Dear Subscriber, |
May 5, 2007 |
� Red Hill Energy Inc.
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P R E S S����� R E L E A S E
Trading Symbol: RH. TSX-V������� ������������������������������������������� ����������� May 4, 2007
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RED HILL INCREASES PRIVATE PLACEMENT
Vancouver, British Columbia, May 4, 2007: Red Hill Energy Inc. (TSX-V:RH) (the "Company") advises that the non-brokered private placement of 1,000,000 Units at a price of $1.00 per Unit, as previously announced earlier today, has been increased to 3,000,000 Units as a result of further interest.
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Under the Placement, each Unit is comprised of one common share and one half of one share purchase warrant. Each whole share purchase warrant entitles the holder to acquire one additional common share for a period of two years at an exercise price of $1.25 per share, subject to forced exercise provisions. Finder's fees may be payable on a portion of the proceeds raised.
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Proceeds of the placement will be applied to the Company's exploration programs on its Mongolian coal properties and to general working capital. The placement is subject to regulatory approval.
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ABOUT RED HILL ENERGY INC.
Red Hill Energy Inc. is a junior resource company trading on the TSX-Venture Exchange under the trading symbol "RH". In addition to developing the 208.8 million tonne Ulaan Ovoo Coal Project in northern Mongolia Red Hill is also developing the Chandgana Tal Coal Project in Eastern Mongolia and has 11 uranium properties and several gold and copper exploration projects located throughout Mongolia. Red Hill has a strategic alliance with Mega Uranium Ltd. to jointly develop its uranium assets and has a full time office in Mongolia's capital, Ulaanbaatar
Red Hill Energy� Inc.����
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G. Arnold Armstrong - Chairman and CEO
Ranjeet Sundher - President
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For further information: ��Paul McKenzie (Director):� Telephone 604.642.COAL (2625)
Email:���� info@redhillenergy.com����� Web:���� www.redhillenergy.com
European Investor Inquiries can be directed to:
Nick Fuller and Samantha Fletcher
Fuller Fletcher & Associates Ltd. of London, UK
Tel:��������� +44 (0) 20 7256 5204��
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements:� Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Corporation's periodic filings with Canadian Securities Regulators.� Such information contained herein represents management's best judgment as of the date hereof based on information currently available.� The companies do not assume the obligation to update any forward-looking statement.
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