NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.


RedWater Energy Corp. ("RedWater") (TSX VENTURE:RED) has announced that its
non-brokered private placement, previously announced on November 15, 2010, is
being revised. 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 $0.42
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 $0.60 per share for a period of 12 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.


This press release does not constitute and the subject matter hereof is not, an
offer for sale or a solicitation of an offer to buy, in the United States or to
any "U.S Person" (as such term is defined in Regulation S under the U.S.
Securities Act of 1933, as amended (the "1933 Act")) of any equity or other
securities of RedWater. The securities of RedWater have not been registered
under the 1933 Act and may not be offered or sold in the United States (or to a
U.S. Person) absent registration under the 1933 Act or an applicable exemption
from the registration requirements of the 1933 Act.