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) is pleased to announce that
it has completed the second tranche of its previously announced $3.6 million
financing by issuing 3,726,540 "flow-through" units ("FT Units") at a price of
$0.46 per FT Unit for aggregate gross proceeds of $1,714,208.


Each FT Unit consists of one flow-through common share of RedWater (a "FT
Share") and one-half of one common share purchase warrant (a "Warrant") of
RedWater. Each FT Share will qualify as a "flow-through share" for the purposes
of the Income Tax Act (Canada). Each whole Warrant entitles the holder thereof
to acquire one common share in the capital of RedWater (a "Common Share") at an
exercise price of $0.60 per Common Share until March 9, 2013, subject to
acceleration. All securities issued pursuant to the financing are subject to a
four-month hold period.


The total amount raised by RedWater pursuant to the financing is now $2,517,000
through the issuance of 690,000 common share units ("Units") and 4,871,740 FT
Units. Each Unit consists of one Common Share and one-half of one Warrant.


Net proceeds from this financing will be used to fund an initial six to eight
well drilling program in RedWater. Drilling is expected to begin two weeks after
the closing of this financing subject to equipment availability. RedWater
intends to use its existing working capital line and cash flow from operations
to expand its drilling program above the initial six to eight wells and/or for
acquisitions.


Including the issuance of shares detailed in this news release, there are
currently 30,163,532 Common Shares issued and outstanding.


In connection with the second closing of the financing, RedWater paid cash
commissions of $102,852.50 and issued compensation warrants to purchase 223,592
Units at an exercise price of $0.40 per Unit until September 9, 2012. Receiving
brokers included Acumen Capital Finance Partners Limited, Union Securities Ltd.
and BMO Nesbitt Burns.


Business of RedWater Energy Corp.

RedWater Energy Corp. is an emerging 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, Westlock, Fairydell-Bon Accord and Long Coulee 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.


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.