Secured loan note and warrants

RNS Number : 5310K

Red Rock Resources plc

18 July 2011

RED ROCK RESOURCES PLC

Issue of Secured Loan Note & Warrants

Dated: 18 July 2011

Red Rock Resources plc ("Red Rock" or the "Company"), the mining and exploration company with gold projects in Kenya and Colombia, exploration in Greenland, and interests in steel feed, uranium, and rare earths announces that on 15 July 2011 it entered into agreements with Cornhill Capital Limited (together with its group companies, "Cornhill") to raise funds by the issue of a 24 month secured loan note (the "Secured Loan Notes 2013").

The first tranche of the Secured Loan Notes 2013 has now closed, raising £2,000,000 before expenses, with settlement expected shortly. Further tranches up to a total principal amount of £5 million (inclusive of the first tranche) may be issued, at the Company's and Cornhill's discretion, through the period up to 15 January 2012.

The Secured Loan Notes 2013 will bear an annualized coupon of 14% payable semi-annually, the first such payment being due on 3 January 2012. They are being issued in integral multiples of £1,000 (each a "Note") at a price of £1,000 per Note and are redeemable at £1,000 per Note on the second anniversary of completion, or earlier on the giving of prescribed notice by the Company. Any early redemption will incur a payment of an additional three months interest. The Notes have been syndicated to certain high net worth investors in minimum tranches of £50,000.

Certain shares in Jupiter Mines Limited (ASX: JMS) have been pledged as collateral for repayment of the Secured Loan Notes 2013 together with interest thereon and any future sales of JMS shares will be subject to maintenance of minimum security covenants. In addition to a cash commission, Cornhill has been issued with 384,394 warrants with an exercise price of £0.10406 per share, representing 2 per cent. of the principal amount of the issued Secured Loan Notes 2013. These warrants may be exercised into new Red Rock ordinary shares at any time within two years of issue, subject to extension in certain limited circumstances. Further warrants will be issued following the issuance of additional Notes.

The Company considers that the diversification of the funding sources utilized by the Company, and the utilization of longer term instruments such as this one, will strengthen the Company's financial capabilities and help advance its projects in Kenya, Greenland, and Colombia, and as well as develop new opportunities.

Enquiries:

Andrew Bell	0207 402 4580 or 07766 474849	Red Rock Resources plc	Chairman
Sandra Spencer	0207 402 4580 or 07757 660 798	Red Rock Resources plc	Public and Investor Relations
Peter Trevelyan-Clark/ Ben Jeynes	020 7444 0800	Religare Capital Markets	Nominated Adviser
Nick Emerson	01483 413500	Simple Investments Ltd	Broker
Christopher Maule	020 7719 9617	Cornhill Capital Limited	Placing Agent