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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Herb Duncan who wrote (11584)	7/7/1998 4:17:00 PM
From: Kerm Yerman	Respond to of 15196

ACQUISITIONS - MERGERS / Renaissance Energy Commences Integration of Pinnacle Resources RENAISSANCE ENERGY LTD. TSE, ME SYMBOL: RES JULY 6, 1998 CALGARY, ALBERTA--Renaissance Energy Ltd. has completed the acquisition of Pinnacle Resources Ltd. after taking up 95 percent of the issued and outstanding common shares of Pinnacle which were tendered to Renaissance's offer to purchase dated June 12, 1998. Later this week, Renaissance will acquire all the remaining outstanding common shares of Pinnacle pursuant to the compulsory acquisition provisions of the Business Corporations Act (Alberta) and Pinnacle will become a 100 percent owned subsidiary company. A total of 26,954,000 common shares of Renaissance have been or will be issued to effect this takeover. Current expectations are to complete a legal amalgamation of the two companies before the end of August. Prior to ceding control of Pinnacle, the previous Board of Directors terminated the employment of all eight officers of Pinnacle pursuant to their Change of Control Agreements dated March 12,1998. The directors then resigned in favour of the Renaissance appointees who in turn appointed a slate of officers identical to Renaissance's management. Renaissance is proceeding expeditiously to integrate the operations of Pinnacle with its own. To this end, 32 percent of Pinnacle's head office staff and 53 percent of its field staff continue to be employed. All of the remaining staff were terminated immediately and offered severance packages. Pinnacle's head office premises have also been placed on the market with an anticipated closing this fall and no on-going obligations. Renaissance will continue to seek additional opportunities, both immediately and over the long term, to achieve greater operational efficiencies within the consolidated companies. Efforts are already underway to sell certain non-core properties and apply the sales proceeds to the reduction of outstanding indebtedness. This process is expected to be completed before year-end.