Redcliffe Announces 2008 Financial Results and Filing of 2008 Year-End Disclosure Documents

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.

Redcliffe Exploration Inc. (TSX VENTURE:RXP.A) (TSX VENTURE:RXP.B) ("Redcliffe"
or the "Company") is pleased to announce that it has filed its audited
consolidated financial statements and related Management's Discussion and
Analysis as of and for the year ended December 31, 2008 with Canadian securities
regulatory authorities. Redcliffe has also filed its Annual Information Form,
which includes the Company's reserve data and other oil and gas information for
the year ended December 31, 2008 as required by National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities. These filings are available
for review at www.sedar.com.


Highlights:

- Production increased 67% to an average of 1,038 boe/d for Q4 2008, compared to
622 boe/d for Q4 2007, and increased 117% to an average of 941 boe/d for 2008,
compared to 434 boe/d for 2007. The Company exited 2008 producing approximately
1,332 boe/d, with additional potential production of approximately 250 boe/d
behind-pipe.


- Petroleum and natural gas sales increased 93% to $4,824,000 for Q4 2008,
compared to $2,495,000 for Q4 2007, and increased 218% to $21,517,000 for 2008,
compared to $6,765,000 for 2007.


- Average prices realized increased 16% to $50.50/boe for Q4 2008, compared to
$43.62/boe for Q4 2007, and increased 46% to $62.48/boe for 2008, compared to
$42.71/boe for 2007.


- Operating netback increased 5% to $23.02/boe for Q4 2008, compared to
$21.88/boe for Q4 2007, and increased 46% to $34.41/boe for 2008, compared to
$23.61/boe for 2007.


- Funds from operations increased 106% to $1,761,000 for Q4 2008, compared to
$855,000 for Q4 2007, and increased 364% to $8,782,000 for 2008, compared to
$1,893,000 for 2007.


- Net capital expenditures totaled $5,634,000 for Q4 2008 and $18,730,000 for
2008. Redcliffe drilled 3 (0.83 net) wells during Q4 2008, resulting in 3 (0.83
net) natural gas wells, for an overall success rate of 100%. For 2008, Redcliffe
drilled a total of 8 wells (4.35 net), resulting in 7 (3.35 net) natural gas
wells and 1 (1.00 net) oil well, for an overall success rate of 100%.


- Increased proved reserves 32% to 2,252.6 mboe at December 31, 2008, compared
to 1,702.7 mboe at December 31, 2007, and increased proved plus probable
reserves 32% to 4,094.0 mboe at December 31, 2008, compared to 3,103.0 mboe at
December 31, 2007. Reserve additions were 956.7 mboe on a proved basis and
1,552.7 mboe on a proved plus probable basis, resulting in a replacement of 2008
production by 2.6 times on a proved basis and 3.9 times on a proved plus
probable basis.


- Successfully established an arrangement with a land fund and increased
undeveloped land base to 105,769 acres (71,709 net acres) at December 31, 2008,
compared to 60,866 acres (38,892 net acres) at December 31, 2007, an increase of
74% (84% net).




                                     Three months ended          Year ended
                                            December 31         December 31
                                    ----------------------------------------
Financial                                2008      2007      2008      2007
----------------------------------------------------------------------------
($ thousands, except per share amounts)

Petroleum and natural gas sales         4,824     2,495    21,517     6,765
Funds from operations (1)               1,761       855     8,782     1,893
 Per basic and diluted share             0.02      0.02      0.11      0.05
Cash provided by (used in) operating 
 activities                             2,952    (2,021)    8,875      (569)
 Per basic and diluted share             0.03     (0.04)     0.11     (0.01)
Net loss and other comprehensive loss     706       660        74       462
 Per basic and diluted share             0.01      0.01         -      0.01
Capital expenditures, net               5,634     6,129    18,730    17,363
Weighted-average shares (thousands) 
 Basic                                 86,475    49,103    78,295    38,747
 Diluted                               86,475    49,103    78,295    38,941


Capital Structure                     December 31, 2008   December 31, 2007
----------------------------------------------------------------------------
($ thousands, except share amounts)

Working capital deficiency (2)                    4,885               9,144
Bank debt                                         8,587               4,225
Net debt                                         13,472              13,369
Total assets                                     66,683              56,922
Shares outstanding (thousands)
 Class A                                         74,235              54,406
 Class B                                          1,494               1,494
----------------------------------------------------------------------------
(1) Funds from operations is calculated as cash provided by (used in) 
    operating activities and adding changes in non-cash working capital and
    asset retirement expenditures. Funds from operations is used to analyze
    the Company's operating performance and leverage. Funds from operations
    does not have a standardized measure prescribed by GAAP and therefore 
    may not be comparable with calculations of similar measures for other
    companies.

