Redhill Resources Corp

Redhill Resources Corp

March 29, 2011 09:00 ET

Redhill Closes Honey Comb Hills Rare Earth Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2011) - Redhill Resources Corp. (TSX VENTURE:RHR) ("Redhill" or the "Company") is pleased to report it has closed the mineral claim purchase agreement (announced by the Company November 2, 2010) between Redhill Resources Corp. and 0857796 B.C. Ltd., a private company, for the purchase of a 100-per-cent interest in 64 unpatented lode claims in western Utah. The lode claims comprise the Honey 1-5 and the HC claims. These claims are collectively known as the Honey Comb Hills project. The project area of the property covers approximately two square kilometres and is located in the Fish Creek district, Juab County, approximately 2.5 hours southwest of Salt Lake City.

The Property is in close proximity to Great Western Minerals Group's Deep Sands REE project. The Property comprises an alkalic rhyolite flow dome complex which exhibits highly anomalous rare earth elements, lithium, beryllium, and rubidium. Mineralization occurs throughout the dome but appears to be higher in grade within a flat to gently dipping sequence of rhyolite tuffs and breccias. Initial surface sampling report assays of up to 1043 ppm total rare earth oxides (TREO), 1690 ppm lithium, greater than 1000 ppm beryllium and 1270 ppm rubidium. Detailed mapping shows an anomalous area of roughly 500 by 1000 metres with a satellite anomalous area of 500 by 500 metres. In addition, both anomalies are flanked by quaternary alluvium and could extend substantially under shallow cover.

The Property is still in an early exploration stage. However, higher grade material could be present at feeder zones at or near the contact with underlying basement limestones. The Honey Comb Hills Project is in the same county, and hosts a similar geologic environment, to nearby Spor Mountain Mine. Spor Mountain Mine is owned by Brush Engineered Metals and produces approximately 48,000 tonnes of bertrandite ore annually, grading 0.35% beryllium, representing nearly 60% of world production. Studies conducted by the U.S. geological survey and by the U.S. Bureau of Mines in the 1960's confirm the extent and grade of the beryllium deposits in this area.

An article in Economic Geology in 1964 referencing Dow Chemical's exploration work in the area states that the discovery of beryllium mineralization in 1961 around the Honey Comb Hills Project led to a geological and exploration project by the Dow Chemical Company. Chemical and mineralogical studies of samples from shallow excavations and drill holes revealed abnormal quantities of cesium, rubidium and lithium in the beryllium-bearing tuffs.

Under the terms of the mineral claim purchase agreement Redhill paid $250,000 in cash and issued 7.5 million common shares to the vendor.

The company also paid a finder's fee of $25,000 to Todd Birch in connection with the transaction.

For further information, please see the company's news release dated Nov. 2, 2010, which is available under the company's profile on SEDAR.

The Company also announces the filing on SEDAR of its NI 43-101 compliant Technical Report related to its Honey Comb Hills Property (the "Technical Report").

The Technical Report is titled "TECHNICAL REPORT FOR Redhill Resources Corp. (formerly ATW Gold Corp.) On the HONEY COMB HILLS PROPERTY Located in the Fish Creek District, Sec 6 & 7, T13S, R15W and Sec 1 & 12, T13S, R16W Salt Lake Meridian Juab County, Utah, U.S.A. (Latitude 39°42'41"N, Longitude 113°35'14")", and dated December 20, 2010.

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


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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