Redhill Resources Corp.

Redhill Resources Corp.

June 27, 2011 16:34 ET

Redhill Resources Corp.: Mutiny Receives One Month Extension on Gullewa Payment

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 27, 2011) - Redhill Resources Corp. (TSX VENTURE:RHR) ("Redhill" or the "Company"), has received notice from Mutiny Gold Ltd. (ASX:MYG) ("Mutiny"), operator and optionee of Redhill's wholly owned Gullewa Copper-Gold Project that Mutiny has executed an extension agreement of the fourth payment until August 24, 2011. The fourth payment was originally scheduled to be made on or before July, 24, 2011.

The key terms of the extension:

Given the obligation of Redhill to pay the fourth payment to Sherwin under the Sale Agreement on 31 July 2011, Redhill, Mutiny and Sherwin Iron have agreed as follows:

1. Grant of Option

In consideration of the payment of AUD$50,000 by Mutiny to Sherwin, Sherwin agrees that, if requested by Mutiny in writing on or prior to 28 June 2011, Sherwin will not require payment of the fourth payment until 31 August 2011, subject to, and conditional upon the following events occurring on or before 28 June 2011:

  1. the payment of the sum of AUD$100,000 by Mutiny to Sherwin; and
  2. the issue to Sherwin of:
    1. 300,000 fully paid ordinary shares in Mutiny; and
    2. 100,000 2 year unlisted options to purchase Ordinary Shares at an exercise price of 12.5 cents per option.

2. Sherwin and Redhill agree that the date for payment of the Progress Payment payable by Mutiny to Redhill shall be extended until August 24, 2011.


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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