Red Hill Energy Inc.
TSX VENTURE : RH

Red Hill Energy Inc.

March 12, 2007 09:00 ET

Red Hill Arranges $4.4 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 12, 2007) - Red Hill Energy Inc. (TSX VENTURE:RH) (the "Company") advises it has arranged a non-brokered private placement of 5,500,000 Units at a price of $0.80 per Unit. Each Unit is comprised of one common share and one half of one share purchase warrant. Each whole share purchase warrant entitles the holder to acquire one additional common share for a period of two years at a price of $1.00 per share during the first year of the warrant term and $1.25 per share during the second year of the warrant term, subject to forced exercise provisions. A finder's fee of 7.5% of the proceeds placed payable in cash or warrants (exercisable at a price of $0.80 per share) will be paid on a portion of the placement.

Proceeds of the placement will be applied to the Company's exploration programs on its Mongolian coal properties and to general working capital. The placement is subject to regulatory approval.

ABOUT RED HILL ENERGY INC.

Red Hill Energy Inc. is a junior resource company trading on the TSX-Venture Exchange under the trading symbol "RH". In addition to developing the 208.8 million tonne Ulaan Ovoo Coal Project in northern Mongolia Red Hill is also developing the Chandgana Tal Coal Project in Eastern Mongolia and has 11 uranium properties and several gold and copper exploration projects located throughout Mongolia. Red Hill has a strategic alliance with Mega Uranium Ltd. to jointly develop its uranium assets and has a full time office in Mongolia's capital, Ulaanbaatar.

RED HILL ENERGY INC.

G. Arnold Armstrong - Chairman and CEO

Ranjeet Sundher - President

Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Corporation's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The companies do not assume the obligation to update any forward-looking statement.

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

Contact Information

  • Red Hill Energy Inc.
    Paul McKenzie
    Director
    (604) 642-COAL (2625)
    Email: info@redhillenergy.com
    Website: www.redhillenergy.com
    or
    Fuller Fletcher & Associates Ltd. of London, UK
    Nick Fuller
    European Investor Inquiries
    +44 (0) 20 7256 5204
    or
    Fuller Fletcher & Associates Ltd. of London, UK
    Samantha Fletcher
    European Investor Inquiries
    +44 (0) 20 7256 5204