RedWater Provides Operational Update

RedWater Energy Corp. ("RedWater") (TSX VENTURE:RED) is pleased to provide an
operational update on its 2010 activities. 


RedWater drilled 1 well and recompleted 9 wells during 2010, resulting in 10
successful wells, (9.3 net), comprised of 9 oil wells and 1 gas well. As at
December 31, 2010, the Company had field production of approximately 130 boepd
split 80% oil and 20% gas. The majority of the recompletions occurred during the
fourth quarter.


In addition, Redwater recompleted a Leduc Pinnacle Reef oil well at
Fairydell-Bon Accord. The well tested and flowed approximately 125 barrels of
fluid per day, 47% oil cut, with a resulting oil rate of 59 bopd. The Company
expects this well to begin production in February 2011. The 7-29 well, which has
14 meters of oil pay, sets up a prospective multi-leg horizontal drilling
program.


RedWater currently has in excess of 32,000 net acres of mineral holdings with an
initial drilling inventory of 20+ drilling locations. The majority of which are
100% working interest targeting the Viking, Bruderheim, Ellerslie, Wabamun and
Leduc oil. The Company anticipates drilling its first well of 2011 at Redwater
in early February. Management plans to release its 2011 capital expenditure
budget over the coming weeks. 


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. 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.