RedWater Energy Announces Closing of Non-Brokered Financing

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) is pleased to announce that
is has closed a non-brokered private placement (the "Offering") by issuing
2,200,000 "flow-through" common shares at a price of $0.25 per share for
aggregate gross proceeds to RedWater of $550,000. Each "flow-through" common
share will qualify as a "flow-through share" for the purposes of the Income Tax
Act (Canada). All "flow-through" common shares issued pursuant to the Offering
are subject to a four-month hold period.


In connection with the Offering, RedWater paid cash commissions equal to 6% of
certain gross proceeds of the Offering for a total of $24,300.


Including the issuance of shares detailed in this news release, there will be
34,840,152 common shares of RedWater issued and outstanding. The Offering
remains subject to final acceptance by the TSX Venture Exchange.


A director of RedWater participated in the Offering, thereby making the Offering
a "related party transaction" as defined under Multilateral Instrument 61-101
("MI 61-101"). The Offering was exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101 as neither the fair market value
of any common shares issued to or the consideration paid by such person exceeded
25% of RedWater's market capitalization.


The proceeds of the Offering will be used to fund RedWater's ongoing exploration
program.


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.