RedWater Announces Financial and Operating Results for the Three Months Ended March 31, 2012

RedWater Energy Corp. ("RedWater") (TSX VENTURE:RED) is pleased to report record
financial and operating results for the three months ended March 31, 2012.
RedWater's interim condensed financial statements and related management's
discussion and analysis for the three months ended March 31, 2012 have been
filed and are available on the SEDAR website at www.sedar.com and may also be
obtained on RedWater's website at www.redwaterenergy.com.


Highlights



--  Increased average production to 98 barrels of oil equivalent per day
    ("boepd") or 29% percent higher than the first quarter of 2011 
    
    --  65 bopd of oil in the first quarter vs. 57 bopd of oil in the first
        quarter of 2011 
    --  200 Mcf per day of natural gas vs. 113 Mcf per day of natural gas in
        the first quarter of 2011 
        
--  Fund flows from operations was ($142,828) for the first quarter compared
    to $11,127 for first quarter of 2011 
    
--  Credit facility increased to $5.5 million with $2.5 million available
    immediately and additional expansion available upon tie-in of behind
    pipe tested production and projected drilling results 
    
--  Land holdings of 35,680 net undeveloped acres at December 31, 2011 
    

                                            Three Months Ended       
                                                 March 31,           
                                               2012              2011
                                     --------------  ----------------
Operations                                                           
Production                                                           
  Oil (bbls/d)                                   65                57
  Natural Gas (Mcf/d)                           200               113
                                     --------------    --------------
  BOEPD                                          98                76
                                                                     
Average Selling Price                                                
  Oil ($/bbls)                       $        75.77    $        74.90
  Natural Gas ($/Mcf)                          2.68              3.71
                                     --------------    --------------
  BOE ($/BOE)                        $        55.48    $        61.44
                                                                     
Operating Netback ($/BOE)            $         9.95    $        32.24
                                                                        
                                              Three Months Ended        
                                                   March 31,            
                                                   2012            2011 
                                       -----------------   -------------
Financial                                                               
                                                                        
Petroleum and Natural Gas              $        439,710    $    376,078 
Revenues, net of royalties                                              
                                                                        
Fund Flow from Operations                      (142,828)        (11,127)
  Per Share, Basic & Diluted                      (0.00)           0.00 
                                                                        
Income (loss)                                  (255,433)      1,133,819 
  Per Share, Basic & Diluted                      (0.01)           0.05 
                                                                        
Capital Expenditures                            740,060       1,133,819 
Total Assets                                 12,001,104       8,489,520 
Shareholders' Equity                          7,855,076       8,110,509 
                                                                        
Common Shares Outstanding                                               
Basic                                        32,640,152      24,599,221 
Diluted                                      32,640,152      24,832,993 



Operational Review

On April 30, 2012, RedWater announced its $6.0 million 2012 capital expenditure
program focusing on Mannville, Viking and Keg River light oil in the RedWater
and Panny areas of Alberta. RedWater will continue to focus on light oil
production through exploratory and development drilling, re-activations and
targeted acquisitions. The 2012 capital program will be funded with working
capital, operating cash flow and available drawings on its credit facility.




--  Drill 3 (2.25 net) multi-stage fracs horizontal wells in the Redwater
    area targeting Viking and Leduc oil 
--  Drill 4 conventional vertical wells targeting Mannville and Viking light
    oil 
--  4 well fracture programs, 2 well re-entries and several well evaluations
    and work-overs 



RedWater will begin its workovers and reactivations post break-up with drilling
to follow. An additional re-entry and a Keg River horizontal drill is planned
for January 2013 in the Panny area.


Outlook

RedWater plans to continue to focus on developing its Mannville and Viking oil
assets in Redwater and accordingly will dedicate the majority of its capital
spending towards these assets. As previously mentioned, RedWater shut-in the
majority of its natural gas production early in the first quarter due to lower
natural gas prices. Management believes it prudent to focus available resources
on light oil development. The shut-in wells will be evaluated for re- activation
as natural gas prices increase.


