Reservoir Minerals Reports Progress of Exploration Work on Its Nikolicevo Permit in the Timok Magmatic Complex, Serbia - Seite 3

An epiclastic volcano-sedimentary unit intersected in RTN 1402 from 85 to 212 metres locally contains horizons with sub-angular clasts of altered volcanics (quartz-sericite-pyrite and chlorite-quartz-pyrite alteration) and fragments (up to 5 centimetres in size) of massive pyrite-chalcopyrite mineralization.

The initial assay results received for copper and gold in core from drill holes RTN 1401 and RTN 1402 are low, and there are no significant intercepts to report. The assay results will be finally evaluated and reported at the conclusion of the drilling programme. A map of the Rudine prospect area with drill hole locations, trenches and float samples is provided on the Company web site (www.reservoirminerals.com).

Commentary

Volcano-sedimentary epiclastic units containing transported fragments of copper sulphide mineralization are well known in the district, for example at the Brestovac quarry (south of Brestovac Corridor Zone, and approximately 2 kilometres west of Cukaru Peki) and the lenticular Novo Okno copper deposit (approximately 2 kilometres south of the Bor open pit). They are generally associated with, and indicative of, proximity to centres of mineralization.

Although the assay results received to date for copper and gold from drill holes RTN 1401 and RTN 1402 are low, the Company considers that the presence of copper-gold mineralisation in float and outcrop, beds containing clasts of copper sulphide mineralisation in drill hole RTN 1402, as well as the mapped and logged alteration assemblages, are together indicative of potential proximity to an as yet undiscovered massive sulphide high-sulphidation epithermal system in the Rudine area.

Nikolicevo Exploration Permit

The Nikolicevo exploration permit is located in the eastern TMC and includes the NW-SE trending structural and metallogenic trend that hosts the giant Bor district copper-gold porphyry and epithermal deposits, as well as the Company's recent Cukaru Peki copper-gold discovery made in joint venture with Freeport-MacMoRan Exploration Corporation. Location maps are posted on the Company website (www.reservoirminerals.com).

The underlying geology comprises Upper Cretaceous andesites, which are the host rocks to the Cukaru Peki copper-gold mineralisation in the Brestovac-Metovnica permit and the copper-gold deposits in the Bor mining district, and a volcano-sedimentary post-mineralisation succession. Miocene clastic sediments unconformably overlie the Upper Cretaceous succession in the east of the permit. The structural setting is dominated by a major NNW trending fault system (Krivel fault) and prominent younger E-W cross-faults. The target volcanic stratigraphy is preserved in several structural domains near the Krivel fault.