RHM.L Regulatory News (RHM)

10 May 2012

RedHot Media International Limited

("RHM", "RedHot" or the "Company")

Term sheet signed for £20m Equity Line Facility

RedHot (AIM:RHM), a leading media, advertising and marketing business with distribution channels in both Malaysia and China, is pleased to announce that is has signed a non-binding term sheet to enter into an agreement with Dutchess Opportunity Cayman Fund, Ltd ("Dutchess") for Dutchess to provide RedHot with an Equity Line Facility ("ELF") of up to £20 million.

The ELF would offer the Company ongoing access to equity capital, at its own discretion, enabling the Company to obtain funding from Dutchess at any time during the next four years by way of a subscription by Dutchess for new ordinary shares in the Company. Subscriptions will be priced at a 10 per cent. discount to the lowest daily VWAP of an ordinary share in RHM for the 20 trading days prior to the notice of draw down being given by the Company. Under the ELF it is envisaged that RedHot will be able to draw down funding in tranches of not less than £200,000.

The Board of RedHot and Dutchess are currently finalising the terms of the ELF. The ELF remains subject to, inter alia, completion of due diligence and the negotiation and execution by the Company and Dutchess of a facility agreement. At this time there can be no certainty that an agreement will be reached between RHM and Dutchess.

The funds which would be available to RHM under the ELF would be available to be utilised by the Company for ongoing, strategic business diversification purposes and to enable the Company to implement potential expansion strategies going forward. It will also provide the Company with access to additional working capital and enable the Company to continue to pursue its existing pipeline of business and projects.

These new developments are part of the Company's ongoing objective for further growth through result-focused strategic business diversification and potential expansion strategies to significantly increase its strategic market reach.

A further announcement on the ELF will be made by RedHot at the appropriate time.

For further information please contact:

About Dutchess Capital

Dutchess Capital was founded in 2000. Since then, Dutchess has been a market leader and innovator in providing ELFs and other unique financing structures for publicly-traded companies.

Dutchess has transacted over $2 billion in ELF commitments globally. Dutchess has over 10 years of experience assisting companies throughout the process, as well as the financial wherewithal to fund the company throughout the entire commitment.

Dutchess sources worldwide investment opportunities, with offices in Boston, New York, Seoul and Beijing and joint venture partner First Columbus in London.

For more information, visit: www.dutchesscapital.com