REDSTONE RESOURCES LIMITED — Capital/Financing Update 2012

Dec 3, 2012

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4 December 2012

Company Announcements Office Australian Stock Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000

NOTICE OF SHORTFALL OPTIONS UNDER 1:10 NON‐RENOUNCEABLE ENTITLEMENT ISSUE

Redstone Resources Limited ( ASX Code: RDS ) ( Redstone or the Company ) is pleased to advise that it has received applications to subscribe for 9,997,605 Listed Options at $0.01 per option from eligible shareholders, under its pro rata non‐renounceable entitlement issue ( Entitlement Issue ) which closed on 29 November 2012. The Company wishes to thank shareholders for their continued support.

The Entitlement Issue shortfall was 4,359,344 Listed Options ( Shortfall Options ) out of a total 14,356,939.

The Company has notified the Underwriter, Argonaut Capital Limited, of the shortfall in acceptances for Listed Options. Pursuant to the underwriting agreement 4,359,334 Shortfall Options having a total issue price of $43,593.34 are required to be applied for by the Underwriter (or sub‐underwriters nominated by the Underwriter).

The anticipated date for despatch of holding statements for the Listed Options is 7 December 2012, with normal trading of the Listed Options expected to commence on 10 December 2012.

Miranda Conti Company Secretary

For further information please contact:

Anthony Ailakis Executive Director Redstone Resources Limited +61 (08) 9328 2552 contact@redstone.com.au

Miranda Conti Company Secretary Redstone Resources Limited +61 (08) 9328 2552 contact@redstone.com.au

Redstone Resources Limited ABN 42 090 169 154 Suite 3, 110‐116 East Parade, East Perth WA 6004 Tel: 08 9328 2552 Fax: 08 9328 2660

www.redstone.com.au Email: contact@redstone.com.au

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