Red Hut Metals Proceeds With Transaction To Acquire Providence Mines In California

Vancouver, British Columbia – Red Hut Metals Inc. (the “Company” or “Red Hut”) is pleased to announce that with the closing of the part-and-parcel private placement on June 6, 2017, the Company has proceeded to close on the transaction to acquire an interest in the Providence Gold Mines in the Summerville Mining District, Tuolumne County, California (the “Transaction”). (See press releases of February 23rd, March 1, April 5 and May 3, 2017.)

The Transaction

The Company signed an Agreement with 0999940 BC Ltd., a private B.C. Company (the “Assignors”), whereby Red Hut can acquire by way of assignment all of the contractual interests held by the Assignors in the Providence Mines and various patented and located mineral claims in Tuolumne County, California (the “Property”).

The Assignors had negotiated the general terms and provisions whereby they can earn a 50% joint venture interest in the Property, or alternatively buy a 100% interest in the Property. As consideration for the assignment, Red Hut agreed to assume all of the Assignors’ obligations to the Property owner, and has made the first cash payment of US$25,000 and issued 1,500,000 Red Hut shares to the Assignors. Future commitments are as follows:

  • Following completion of the first year work program of at least C$250,000, Red Hut will issue an additional 1,500,000 Red Hut shares to the Assignors;
  • Following completion of the second year work program of at least C$750,000, Red Hut will issue an additional 1,500,000 Red Hut shares to the Assignors;
  • In the event that Red Hut elects to acquire 100% the Property for US$5 million, Red Hut will issue an additional 1,500,000 Red Hut shares to the Assignors.

To earn a 50% interest in the Property, Red Hut must make total payments of US$150,000 and incur at least C$2,000,000 of expenditures on the Property over the course of three years. The Company has made the first cash payment to the Property owners of US$25,000. Future commitments to the Property owners are as follows:

  • payment of US$25,000 and incurring C$250,000 of expenditures on the Property by March 28, 2018;
  • payment of US$100,000 and incurring an additional C$750,000 of expenditures on the Property by March 28, 2019; and
  • incurring an additional C$1,000,000 of expenditures on the Property by March 28, 2020.

When Red Hut has earned a 50% interest in the Property, a joint venture will be formed with the Property owner. Alternatively, a 100% interest in the Property can be acquired for US$5,000,000, at any time, of which one-half can be paid in Red Hut shares.

In either event, the Property owner will retain a 2.5% net smelter returns royalty (“NSR”), of which 1.5% NSR can be acquired for US$1,000,000 if the option to acquire a 100% interest in the Property is exercised.

Private Placement Completed

In conjunction with the Transaction, the Company received regulatory acceptance and closed its private placement, raising $960,000 in gross proceeds (the “Financing”) through the issuance of 9,600,000 units (the “Units”) at a price of $0.10 per Unit. (See press release of June 6, 2017.) The Company wishes to correct the aggregate number of securities issued as finders’ fees related to this Financing. The securities issued to Mackie Research Capital Corporation as finders’ fees for the portion of the financing attributable to their efforts were 585,200 common shares and 585,200 warrants containing the same terms as the Warrants attached to the Units comprising the Private Placement.

About the Property

The Providence Group of Mines is located in the Summerville Mining District, Tuolumne County, California, upon the eastern belt of the “Mother Lode” District. A number of high grade, well known Motherlode gold mines are found within this belt. The Property has a rich history of gold mineralization. An NI 43-101 compliant report entitled Technical Report on the Providence Gold Mines Property, Tuolumne County, California” dated April 24, 2017 by John P. Kowalchuk, BSc., P. Geo. can be viewed on SEDAR and on the Company’s website at www.redhutmetals.com.

The Property includes six parcels which have been fully patented and are owned in fee simple, and 22 staked mining claims on Bureau of Land Management and US Forest Service property (320 acres). The Property hosts several historic mines and a historic mill site. This news release has been reviewed and approved by John Kowalchuk, P.Geo., who is acting as the Company’s Qualified Person for the Providence Mines Project, in accordance with regulations under NI 43-101 standards.

Other Matters

In consideration of their efforts to bring the parties together on the opportunity presented by the Providence Gold Mines, Mackie Research Capital Corp. is entitled to a finder’s fee of 5% of the value of the Transaction for years 1 and 2, in the form of Red Hut Shares. An aggregate of 230,000 shares has been issued to date, with a further 465,620 shares to be issued after Red Hut meets its commitments in year 2.

