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Dear Subscriber,
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December 21, 2007
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Red Hill Energy Inc.
P R E S
S R E L E A S E
Trading
Symbol:RH.TSX-V
Dec 21, 2007
MINE
ENGINEERING STUDIES UNDERWAY ON RED HILL ENERGY'S ULAAN OVOO COAL PROPERTY,
MONGOLIA
NI
43-101 REPORT CONFIRMS RED HILL ENERGY'S NEW COAL DISCOVERY AT CHANDGANA
KHAVTGAI, MONGOLIA
Vancouver, British Columbia, December 21, 2007: Red Hill Energy
(TSX-V symbol RH) reported today that engineering studies are now in
progress on the Company's 100% owned Ulaan Ovoo coal project located in
north central Mongolia. The company also reports that a National Instrument
43-101 report and analytical results have been completed which confirm the
previously reported tonnage and quality of its significant Chandgana
Khavtgai coal discovery in east central Mongolia. All three of Red Hill
Energy's coal resource areas in Mongolia - representing more than one
billion cumulative tonnes of thermal coal - are now National Instrument
43-101 compliant.
Ulaan Ovoo, Red Hill's northernmost coal project, contains a
combined 208.8 million tonnes of high quality thermal coal (174.5 measured
and 34.3 indicated tonnes) plus an additional 35.9 million tonnes of
inferred coal. A scoping study by Behre Dolbear (USA) (Red Hill news
release dated November 9th, last year) indicates the project is capable of
supporting a surface mine with 6 million tonnes of coal production per year
for 20 years. Engineering studies are now underway, expanding on the
previous scoping study, in preparation for comprehensive pre-feasibility
and feasibility studies.
To carry out these engineering studies for the Ulaan Ovoo project,
Red Hill has hired Mr. Robert L. Purswell of Wyoming, USA, who has now
relocated to Mongolia. Financial analyses, mine development, infrastructure
and economic planning studies are already underway.
Mr. Purswell is a seasoned veteran in coal mine engineering and has
worked extensively on many Asian and American coal mines in the capacity of
General Manager, Financial Planner, Business Development and Manager of
Technical Services. Mr. Purswell received an MBA from the University of
Kentucky and a BS in Mining Engineering from the Colorado School of Mines.
Red Hill also expects with the first quarter of 2008 to have an
independent study completed regarding the detailed specifics of
transportation costs and coal sale values for accessible Asian coal
markets. The study will consider not only Ulann Ovoo but also Red Hill's
other two Mongolian coal projects in east central Mongolia. This
marketing-related study is expected to outline short and long term demand
for such coals regionally. Details regarding this study and its authorship
will be provided in a future news release.
In other news, the
National Instrument 43-101 report on Red Hill's 100% owned Mongolian coal
discovery, Chandgana Khavtgai, has been received by the Company. Resources
defined in that report are in-line with those reported in Red Hill's
previous news release (dated October 25th, 2007) on this discovery. The
report is being filed on www.SEDAR.com
and will be summarized in a subsequent detailed news release.
Chandgana Khavtai is
located in the historic Nyalga Coal Basin in east central Mongolia. Red
Hill controls a second, smaller, 100% owned coal project, Chandgana Tal,
located in the same basin. Resources for Chandgana Tal were summarized in a
previous NI 43-101 report by Behre Dohlbear (dated September 10th, 2007). Together,
these two coal deposits contain798.2 million tonnes of measured and
indicated high quality thermal coal with an additional 405.2 million tonnes
inferred. The coal quality found in the Nyalga Coal Basin is a likely
candidate for thermal power generation as well as conversion to gas or
liquid fuels. Coal of comparable quality is currently being profitably
mined in Mongolia, Russia and China.
Red Hill's coal
projects are all amenable to low cost surface mining operations and are
accessible to the world's largest coal consuming nations. In all three
resource projects, the coal seam outcrops, offering easy access to the
projects' primarily single, massive coal seams. The Nyalga Coal Basin
is linked by road to Mongolia's capital Ulaanbaatar (300 km to the west)
and to the Mongolian Railroad (160 km to the west), providing direct rail
access to China to the south and Russia to the north. Ulaan Ovoo, Red
Hill's northernmost project, is within 120 km of the railroad and is also
linked by a good quality road.
ABOUT RED HILL
ENERGY INC.
Red Hill Energy Inc.
is a junior resource company trading on the TSX-Venture Exchange under the
trading symbol "RH". The Company is advancing over one billion
tonnes of 100% owned coal from two Mongolian coal basins towards production.
Red Hill also has multiple uranium properties and several gold and copper
exploration projects located throughout Mongolia. Red Hill has a strategic
alliance with Mega Uranium Ltd. to jointly develop its uranium assets and
has a full-time office in Mongolia's capital, Ulaanbaatar.
Red Hill
Energy Inc.
G. Arnold Armstrong -
Chairman and CEO
Ranjeet Sundher -
President
For further information:
Paul McKenzie (Director):
Telephone 604.642.COAL (2625)
Email:
info@redhillenergy.com
www.redhillenergy.com
European Investor Inquiries can be directed to:
Nick Fuller
Fuller Fletcher & Associates Ltd. of London, UK
Tel: +44 (0) 20 7256
5204
The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: Statements in this release that
are forward-looking statements are subject to various risks and
uncertainties concerning the specific factors disclosed under the heading
"Risk Factors" and elsewhere in the Corporation's periodic
filings with Canadian Securities Regulators. Such information
contained herein represents management's best judgment as of the date
hereof based on information currently available. The companies do not
assume the obligation to update any forward-looking statement.
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