Redhill Resources Corp.: New High Grade Gold-Copper Extensions at Deflector Deposit Highlight the Project's Significant Growth Potential

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2011) - Redhill Resources Corp., (TSX VENTURE:RHR), ("Redhill" or the "Company"), announces that Mutiny Gold Ltd. (ASX:MYG) ("Mutiny"), operator and optionee of Redhill's wholly owned Gullewa Copper-Gold Project, has informed Redhill that results received from its recent drilling program have highlighted the potential to significantly add to the resources at the Deflector Gold-Copper Deposit, the main deposit within the Gullewa Project in Western Australia. The aim of the program was to test north and south strike extensions of the deposit's main lodes.

Deflector Extension Drill Results

The recent drilling was carried out to delineate near-surface extensions to the main mineralized lodes within the Deflector Deposit. The results are presented in Tables 2 and 3 for all intersections greater than 0.5g/t Au or 0.5% Cu. Drill-hole locations are listed in Table 5 or can be viewed on maps at the website of Mutiny Gold.

Results to the south of the existing Deflector resources include:

• 2 metres (m) @ 14.5g/t Au and 5.4% Cu in 11DRC001;
• 3m @ 7.3g/t Au and 3.20% Cu in 11DRC020;
• 1m @ 53.5g/t Au and 0.2% Cu in 11DRC021;
• 6m @ 5.1g/t Au and 2.6% Cu in 11DRC024;
• 4m @ 15.9g/t Au and 2.6% Cu in 11DRC025; and
• 2m @ 7.4g/t Au and 2.9% Cu in 11DRC026.

To the north of the Deflector Deposit, the results include:

• 3m @ 5.9g/t Au and 10.9% Cu in 11DRC029; and
• 5m @ 2.1g/t Au and 0.25% Cu.

Importantly, the recent high-grade intersections are within the depth of the planned Deflector-Pit and indicate the potential for the Company to extend the Deflector-Pit to both the north and south. Benefits of an extended pit or of multiple open-pits include:

• Longer open-pit mine life;
• Potential increase in rate of production;
• Earlier pay-back of project development costs; and
• Improvement in the overall project economics.

Spanish Galleon Prospect

Following a review of exploration by previous companies in the vicinity of the Deflector Deposit, Mutiny recognized two areas of mineralization to the west of the Deflector Deposit, named the Spanish Galleon and Pieces of Eight Prospects. Mutiny recently drilled two RC holes at the Spanish Galleon Prospect that were targeted to scissor an intersection of 34m of 1.9g/t Au and 0.44% Cu made two years previously in drill hole 9DEF013. The intersection included 3m at 6.6g/t Au and 0.37% Cu. The holes were sited to ascertain the orientation of the mineralized structure and to test ground conditions within the structure in both the weathered and the fresh zones.

Both holes intersected gold-copper mineralization, with a best assay of 1m of 20.4g/t Au and 0.3% Cu. Assay results are given in Table 4. The holes achieved their objectives and verified the presence of high-grade mineralization within the easternmost structure at Spanish Galleon.

Continuing Exploration

Mutiny will now undertake another RC drill program, planned for April this year, which will follow up recent results by drilling further north and south along the main line of the Deflector Deposit mineralization. Following this drilling, Mutiny plans to carry out a re-estimation of the openpit resources of the Deflector Deposit. Historical intersections within the Spanish Galleon and Pieces of Eight Prospects will also be followed up in a systematic staged manner.

In addition, Mutiny is preparing an infill diamond drill program in order to upgrade the existing underground resources.

Background

The Gullewa Project is located 450 kilometres north of Perth, in the Yalgoo mineral fields of Western Australia. The Gullewa Project is a 550 sq kilometre property that hosts several gold deposits of various size and grade, the most significant being the Deflector gold-copper deposit which contains resources (Table 1) as disclosed in Table 3.1 to the NI 43-101 Technical Report on the Gullewa Gold-Copper Project dated June 13, 2008 as filed on SEDAR on June 18, 2008. Mining infrastructure assets at the Gullewa Project include a 800 tonne per day CIL plant, a licensed tailings disposal facility, a 50-person camp, offices, and workshops.