(2) Working capital deficiency includes only cash, accounts receivable, 
    prepaid expenses and deposits, and accounts payable and accrued 
    liabilities.



                                     Three months ended          Year ended
                                            December 31         December 31
                                    ----------------------------------------
Operations                               2008      2007      2008      2007
----------------------------------------------------------------------------

Daily production
 Crude oil and condensate (bbl/d)         284        26       203        14
 Natural gas liquids (bbl/d)               97       126       106        83
 Natural gas (mcf/d)                    3,943     2,818     3,791     2,021
 Oil equivalent (boe/d @ 6:1)           1,038       622       941       434
 Per million diluted shares              12.0      12.7      12.0      11.1
Average prices (3)
 Crude oil and condensate ($/bbl)       60.96     85.68     96.61     80.27
 Natural gas liquids ($/bbl)            29.90     53.48     49.24     47.22
 Natural gas ($/mcf)                     8.11      6.44      8.90      6.67
 Oil equivalent ($/boe)                 50.50     43.62     62.48     42.71
Netback
 Operating netback ($/boe) (4)          23.02     21.88     34.41     23.61
 Realized gain (loss) on financial 
  instruments ($/boe)                    1.21         -     (1.10)        - 
 General and administrative ($/boe)     (4.96)    (6.63)    (6.41)    (8.88)
 Interest ($/boe)                       (0.84)    (0.31)    (1.39)    (2.78)
 Funds from operations ($/boe)          18.44     14.94     25.50     11.95
Drilling activity
 Gross wells                             3.00     16.00      8.00     23.00
 Net wells                               0.83      7.57      4.35     11.22
 Success rate, net wells                  100%       86%      100%       80%


Reserves and Land                     December 31, 2008   December 31, 2007
----------------------------------------------------------------------------

Proved reserves (mboe) (5)                      2,252.6             1,702.7
Proved plus probable reserves (mboe) (6)        4,094.0             3,103.0
Proved plus probable reserve value 
 - PV 10% ($ thousands) (6)                      76,264              61,870
Undeveloped land - gross (acres)                105,769              60,866
Undeveloped land - net (acres) (7)               71,709              38,892
Undeveloped land value - 
 net ($ thousands) (8)                           13,329               6,635
----------------------------------------------------------------------------
(3) Average prices are before the deduction of transportation costs; oil
    equivalent includes sulphur sales.

(4) Operating netback equals petroleum and natural gas sales less 
    royalties, operating expenses and transportation costs, calculated on 
    a boe basis. Operating netback does not have a standardized measure
    prescribed by GAAP and therefore may not be comparable with the 
    calculation of similar measures for other companies.

(5) Gross Company share reserves as evaluated by McDaniel & Associates
    Consultants Ltd.

(6) As evaluated by McDaniel & Associates Consultants Ltd.

(7) Includes Company share of option lands held through Redcliffe Land 
    Fund, LLC.

(8) Company share undeveloped land value as evaluated by McDaniel & 
    Associates Consultants Ltd. plus management's estimate of Company share
    of option lands held through Redcliffe Land Fund, LLC.



Outlook:

The current global financial crisis has had a significant impact on the junior
oil and gas sector, resulting in lower commodity prices, tightening of capital
markets for both debt and equity, and lower share valuations. Understandably,
these events have affected Redcliffe and management has taken measures to assess
the impact to the Company and to address the issues that have arisen or may
arise in the foreseeable future.


The impact of significantly lower commodity prices, and especially natural gas
prices, has resulted in lower expected funds from operations in 2009 compared to
2008. Combined with uncertainty as to the potential bottom of natural gas prices
in 2009, and the limited additional debt capacity available, the Company has
taken a cautious and conservative approach to its business for the foreseeable
future. In particular, the Company has reduced its capital expenditure budget
for 2009, focusing such expenditures on meeting outstanding flow-through
obligations for 2009 and optimizing existing production. The Company currently
plans to drill up to six gross wells on existing lands in the Peace River Arch
to meet its flow-through obligations. The Company has also taken and is
continuing to take measures to reduce other costs related to ongoing operations,
such as operating expenses and general & administrative expenses.


