Red Hill Closes $1,950,000 Private Placement

RED HILL ENERGY INC.

P R E SS R E L E A S E

Trading Symbol: RH. TSX-V February 19, 2010

RED HILL CLOSES $1,950,000 PRIVATE PLACEMENT

Vancouver, British Columbia, February 19, 2010: Red Hill Energy (TSX-V:RH) is pleased to announce that it has completed the non-brokered private placement previously announced on January 21, 2010 and amended on February 2, 2010. A total of 6,500,000 Units were placed at a price of $0.30 per Unit generating gross proceeds of $1,950,000.

Each Unit consisted of one common share and one half of one share purchase warrant. Each whole share purchase warrant entitles the holder to acquire one additional common share at a price of $0.45 until February 17, 2012. The Warrants are 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 $0.65 for 10 consecutive trading days. All of the securities issued under this placement are subject to a hold period expiring on June 18, 2010.

A cash finder’s fee of 7% of the proceeds placed was payable in respect of portions of the placement to arm’s length third parties.

Proceeds of the placement will be applied to the Company's Mongolian coal projects in addition to general working capital and to fund the proposed spin-out transaction as announced on January 21, 2010 to be completed in connection with the Company’s proposed merger with Prophecy Resource Corp. (TSX.V: PCY).

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.