Capital Reserve Canada Signs Letter of Intent.EDMONTON, Alberta -- Donald R. Getty, Chairman of Capital Reserve Canada Ltd. ("CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. ") (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CRSVF), a company doing business in the Oil and Gas Industry, announces the signing of a Letter of Intent with Southbend Powers Ltd. ("SPL (1) (Systems Programming Language) The assembly language for the HP 3000 series. See assembly language for an SPL program example. (2) (Structured Programming Language) See structured programming. 1. ") and its shareholders to acquire all the shares of SPL. SPL is an oilfield waste disposal and storage company which is targeting certain oil and gas waste streams from the Fort McMurray tar sands industry. Its unique location near Two Hills, Alberta Two Hills is a town in central Alberta, Canada. It is located km ( mi) east of Edmonton at the junction of Highway 45 and Highway 36. Demographics In 2006, the town had a populationof 1,109. , adjacent to the major highway to Fort McMurray, along with washing new salt caverns, and a water diversion permit, offers some significant opportunities. The SPL business plan, produced by an independent third party, projects a value of $30 to $40 million CAD. The Letter of Intent provides for CRC to issue 13.2 million common shares (with the appropriate restrictions) upon completion of the acquisition of SPL for a gross consideration of $6.6 million USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. . The SPL business plan also projects annual revenue of $47 million CAD in 5 years after all necessary capital expenditures, estimated at $6 million CAD, are complete. This arm's length transaction Arm's Length Transaction A transaction in which the buyers and sellers of a product act independently of each other and have no relationship to each other. Notes: Such a transaction is absent of any pressure sales tactics or relationships among the various parties. is subject to a due diligence review and approval by the CRC Board of Directors and is to be completed on or before June 30th, 2006. ABOUT CRC: CRC has been in the oil and gas industry since 1999. It operated several oil wells but divested of all properties prior to purchasing all shares of KCP Innovative Services Inc. on January 12th, 2006. KCP is a service company with specialized tools and methodologies for measuring pressure, temperature and flow of oil and gas wells. KCP's technology is particularly effective with evaluating Coal Bed Methane Deposits. Some synergies are expected between KCP and SPL. ABOUT SPL: SPL has been in business since 2001. It owns about 147 acres of industrial land, has the mineral rights on 160 acres of adjacent land, and an important water diversion permit from the North Saskatchewan River The North Saskatchewan River is a glacier-fed river flowing east from the Canadian Rockies to central Saskatchewan. It is one of two major rivers that join to make up the Saskatchewan River. . SPL has been preparing its property for oilfield waste disposal and has developed contacts in the industry. Cautionary Note Regarding Forward-Looking Statements Statements in this press release regarding the company's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. The company wishes to caution readers not to place undue reliance on such forward-looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1994, and as such, speak only as of the date made. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, but not limited to, those discussed in the Company's latest Form 20-F dated December 31, 2004. Until due diligence is completed there can be no assurance the acquisition will be completed as proposed or at all. |
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