Reservoir Capital Corp. ("Reservoir" or the "Company") (TSX
VENTURE:REO)(FRANKFURT:ROC)(BERLIN:ROC) is pleased to report that Energoprojekt
Hidroinzenjering Co. Ltd. ("EHC") has completed Pre-Feasibility Studies for the
Company's Brodarevo 1 and Brodarevo 2 hydroelectric projects on the River Lim in
southwest Serbia.


EHC has recommended a capacity increase from the original application case of 48
megawatts ("MW") to 58.4 MW, with a corresponding increase in output from 189
gigawatt hours per year ("GWh/year") to 232 GWh/year. The study has also defined
dam sites, provided recommendations for the design of the hydroelectric power
plants and calculated preliminary cost estimates for their construction, as
summarized in the table below:




---------------------------------------------------------------------------
                       Water                                               
                       Level  Gross Discharge           Output Construction
            Project    (m.a.   Head    (Qins) Capacity   (GWh/         Cost
License        Site     s.l.)    (m)    (m3/s)     (MW)   year)   (EURm) (i)
---------------------------------------------------------------------------
Broda-                                                                     
 revo 1  Junakovina      519  19.73    150.00     26.0  102.33       71.099
---------------------------------------------------------------------------
Broda-                                                                     
 revo 2      Lucice      488  24.70    150.00     32.4  130.59       68.830
---------------------------------------------------------------------------
Total                                             58.4  232.84      139.929
---------------------------------------------------------------------------
(i) includes contingencies of 10% on the civil works, moving sections of   
the road, anticipated expropriation costs and transmission grid connection.
---------------------------------------------------------------------------



Miljana Vidovic, CEO & President, commented, "We are very pleased to have
reached this milestone and encouraged that the Pre-Feasibility work has
increased the capacity and overall potential of the project."


The estimated construction costs are budgeted into three areas: EUR46.3 million
for construction works; EUR51.2 million for equipment purchases; and EUR42.4
million for other investments related to the hydroelectric power plant. EUR33.7
million of the EUR42.4 million that is anticipated to go into other investments
is related to deviation of 7.31 km of the state road M21, on the section
Prijepolje - Bijelo Polje. The Company is currently working with local
authorities towards being issued the permits required for the relocation of
parts of the road along the River Lim, acquisition of surface rights affected by
the project and construction of the hydroelectric installations.


The Italian and Serbian governments have signed a bilateral agreement whereby
Serbia may export green energy into Italy and be issued green certificates (the
cost of which are paid by consumers not government) for each kilowatt hour of
electricity sold. The market price for electricity in Italy is presently
approximately 5.5 Euro cents per kilowatt hour ("EURcent/kWh") and the green
certificates 8.5 EURcent/kWh, implying a combined price for renewable energy of
approximately 14 EURcent/kWh. The electricity price and the green certificate
price fell during the recent global recession, but management expects these
prices to recover in the coming years with increased economic activity. From the
Pre-Feasibility Studies EHC has determined that the breakeven price of
electricity for the Brodarevo project is 7.65 EURcent/kWh over a 25-year
exploitation period using a discount rate of 8%. The Company continues
discussions with various groups with the intent of securing certification and
indicative agreements for the transmission and sale of electricity into the
Italian market. 


The EHC report also determined that the planned construction of Brodarevo 1 & 2
would bring the following benefits: generation of "green" electricity, extremely
low disturbance of hydrology regime of the river, mitigation of the flood flow
consequences, increased protection of low waters in dry seasons, development and
economic effects such as: foreign capital flow during the construction period,
positive impact to national currency stabilisation, possibility of engaging
local construction companies, social and economic stabilisation of the region,
economic development of the region in terms of employment, and improvement of
the living standard of the population living in a broader vicinity of the
hydropower facility.


About Reservoir

Reservoir is a renewable energy company, engaged in development of a 58.4 MW
hydroelectric project at Brodarevo in southwest Serbia. Reservoir also holds
four geothermal exploration licenses and a portfolio of precious and base metal
exploration properties in Serbia. Reservoir's common shares trade on the TSX
Venture Exchange (symbol "REO") and on the Frankfurt and Berlin Exchanges
(symbol "ROC").
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