Red Hill Energy Inc. 

P R E S S    R E L E A S E

Trading Symbol: RH. TSX-V                                                                    July 27, 2009

Vancouver, British Columbia, July 27, 2009: Red Hill Energy (TSX-V symbol RH) announces that it was informed today by Falcon Mining AG of Zug, Switzerland that it is unable to meet its financial obligations as outlined in Red Hill's June 9, 2009 news release. Accordingly Red Hill Energy has terminated its agreement with Falcon Mining effective today. The transaction pertained to Red Hill's 100% owned Ulaan Ovoo coal project located in northern, Mongolia.  In addition to payments to Red Hill Energy, the agreement between the companies called for Falcon Mining to assume operational activities and incur 100% of all costs pertaining to pre-production, coal mine development and managing all coal production activities at Ulaan Ovoo.

With the best interest of Red Hill Energy shareholders, the Ulaan Ovoo coal project, and the people of Mongolia in mind, the Company has entered discussions with several international coal companies that have expressed interest in expediting production at Ulaan Ovoo. Red Hill Energy retains its 100% ownership of the Ulaan Ovoo, Chandgana Tal and Chandgana Khavtgai coal projects all located in Mongolia.

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 has a full-time office in Mongolia's capital, Ulaanbaatar.

                                                                                 Red Hill Energy Inc.

G. Arnold Armstrong - Chairman and CEO

For further information:

Telephone 604.642.COAL (2625)

Email: info@redhillenergy.com

www.redhillenergy.com

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.