REDSTONE RESOURCES LIMITED — Capital/Financing Update 2008

Apr 7, 2008

ABN: 97 008 045 083

702 Murray Street, West Perth Western Australia 6005 Phone: 61 8 9213 9400 Fax: 61 8 9213 9444 Email: rmc@resmin.com.au Website: www.resmin.com.au

8 April 2008

The Companies Announcements Office Australian Stock Exchange Limited (ASX) 4 Floor. 20 Bridge Street SYDNEY NSW 2000

Blackstone Range/Michael Hills Area Joint Venture. Resource Mining Corporation Limited (ASX: RMI) 25%

Redstone Resources Limited (ASX: RDS) 75%

Resource Mining Corporation Limited and Redstone Resources Limited are parties to a Farm-in Deed covering tenements: E 69/2106, E 69/2107, E 69/2108 and E 69/2109. (Blackstone Range / Michael Hills)

The Blackstone Project comprises two tenements (E69/2108, E69/2109) which overly a significant mafic – ultramafic intrusion known as the Saturn Complex. The magnetic feature (Figure 1) shows 15 discernable magnetic rings and is interpreted to be a core – shaped feeder to the Giles Intrusion Complex.

This type of layered intrusion is comparable to mineralised feeders at Jinchuan in China and the Great Dyke of South Africa, both hosting world class Nickel (Ni), Copper (Cu) and Platinum Group Elements (PGE) mineralisation.

Recent exploration work by Redstone Resources has outlined a number of significant geochemical targets including Halleys (Cu-Ni-PGE), Titan (Cu-PGE) and Helena (Ni-Cr) (Figure 1).

Figure 1: Prospects within the Blackstone Project

The following information was released today by Redstone Resources Limited, relating to exploration activities to be carried out on the Blackstone Project.

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Redstone Resources to commence drilling of PGE (Platinum Group) reef and Nickel-Copper-Platinum Group (Ni-Cu-PGE) targets at the Blackstone Range Project, West Musgrave Region, Western Australia

Redstone Resources Limited (ASX: RDS) is pleased to announce that a 10,000m+ RAB drilling program will commence at the Blackstone Range project (Farmin agreement with Resource Mining Corporation ASX: RMI) in the West Musgrave region of Western Australia, in two weeks, followed by deeper drilling scheduled to commence in May/June. Drilling will test multiple PGE reef targets and significant Ni-Cu-PGE mineralization defined in 2007.

The principal targets within the Blackstone Range project are:

• Halleys Cu-PGE-Ni prospect;

Halleys was drilled with RAB and shallow RC in 2007. That drilling intersected economic grade mineralization (10 m @ 0.75% Cu, 0.28 g/t PGE and 0.18%Ni) within a large disseminated sulphide mineralised body with a diameter of approximately 450m and a true thickness of up to 250m. Significantly, the grade of the mineralisation appears to be increasing at depth. Follow-up drilling is aimed at expanding the strike of mineralisation and helping to better define the target for deeper drilling to test mineralisation at depth.

• Halleys NW PGE reef target;

Regional surface geochemical sampling previously defined an 11km long PGE anomaly on the SW margin of the Saturn Intrusive Complex. Reconnaissance RAB drilling in 2007 was aimed at broadly testing the southern part of the surface geochemical anomaly at 400 to 800m line centres with shallow holes 50m apart. Peak intercepts in the RAB include 7m @ 0.29g/t PGE + Au, from 2m with a peak assay value of 0.47g/t PGE + Au. Infill geochemical sampling has defined a discrete 1km long PGE reef-type target which will be drilled with angled overlapping holes.

The setting and host to the PGE mineralisation is better understood after recent ground magnetics and lithogeochemical ratio work has identified a distinct fertile intrusion which is highly prospective for PGE type mineralisation (This intrusion has a copper/palladium ratio of approximately 7000 which is very favourable for PGE potential. copper/palladium ratios have proven to be very useful to evaluate the PGE potential of intrusions.) This strongly supports the exploration model for PGEs in the West Musgrave region based on a flow-through model for the Platreef in South Africa. The Platreef hosts the third largest PGE deposit in the world.

Redstone Managing Director Anthony Ailakis said "the quality of drill targets and potential of the West Musgrave region continues to impress and improve. Halleys is an outstanding new mineralized system which appears to be strengthening at depth, whilst Halleys NW is a very significant PGE anomaly in a geological setting with analogies to the Platreef deposit of the Bushveld Complex in South Africa. These results show the immense potential for the West Musgrave region to host new mineral deposits. Exploration is gaining momentum and our second drilling campaign will target a multitude of well defined targets in the search for world-class deposits. Renewed interest at BHP-Billiton's Voisey's Bay-style Babel and Nebo deposits and prefeasibility at Metals X massive Wingellina Ni laterite deposit is also enhancing our view of the West Musgrave region. It is clearly an emerging world-class Ni-Cu-PGE province".

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Yours faithfully

W. J. Davies Executive Director