RedWater Announces Non-Brokered $1.5 Million Financing

RedWater Energy Corp. ("RedWater") (TSX VENTURE:RED) announced today, that it
intends to complete a non-brokered private placement financing pursuant to which
RedWater proposes to raise gross proceeds of up to $1,500,000 through the
issuance of "flow-through" units ("FT Units") at a price of $0.50 per FT Unit.
Each FT Unit is to consist of one flow-through common share of RedWater (a "FT
Share") and one-half of one warrant with each whole warrant entitling the holder
thereof to acquire one common share in the capital of RedWater at an exercise
price of $0.75 per share for a period of 18 months following the closing of the
financing. Each FT Share will qualify as a "flow-through share" for the purposes
of the Income Tax Act (Canada). All securities issued pursuant to the financing
will be subject to a four-month hold period.


Finders' fees may be payable to eligible persons with respect to the financing
and will be subject to regulatory approval. The net proceeds will be used by
RedWater for exploration on its oil and gas properties and working capital.


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.


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.