Our 2009 focus to date has been on reducing expenditures, reducing debt and
renewing debt facilities, preparing the Company to weather potentially poor
commodity prices over the summer, and identifying potential funding shortfalls
and alternatives to address those, should they materialize. The impact of recent
lower commodity prices on the Company's funds from operations has been partially
mitigated as a result of its 2009 commodity price contracts, which expired on
March 31, 2009. Under such contracts, the Company had been selling 2,000 GJ/d of
natural gas at an average price of $9.12/GJ, or $9.64/mcf. Other steps the
Company has taken to the date hereof include the renewal of its bank facility at
$14.5 million until April 30, 2010, the completion of the acquisition of First
Western Financial Ventures Inc., which resulted in an injection of working
capital of approximately $1.6 million, before transaction costs, on February 10,
2009, and the marketing of certain non-core properties for sale.


Although difficult economic times are upon the industry, the Company recognizes
that it is essential to effect growth to the extent possible in such an
environment. To this end, the Company is identifying alternatives to take
advantage of recent Alberta royalty program modifications, while minimizing cash
outlays to the Company, and to undertake corporate or property transactions
which add scale, future potential and improved balance sheet strength. We expect
that commodity prices and the global economy will recover in 2010, which will
drive growth in the future, and we are positioning ourselves to take advantage
of such. We also recognize that the current environment provides the opportunity
to develop our future capital expenditure programs, and to take advantage of
business opportunities that can drive future growth. We envision expanding our
capital expenditure budget once the commercial environment improves to our
satisfaction.


Since its inception in 2006, Redcliffe has enjoyed excellent drilling success
and has assembled an enviable land position from which to achieve future growth.
Also since its inception, the Company has demonstrated measureable growth each
and every year in key valuation drivers, such as funds from operations per
share, production per share, reserves per share, and net asset value per share.
Unfortunately, external factors such as the recent global recession, the Alberta
New Royalty Framework, the elimination of the Alberta Royalty Tax Credit,
revised Oil and Gas Royalty Trust legislation, and significant inflationary
pressures over the past three years have significantly challenged Redcliffe and
most other Canadian junior oil and gas companies over the period of the
Company's existence. All these external factors have ultimately impacted share
price valuations for companies in our sector, Redcliffe included. Nevertheless,
although we are in difficult times, as a company we continue to focus on per
share value drivers, and with our strong management and technical teams, our
excellent land base, and our inventory of high-impact drilling opportunities, we
remain confident and optimistic about our future.


Reader Advisories

Forward-Looking Statements: This news release contains certain forward-looking
statements, including management's assessment of future plans and operations,
and capital expenditures and the timing thereof, that involve substantial known
and unknown risks and uncertainties, certain of which are beyond the Company's
control. Such risks and uncertainties include, without limitation, risks
associated with oil and gas exploration, development, exploitation, production,
marketing, processing and transportation, loss of markets, volatility of
commodity prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other producers, inability to retain
drilling rigs and other services, delays resulting from or inability to obtain
required regulatory approvals and ability to access sufficient capital from
internal and external sources, the impact of general economic conditions in
Canada, the United States and overseas, industry conditions, changes in laws and
regulations (including the adoption of new environmental laws and regulations)
and changes in how they are interpreted and enforced, increased competition, the
lack of availability of qualified personnel or management, fluctuations in
foreign exchange or interest rates, stock market volatility and market
valuations of companies with respect to announced transactions and the final
valuations thereof, and obtaining required approvals of regulatory authorities.
The Company's actual results, performance or achievements could differ
materially from those expressed in, or implied by, these forward-looking
statements and, accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or occur, or if any
of them do so, what benefits, including the amount of proceeds, that the Company
will derive there from. Readers are cautioned that the foregoing list of factors
is not exhaustive. Additional information on these and other factors that could
affect the Company's operations and financial results are included in reports on
file with Canadian securities regulatory authorities and may be accessed through
the SEDAR website (www.sedar.com). All subsequent forward-looking statements,
whether written or oral, attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these cautionary statements.
Furthermore, the forward-looking statements contained in this news release are
made as at the date of this news release and the Company does not undertake any
obligation to update publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events or otherwise,
except as may be required by applicable securities laws.


BOE may be misleading, particularly if used in isolation. A BOE conversion 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.