All securities issued with respect to the Transaction and the Financing are subject to a four-month hold period.

ON BEHALF OF THE BOARD

Signed “Robert Eadie”
Robert Eadie, President, Chief Executive Officer and Director

FOR FURTHER INFORMATION PLEASE CONTACT:
Telephone: 1-604-602-4935
Facsimile: 1-604-602-4936
Contact: Robert Eadie

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the Transaction; the terms and conditions of the Financing; future work to be carried on the Property; use of funds; and the business and operations of Red Hut after the Transaction. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There is no assurance any of the forward-looking statements will be completed as described herein, or at all. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; operating and technical difficulties in connection with mineral exploration and development activities; requirements for additional capital; future prices of gold and precious metals; changes in general economic conditions; accidents, delays or the failure to receive board, shareholder or regulatory approvals, including the required permits; results of current exploration and testing; changes in laws, regulations and policies affecting mining operations; and title disputes. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Red Hut disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Red Hut Metals Files 43-101 On Sedar Regarding The Providence Gold Mines In California

Vancouver, British Columbia – Further to its news releases of February 23, 2017, March 15, 2017 and April 5, 2017, Red Hut Metals Inc. (the “Company” or “Red Hut”) is pleased to report that it has filed a 43-101 compliant Technical Report on SEDAR (the “Report”) on the Providence Group of Gold Mines in Tuolumne County, California (the “Property”).

The Report dated April 24, 2017 by John Kowalchuk BSc., P. Geo., recommends a two-phase work program for the Property with a budget of approximately $1 million, with the first phase consisting of geological mapping of the surface rocks and underground workings, and the second phase (depending upon the results of the first phase) consisting of core drilling, dewatering and reclaiming of the mine. The Company has received conditional acceptance for the proposed acquisition. The closing date for the transaction will occur following receipt of final Exchange approval, and the closing of the part-and-parcel private placement of at least $1.2 million through the issuance of at least 12 million units (the “Units”) at a price of $0.10 per Unit. Each Unit will be comprised of one share and one-quarter of one share purchase warrant (“Warrant”) with each whole Warrant entitling the holder to purchase one share of Red Hut at a price of $0.25 per share for a period of one year.

ON BEHALF OF THE BOARD

Signed “Robert Eadie”
Robert Eadie, President, Chief Executive Officer and Director

FOR FURTHER INFORMATION PLEASE CONTACT:
Robert Eadie
Telephone: 1-604-602-4935
Facsimile: 1-604-602-4936

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the proposed Transaction; the terms and conditions of the proposed Financing; future work to be carried on the Property; use of funds; and the business and operations of Red Hut after the proposed transaction. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There is no assurance any of the forward-looking statements will be completed as described herein, or at all. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; operating and technical difficulties in connection with mineral exploration and development activities, lack of investor interest in the Financing; requirements for additional capital; future prices of gold and precious metals; changes in general economic conditions; accidents, delays or the failure to receive board, shareholder or regulatory approvals, including the required permits; results of current exploration and testing; changes in laws, regulations and policies affecting mining operations; and title disputes. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Red Hut disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Red Hut Metals Reports On Historical Providence Gold Mines In California

Vancouver, British Columbia – Further to its news releases of February 23, 2017 and March 15, 2017, Red Hut Metals Inc. (the “Company” or “Red Hut”) is pleased to report historical information on the Providence Group of Gold Mines.

The Providence Group of Mines (the “Property”) is located in the Summerville Mining District, Tuolumne County, California, upon the eastern belt of the “Mother Lode” District. A number of high grade, well known Motherlode gold mines of California are found within this belt, including the Black Oak Mine, the Soulsby Mine, the Dead Horse Mine, the New Albany Mine, the Star King Mine and others from which gold has been mined over the years. These mines are located via good all weather roads, three miles from the town of Tuolumne, and about 20 miles east of Sonora, California.

The Property being optioned by the Company consists of the Providence Mines, the Consuelo Quartz Mine, the Goodenough Quartz Mine, the Bonita Quartz Mine and Mill Site, as well as a number of patented claims. The following historical information is derived from the NI 43-101 technical report commissioned by the Company on the Property (the “Report”) and which is currently being reviewed by the TSX Venture Exchange (the “Exchange”):

Historical documentation shows that these mines were for many years profitably worked and were regarded as one of the best mining camps on the eastern belt of the “Mother Lode” occurrences. It is historically reported that owing to differences between the former owners and their then manager, the Property was shut down in the midst of active and profitable operations.

