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 final tranche of its previously announced $3.6 million
financing by issuing 129,000 common share units ("Units") and 182,100
"flow-through" units ("FT Units") at a price of $0.40 per Unit and $0.46 per FT
Unit for aggregate gross proceeds of $135,366.00.


Each Unit consists of one common share in the capital of RedWater (a "Common
Share") and one-half of one common share purchase warrant (a "Warrant") of
RedWater. Each FT Unit consists of one flow-through common share of RedWater (a
"FT Share") and one-half of one Warrant. 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 at an exercise
price of $0.60 per Common Share until April 4, 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 its financing is $2,617,452.40
through the issuance of 819,000 Units and 4,977,940 FT Units.


Management expects proceeds from this financing and our recently expanded bank
credit facility will be sufficient to complete a capital program of 4-6 new
wells. Drilling began September 30, 2011. The first well has been cased and is
awaiting completion. A second well was spuded October 4, 2011 with drilling to
reach target depth within three to four days. RedWater has identified over 20
initial light oil drilling locations in the Redwater area with additional
follow-up locations upon drilling success.


Gary Waters reports "The Company looks forward to reporting on our progress over
the coming months. We would like to thank all of our shareholders who have
continued to support RedWater Energy since its inception."


Including the issuance of shares detailed in this news release, there are
currently 30,398,732 Common Shares issued and outstanding.


In connection with the final closing of the financing, RedWater paid cash
commissions of $5,121.96 and issued compensation warrants to purchase 11,166
Units at an exercise price of $0.40 per Unit until October 4, 2012. Receiving
brokers included All Group Financial Services Inc. and Union Securities Ltd.


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.