Redhill Resources Corp.
TSX VENTURE : RHR

Redhill Resources Corp.

April 27, 2011 08:57 ET

Redhill Receives Notice of Accelerated Acquisition of Gullewa Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 27, 2011) -Redhill Resources Corp. (TSX VENTURE:RHR) ("Redhill" or the "Company") has received a notice of intention from its joint venture partner Mutiny Gold Ltd. ("Mutiny") (ASX:MYG) that it wishes to expedite its right to acquire a 100% ownership of the Gullewa Gold Project in Western Australia. Redhill will retain a 10% net profit interest from production.

Under the terms of the Gullewa farm-in Option Agreement ("the Agreement") between Redhill's subsidiary, ATW Gold Corp Australia Pty Ltd ("ATW Australia") ("Redhill"), and Mutiny Gold Ltd. ("Mutiny"), whereby Mutiny may earn a 70% interest in the Gullewa Copper-Gold Project in Western Australia by paying, to ATW Australia, a total of AUD$9,000,000 on or before October 24, 2011. Refer to news release of July 20, 2010 for further information.

Redhill's 100% interest in the Gullewa Project was originally acquired from Sherwin Iron Ltd. (formerly "Batavia Mining Ltd.") under the terms of an agreement (the "Underlying Agreement") dated April 18, 2008 as amended.

Mutiny has notified Redhill that, by July 24, 2011, it intends to forward AUD$4,000,000 to Sherwin Iron Ltd, on behalf of Redhill, thus fulfilling Redhill's obligations to earn 100% of Gullewa. Mutiny intends to pay an additional $2,000,000 to Redhill to earn Mutiny's 70% interest in Gullewa.

Mutiny has advised Redhill that following the transfer of the 70% interest in the tenements to Mutiny, Mutiny intends to pay Redhill a further $4,000,000 upon completion of a positive feasibility study, bringing Mutiny's interest to 100% subject to a 10% net profit interest on all future production payable to Redhill.

Graham Harris, Chairman, comments, "We are pleased that Mutiny has served notice of intent to acquire the remaining interest in Gullewa. Upon completion of the accelerated terms of the Gullewa acquisition, Redhill will net AUD$6,000,000 and retain a 10% net profit interest. These funds combined with the $4,000,000 of current working capital will be used to advance our current portfolio of properties and to consider further acquisitions."

The Company further announces that it has retained KCrew Communications Inc. ("KCrew") of Vancouver for investor relation services.

KCrew Communications Inc. is an investor relations firm with extensive experience and a strong network of contacts in the investment industry. KCrew will assist with the Redhill's Investor Relations program and creating further awareness of the Company's business activities. Under the terms of the three month contract KCrew will receive $6,000 a month for its services.

The Company would also like to report the grant of 4,860,000 incentive stock options to certain directors, officers, employees and consultants of the Company at a price of $0.10 per common share, exercisable for a 5 year period.

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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