Mr. Chris MacIntyre reports

RESERVOIR TO RAISE UP TO $1 MILLION BY PRIVATE PLACEMENT

Reservoir Capital Corp. intends to undertake a private placement to raise $1-million through the issue of two million units at 50 cents per unit.

Each unit shall comprise one common share in the capital of the company and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of 75 cents per share for a period of five years. If, after four months from closing, the closing price of the company's shares on the TSX Venture Exchange exceeds 90 cents for a period of 30 consecutive trading days, the company may, by notice given and news release issued within two trading days thereof, accelerate the expiry of the warrants to the 20th trading day after such 30-day period. The company will pay 5 per cent finders' fees in respect of subscriptions from investors introduced by eligible finders. The fee will be payable in cash, or at the finder's election, the issuance of that number of units equal to 5 per cent of the number of units issued pursuant to such subscriptions.

There can be no assurance that the private placement will be completed as proposed or at all, and the private placement is subject to all applicable regulatory approvals. The proceeds of the offering will be used by Reservoir to support continued permitting work on its Brodarevo hydroelectric project in Serbia and for general corporate purposes.