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 light oil opportunities. RedWater's core properties are
located in Redwater, Panny, Westlock, Fairydell-Bon Accord, and Long Coulee
areas of Alberta. www.redwaterenergy.com.


Cautionary Statements

Forward-looking information and statements

This news release contains certain forward-looking information and statements
within the meaning of applicable securities laws. The use of any of the words
"expect", "anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are intended to
identify forward-looking information or statements. In particular, but without
limiting the forgoing, this news release contains forward-looking information
and statements pertaining to the following; the timing for completion and
equipping of wells; the volume and product mix of RedWater's oil and gas
production and its ability to develop RedWater's oil resource properties, the
use of the RedWater's cash flow from operations and expanded credit facilities;
the number of wells to be drilled and potential development drilling and number
of potential oil development locations.


In addition, forward-looking statements or information are based on a number of
material factors, expectations or assumptions of RedWater which have been used
to develop such statements and information but which may prove to be incorrect.
Although RedWater believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue reliance should
not be placed on forward-looking statements because RedWater can give no
assurance that such expectations will prove to be correct. In addition to other
factors and assumptions which may be identified herein, assumptions have been
made regarding, among other things: results from drilling and development
activities consistent with past operations; the continued and timely development
of infrastructure in areas of new production; continued availability of debt and
equity financing and cash flow to fund RedWater's current and future plans and
expenditures; the impact of increasing competition; the general stability of the
economic and political environment in which RedWater operates; the timely
receipt of any required regulatory approvals; the ability of RedWater to obtain
qualified staff, equipment and services in a timely and cost efficient manner;
drilling results; the ability of the operator of the projects in which RedWater
has an interest in to operate the field in a safe, efficient and effective
manner; the ability of RedWater to obtain financing on acceptable terms; field
production rates and decline rates; the ability to replace and expand oil and
natural gas reserves through acquisition, development and exploration; the
timing and cost of pipeline, storage and facility construction and expansion and
the ability of RedWater to secure adequate product transportation; future
commodity prices; currency, exchange and interest rates; regulatory framework
regarding royalties, taxes and environmental matters in the jurisdictions in
which RedWater operates; the ability of RedWater to successfully market its oil
and natural gas products that all necessary regulatory approvals will be
obtained as and when required, that there will be no material adverse change in
RedWater's affairs or laws, rules or regulations relating to RedWater, its
securities or business, there will be no regulatory proceedings involving
RedWater or any of its directors or officers, or any cease trade or other order
prohibiting or restricting trading in RedWater's securities, no major national
or international event will have occurred that has or would reasonably be
expected to have a material adverse effect on financial markets or the business,
operations or affairs of RedWater.


The forward-looking information and statements included in this news release are
not guarantees of future performance and should not be unduly relied upon. Such
information and statement, including the assumptions made in respect thereof,
involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to defer materially from those anticipated in such
forward-looking information or statements including, without limitation: changes
in commodity prices; changes in the demand for or supply of RedWater's products;
unanticipated operating results or production declines; changes in tax or
environmental laws, royalty rates or other regulatory matters; changes in
development plans of RedWater or by third party operators of RedWater's
properties, increased debt levels or debt service requirements; inaccurate
estimation of RedWater's oil and gas reserve and resource volumes; limited,
unfavorable or a lack of access to capital markets; increased costs; a lack of
adequate insurance coverage; the impact of competitors; and certain other risks
detailed from time-to-time in RedWater's public disclosure documents,
(including, without limitation, those risks identified in this news release and
RedWater's public company documents filed on SEDAR).


The forward-looking information and statements contained in this news release
speak only as of the date of this news release, and RedWater does not assume any
obligation to publicly update or revise any of the included forward-looking
statements or information, whether as a result of new information, future events
or otherwise, except as may be expressly required by applicable securities laws.


BOE Equivalent

Barrel of oil equivalents or BOEs may be misleading, particularly if used in
isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.