RED

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) announced today, that it
has completed a second closing of its non-brokered private placement financing
pursuant to which RedWater raised gross proceeds of $385,232.40 through the
issuance of 917,220 "flow-through" units ("FT Units") at a price of $0.42 per FT
Unit. Each FT Unit consists of one common share (a "Share") in the capital of
RedWater, issued on a "flow-through" basis, and one-half of one common share
purchase warrant, with each whole warrant entitling the holder thereof to
acquire one Share at an exercise price of $0.60 per Share until December 31,
2011. All securities issued pursuant to the financing will be subject to a
four-month hold period.


The total amount raised by RedWater pursuant to the non-brokered financing is
now $1,918,032.06 through the issuance of 4,566,743 FT Units. RedWater had
originally announced the intention to complete a non-brokered financing of up to
$1,500,000.


Including the issuance of shares detailed in this News Release, there are
currently 24,599,221 Shares issued and outstanding. The net proceeds will be
used by RedWater for the further development of core properties located in
Redwater, Red Earth, Westlock, and Fairydell-Bon Accord areas of Alberta.


In connection with the second closing, RedWater paid cash commissions of
$9,482.59 and issued 22,577 compensation warrants exercisable for units at $0.42
per unit until June 30, 2012. Each unit consists of one Share and one-half of
one common share purchase warrant, with each whole warrant entitling the holder
thereof to acquire one Share at an exercise price of $0.60 per Share until
December 31, 2011.


Business of RedWater Energy Corp.

RedWater Energy Corp. is a junior 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 light oil opportunities. RedWater's core properties are
located in Redwater, Red Earth, Westlock, and Fairydell-Bon Accord 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.

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