TSX-V:RTZ

VANCOUVER, Aug. 23, 2012 /PRNewswire/ – Redtail Metals Corp. (TSX-V:RTZ) (the “Company”) is pleased to announce that is has signed an
Option Agreement with Kaska Minerals Corporation to acquire the R15
Project located in the Finlayson Lake District (FLD) 120 km south of
Ross River, Yukon, and has also entered into an Exploration Memorandum
of Understanding and Traditional Knowledge Protocol with the Ross River
Dena Council governing the R-15 Project. The R15 project centers
around a massive sulfide discovery made by Teck in 2004, no further
work was conducted on the R15 property subsequent to the discovery.

“On behalf of the Kaska Nation, Ross River Dena Council is pleased to
enter into this agreement with the Predator Group’s Redtail Metals
Corp.” said Chief Jack Caesar. “This agreement, allowing for
exploration on our R15 land block, provides for benefits including
infrastructure, employment, training and economic opportunities for our
Kaska communities from the development of exploration and mining in our
traditional territory. These agreements are important for the health
and development of our communities.”

We are very pleased to enter into this innovative agreement and to work
in partnership with the Kaska Nation to explore the R15 block, ” said
Blair Shilleto, Chairman. “The full participation and involvement of
First Nation communities is essential for the development of projects
on their lands. We are honoured that the Ross River Dena Council and
the Kaska Nation have afforded us this opportunity to work together. I
also want to thank the Predator Group team for their assistance in
getting this deal done.”

R15 Project
The R15 Project consists of a Yukon Government Lease of Mining Rights to
the Kaska Minerals Corp oration covering 4,304 hectares of land set
aside for the Ross River Dena Council. It is located approximately 120
km ESE of Ross River and approximately 25 km southwest of the Robert
Campbell Highway within the prolific Finlayson Lake District; a
crescent-shaped portion of the Yukon Tanana Terrane (YTT) located in
the south-eastern part of the Yukon Territory that hosts numerous other
volcanic-hosted massive sulphide deposits including the high-grade,
poly-metallic Wolverine deposit, the Kudz Ze Kayah deposit, and the
GP4F deposit.

In 2004, Teck Cominco Limited optioned the R15 Property from Kaska
Minerals and drilled 7 diamond drill holes on the property ⁽¹⁾. Four of the drill holes outlined a new discovery by intersecting a
mineralized horizon highlighted by 3.4m of 15.84% Zn, 7.09% Pb, 0.2%
Cu, 68 g/t Ag, 0.268 g/t Au in R04-006.

The mineralized horizon is relatively flat lying (approximately 15^o dip) and is open in all directions. Several other mineralized horizons
have been identified in the area through geophysics and limited diamond
drilling including a 1.9m intersection of 6.3% Zn, 4.15% Pb, and 43 g/t
Ag in drill hole R04-002.

Significant intersections from the 2004 Diamond Drilling Program (1)
Hole		From (m)		To (m)		Interval (m)		Zn (%)		Pb (%)		Cu (%)		Ag (ppm)		Au (ppb)
R04-001		37.3		37.65		0.4		2.95		0.64		1.63		1491.3		5820
and		136		137.3		1.3		12.96		5.74		0.46		87.2		114
R04-002		78		78.5		0.5		6.33		3.75		0.09		55.9		194
and		80.6		82.5		1.9		6.13		4.15		0.11		43.3		48
R04-005		79.9		83		3.1		14.97		7.47		0.39		95.8		380
R04-006		68.5		71.9		3.4		15.84		7.09		0.2		68		268
R04-007		181.2		184.2		3		14.51		7.58		0.32		103.5		273

No follow up drilling has been conducted since the initial discovery by
Teck. The Company plans to commence a follow up offset drilling
campaign in September 2012.

The R15 Project is adjacent to, and along strike with, Teck’s GP4F
project (historical resource estimate of 1.5 million tonnes of 6.4% Zn,
3.1% Pb, 90 g/t Ag, 2 g/t Au ⁽¹⁾) and hosts massive sulphide mineralization that is geologically similar
to the GP4F. The R-15 mineralization may represent the continuation of
the GP4F horizon along strike.

The R15 mineralization consists of a 1-3m thick horizon of massive
sulphide hosted within Mississippian-aged felsic metavolcanic and
metasediments of the Kudz Ze Kayah Formation within the Grass Lakes
Succession. The horizon consists of massive to brecciated and
recrystallized sphalerite, galena, magnetite, pyrrhotite, and
chalcopyrite with minor silica, plagioclase, + chlorite and biotite gangue. The immediate footwall consists of
variably altered chlorite, biotite, quartz, muscovite altered crystal
tuff with strong sulphide disseminations and veins.

