RedWater Energy Corp.
TSX VENTURE : RED

RedWater Energy Corp.

December 15, 2011 09:42 ET

RedWater Energy Announces $800,000 Non-Brokered Financing

OKOTOKS, ALBERTA--(Marketwire - Dec. 15, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

RedWater Energy Corp. ("RedWater") (TSX VENTURE:RED) has arranged for a private placement with an accredited investor. RedWater will issue 1,951,220 common shares, issued on "flow- through" basis, at a price of $0.41 per share for aggregate gross proceeds of $800,000. The investment will close in two stages ($680,000 closed on December 13, 2011 and $120,000 will close on December 29, 2011).

Including the issuance of shares detailed in this news release, there will be 32,425,850 common shares of RedWater issued and outstanding as at December 29, 2011.

In connection with the financing, RedWater will pay Union Securities Ltd. a cash commission of $56,000 and will issue them compensation warrants to purchase an aggregate of 136,584 common shares of RedWater at an exercise price of $0.41 per share for 12 months following each respective closing.

Business of RedWater Energy Corp.

RedWater Energy Corp. is an emerging oil and gas exploration and development company. RedWater is engaged in the acquisition, enhancement and exploration of conventional oil and gas projects in Western Canada with a focus on developing high working interest Viking and Manville light oil opportunities. RedWater's core properties are located in Redwater, Westlock, Fairydell-Bon Accord and Long Coulee areas of Alberta. www.redwaterenergy.com.

The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although RedWater believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, RedWater disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.

This press release does not constitute and the subject matter hereof is not, an offer for sale or a solicitation of an offer to buy, in the United States or to any "U.S Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "1933 Act")) of any equity or other securities of RedWater. The securities of RedWater have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.

Neither 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.

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