Redhill Resources Corp.
TSX VENTURE : RHR

Redhill Resources Corp.

December 16, 2011 08:00 ET

Mutiny Pays Redhill AUD$4,000,000 and 40,000,000 Shares

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2011) - Redhill Resources Corp. (TSX VENTURE:RHR), and its wholly owned subsidiary, ATW Gold Corp Australia Pty Ltd. ("Redhill" or the "Company"), report that Mutiny Gold Ltd (ASX:MYG) ("Mutiny") has completed the acquisition of the Gullewa Gold Project.

On October 24, 2011 the Company reported that Mutiny elected to earn a further 30% (aggregate 100%) interest in the Gullewa Gold Project by paying Redhill's wholly owned subsidiary, ATW Gold Corp Australia Pty Ltd ("ATW Australia") a sum of AUD$4,000,000 and a 10% net Profit Interest Royalty (the "Royalty").

The AUD$4,000,000 payment was received by the Company on December 15, 2011.

As well, ATW Australia and Mutiny entered into a Deed of Variation whereby Mutiny acquired the 10% Royalty for a consideration of 40,000,000 ordinary common shares (the "shares") to ATW Australia. The shares are subject to a 15 month escrow period.

Background

The Gullewa Project is located 450 kilometres north of Perth, in the Yalgoo mineral fields of Western Australia. The Gullewa Project is a 550 sq kilometre property that hosts several gold deposits of various size and grade, the most significant being the Deflector gold-copper deposit which contains resources (Table 1) as disclosed in Table 3.1 to the NI 43-101 Technical Report on the Gullewa Gold-Copper Project dated June 13, 2008 as filed on SEDAR on June 18, 2008. Mining infrastructure assets at the Gullewa Project include a 800 tonne per day CIL plant, a licensed tailings disposal facility, a 50-person camp, offices, and workshops.

Table 1 - Deflector Deposit Resources

Mineral Resource Estimate for the Deflector Deposit above a 1.0 g/t AuEq Grade Cut-Off (1.0% Cu = 2.5 g/t Au)

Au Au Cu Cu Ag Ag
Classification Tonnes (g/t) (oz) (%) (t) (g/t) (oz)
Measured 1,040,000 4.6 150,000 1.34 14,000 8.7 290,000
Indicated 1,060,000 5.7 190,000 0.79 8,400 5.9 200,000
Measured + Indicated* 2,100,000 5.2 350,000 1.1 22,000 7.3 490,000
Inferred 1,300,000 4.5 180,000 0.5 6,000 3.2 130,000
Totals 3,400,000 4.9 530,000 0.85 29,000 5.7 620,000

(Metallurgical recoveries and net smelter returns are assumed to be 100%)

Graham Harris, Chairman, comments, "The closing of this transaction provides Redhill with a strong cash position. This combined with its equity interest in Mutiny will give the Company the ability to acquire and advance future projects."

The Company would also like to report the grant of 1,800,000 incentive stock options to certain directors, officers, employees and consultants of the Company at a price of $0.10 per common share, exercisable for a 5 year period.

To find out more about Redhill Resources Corp., please contact investor relations at 604- 662-8184 or email investor@redhill-resources.com. You may also visit our website at www.redhill-resources.com.

REDHILL RESOURCES CORP.

Graham Harris, Chairman

"This news release may contain forward–looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."

"The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release."

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