Mr. Andrew Bowering reports

REDHILL ACQUIRES PETROLEUM AND NATURAL GAS LEASES

Redhill Resources Corp. has acquired a 100-per-cent interest in a total of seven Crown petroleum and natural gas leases in the government of Alberta's Dec. 18, 2013, public offering of Crown land rights. Total consideration for the accepted offers was $1,961,647. The leases total 1,792 hectares and are located in northwestern Alberta. The company does not, at this time, intend to develop or drill the leases. Instead, it has entered into a binding memorandum of understanding with High North Resources Ltd. whereby High North is granted the option to purchase the leases within four months of the auction by paying to the company the bid amount plus a premium of 10 per cent.

If the option is extended to six months and exercised between four and six months from the date of the auction, High North will, subject to regulatory approval, issue to the company one million share purchase warrants entitling the company to purchase one million common shares of High North at a price of 60 cents per share. The company will retain a 2.5-per-cent gross overriding royalty in any production from the leases if the option is exercised. The option and any issuance of securities by High North may be conditional upon the approval of the TSX Venture Exchange.

In the event that the option is not exercised (either by April 18, 2014, or by June 18, 2014, in the event that the option is extended by High North to six months), the company will review its alternatives for the leases. Under the terms of the MoU, High North is to provide the company with draft confidentiality, option and gross overriding royalty agreements for review.

We seek Safe Harbor.