Red Hill Energy Inc.
TSX VENTURE : RH

Red Hill Energy Inc.

March 31, 2010 17:52 ET

Red Hill Closes $3,114,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 2010) - Red Hill Energy (TSX VENTURE:RH) is pleased to announce that it has completed the non-brokered private placement previously announced on March 25, 2010. A total of 5,463,158 Units were placed at a price of $0.57 per Unit generating gross proceeds of $3,114,000.

Each Unit consisted 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 at a price of $0.71 until March 31, 2012. The Warrants are subject to forcible conversion within 30 days of delivery of notice from the Company, in the event the shares of the Company close at over $1.06 for 10 consecutive trading days. All of the securities issued under this placement are subject to a hold period expiring on August 1, 2010.

A finder's fee of 7% of the proceeds placed paid in cash and 7% of the Units placed paid in Warrants was paid in respect of the placement.

Proceeds of the placement will be applied to the Company's Ulaan Ovoo coal project as well as to exploration programs on its other coal assets in addition to general working capital.

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. The Company is advancing over one billion tonnes of 100% owned coal from two Mongolian coal basins towards production. Red Hill has a full-time office in Mongolia's capital, Ulaanbaatar.

Red Hill Energy Inc.

G. Arnold Armstrong – Chairman and CEO

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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