Mr. Robert Eadie reports

PROPOSED TRANSACTION TO ACQUIRE OTU GOLD PROPERTY IN COLOMBIA IS TERMINATED

Further to its news release of July 24, 2014, Red Hut Metals Inc. has terminated the proposed transaction with Otu Gold Ltd. dated July 22, 2014. The transaction contemplated the acquisition by Red Hut of all of the issued and outstanding shares of Otu Gold by way of amalgamation.

Otu Gold is a Bermuda corporation that, directly or through its Colombia-based corporate subsidiaries, owns mineral rights over 80,076 hectares in the Segovia gold belt in the department of Antioquia in northeastern Colombia.

The transaction required that Red Hut complete a financing of a minimum of $5-million to a maximum of $8-million. Although Otu Gold's principals gave repeated extensions to the initial deadline dates and worked with the company on numerous investor presentations, Red Hut has been unable to complete the required financing in the current market conditions.

Red Hut will continue to explore its Conuma property on the central west coast of Vancouver Island and to look for other opportunities. The company expects the trading halt to be lifted shortly, upon which trading in its shares will resume.