Red Hill Energy Inc.

Red Hill Energy Inc.

November 12, 2009 09:00 ET

Geophysical Survey Results From Red Hill Energy's Khoot Ovoo Project Near Ulaan Ovoo Show Potential for a Large Additional Coal Basin

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2009) - Red Hill Energy (TSX VENTURE:RH) announced today the results from its recent geophysical survey program on its 4,961 hectare Khoot Ovoo property in northern Mongolia. Dual magnetic and IP resistivity surveys show strong potential for a coal-bearing basin only 20 km from Red Hill's 100% owned, 208 million tonne hard coal resource at Ulaan Ovoo. Surface prospecting at Khoot Ovoo previously identified this as the most prospective of several sedimentary basins near Ulaan Ovoo. If confirmed, the proximity of both basins could significantly enhance the life and economics of a large mining operation in this region.

The geophysical survey was carried out in fall 2009 by Geo-Oron LLC, a Mongolian geophysical company. The company carried out 34 km of magnetic survey lines and 16 km of pole-dipole Induced Polarization (IP) resistivity surveys. Dipole spacing was set at 100 m in order to have a section depth of 200 m. In addition, one 3.7 km magnetic line and one 1.8 km IP resistivity line were run along a known section at Ulaan Ovoo to allow better interpretation of the Khoot Ovoo results.

Several areas with geophysical features similar to those of the thick, shallow coal seam at Ulaan Ovoo were observed. In particular, one area approximately 2 x 1 km shows potential for a thick coal seam located 50-150 m below the surface. The prospective coal-bearing area is located only 1 km from sooty outcrops mapped by Red Hill geologists during earlier site visits. The area is characterized by a negative magnetic field and a shallowly dipping, high resistivity contact.

Four drill hole locations have been proposed based on the results of the geophysical survey for the 2010 exploration programme. If the drilling results confirm the presence of a major coal seam, follow-up drilling and core sampling would immediately follow.

Glenn S. Griesbach (P.Geo.), Geologist, is the Company's qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical information contained in this press release.


Red Hill Energy Inc. is a junior resource company trading on the TSX-Venture Exchange under the trading symbol RH. The Company is advancing over one billion tonnes of 100% owned coal from two Mongolian coal basins towards production.

Red Hill Energy Inc.

G. Arnold Armstrong - Chairman and CEO

Ranjeet Sundher - President

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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