At that time, 1916, the lower levels of the mines were allowed to fill with water, and the lower four levels never reopened according to available records. Thus conditions of the mineralized bodies in these lower four levels are potentially in the same condition that they were when the operations ceased, at which time records indicated milling high grade mineralization from the tenth and eleventh levels. At the same time development work had been completed on the twelfth level into bodies of mineralization.

Mineralization:

The veins of the Providence Mines are in black slates, lying parallel with each other at an angle of about 45 degrees, pitching toward the east. The strike of the vein is from south east to North West. The formation contains porphyry and limestone, the mineralized material is found in many places on these contacts, as often occurs in many mines. The mineralized material is found in lenses at varying distances along the veins. These lenses or shoots of mineralization have been opened up on various levels of the mine and a large amount of mineralized material extracted therefrom, although in many places in the mine these mineralized materials which have been historically reported have been worked in only one direction.

Development: A double compartment shaft was sunk to a depth of 1470 ft. on the dip of the vein. Twelve drifts were run north and south of the shaft on twelve different levels, the number 12 level being about 1400 feet from the mouth of the shaft. From different levels, crosscuts were run east or west to develop and open up parallel mineralization shoots found in parallel veins. Some of these mineralized material and veins have been stoped out. In others there is said to be potential mineralized material still in place. A significant amount of underground work has been completed, developing and proving the property to be one of permanent formation and to contain well defined mined mineralization bodies of value. The Providence Group of Mines has not only been said to be a producer of mineralization in its historical past, there still remains potential for similar untapped resources. The Providence Group of Mines has been historically identified and described as having identical similarities to many of the great mines within the “Mother Lode” gold district.

Private Placement

As previously reported, in conjunction with the proposed acquisition of the Providence Mines, the Company is undertaking a private placement of at least $1.2 million in gross proceeds through the issuance of at least 12 million units (the “Units”) at a price of $0.10 per Unit. Each Unit will be comprised of one share and one-quarter of one share purchase warrant (“Warrant”) with each whole Warrant entitling the holder to purchase one share of Red Hut at a price of $0.25 per share for a period of one year. The Company reports that it has received confirmation from the Exchange, that while they are reviewing the acquisition of the Providence Mines which is part and parcel with the private placement, the filing deadline for final materials on the private placement has been extended.

Disclaimer
The italicized text above is all historical in nature. Due to regional forest fires, almost all original data has been destroyed or lost and, as such, the author of the Report is unable to corroborate any of these statements. The author believes that a significant amount of mineralization remains to be recovered from the mine; however he is unable to corroborate this belief. The Property requires a systematic mapping, sampling and drilling program to prove up any of the above statements.

This news release has been reviewed and approved by John Kowalchuk, P.Geo., who is acting as the Company’s Qualified Person for Providence Mines Project, in accordance with regulations under NI 43-101 standards.

ON BEHALF OF THE BOARD

Signed “Robert Eadie”
Robert Eadie, President, Chief Executive Officer and Director

FOR FURTHER INFORMATION PLEASE CONTACT:
Robert Eadie
Telephone: 1-604-602-4935
Facsimile: 1-604-602-4936

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the proposed Transaction; the terms and conditions of the proposed Financing; future work to be carried on the Property; use of funds; and the business and operations of Red Hut after the proposed transaction. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There is no assurance any of the forward-looking statements will be completed as described herein, or at all. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; operating and technical difficulties in connection with mineral exploration and development activities, lack of investor interest in the Financing; requirements for additional capital; future prices of gold and precious metals; changes in general economic conditions; accidents, delays or the failure to receive board, shareholder or regulatory approvals, including the required permits; results of current exploration and testing; changes in laws, regulations and policies affecting mining operations; and title disputes. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Red Hut disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Red Hut Metals Signs LOI For Rights To Gold-Bearing Claims In California Update

Vancouver, British Columbia – Red Hut Metals Inc. (the “Company” or “Red Hut”) Further to the News Release of February 23, 2017 wherein the Company announced that it had signed a Letter of Intent (“LOI”) whereby Red Hut will acquire by way of assignment all of the contractual interests held by the Assignors in various patented and located mineral claims (the “Property”) with a rich history of gold mineralization in Western California, USA (the “Transaction”).

