Savary Capital Corp.
TSX VENTURE : SCA.P

May 18, 2010 10:39 ET

Savary Capital Announces Letter of Intent

TORONTO, ONTARIO--(Marketwire - May 18, 2010) -

THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Savary Capital Corp. ("Savary") (TSX VENTURE:SCA.P), a capital pool company, announced today that it has entered into a non-binding letter of intent with Clear Energy Systems, Inc. ("CES") to pursue a proposed qualifying transaction. Based in Tempe, Arizona, CES has developed a compact, light weight, low cost and low emission 1 megawatt generator, the Genesis 1000. Since its inception, the Company's primary focus has been on research and development. It is now moving into commercialization of the Genesis 1000 on the basis of its initial orders and growing pipeline.

Pursuant to the letter of intent and a plan of arrangement, Savary will become a wholly-owned subsidiary of CES (with the Savary shareholders becoming shareholders of CES) which intends to apply for listing of its securities on the Toronto Venture Exchange (the "Exchange"). The final structure of the qualifying transaction is to be determined after the receipt of final tax, corporate and securities law advice for both parties.

Completion of the transaction is subject to a number of conditions including the completion of a satisfactory due diligence review by both parties, the execution of a definitive agreement on or before July 30, 2010 and all required shareholder, Exchange, court and regulatory approvals. There can be no assurance that the transaction will be completed as proposed or at all.

If completed, the proposed transaction is expected to constitute Savary's Qualifying Transaction as defined in Policy 2.4 of the Exchange and is subject to compliance with all Exchange requirements in this regard. A comprehensive press release with further particulars relating to the proposed transaction will follow in accordance with the policies of the Exchange.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in securities of a capital pool company should be considered highly speculative.

Trading in the common shares of Savary will remain halted and additional information as required pursuant to Policy 2.4, Section 12.2. will be provided by way of a subsequent release.

Notice on forward-looking statements:

This release includes forward-looking statements regarding Savary, CES and their respective businesses. Such statements are based on management's current expectations. The forward-looking events and circumstances discussed in this release, including completion of the proposed transaction between Savary and CES (in its current structure or at all), may not occur and CES's financial performance could differ materially as a result of known and unknown risk factors and uncertainties, including risks regarding the alternative energy industry, environmental risks, and risks associated with growth and competition. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Savary undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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