Redhill Resources Corp.
TSX VENTURE : RHR

Redhill Resources Corp.

January 18, 2012 08:00 ET

Redhill Acquires Tanzanian Properties on Strike with Barrick's Bulyanhulu Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2012) - Redhill Resources Corp. (TSX VENTURE:RHR) ("Redhill" or the "Company") is pleased to announce that it has entered into an Agreement (the "Agreement") with Thamani Mines Ltd. allowing Redhill to acquire an initial 85% interest, and the right to acquire the remaining 15% interest, in the Nyakagwe project (the Nyakagwa Project"), located in Tanzania, East Africa.

The Nyakagwe Project is strategically located on the Bulyanhulu regional trend within six kilometres (km) of Barrick Gold's 12 million-ounce Bulyanhulu gold mine. The Nyakagwe Project consists of forty-six Primary Mining licenses (PML's) in three contiguous groups encompassing an area of approximately 400 hectares surrounded by prospecting licenses and applications for prospecting licenses owned and presently being explored by Tembo Gold Corp.

In order to acquire the 85% interest, the Company has agreed to pay the sum of US$613,400 to the original vendors, of which US$383,400 has been paid, and a further US$230,000 is to be paid on June 15, 2012. The remaining 15% interest can be acquired by the Company by paying a sum equal to 5% of the spot price of gold at the date of purchase multiplied by the number of mineable ounces of gold that the 15% interest represents based on a feasibility study.

Historically, very limited surface exploration programs were completed on the Nyakagwe Project to evaluate the potential for near surface mineralization. Artisanal gold mining has been carried out on the project area for more than a decade and continues to be very prevalent on all three groups of licenses today.

The Company is planning an extensive exploration program on for 2012. The program will include mapping, sampling, trenching and induced polarization (IP), with the intention of defining drill targets for the upcoming exploration season. Redhill is well funded for all planned exploration with over $12 million in cash and marketable securities.

The Company would also like to report the appointment of Mr. Clive Massey as President and Chief Executive Officer of Redhill Resources Corp. Mr. Massey is an experienced executive with over 20 years in the mining and finance sectors. He has a strong background in the public markets and has structured both debt and equity financings. Mr. Massey has held directorships with various companies listed on the TSX Venture Exchange. From 2005 - 2007 Mr. Massey served as President and Chief Executive Officer of Universal Uranium Inc.

The Company would also like to report the grant of 1,560,000 incentive stock options to certain directors, officers, employees and consultants of the Company at a price of $0.14 per common share, exercisable for a 5 year period.

A finder's fee of the maximum allowed under the policies of the TSX Venture Exchange will be paid in cash in connection with the acquisition.

This news release has been reviewed by Brent Butler, a Qualified Person as that term is defined in NI 43-101.

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."

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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