The Providence Group of Mines is located in the Summerville Mining District, Tuolumne County, California, upon the eastern belt of the “Mother Lode” District. A number of high grade, well known Motherlode gold mines of California are found within this belt. The Company is pleased to announce that it has staked a further 9 claims contiguous to the existing Providence patented and located claims. The Company acquired the additional ground to protect the potential unexplored strike and down dip extensions of the known mineralization.

About the Property

The Property includes six parcels which have been fully patented and are owned in fee simple, and 22 staked mining claims on Bureau of Land Management and US Forest Service property (320 acres). The Property host several historic mines and a historic mill site. This news release has been reviewed and approved by John Kowalchuk, P.Geo., who is acting as the Company’s Qualified Person for Providence Mines Project, in accordance with regulations under NI 43-101 standards. This is an arms length Transaction.

The Transaction will constitute a reviewable transaction under the policies of the TSX Venture Exchange (the “Exchange”) and as such, it will require approval of the Exchange. As no change of control will result, Red Hut will not be required to seek the approval of its shareholders.

Private Placement

In conjunction with the Transaction, Red Hut will undertake, subject to the acceptance of the Exchange, a private placement of at least $1,200,000 in gross proceeds (the “Financing”) through the issuance of at least 12 million units (the “Units”) at a price of $0.10 per Unit. Each Unit will be comprised of one common share and one-quarter of one common share purchase warrant (“Warrant”), with each whole Warrant entitling the holder to purchase one common share of Red Hut at a price of $0.25 per share for a period of one year. Red Hut expects to pay finders’ fees of not more than 7% (payable in Red Hut shares), and 7% finder’s warrants (with terms similar to the Warrants).

The funds will be used to meet the cash requirements of the Transaction and to undertake the recommended work program for the Property.

Certain Conditions to Transaction

The completion of the Transaction will be subject to the satisfaction of certain conditions, including:

  • Red Hut completing the Financing; and
  • Receipt of Exchange approval of the Transaction and the Financing.

Other Matters

Subject to regulatory approval, a finder’s fee of 5% of the value of the Transaction is payable to Mackie Research Capital Corporation of Vancouver, B.C. in the form of Red Hut Shares. This news release does not constitute an offer of sale of any of the foregoing securities in the United States. None of the foregoing securities have been and will not be registered under the U.S. Securities Act of 1933, as amended (the “1933 Act”) or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor will there any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ON BEHALF OF THE BOARD

Signed “Robert Eadie”
Robert Eadie, President, Chief Executive Officer and Director

FOR FURTHER INFORMATION PLEASE CONTACT:
Telephone: 1-604-602-4935
Facsimile: 1-604-602-4936
Contact: Robert Eadie

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the proposed Transaction; the terms and conditions of the proposed Financing; future work to be carried on the Property; use of funds; and the business and operations of Red Hut after the proposed transaction. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There is no assurance any of the forward-looking statements will be completed as described herein, or at all. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; operating and technical difficulties in connection with mineral exploration and development activities, lack of investor interest in the Financing; requirements for additional capital; future prices of gold and precious metals; changes in general economic conditions; accidents, delays or the failure to receive board, shareholder or regulatory approvals, including the required permits; results of current exploration and testing; changes in laws, regulations and policies affecting mining operations; and title disputes. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Red Hut disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Red Hut Metals Signs LOI For Rights To Gold-Bearing Claims In California

Vancouver, British Columbia – Red Hut Metals Inc. (the “Company” or “Red Hut”) announces that it has signed a Letter of Intent (“LOI”) with each of Ray Merry and Ron Coombes of Maple Ridge, B.C. and 0999940 B.C. Ltd, (a private B.C. company owned by Merry) (collectively the “Assignors”) whereby Red Hut will acquire by way of assignment all of the contractual interests held by the Assignors in various patented and located mineral claims (the “Property”) with a history of gold mineralization in Western California, USA (the “Transaction”).

About the Property

The Property includes six parcels which have been fully patented and are owned in fee simple, and thirteen 20-acre mining claims on Bureau of Land Management and US Forest Service property (260 acres), which include several historic mines and a mill site. As additional ground is being added to the Property, details of the Property will be deferred until the land package is fully assembled.

