REDSTONE RESOURCES LIMITED — Capital/Financing Update 2012

May 8, 2012

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ASX ANNOUNCEMENT CAPITAL RAISING TRANSACTIONS

9 May 2012

Redstone Resources Limited (ASX Code: RDS) (Redstone or the Company) is pleased to announce that it has entered into capital raising initiatives that will raise over $1,000,000 for the Company.

The Company has entered into an agreement for the sale of its potash projects in the Amazonas state in Brazil. Under the terms of that agreement Redstone has agreed to sell a 100% interest in the projects for $390,000, completion of which is conditional upon the Purchaser being satisfied with the results of its due diligence investigations. The purchaser of the projects has agreed to subscribe for 2,000,000 fully paid ordinary shares in the capital of Redstone at $0.18 per share to raise $360,000.

Redstone has also completed the sale of its Stripeys Project . The Company received the final payment from the purchaser of that tenement of $275,000 and has been issued and allotted 6,000,000 fully paid shares in the capital of the purchaser, which currently proposes to list on the ASX.

The transactions are currently expected to complete within four to eight weeks and in total provide Redstone with over $1,000,000. Funds raised will be used for working capital requirements and enable the Company to continue its major focus to explore and develop its major project, the advanced 100% owned Tollu Copper Nickel Project in Western Australia, where there exists a significant copper exploration target for the Central Zone (Subzone 1). The Tollu exploration target is estimated to be between 5.8 and 6.2 million tonnes of copper mineralisation at an expected grade of between 2.6% - 2.8% Cu, for between 150,000 tonnes and 170,000 tonnes of contained copper.[1]

The Company is actively pursuing further capital raising and funding opportunities.

1 Exploration Target – All statements as to the potential quantity and grade of the exploration targets are conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.

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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ASX: RDS

ATTRIBUTION

The information in this report relates to exploration results is based on information compiled by Dr Joao Orestes Santos, an employee of Redstone Resources Limited. Dr Santos is a member of the Australian Institute of Geoscientists and has sufficient experience relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves’. Dr Santos consents to the inclusion in the report of the matter based on his information in the form and context in which it appears.

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

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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