Redhill Resources Corp
TSX VENTURE : RHR

Redhill Resources Corp

January 21, 2011 14:46 ET

Redhill Adds Rare Earth Prospect to Existing Property Portfolio-Management Changes and Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 21, 2011) - Redhill Resources Corp. (TSX VENTURE:RHR) ("Redhill" or the "Company") is pleased to announce that it has entered into an agreement with Blair Naughty ("Naughty") to purchase a 100% interest in the Morgan mineral claims, located in the Wicheeda carbonatite belt in Central British Columbia (the "Agreement"). The property is approximately 4,200 hectares in size and situated in the vicinity of Canadian International Minerals Ltd. Carbo rare-earth-element prospect.

Subject to TSX Venture Exchange approval, Redhill will pay Naughty $10,000 in cash and issue 2.5 million common shares of the Company for the 100% interest. The western boundary of the Morgan claims is approximately seven kilometres east of Canadian International Minerals Carbo property.

The Morgan property is also in the vicinity of Spectrum Mining Corp.'s Wicheeda discovery of carbonatite-hosted rare-earth elements. Results from Spectrum's 2008 and 2009 drilling are presented in a paper titled "The Wicheeda Carbonatite-Syenite Breccia Intrusive Complex Hosted Rare Earth Deposit". Within the paper Spectrum announced the following from 2009 drilling: "Examples of some of the intersections are 144 m averaging 12,924 ppm (1.3%) Cerium, 6,403 ppm (.64%) Lanthanum and 2,599 ppm (.26%) Neodymium in hole 2009-09 (2.2% REE over 144 m) and 72 m averaging 18,310 ppm (1.83%) Cerium), 7,296 ppm (.73%) Lanthanum and 3,547 ppm (.35%) Neodymium in hole 2009-07 (2.92% REE over 72 m)." Spectrum also stated "In 2009, eleven NTW diamond drill holes totaling 1,835 metres were drilled into the 'Main Zone' from two new drilling platforms. All eleven drill holes intersected significant rare earth mineralization and the Wicheeda deposit remains open in all directions."

Brent Butler, is stepping down as President and CEO of Redhill and will remain as a director and the Qualified Person (as defined under National Instrument 43-101) of the Company. Graham Harris, director and Chairman, has agreed to act as interim CEO.

Redhill further announces it has reached agreement with certain subscribers to complete a non-brokered private placement of up to 25,000,000 units (the "Units") at a price of $0.10 per unit, for gross proceeds of up to $2,500,000 (the "Private Placement"). Each Unit will consist of one common share and one share purchase warrant, each share purchase warrant being exercisable for a period of one year at a price of $0.15 per share. Finders' fees in accordance with the rules of TSX Venture Exchange will be paid on the Private Placement.

All securities issued pursuant to this financing are subject to a four month hold period from the date of issuance. Insiders will be participating in the financing. The Private Placement is subject to approval from the TSX Venture Exchange.

Proceeds of this private placement will be used to fund exploration on the Gascoyne projects, to advance the Honey Comb Hills and Morgan rare-earth properties and for general working capital.

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

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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