The Proposed Transaction

The Assignors have negotiated the general terms and provisions whereby they can earn a 50% joint venture interest in the Property, or alternatively buy a 100% interest in the Property. To earn a 50% interest in the Property requires the payment of US$175,000 and incurring C$2,000,000 of expenditures on the Property over the course of three years, as follows:

  • payment of US$25,000 on or before March 28, 2017;
  • payment of US$25,000 and incurring C$250,000 of expenditures by March 28, 2018;
  • payment of US$100,000 and incurring an additional C$750,000 of expenditures by March 28, 2019; and
  • incurring an additional C$1,000,000 of expenditures by March 28, 2020.

Having earned a 50% interest, a joint venture would be formed with the Property owner. Alternatively, a 100% interest in the Property can be acquired for US$5,000,000, at any time, of which one-half can be paid in shares.

As consideration for the assignment, Red Hut will assume all obligations of the Assignors to the Property owner, and has agreed to pay the following to the Assignors:

  • a) Following regulatory approval, Red Hut will make a cash payment US$25,000 and issue 1,500,000 Red Hut shares to 0999940 BC Ltd.;
  • b) After completing the recommended first year work program of at least C$250,000, Red Hut will issue an additional 1,500,000 Red Hut shares to 0999940 BC Ltd.;
  • c) After completing the recommended second year work program of at least $750,000, Red Hut will issue an additional 1,500,000 Red Hut shares to 0999940 BC Ltd.;
  • d) In the event that Red Hut elects to acquire the Property for US$5 million, Red Hut will issue an additional 1,500,000 Red Hut shares to 0999940 BC Ltd.

In either event, the Property owner will retain a 2.5% net smelter returns royalty, of which 1.5% NSR can be acquired for US$1,000,000 if the option to acquire a 100% interest in the Property is exercised.

The Transaction was negotiated at arm’s length. The Transaction will constitute a reviewable transaction under the policies of the TSX Venture Exchange (the “Exchange”) and as such, it will require approval of the Exchange. As no change of control will result, Red Hut will not be required to seek the approval of its shareholders.

Private Placement

In conjunction with the Transaction, Red Hut will undertake, subject to the acceptance of the Exchange, a private placement of at least $1,200,000 in gross proceeds (the “Financing”) through the issuance of at least 12 million units (the “Units”) at a price of $0.10 per Unit. Each Unit will be comprised of one common share and one-quarter of one common share purchase warrant (“Warrant”), with each whole Warrant entitling the holder to purchase one common share of Red Hut at a price of $0.25 per share for a period of one year. Red Hut expects to pay finders’ fees of not more than 7% (payable in Red Hut shares), and 7% finder’s warrants (with terms similar to the Warrants).

The funds will be used to meet the cash requirements of the Transaction and to undertake the recommended work program for the Property.

Certain Conditions to Transaction

The completion of the Transaction will be subject to the satisfaction of certain conditions, including:

  • Red Hut completing the Financing; and
  • Receipt of Exchange approval of the Transaction and the Financing.

Other Matters

Subject to regulatory approval, a finder’s fee of 5% of the value of the Transaction is payable to Mackie Research Capital Corporation of Vancouver, B.C. in the form of Red Hut Shares.

This news release does not constitute an offer of sale of any of the foregoing securities in the United States. None of the foregoing securities have been and will not be registered under the U.S. Securities Act of 1933, as amended (the “1933 Act”) or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ON BEHALF OF THE BOARD

Signed “Robert Eadie”
Robert Eadie, President, Chief Executive Officer and Director

FOR FURTHER INFORMATION PLEASE CONTACT:
Telephone: 1-604-602-4935
Facsimile: 1-604-602-4936
Contact: Robert Eadie

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the proposed Transaction; the terms and conditions of the proposed Financing; future work to be carried on the Property; use of funds; and the business and operations of Red Hut after the proposed transaction. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There is no assurance any of the forward-looking statements will be completed as described herein, or at all. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; operating and technical difficulties in connection with mineral exploration and development activities, lack of investor interest in the Financing; requirements for additional capital; future prices of gold and precious metals; changes in general economic conditions; accidents, delays or the failure to receive board, shareholder or regulatory approvals, including the required permits; results of current exploration and testing; changes in laws, regulations and policies affecting mining operations; and title disputes. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Red Hut disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.