Mr. Sergei Stetsenko reports

GOLDHILLS HOLDING LTD ANNOUNCES PROPOSED DEBT SETTLEMENT

Goldhills Holding Ltd. proposes to settle outstanding indebtedness totalling $95,000 through the issuance of 1,583,333 common shares at a price of six cents per share.

The above-described transaction constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions, as all debt settlement shares are being issued to related parties of the company. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the debt settlement shares does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101.

The closing of the debt settlement is subject to the approval of the TSX Venture Exchange.

We seek Safe Harbor.