REDSTONE RESOURCES LIMITED — Capital/Financing Update 2009

Dec 3, 2009

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REDSTONE RESOURCES LTD ABN 42 090 169 154

(ASX CODE: RDS)

4 December 2009

SECTION 708A(5)(e) NOTICE

Following shareholder approval at the Annual General Meeting held on 30 November, Redstone Resources Limited ( Company ) has today completed the issue and allotment of the second tranche of placement securities to sophisticated and private investors. The Company has today issued and allotted 18,647,224 fully paid ordinary shares at $0.09 per share and 11,111,112 unquoted options exercisable at $0.25 per share expiring 30 November 2012 to raise gross proceeds of $1,678,250. Total capital raisings from private placements undertaken during October 2009 amount to $2,250,000 (before costs).

The Company gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) ( Act ) that:

1. the Shares were issued without disclosure to investors under Part 6D.2 of the Act;

2. as at the date of this notice the Company has complied with: (a) the provisions of Chapter 2M of the Act as they apply to the Company; and

   • (b) section 674 of the Act; and

3. as at the date of this notice, apart from the below information, there is no “excluded information” as that term is defined in sections 708A(7) and 708(8) of the Act.

West Musgrave Region

BAGGALEY HILLS PROJECT

Geophysics crews have commenced large detailed ground based gravity and helicopter borne magnetic surveys over the Olympic Dam style targets (ie: Iron oxide Copper Gold -IOCG) on the Baggaley Hills Project. This work is being sole funded by HJH Nominees Pty Ltd pursuant to the Farmin Agreement signed in March of this year. Ground gravity and magnetics are two of the most useful exploration tools for defining IOCG targets for drilling and it is expected that geophysical modelling of targets will be completed shortly after receipt of all data and that all targets will be drill ready for the commencement of the exploration field season early next year.

A detailed ground magnetics survey is being conducted over the Antlion project, to better define the structural setting of the outstanding PGE (Platinum Group Element) grades, which have been identified from previous reconnaissance exploration. A close spaced rock sampling programme is currently being conducted over the mineralised outcrop which was discovered late last year in preparation for an intensive RC drilling programme at the commencement of the next field season in March next year.

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BLACKSTONE RANGE PROJECT – HALLEYS

At Blackstone Range it is proposed to now commence deeper RC drilling to test the mineralised Cu-PGE-Ni system at depth. Previous drilling has intercepted thick zones of mineralisation and also demonstrated the potential for higher grade nickel-PGE’s at depth in this pipe-like mineralised body.

South America - Brazil

ANEBA POTASH PROJECT

MBAC Opportunities and Financing Inc., Redstone’s joint venture partner, which is sole funding the exploration of the Aneba Project, has advised Redstone that it has commenced the environmental licensing process in Brazil in anticipation of commencement of a drilling programme on this project. It is expected that the environmental process will take 1-2 months and that drilling will commence early next year.

Yours sincerely

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Richard Homsany Chairman

Additional information on Redstone Resources is available on company's website at www.redstone.com.au

Investor Enquiries:Telephone:Facsimile:Email:Website:Address:	+61 8 9328 2552+61 8 9328 2660contact@redstone.com.auwww.redstone.com.auPO Box 8646, Perth Business Centre WA 6849

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