Red Hill Announces $3,114,000 Private Placement

RED HILL ENERGY INC.

P R E SS R E L E A S E

Trading Symbol: RH. TSX-V March 25, 2010

RED HILL ANNOUNCES $3,114,000 PRIVATE PLACEMENT

Vancouver, British Columbia, March 25, 2010: Red Hill Energy (TSX-V:RH) reports that the Company has arranged a non-brokered private placement of 5,463,158 units (each a “Unit”) at a price of $0.57 per Unit to raise aggregate proceeds of $3,114,000. Each Unit is comprised of one common share and one share purchase warrant. Each share purchase warrant (a “Warrant”) entitles the holder to acquire one additional common share for a period of two years at a price of $0.71. The Warrants will be subject to forcible conversion within 30 days of delivery of notice from the Company, in the event the shares of the Company close at over $1.06 for 10 consecutive trading days.

A finder’s fee of 7% of the proceeds placed payable in cash and 7% of the Units placed payable in Warrants is payable on portions of the placement.

Proceeds of the placement will be applied to the Company's Ulaan Ovoo coal project as well as to exploration programs on its other coal assets in addition to general working capital.

ABOUT RED HILL ENERGY INC.

Red Hill Energy Inc. is a junior resource company trading on the TSX-Venture Exchange under the trading symbol RH. The Company is advancing over one billion tonnes of 100% owned coal from two Mongolian coal basins towards production. Red Hill has a full-time office in Mongolia's capital, Ulaanbaatar.

Red Hill Energy Inc.

G. Arnold Armstrong – Chairman and CEO

For further information:

Telephone 604.642.COAL (2625)

Email: [email protected]

www.redhillenergy.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the  policies  of  the  TSX  Venture  Exchange)  accepts  responsibility  for  the  adequacy  or  accuracy  of  this  release.