Mr. Graham Harris reports

REDHILL OPTIONS CHUTANLI PROPERTY

Redhill Resources Corp. has entered into a mineral property option agreement dated Sept. 20, 2012, with Ronald J. Bilquist whereby it is granted the option to acquire up to a 100-per-cent interest (subject to a 1.5-per-cent net smelter royalty granted to the optionor) in the Chutanli property located approximately 100 kilometres south-southwest of Vanderhoof, B.C., in the Nechako Plateau region. The Property consists of 6 claims encompassing a total of 1,737 hectares. The Property is readily accessible along a well developed network of established forestry roads in the area.

Terms of the Option Agreement

In order to exercise the Option as to a 100% interest in the Property the Company shall:

• make the following cash payments to the Optionor:
• 1. upon the execution of the Option Agreement, a payment of $15,000;
  2. on or before the first anniversary of the Payment Date, a payment of $25,000;
  3. on or before the second anniversary of the Payment Date, the payment of $30,000;
  4. on or before the third anniversary of the Payment Date, the payment of $50,000;
  5. on or before the fourth anniversary of the Payment Date, the payment of $100,000;
  6. on or before the fifth anniversary of the Payment Date, the payment of $300,000;
• issue and deliver to the Optioner:
• 1. 100,000 common shares in the capital of the Company on TSX-Venture Exchange approval of this Option Agreement;
  2. 200,000 common shares in the capital of the Company on or before the one year anniversary of the Payment Date;
  3. 200,000 common shares in the capital of the Company on or before the two year anniversary of the Payment Date;
• incur the following Expenditures:
• 1. completion of $50,000 on or before the first anniversary of the Payment Date;
  2. completion of another $100,000 in Expendtures, for a total of at least $150,000, on or before the second anniversary of the Payment Date;
  3. completion of another $100,000 in Expenditures, for a total of at least $250,000 on or before the third anniversary of the Payment Date.