REDSTONE RESOURCES LIMITED — Capital/Financing Update 2007

Aug 15, 2007

REDSTONE RESOURCES

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16 August 2007

Company Announcements Office ASX Limited Level 4, 20 Bridge Street SYDNEY NSW 2000

REDSTONE RESOURCES LIMITED (ASX CODE: RDS)

COMPLETION OF CAPITAL RAISING

Redstone Resources Limited (the Company) is pleased to advise the successful completion of its capital raising under the offer pursuant to the prospectus lodged with ASIC on 13 July 2007. The Company received applications for 2,601,862 shares at $1.20 per share to raise a total of $3,122,234.40 (before the costs of the offer).

Shares were offered to both the existing shareholders of the Company and the general public, with priority being given to existing shareholders.

The capital raising provides the Company with funds to further consolidate its successes by funding the deep drilling of the highly prospective Halleys discovery, the drilling and continued exploration of the Company's other projects in the West Musgrave region, the exploration of the Company's nickel and iron-ore targets in Brazil, and the acquisition of selected properties in the central Andean region of South America.

The Company thanks existing and new shareholders for their support.

Yours sincerely,

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Anthony Ailakis Chairman

ABN 42 090 169 154 Suite 3, 110-116 East Parade, East Perth WA 6004 Correspondence to: PO Box 8646, Perth Business Centre WA 6849 Tel: 08 9328 2552 Fax: 08 9328 2660 Email: contact@redstone.com.au