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 arranged for a private
placement with an accredited investor. RedWater will issue 1,951,220 common
shares, issued on "flow- through" basis, at a price of $0.41 per share for
aggregate gross proceeds of $800,000. The investment will close in two stages
($680,000 closed on December 13, 2011 and $120,000 will close on December 29,
2011).


Including the issuance of shares detailed in this news release, there will be
32,425,850 common shares of RedWater issued and outstanding as at December 29,
2011.


In connection with the financing, RedWater will pay Union Securities Ltd. a cash
commission of $56,000 and will issue them compensation warrants to purchase an
aggregate of 136,584 common shares of RedWater at an exercise price of $0.41 per
share for 12 months following each respective closing.


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 Viking and Manville 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.