Table 1 - Deflector Deposit Resources

Mineral Resource Estimate for the Deflector Deposit
above a 1.0 g/t AuEq Grade Cut-Off (1.0% Cu = 2.5 g/t Au)
Category	Tonnes	Au (g/t)	Ag (g/t)	Cu (%)	AuEq (g/t)	AuEq (oz)
Measured	535,000	3.87	8.03	1.18	6.81	117,000
Indicated	1,169,000	4.32	6.34	0.96	6.72	252,000
Measured and Indicated	1,704,000	4.18	6.87	1.03	6.75	369,000
Inferred	1,616,000	6.50	3.41	0.48	7.71	400,000

(Metallurgical recoveries and net smelter returns are assumed to be 100%)

Table 2 Drill-hole Assay Results for Southern Extension

HOLE		FROM (m)	TO (m)	INTERVAL (m)	Au (g/t)	Cu (%)	INCLUDING
11DRC001		30	31	1	0.80	0.17
	and	36	39	3	0.53	0.52
	and	103	105	2	14.5	5.41	104-105m: 1m @ 25.4g/t Au, 6.6% Cu
	and	115	118	3	2.61	0.82
11DRC002		10	11	1	0.60	0.19
11DRC003		37	38	1	1.00	0.51
	and	97	98	1	0.58	0.31
	and	101	102	1	3.60	0.72
	and	104	105	1	1.42	1.58
11DRC004		25	26	1	0.56	0.06
	and	56	58	2	2.01	3.15
11DRC005		24	26	2	1.43	0.32
	and	83	86	3	1.13	0.68
11DRC006		35	36	1	0.67	0.28
	and	50	52	2	0.60	0.07
11DRC008		10	11	1	1.06	0.19
	and	29	31	2	1.18	0.29
	and	39	40	1	4.96	1.17
11DRC009		30	33	3	3.86	0.59	31-32m: 1m @ 10.3g/t Au, 1.1% Cu
	and	78	79	1	0.60	0.19
11DRC010		35	36	1	0.54	0.45
	and	58	60	2	1.76	1.66
11DRC011		14	15	1	2.37	0.45
11DRC012		54	60	6	1.11	0.34
11DRC013		34	38	4	0.38	0.83
	and	52	53	1	1.00	1.11
	and	67	68	1	0.85	0.15
	and	81	82	1	3.46	2.06
	and	106	107	1	0.52	0.30
11DRC014		88	90	2	1.82	0.44
11DRC015		12	13	1	8.08	0.62
	and	17	19	2	0.73	0.18
11DRC016		40	42	2	0.90	0.20
11DRC017		81	83	2	2.87	1.08
	and	96	97	1	6.59	3.06
11DRC018		25	26	1	1.02	0.06
11DRC020		54	57	3	7.28	3.24	54-56m: 2m @ 10.1g/t Au, 4.1% Cu
	and	68	70	2	4.28	0.08
11DRC021		16	17	1	53.5	0.17
	and	82	84	2	2.47	0.62
	and	87	88	1	8.63	3.01
11DRC023		28	30	2	0.73	0.18
	and	43	44	1	0.70	0.13
11DRC024		50	51	1	1.47	0.37
	and	53	54	1	1.66	0.28
	and	57	63	6	5.13	2.58	57-61m: 4m @ 6.5g/t Au, 3.2% Cu
11DRC025		58	59	1	3.53	0.02
	and	82	86	4	15.9	2.62	84-85m: 1m @ 59.9g/t Au, 4.5% Cu
11DRC026		92	93	1	1.77	0.91
	and	107	109	2	7.44	2.87	107-108m: 1m @ 14.1g/t Au, 5.2% Cu

Table 3 Drill-hole Assay Results for Northern Extension

HOLE		FROM (m)	TO (m)	INTERVAL (m)	Au (g/t)	Cu (%)	INCLUDING
11DRC028		16	18	2	1.27	0.29
	and	21	22	1	0.90	0.63
	and	46	47	1	0.50	0.01
11DRC029		56	59	3	5.88	10.9	56-58m: 2m @ 7.90g/t Au, 15.1% Cu
11DRC030		27	28	1	0.72	0.31
11DRC031		43	48	5	2.11	0.25

Table 4 Drill-hole Assay Results for Pieces of Eight Prospect

HOLE	FROM (m)	TO (m)	INTERVAL (m)	Au (g/t)	Cu (%)	INCLUDING
11PERC001	63	66	3	7.80	0.17	63-64m: 1m @ 20.4g/t Au, 0.3% Cu
11PERC002	85	91	6	0.81	0.47

