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RedWater Grants Incentive Stock Options

OKOTOKS, ALBERTA--(Marketwire - Jan 7, 2013) - RedWater Energy Corp. ("RedWater") (TSX VENTURE:RED) announced today that its board of directors has approved the grant of 1,300,000 stock options to certain officers, directors and consultants of RedWater at an exercise price of $0.19 per common share expiring on January 4, 2023.

RedWater currently has 34,840,152 issued and outstanding common shares and accordingly can grant up to 3,484,015 stock options pursuant to its stock option plan. Including the grant announced today, RedWater currently has 3,447,250 stock options outstanding.

Business of RedWater Energy Corp.

RedWater Energy Corp. is an emerging oil and gas exploration and development company. RedWater is engaged in the acquisition, enhancement and exploration of conventional oil and gas projects in Western Canada with a focus on developing high working interest light oil opportunities. RedWater''s core properties are located in Redwater, Westlock, Fairydell-Bon Accord and Panny areas of Alberta. www.redwaterenergy.com.