Red Hill Energy Inc.
TSX VENTURE : RH

Red Hill Energy Inc.

June 08, 2007 09:30 ET

Red Hill Energy Closes $2.44 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 8, 2007) - Red Hill Energy Inc. (TSX VENTURE:RH) (the "Company") announces that it has completed the non-brokered private placement previously announced on May 4, 2007. A total of 2,440,000 units were placed at a price of $1.00 per unit generating gross proceeds of $2,440,000.

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 for a period of two years at an exercise price of $1.25 per share, subject to forced exercise provisions. The securities issued under this placement are subject to a hold period expiring on October 1, 2007. A finders fee was payable on portions of this placement.

Red Hill Energy now has approximately CDN$8,350,000 in its treasury. Proceeds of this placement will be used to further advance marketing strategies and pre-production procedures for its 208.8 million tonne Ulaan Ovoo Coal Project located in north central Mongolia. In addition to the Ulaan Ovoo Project the Company is also simultaneously advancing its Chandgana Tal Coal Project located in eastern Mongolia. The Company also has 11 Mongolian Uranium properties which continue to be advanced under the Strategic Alliance agreement with partner Mega Uranium Ltd. Red Hill is operator on all projects.

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
    European Investor Inquiries
    Nick Fuller and Samantha Fletcher
    +44 (0) 20 7256 5204