2014

Pala Investments closes $5 million financing in RCAI

    SAN CLEMENTE, CA, Dec. 20 /PRNewswire-FirstCall/ - Reclamation
 Consulting and Applications, Inc. (RCAI) (OTCBB: RCAA), a world leader in
 productivity-enhancing, environmentally-friendly anti-stick release agents
 and lubricants for the mining and aggregates sector, announced today that
 it has entered into a secured convertible debenture agreement to receive up
 to $5 million financing from Pala Investments Holdings Limited. Pala
 Investments Holdings Limited is a US$1 billion multi-strategy alternative
 investment company with a particular focus on mining and natural resource
 companies in both developed and emerging markets.
 
     "Pala is an ideal partner for RCAI," said Paul Hughes, Chief Financial
 Officer. "As a sophisticated investor within the mining services sector,
 Pala has excellent access to many of the world's mining companies that we
 are targeting. This capital infusion allows us to concentrate on our
 rapidly growing commercial activities within the mining, asphalt and cement
 industries. It also provides us with the growth capital to accelerate our
 market penetration globally."
 
     "In addition to this capital infusion," Mr. Hughes continued, "We are
 also finalizing an important distribution agreement with Pala that we
 anticipate will not only increase our activities within the mining sector
 but will further accelerate our path to profitability".
 
     Commenting on the investment in RCAI, Joseph Belan, Managing Director
 of Switzerland-based Pala Investments AG, which advises Pala Investments
 Holdings Limited on an exclusive basis said, "We are delighted to be able
 to partner with RCAI at this exciting stage in its development. Pala's
 investment in RCAI is a continuation of its active investment strategy in
 the mining consumables and services area. We look forward to working with
 management to execute its strategy, including the substantial expansion of
 the volume and global reach of RCAI sales."
 
     Under the terms of the transaction, Pala has invested three million
 dollars initially and has committed another two million dollars to be
 funded on or before the end of 2008, subject to RCAI meeting certain
 performance benchmarks, or which Pala may otherwise invest at its
 discretion. Pala's two-tranche investment is structured as a three-year
 convertible debenture and allows Pala to convert their investment into
 RCAI's common stock at $0.14. They also received three million warrants
 under the terms of the first investment tranche and are to receive an
 additional two million shares on the funding of the second tranche. The
 warrants have a term of three years and an exercise price of $0.21 per
 share. Pala has demand registration rights on the shares underlying the
 warrants and Pala's conversion rights.
 
     The terms of the transaction require RCAI to effect a 2 for 1 reverse
 stock split and to increase its authorized shares of common stock from 150
 million to 200 million shares. The agreement also imposes certain
 restrictions on RCAI's ability to incur additional debt without Pala's
 approval and provides Pala with a right of first refusal on RCAI's future
 financings. RCAI has also agreed to enter into a non-exclusive distribution
 agreement with Pala.
 
     In connection with Pala's investment, RCAI's management and three
 largest shareholders entered into an agreement with Pala to vote their
 shares to elect a director designated by Pala and to provide Pala with a
 right of first refusal on the sale of any of their RCAI stock.
 
     More detail regarding the transaction is disclosed in RCAI's Current
 Report on Form 8-K filed with the SEC on December 18, 2007 and available on
 the SEC's web site at www.sec.gov.
 
     "The Pala funding comes at an important time," said Gordon Davies,
 President of RCAI. "As the mining and aggregate sectors come to better
 understand the significant efficiency gains that our Alderox(R) product has
 demonstrated it can deliver, we expect to see continued growth in sales
 volumes to existing customers, as well as substantial growth in our
 business development activities and associated scheduled field trials.
 Pala's investment and strategic involvement will greatly assist us in
 accelerating our aggressive geographic roll-out".
 
     About Pala
 
     Pala Investments Holdings Limited, based in Jersey, Chanel Islands, is
 a US$1 billion multi-strategy alternative investment company with a
 particular focus on mining and natural resource companies in both developed
 and emerging markets. Pala Investments' exclusive investment advisor, Pala
 Investments AG, is a Switzerland-based team with extensive experience
 within the mining and natural resource sectors. Pala Investments AG also
 advises Pala Assets Holdings Limited, a US$700 million alternative
 investment company focused primarily on earlier-stage natural resource
 companies in emerging markets. Both Pala Investments and Pala Assets seek
 to assist companies in which they have long-term shareholdings by providing
 strategic advice and innovative financing solutions.
 
     About RCAI
 
     Headquartered in San Clemente, California, RCAI manufactures and
 globally markets its Alderox(R) line of release agents and lubricants to
 heavy industry. The company's patented Alderox(R) formulations, which are
 100% environmentally-friendly, biodegradable, non-hazardous and non-toxic,
 are used to reduce or eliminate the significant problems associated with
 the build-up of materials in asphalt and mining haul truck beds, on mining
 and asphalt handling equipment and on concrete forms and molds.
 
     Safe Harbor Statement under the Private Securities Litigation Reform
 Act of 1995: The statements contained herein which are not historical are
 forward-looking statements that are subject to risks and uncertainties that
 could cause actual results to differ materially from those expressed in the
 forward-looking statements, including, but not limited to, certain delays
 beyond the company's control with respect to market acceptance of new
 technologies or products, delays in testing and evaluation of products, and
 other risks detailed from time to time in the company's filings with the
 Securities and Exchange Commission.
 
     Certain of the statements in the news release are forward-looking. Such
 statements relating to the Company's future business and the success of its
 products are based on Management's beliefs and opinions and also on
 assumptions made by and information currently available to the company.
 Such statements are subject to certain risks, uncertainties and the
 correctness of assumptions, and should be read with this cautionary
 statement in mind.
 
     CONTACT: Mike Davies at RCAI directly at tel. (949) 542-7440; or visit
 the Company online at www.rca-inc.com
 
 
 

SOURCE Reclamation Consulting and Applications Inc.

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