georgia

Georgia Update - Site Construction Unde...

23 January 2012

Red Emperor Resources NL

("Red Emperor" or "the Company")

Georgia Update - Site Construction Underway

Red Emperor Resources NL (ASX: RMP | AIM: RMP) ("Red Emperor" or "the Company")
would like to announce the following updates with respect to its Georgian
operations.

The Company is pleased to announce that site construction has commenced in
readiness for the spudding of the Company's second exploration well in Georgia
- the Namakhvani well which is the Kursebi 6 Prospect. Targeted spudding date
is early to mid February 2012 with a target depth of circa 3,500m.

Given the unexpected geological sequences encountered with the first well, Red
Emperor's joint venture partner, Range Resources Limited (ASX: RRS | AIM: RRL)
has engaged new independent technical consultants, NTD Energy, to perform a
fresh review of all of the seismic and geological data across the top 3 Kursebi
prospects previously identified. The Kursebi 6 prospect was identified as the
most robust prospect with a more clearly defined structure and indications of a
significantly thicker Jurassic section, increasing chances of encountering more
reservoir and mature source rocks.

Below are the estimates of undiscovered stock tank oil initially in place
(STOIIP) for the prospect.

STOIIP (Mmbbls)

P90 P50 P10 Mean

K-6 Prospect - 100% 32.2 84.8 185.8 99.2

Attributable to Red Emperor - 20% 6.44 16.96 37.16 19.84

NTD Energy will assist in the management of the Company's drilling program for
the Namakhvani well along with the supervision of the proposed 2D seismic
program on block VIb. NTD Energy will also assist the Company promoting and
developing the unconventional (shale) plays that may exist across the two
licence areas through the introduction of farm-in partners.

The Company will provide regular updates as to the progress of the drilling of
the second exploration well.