VANCOUVER, B.C. - March 16, 2010, : Red Hill Energy Inc. ("Red Hill") (TSX-V:RH) and Prophecy Resource Corp. ("Prophecy")(TSX-V:PCY, OTC: PCYRF, Frankfurt: 3P1) are pleased to announce the mailing of their joint management information circular dated March 15, 2010 (the "Information Circular"), with respect to the plan of arrangement involving Red Hill, Prophecy and their respective securityholders (the "Arrangement") as described in their news releases dated January 21, 2010 and March 3, 2010, is expected to be mailed March 22, 2010. Meetings of the shareholders of each of Prophecy and Red Hill to approve the Arrangement are scheduled for April 12, 2010 (collectively, the "Meetings"). The Information Circular contains detailed information regarding the business combination of Red Hill and Prophecy and the proposed spin-out of Red Hill's non-coal assets to its shareholders. For further details regarding the Arrangement, please refer to the Joint Information Circular, a copy of which will be available under the corporate profiles of each of Red Hill and Prophecy on the System for Electronic Document Analysis and Retrieval at www.sedar.com.

The Arrangement requires approval by the Supreme Court of British Columbia. On March 10, 2010, Red Hill and Prophecy obtained the interim order, which provides for the calling and holding of the Meetings and other procedural matters. The hearing in respect of the final order to approve the Arrangement (the "Final Order") is currently scheduled to take place on April 13, 2010 at 9:45 a.m. (Vancouver time). If the Final Order is obtained on April 13, 2010, and all other conditions to completion of the Arrangement are satisfied or waived, it is expected that the Arrangement will be completed on April 23, 2010. As previously disclosed in the joint news release dated March 3, 2010, certain directors, officers and insiders of Red Hill who hold an aggregate of 11,226,216 Red Hill shares and certain directors, officers and shareholders of Prophecy who hold an aggregate of 17,726,264 Prophecy shares, representing approximately 18.6% of the outstanding Red Hill shares and approximately 59.3% of the outstanding Prophecy shares, respectively, have signed support agreements pursuant to which they have agreed to vote all of the Red Hill and Prophecy shares beneficially owned by them in favour of the plan of arrangement.

Transaction

As previously disclosed, for the purposes of the plan of arrangement, Red Hill will create a new class of common shares called "Class A Shares". As the first step in the Arrangement, Red Hill intends to transfer $1,000,000 and its non-coal assets, principally the Red Lithium Property near Clayton Valley, Nevada and the Thor Rare Earth Property in Nevada and the Banbury Property in British Columbia, to a new British Columbia company "Spinco" in exchange for Spinco common shares. Each one Red Hill share will be exchanged for 0.92 of a Class A Share and 0.25 of a Spinco common shares, and each Prophecy share will be exchanged for one Class A Share. It is anticipated that approximately 55,531,084 Class A shares will be issued to the shareholders of Red Hill and approximately 29,892,266 Class A shares will be issued to the shareholders of Prophecy. In addition, each Red Hill stock option and warrant will entitle the holder to receive 0.92 Class A Share and each Prophecy stock option or warrant will be exchanged for an option or warrant to acquire one Class A Share.

As a result of the Arrangement, the Prophecy securityholders will be Class A securityholders of Red Hill, Prophecy will be amalgamated with a wholly-owned subsidiary of Red Hill, and Prophecy will apply for voluntary delisting of its common shares from the TSX Venture Exchange. Following the Arrangement, Red Hill has agreed to change its name to "Prophecy Resource Corp." and will have a total of approximately 85,515,950 shares issued and outstanding, as well as options and warrants entitling holders to purchase approximately 25,004,901 Red Hill Class A Shares.