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18 April 2012

Red Emperor Resources NL

("Red Emperor" or "the Company")

Market Update

Red Emperor Resources NL (ASX | AIM : RMP) is aware of negative statements and
commentary being circulated in respect of progress with the Shabeel-1 well
currently being drilled in Puntland by a joint venture between the Company,
Horn Petroleum Corp (the operator of the well) and Range Resources Ltd (ASX:
RRS | AIM: RRL). The Company wishes to confirm that the well has not yet
reached depths targeting primary reservoir and refers investors to the drilling
update released to the market on 12 April 2012.

The forward plan on the well (currently at 2,953 metres) is to drill ahead to
the originally planned depth of 3800 metres to evaluate the primary and
secondary reservoir targets (which to date have not been reached) in the Lower
Cretaceous and Jurassic intervals equivalent to the main productive section
seen in the analogous fields in Yemen. A testing program including the zones of
interest seen to date and any deeper potential pay zones identified will be
agreed with partners at that time. Upon completion of this well, the Joint
Venture plans to move the rig to the Shabeel North location on which
construction is nearing completion.

The Company will provide a more detailed update on the progress of drilling in
Puntland in conjunction with its Joint Venture partners as the well progresses.

For further information please visit www.redemperorresources.com or contact:

Red Emperor

Greg Bandy +61 8 9225 2826

Rebecca Sandford +44 20 7025 7040

Cairn Financial Advisers LLP (Nominated Adviser)

Jo Turner +44 20 7148 7900

Tony Rawlinson

Old Park Lane Capital plc (Broker)

Luca Tenuta +44 20 7493 8188

Michael Parnes

Tavistock Communications

Paul Youens +44 20 7920 3150

Ed Portman

Background

Red Emperor Resources NL (ASX: RMP | AIM: RMP) is a natural resources
exploration company with interests in the frontier state of Puntland, Somalia
and the Republic of Georgia.

* In Puntland, Red Emperor holds a 20% working interest in two licences
encompassing the highly prospective Dharoor and Nugaal valleys. These two
exploration areas cover over 36,000km2. The operator and 60% interest
holder, Horn Petroleum Corp. (TSXV: HRN) has spud the first well in a two
well programme in early 2012 targeting 300mmbls and 375mmbbls of best
estimate Prospective Resources (100% basis). Site construction has
commenced on the second well with the setting of the 30 inch surface casing
and drilling of a 50 meter pilot hole in readiness for spudding following
completion of the first well.

* In the Republic of Georgia, Red Emperor has a 20% working interest in
onshore blocks VIa and VIb, covering approx. 6,500km2. Joint Venture
partner Range Resources Limited (ASX: RRS | AIM: RRL) previously funded a
410km 2D seismic program with independent consultants RPS Energy
identifying 68 potential structures containing an estimated 2.045 billion
barrels of undiscovered oil–in–place (on a mean 100% basis) with the first
(Mukhiani-1) of two exploration wells having spudded in July 2011.
Re-interpreted seismic supported by the Mukhiani-1 vertical seismic
profiling has identified new fault and stratigraphic trapping potential
with the possibility of a side track well to be drilled post additional
seismic in 2H 2012.