Redhill Resources Corp.: Mutiny Gold Releases Positive Scoping Study for Deflector Gold Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 15, 2011) - Redhill Resources Corp., (TSX VENTURE:RHR), ("Redhill" or the "Company"), announces that Mutiny Gold Ltd. (ASX:MYG) ("Mutiny"), operator and optionee of Redhill's wholly owned Gullewa Copper-Gold Project, has informed Redhill that it recently completed a scoping study (the "Scoping Study") for development of the Deflector deposit, located within the Gullewa Project area in the South Murchison region of Western Australia. The Company entered into an agreement with Mutiny (the "Mutiny Agreement") on July 20, 2010. Details of the Mutiny Agreement are described at the bottom of this release.

Mutiny has advised the Company that it believes that the Scoping Study has confirmed the economic and technical viability of development of the Deflector deposit.

Mutiny in its news release dated February 15, 2011 has advised as follows:

• The Scoping Study was completed into development of the Deflector deposit in Western Australia. The internal cost model of the Scoping Study covered the first ten years of potential operation only.

• The Scoping Study projected cash surplus of AUD$427M after payback of AUD$52M capital cost and State Royalties.

• The Scoping Study projected annual production of 50,000oz Au, 2,000 tonnes Cu and 346,00oz Ag.

• The Scoping Study estimated cash costs over life of mine at AUD$524/oz

• The Scoping Study estimated average production grade ranges from 4.1g/t Au to 6.5g/t Au.

Mutiny has advised its shareholders that it hopes to commence production from the Deflector deposit in Q4 2012. The Scoping Study delineates a clear pathway to production for Mutiny, with the capital cost estimated to be AUD$52 million, including AUD$19 million for plant upgrade and AUD$12 million for the first three months working capital.

The Scoping Study outlines a two-stage operation with an expected minimum 10 year mine life over both phases, based on currently identified resources and reserves. 

The Company wishes to advise that the results of the Scoping Study from Mutiny have not yet been the subject of an NI 43-101 compliant report. Further, readers are cautioned that the preliminary assessments above released by Mutiny include assessments based on inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves (for the purpose of making preliminary assessments or for any other purpose) under NI 43-101.

There is no certainty that the preliminary assessments released by Mutiny will be realized. No preliminary feasibility study, pre-feasibility study or feasibility study (as those terms are defined in NI 43-101) has yet been completed by Mutiny or by the Company.

The Company has not reviewed or confirmed the basis for the preliminary assessments released by Mutiny nor has it reviewed any assumptions or qualifications made in the Scoping Study by Mutiny.

The Gullewa Project is located 450 kilometres north of Perth, in the Yalgoo mineral fields of Western Australia. The Gullewa Project is a 550 sq kilometre property that hosts several gold deposits of various size and grade, the most significant being the Deflector gold-copper deposit which contains resources (Table 1) as disclosed in Table 3.1 to the NI 43-101 Technical Report on the Gullewa Gold-Copper Project dated June 13, 2008 as filed on SEDAR on June 18, 2008. Mining infrastructure assets at the Gullewa Project include a 800 tonne per day CIL plant, a licensed tailings disposal facility, a 50-person camp, offices, and workshops.

Table 1 - Deflector Deposit Resources

Mineral Resource Estimate for the Deflector Deposit
above a 1.0 g/t AuEq Grade Cut-Off (1.0% Cu = 2.5 g/t Au)

Category	Tonnes	Au (g/t)	Ag (g/t)	Cu (%)	AuEq (g/t)	AuEq (oz)
Measured	535,000	3.87	8.03	1.18	6.81	117,000
Indicated	1,169,000	4.32	6.34	0.96	6.72	252,000
Measured and Indicated	1,704,000	4.18	6.87	1.03	6.75	369,000
Inferred	1,616,000	6.50	3.41	0.48	7.71	400,000

(Metallurgical recoveries and net smelter returns are assumed to be 100%)

Mutiny is in the process of completing a Feasibility Study for the Gullewa Project. Readers are cautioned that the preliminary assessments released by Mutiny and summarized above may differ from projections which will be given in the Feasibility Study.

The Feasibility Study will:

• Review plant and site infrastructure refurbishment;

• Review options for site power supply;

• Provide resource upgrades including the latest exploration results,

• Provide final open pit designs and costs;

• Detail underground development, production and costing; and

• Contain further financial analysis of the project.

The full text of Mutiny's news release can be found at its website: www.mutinygold.com.au. As an ASX issuer, Mutiny does not file on SEDAR.

The terms of the Mutiny Agreement, dated July 20, 2010, call for Mutiny to earn a 70% interest in and to the Gullewa project by making exploration expenditures and paying to Redhill's subsidiary (ATW Australia) a total of AUD$9,000,000 as follows:

1. By making the following cash payments:

2. payment to ATW Australia of AUD$1.5 million on or before September 24, 2010; and

3. payment to ATW Australia of AUD$1.5million (plus applicable interest payable under clause 2 of the Underlying Agreement) to ATW Australia on or before January 24, 2011; and

4. payment to ATW Australia of AUD$4.0million on or before July 24, 2011; and

5. payment to ATW Australia of AUD$2.0 million on or before October 31, 2011; and

6. By paying all exploration and development expenditures on the Gullewa Project until October 31, 2011.

To date, Mutiny has paid AUD$3.0 million to the Company under the terms of the Mutiny Agreement.

Upon earning a 70% interest in the Gullewa Project, Mutiny may elect to enter into a 70/30 joint venture agreement with the Company or it may acquire a further 30% interest by completing a positive feasibility study on the Gullewa Project and by paying to ATW Australia an additional AUD$4,000,000. If it so elects, then it will have acquired the Gullewa Project 100% save and except that ATW Australia will retain a 10% net profit interest.

This Scoping Study has been reviewed by J.J.G Doepel, a Qualified Person as that term is defined in NI 43-101.

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

"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."

"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."