REDSTONE RESOURCES LIMITED — Capital/Financing Update 2013

Dec 10, 2013

10 December 2013

Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000

Electronic Lodgement

STRATEGIC AND OPERATIONAL REVIEW

Redstone Resources Limited (ASX: RDS) ("Redstone" or "the Company") wishes to announce a range of initiatives marking the conclusion of its Strategic and Operational Review. The review was completed by the Company's board of directors ("Board") under the direction of the Company's Technical Director, Brett Hodgins. Key findings from the review include:

• Redstone will remain a copper focused company exploring in the West Musgrave region of Western Australia.
• Redstone will significantly reduce its ongoing administrative overheads.

As a consequence the Company's key initiatives will be:

• Staged exploration approach on its 100% owned Tollu Copper Project.
• Appointment of key technical consultants.
• Repositioning and promotional activities. $\bullet$
• Organisational restructure.
• East Perth office closure.
• Commence funding solution for next stage of work.
• Divest Brazilian assets.

Staged exploration approach on the Tollu Copper Project

One of the key findings from the strategic and operational review is that Redstone will remain a copper focused company exploring in the West Musgrave region of Western Australia. With this direction the Company intends to stage the exploration at its 100% owned Tollu Copper Project in a manner that the Board believes will maximise value for the Company's shareholders.

Stage 1 Exploration Program

• Near surface hydrothermal copper targets are the short term priority to accelerate the Project's value.
• Leverage off existing data by further analysis and interpretation of existing geophysical and geological data.
• Focus on expanding the exploration target with detailed further mapping and sampling programs.
• Assay program of existing samples for metallurgical composites and extending geological continuity across the Project.
• $\bullet$ Timeframe for Stage 1 is approximately 4 months.

Appointment of key technical consultants

The Company has engaged BM Geological Services ("BMGS") to manage Stage 1 of the geological evaluation and exploration activities on the Tollu Copper Project. BMGS are experienced geoscientists with an extensive technical support network which the Board believes will enable them to unlock the economic potential which exists on Redstone's highly prospective tenure.

Additional appointments for key activities for Stage 1 will be announced during the first quarter of 2014.

Repositioning and promotional activities

The Company is focused on delivering the Stage 1 exploration program on time and budget. This work will trigger newsflow during the first quarter of 2014. The Company will also be reviewing its technical marketing strategy for the Tollu Copper Project. It is envisaged that this process will be completed by the end of January 2014.

Organisational restructure

As a result of the Company's strategic and operational review the Company has initiated an organisational restructure that includes a reduction in exploration and office staff numbers to more appropriately reflect the Company's planned exploration activity levels. Redstone's Technical Director Brett Hodgins will provide additional exploration technical support to the Company until such time as circumstances require the employment or engagement of further persons. Key consultants will also be engaged to perform technical activities during this phase of operations.

Fast Perth office closure

The Company is also focused on broader reduction of administrative overheads which will include the closure of the Company's East Perth office. On and from 23 December 2013 the registered office and principal place of business of the Company will be changed to:

Level 1 57 Havelock Street, West Perth, Western Australia.

Divest Brazilian Assets

The Company has initiated processes for the disposal or sale of its Brazilian assets. The process will commence by verifying datasets and establishing a dataroom for investor review.

Redstone's Chairman, Mr Richard Homsany, said "The outcomes of the strategic and operational review confirm the Board and management's confidence in the strength of Redstone's 100% owned Tollu Copper Project. The board believes the Stage 1 exploration program is an excellent platform upon which to advance the highly prospective Tollu Project and to create value in the near term for all shareholders."

For further information please contact:

Richard Homsany Chairman 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

About Redstone Resources Limited

Redstone Resources Ltd is a Perth-based company focused on highly prospective copper exploration properties in the West Musgrave region of WA and phosphate in Brazil