Reservoir Starts Testing Brodarevo Hydrological Models

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 3, 2011) - Reservoir Capital Corp. (TSX VENTURE:REO)(FRANKFURT:ROC)(BERLIN:ROC) ("Reservoir" or the "Company") is pleased to announce that it has completed construction of 1:40 scale models of the Brodarevo 1 and Brodarevo 2 dams and initiated testing to assess and refine the final designs. The models have been built at and by the Brodarski Institut d.o.o. in Zagreb, under supervision of Energoprojekt Hidroinzenjering Co. Ltd. ("Energoprojekt") as part of the Feasibility Studies.

The Brodarevo models have been constructed side by side within a 32 metre testing pool at the Brodarski Institut. Each comprises a scale model of the dam and related structures (hydropower plant, spillways, outlets and stilling basin) and sections of the river for 170 metres upstream and 100 metres downstream (including surrounding topography).

The models are covered with a wide array of measuring devices and will be subjected to a series of tests over a 10-week period. The tests will be performed using power plant discharge conditions of 150 cubic metres per second and various other scenarios up to possible 1,000-year flood conditions of 2,150 cubic metres per second. The goal is to measure the performance of the design of the dams and related structures under both optimal and severe (flooding) energetic and hydraulic conditions to assess safety, environmental and economic considerations.

Miles Thompson, Chairman of the Company, commented: "It's very exciting to see these projects begin to tangibly take shape and we'd encourage anyone interested to take a look at the photos and video clips posted on our website at www.reservoircapital.ca," adding, "We'd also like to thank all our local contractors and collaborators for once again delivering quality work to specification and on time."

About Reservoir

Reservoir is a renewable energy company, engaged in development of a 58.4MW 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 (17.75MW) and one to develop a 32 MW project from an existing reservoir dam at Vrutci in Serbia. The Company also holds a portfolio of 8 precious and base metal exploration properties in Serbia that, subject to approvals, are to be spun-out into a separately listed company. Reservoir's common shares trade on the TSX Venture Exchange (symbol "REO") and on the Frankfurt and Berlin Exchanges (symbol "ROC").

For further information on Reservoir Capital Corp., please consult the Company's website www.reservoircapital.ca.