Private Placement
The Company also announces that it will conduct a non-brokered private
placement of up to 12,000,000 units of the Company at $0.10 per unit
(the “Units”) to raise gross proceeds of up to $1,200,000. Each Unit
will consist of one common share of the Company and one half of one
share purchase warrant, each full warrant entitling the holder to
acquire one additional common share of the Company at a price of $0.15
per share, for a term of one year from the date of issuance.

The proceeds from the private placement will be used for expenditures
under the R15 agreements, exploration of the Company’s mineral
properties, the final payment for the Company’s Marg Property, and for
general working capital purposes.

Transaction Terms
Pursuant to the Option Agreement, the Company may acquire a 95%
participating interest in the R15 Project by paying $1,000,000 in cash
and issuing 2,000,000 of the Company’s shares, in stages, over a four
year period, incurring exploration expenditures totalling $3,500,000 on
the R15 Project over a six year period and delivering a prefeasibility
study on or before March 31, 2020. To retain its 5%, interest KMC must
pay the Company 1.5 times the proportionate share of exploration costs
incurred prior to the exercise of the option, which sum will be paid
from KMC’s share of proceeds from production.

KMC will also retain a 25% non-participating carried interest in the R15
Project, which will convert into a 25% participating interest following
recovery by the Company of all expenditures following exercise of the
Option Agreement. From production, KMW will receive an annual payment
of $1,000,000 ($500,000 if the price of Zinc is less than $0.55/lb)
which is also recoverable by the Company as set forth above.

Pursuant to the Exploration Memorandum of Understating, the Company has
agreed to pay to Ross River Dena Council an annual supplement of
$70,000 during the currency of the Option Agreement, as well as,
annually, to contribute to a Community Development Fund 6% of the
exploration expenditures incurred under the Option Agreement. The
Exploration Memorandum of Understating also provides that the parties
will negotiate in good faith a Socio Economic Participation Agreement
ensuring equitable participation in the economic benefits of the R15
Project and continues stable funding of the Community Development
Fund. The Option Agreement and the private placement are subject to
all required regulatory approvals.

Appointment of Vice-President, Exploration
The Company is also pleased to announce the appointment of Gilles
Dessureau, MSc, PGeo as the Company’s Vice-President, Exploration. Mr.
Dessureau is a Professional Geologist with over 10 years of exploration
and development experience in the Yukon and British Columbia as well as
other locations including Nevada, Ontario and Quebec. Mr. Dessureau has
served as a Senior Geologist with the Predator Group since late 2009.

Mr. Dessureau has significant experience focused on volcanic hosted
massive sulphide (VMS) deposits and has worked on a variety of projects
ranging from grass roots exploration through mine development. Mr.
Dessureau was instrumental in advancing through feasibility the
Wolverine polymetallic VMS deposit in the Yukon, which began commercial
production in 2010.

Mr. Dessureau is a Professional Geologist registered with the
Association of Professional Engineers and Geoscientists of British
Columbia and the Association of Professional Geologists of Ontario.
Mr. Dessureau holds a MSc from Laurentian University in Sudbury and a
BSc (Geology) from St. Mary’s University in Halifax.

The technical contents of this release have been reviewed and approved
by Gilles Dessureau, MSc, PGeo. Mr. Dessureau is the Company’s
Vice-President, Exploration and a Qualified Person as defined by
National Instrument 43-101.

About Redtail Metals Corp.
Redtail Metals specializes in identifying, acquiring and developing
quality precious metal enriched copper, lead and zinc mineral deposits
in Yukon, Canada. The Company currently controls the Marg and Clear
Lake massive sulfide deposits, both with 43-101 compliant mineral
resources, along with a number of other quality exploration properties
in Yukon. Redtail Metals, a member of the Predator Group of Companies,
has a committed management team with extensive experience in the Yukon.

⁽¹⁾ MacRobbie, P.A., and Holroyd, R.W., 2004. 2004 Summary Report, R-15
Option (KZK Project) Canada, Linecutting, Grid Ground Geophysical
Surveys (UTEM/MAG), Diamond Drilling, and Minor Geological Mapping.
Exploration Report for Kaska Minerals Corporation and Yukon Territorial
Government.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. This
press release contains projections and forward-looking information that
involve various risks and uncertainties regarding future events. Such
forward-looking information can include without limitation statements
based on current expectations involving a number of risks and
uncertainties and are not guarantees of future performance. There are
numerous risks and uncertainties that could cause actual results and
Redtail Metals’ plans and objectives to differ materially from those
expressed in the forward-looking information. Actual results and future
events could differ materially from those anticipated in such
information. These and all subsequent written and oral forward-looking
information are based on estimates and opinions of management on the
dates they are made and are expressly qualified in their entirety by
this notice. Except as required by law, Redtail Metals’ assumes no
obligation to update forward-looking information should circumstances
or management’s estimates or opinions change.

SOURCE Redtail Metals Corp.