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Capital Reserve Canada Update

Posted on: Monday, 7 January 2008, 18:00 CST

Capital Reserve Canada Ltd. (OTCBB:CRSVF) ("The Company") and its Chairman, Mr. Donald R. Getty, are pleased to announce the appointment of Mr. Steve Claussen as President and CEO of Capital Reserve Canada Ltd, as well as the Company has entered into an LOI with Behral Canada Inc.

The LOI contemplates a closing date of February 28th, 2008 or earlier and is subject to approval of both the Company and Behral, and any regulatory approvals.

Behral will bring to the merger technologies and patents relating to a split ball blowout preventer, a well capping device and offshore drilling. Behral will also bring marketing, financial and administrative expertise to help with the ongoing long term growth of the Company. The Company will issue 23,500,000 Class A Common restricted shares to the shareholders of Behral upon closing.

Presently the company has shares issued and outstanding amounting to 65,066,421 Class "A" common shares.

Mr. Claussen has 10 years experience as a CEO, and an entrepreneur, and he has built successful companies in the retail, publishing and oil and gas industries. Mr. Claussen is current CEO of Behral Canada Inc and this should help expedite the merger process.

The proposed merger is expected to bring an increase in the economies of scale of KCP Innovative Services Inc by expanding, utilizing and building on the existing infrastructure. From here the company can launch its new technologies into the market place.

Mr. Getty will remain as Chairman of the merged companies and stated that "The proposed merger brings Mr. Claussen's marketing, publishing and oil and gas expertise to the Company and together with additional oil and gas assets this seems to be a 'best fit' to accelerate the long-term growth of the Company."

Profile

CRC is an oil and gas services company based in Edmonton, Alberta. Through their wholly owned subsidiary, KCP Innovative Services, Inc., the Company offers technologically advanced tools for use in four areas of the industry. The first aids in testing and development of newly found resources; another measure existing wells' productivity and the third hastens well abandonment, ensuring compliance with regulatory emission guidelines. The fourth, through its proprietary hardware and software technologies, is used to determine the profitability of coal bed methane deposits, which may be developed and sold as natural gas. The Company has a second wholly owned subsidiary, Two Hills Environmental, to assist with problem waste from oil & gas companies, and provide underground storage.

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 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 20-F dated June 21st, 2007.

Source: Business Wire

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