corp.

Reservoir Capital Corp.

June 29, 2011 13:34 ET

Reservoir Signs Power Purchase Agreement with GDF SUEZ Energia Italia S.p.A.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 29, 2011) - (TSX VENTURE:REO)(FRANKFURT:ROC)(BERLIN:ROC) – Reservoir Capital Corp. ("Reservoir" or the "Company") is pleased to report that its Serbian subsidiary REV d.o.o. ("REV"), has signed a 20-year Power Purchase Agreement (the "Agreement"), for the sale of electricity from the Brodarevo hydroelectric project in Serbia, with GDF SUEZ Energia Italia S.p.A. ("GSEI"), a wholly-owned subsidiary of the GDF SUEZ Group.

Under the terms of the Agreement, electricity produced from Brodarevo will be exported for distribution into the Italian market at prevailing market prices and GSEI has furthermore agreed to purchase and pass on to the Company the value of any incentives generated by the project. The Agreement is conditional on completion of at least one of the plants by the end of December 2015 and further agreement between the parties once the arrangements for project financing and transmission are more advanced.

About Reservoir

Reservoir is a renewable energy company that is engaged in the development of a 58.4 MW hydroelectric project at Brodarevo in southwest Serbia. Reservoir holds four geothermal exploration licenses in Serbia and has applied for three hydroelectric licenses on the Cehotina River in Bosnia (17.75 MW) and one to develop a 32 MW project from an existing reservoir dam at Vrutci in Serbia. The Company also holds 8 precious and base metal exploration properties in Serbia that, subject to approvals, are to be spun-out into a separately listed company via dividend (see March 25, 2011 Press Release "Reservoir Capital Announces Spin-Out of Mineral Exploration Assets"). Reservoir's common shares trade on the TSX Venture Exchange (symbol "REO") and on the Frankfurt and Berlin Exchanges (symbol "ROC").

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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