High North Resources Ltd. (TSXV:HN) signed a binding memorandum of understanding to acquire seven crown petroleum and natural gas leases from Redhill Resources Corp. (TSXV:RHR) for CAD 2.2 million on December 18, 2013. High North Resources Ltd. (TSXV:HN) exercised the option to acquire seven crown petroleum and natural gas leases from Redhill Resources Corp. (TSXV:RHR) on April 28, 2014. Under the terms of the memorandum of understanding, High North is granted the option to purchase the leases by April 18, 2014 by paying Redhill CAD 2.2 million (CAD 1.96 million and a 10% premium to acquire the property). High North can extend the option to June 18, 2014 by issuing to Redhill Resources 1 million share purchase warrants entitling Redhill Resources to purchase 1 million common shares of High North at a price of CAD 0.60 per share. Redhill will retain a 2.5% gross overriding royalty in any production from the Leases if the option is exercised.

The option and any issuance of securities by High North may be conditional upon the approval of the TSX-Venture Exchange. Under the terms of the memorandum of understanding, High North is to provide Redhill with draft confidentiality, option and gross overriding royalty agreements for review.

High North Resources Ltd. (TSXV:HN) completed the acquisition seven crown petroleum and natural gas leases from Redhill Resources Corp. (TSXV:RHR) on April 28, 2014.