Table 5 Drill-hole Details

HOLE	EAST (LOCAL)	NORTH (LOCAL)	EAST (GDA94)	NORTH (GDA94)	RL (m)	DEPTH (m)	DIP (°)	AZIMUTH (LOCAL)1
11DRC001	9820	19021	439152	6828341	279	132	-56	271
11DRC002	9800	19001	439124	6828338	279	36	-60	271
11DRC003	9815	19001	439136	6828328	279	126	-59	270
11DRC004	9830	19001	439148	6828319	279	72	-60	270
11DRC005	9806	18981	439116	6828318	279	102	-59	273
11DRC006	9821	18981	439128	6828309	279	66	-60	269
11DRC007	9835	18981	439139	6828300	279	84	-59	271
11DRC008	9790	18960	439091	6828311	279	78	-59	270
11DRC009	9804	18960	439102	6828302	279	102	-59	270
11DRC010	9820	18960	439114	6828293	279	90	-59	270
11DRC011	9786	18939	439075	6828298	279	36	-60	273
11DRC012	9801	18939	439087	6828288	279	72	-61	271
11DRC013	9816	18939	439099	6828279	279	132	-61	271.5
11DRC014	9846	18939	439122	6828261	279	132	-60	270
11DRC015	9775	18920	439055	6828289	279	48	-60	270
11DRC016	9795	18920	439071	6828277	279	84	-60	270
11DRC017	9834	18920	439102	6828253	279	114	-60	273
11DRC018	9784	18900	439049	6828268	279	60	-60	268
11DRC019	9768	18900	439037	6828278	279	42	-60	267
11DRC020	9814	18900	439073	6828249	279	90	-60	270.5
11DRC021	9829	18900	439085	6828240	279	120	-60	270
11DRC022	8790	18880	439042	6828249	279	42	-60	269.5
11DRC023	9791	18859	439030	6828231	279	60	-60	268
11DRC024	9806	18859	439042	6828222	279	66	-60	269
11DRC025	9821	18859	439054	6828213	279	90	-60	269
11DRC026	9836	18859	439065	6828203	279	114	-60	269.5
11DRC027	9852	18859	439078	6828194	279	138	-60	271
11DRC028	9800	19601	439493	6828811	279	60	-60	91
11DRC029	9780	19601	439478	6828823	279	102	-60	88
11DRC030	9798	19580	439478	6828795	279	66	-60	90
11DRC031	9782	19580	439466	6828804	279	75	-60	91
11PERC001	9407	18600	438568	6828264	279	102	-60	269
11PERC002	9431	18600	438587	6828249	279	156	-60	270.5

¹: Local azimuth is 38° less than UTM azimuth

The full text of Mutiny's news release can be found at its website: www.mutinygold.com.au. As an ASX issuer, Mutiny does not file on SEDAR.

The terms of the Mutiny Agreement, dated July 20, 2010, call for Mutiny to earn a 70% interest in and to the Gullewa project by making exploration expenditures and paying to Redhill's subsidiary (ATW Australia) a total of AUD$9,000,000 as follows:

1. By making the following cash payments:

(i) payment to ATW Australia of AUD$1.5 million on or before September 24, 2010; and
(ii) payment to ATW Australia of AUD$1.5million (plus applicable interest payable under clause 2 of the Underlying Agreement) to ATW Australia on or before January 24, 2011; and
(iii) payment to ATW Australia of AUD$4.0million on or before July 24, 2011; and
(iv) payment to ATW Australia of AUD$2.0 million on or before October 31, 2011; and

2. By paying all exploration and development expenditures on the Gullewa Project until October 31, 2011.

To date, Mutiny has paid AUD$3.0 million to the Company under the terms of the Mutiny Agreement.

Upon earning a 70% interest in the Gullewa Project, Mutiny may elect to enter into a 70/30 joint venture agreement with the Company or it may acquire a further 30% interest by completing a positive feasibility study on the Gullewa Project and by paying to ATW Australia an additional AUD$4,000,000. If it so elects, then it will have acquired the Gullewa Project 100% save and except that ATW Australia will retain a 10% net profit interest.

This news release has been reviewed by Brent Butler, a Qualified Person as that term is defined in NI 43-101.

Graham Harris, Chairman

"This news release may contain forward–looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."