Sierra Vista Energy Ltd.
TSX VENTURE : SVR.A
TSX VENTURE : SVR.B

Sierra Vista Energy Ltd.

April 24, 2008 09:00 ET

Sierra Vista Announces Matters to Be Proposed at Its Annual and Special Meeting of Shareholders and Director Resignation

CALGARY, ALBERTA--(Marketwire - April 24, 2008) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Sierra Vista Energy Ltd., (TSX VENTURE:SVR.A) (TSX VENTURE:SVR.B) ("Sierra Vista" or the "Corporation") announces it will be proposing a number of special matters for consideration and approval at its upcoming Annual and Special Meeting of Shareholders to be held on May 20, 2008. The Notice, Management Information Circular and Form of Proxy have been filed on the Corporation's SEDAR profile at www.sedar.com.

Class B Share Conversion

The shareholders of the Corporation will be asked to consider and approve a special resolution, authorizing the amendment to the Articles to provide for the immediate and complete conversion of the Class B Shares into Class A Shares on the basis that each issued and outstanding Class B Share would be converted into ten (10) Class A Shares.

Following such conversion, the Articles of the Corporation would be further amended to delete Class B Shares from the authorized share capital of the Corporation and to re-classify the Class A Shares to simply Common Shares. Following the implementation of this amendment, the Corporation's authorized share capital will be: i) an unlimited number of Common Shares; and ii) an unlimited number of Preferred Shares.

The Class B Shares of the Corporation are currently listed and traded on the facilities of the TSX Venture Exchange under the symbol SVR.B. In connection with the conversion of Class B Shares into Class A Shares and the amendment to the Articles, the Corporation will be requesting acceptance from the TSX Venture Exchange to de-list the Class B Shares.

Class A Share Consolidation and Name Change

The Corporation is proposing a consolidation of its issued and outstanding Class A Shares on the basis of one (1) new Common Share for every ten (10) Class A Shares issued and outstanding. It is anticipated that as of the Record Date, there will be 29,976,950 Class A Shares and 1,170,000 Class B Shares of the Corporation issued and outstanding. As previously noted, and if approved by the Shareholders at the meeting, each Class B Share shall be convertible into ten (10) Class A Shares, and therefore it is anticipated that an additional 11,700,000 Class A Shares would be issued and outstanding pursuant to a complete conversion of the Class B Shares into Class A Shares, for a total of 41,676,950 Class A Shares issued and outstanding on a pre-consolidated basis (4,167,695 Common Shares on a post-consolidated basis).

In connection with the share consolidation, the Corporation is proposing a name change to "Radius Resources Corp." and a new stock trading symbol "RAX".

The board of directors of the Corporation believes that the consolidation could lead to increased interest by a wider audience of potential investors resulting in a more efficient market for the shares. There can be no assurances however that the market price of the shares will increase as a result of the consolidation.

No fractional Shares will be issued as a result of the consolidation. If, as a result of the consolidation, the holder of shares would otherwise be entitled to a fraction of a share, the number of post-consolidation shares issuable to such shareholder shall be rounded up in the event the said shareholder was entitled to a fractional share equivalent to one-half or more of a post-consolidation share and shall be rounded down in the event the said shareholder was entitled to a fractional share equivalent to less than one-half of a post-consolidation share.

Director Resignation

The Corporation further announces the resignation of Mr. Mark Malouin as a Director. The management and board of Sierra Vista wish to thank Mr. Malouin for his efforts and wish him success in his future endeavors.

Cautionary Statements

Completion of the transactions and name change contemplated herein are subject to a number of conditions, including but not limited to, TSX Venture Exchange acceptance and shareholder approval.

There can be no assurance that the transactions will be completed as proposed, or at all.

Investors are cautioned that, except as disclosed in the Management Information Circular prepared in connection with the transactions, any information released or received with respect to the transactions may not be accurate or complete and should not be relied upon. Trading in the securities of Sierra Vista should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the transactions and has neither approved nor disapproved the contents of this press release.

Sierra Vista is a junior oil and gas company engaged in the exploration for, and development and production of, crude oil and natural gas focusing in the Peace River Arch region of central Alberta. The Corporation's shares trade on the TSX Venture Exchange under the symbols "SVR.A" and "SVR.B".

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this statement.

Contact Information

  • Sierra Vista Energy Ltd.
    Mr. Morley Mychaluk
    Interim President & CEO
    (403) 265-9393 ext 202
    (403) 265-9224 (FAX)
    or
    Sierra Vista Energy Ltd.
    Mr. Bruce A. Stewart
    Chief Financial Officer
    (403) 265-9393 ext 205
    (403) 265-9224 (FAX)
    or
    Sierra Vista Energy Ltd.
    Suite 520, 101 - 6th Avenue S.W.
    Calgary, Alberta T2P 3P4