REDSTONE RESOURCES LIMITED — Capital/Financing Update 2015

Nov 18, 2015

19 November 2015

The Manager Company Announcements Office Australian Stock Exchange Limited Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Electronic Lodgement

Drilling Commences at Tollu Project

Redstone Resources Limited (ASX: RDS) (" drilling has commenced on the Company's 100% owned Tollu Copper Project (the " the West Musgrave region of Western Australia. Redstone" or the "Company") is pleased to announce that Project") located in

Highlights:

• RC drilling programme commences at 100% owned Tollu Copper Project
• Circa 8,000 metres RC program programme to run for approximately 6 weeks
• Campaign includes drilling to target near surface oxide mineralisation
• Potential to significantly expand global exploration target and geological understanding understanding
• Programme expected to deliver m maiden (JORC) copper resource for Tollu P Project

Mobilisation and Drilling Commencement

Redstone has mobilised all necessary equipment and ("RC") drilling has now commenced comprise circa 8,000 metres specifically This Programme will also improve the Company's future exploration methodologies. personnel to the Project, and reverse circulation commenced. The RC drilling programme (the "Programme specifically targeting the near-surface oxide potential rogramme Company's understanding of the mineralised system ") is anticipated to surface potential of the Tollu Project. system and inform

McKay Drilling ("McKay") has been contracted to complete the RC programme using a high capacity RC drill rig. McKay's drilling and management team with many years' experience in the operations management of drilling contracts. experience in the region and the Company has a high level of confidence in their g consists of seasoned mining and drilling professionals capability. McKay has strong

Aim of the Programme

The Company has identified a number of prospective of the Programme being to target near surface hydrothermal copper (oxide and sulphide The main activity will be concentrated on the known higher and Eastern Reef prospects within the Tollu Project. Tollu mineralised system. The delivery of a maiden (JORC) cop size of which will depend on the amount of any further funding. targets for drilling at the Tollu Project, higher-grade zones at the Chatsworth, Main Reef The primary purpose will be the copper resource is an expected outcome, the with the aim sulphide) mineralisation. grade validation of the per the end of

Redstone aims to complete the RC drilling and fieldwork component of the Programme by December 2015 and will release drill omplete assay results as they become available.

Entitlement Offer and Funding

On 5 November 2015 the Company announced a partially underwritten pro rata non renounceable entitlement offer to raise up to $1,262,043 (before costs) (the " and for working capital. Offer") to assist in funding the Programme

The Offer has been made on the basis of three (3) new fully paid ordinary shares in the capital of the Company ("New Shares") for every four (4) existing fully paid ordinary shares in the capital of the Company held by eligible Shareholders on 11 November 2015 at an issue price of $0.009 per New Share. Shareholders will also receive two (2) free attaching options, exercisable at $0.03 on or before 31 July 2017 ("New Options") for every five (5) New Shares subscribed for and issu hareholders issued under the Offer.

Eligible Shareholders are encouraged to take up their entitlement New Shares under the Offer. in addition to applying for ed for Additional

Dispatch of the Prospectus and personalised Entitlement and Acceptance Form for the Entitlement Of was made to Eligible Shareholders on 16 November 2015 spatch 2015. Offer

Should you have any questions regarding the Offer you may contact the Company Secretary, Ms Miranda Conti, on (08) 9328 2552.

PROJECT BACKGROUND

Tollu Project (Redstone 100%)

Redstone's 100% owned Tollu Project is located in the southeast portion of the West Musgrave region of Western Australia (Figure 1). The Community on Company's 100% owned tenement E69/2450 ( Tollu Project is approximately 20km southeast of the Blackstone Figure 2). roject rich rich quartz

The Tollu Project consists of a large swarm of hydrothermal copper system covering an area of at least 5 veins are exposed at surface and form part of a dilatational system between two major structures within the Tollu Fault Zone. copper-rich quartz veins in a mineralised 5 square kilometres. Malachite-rich gossans associated with qua

The Tollu Project has a conceptual exploration target of mineralisation at a conceptual grade range of 0.9 Eastern Reef, Main Reef and Dawyck (the "Target") in the range of 22 0.9-1.3% copper. The initial focus is on the Chatsworth prospects. 22-33 million tonnes Chatsworth,

The potential quantity and grade of the Target is conceptual in nature. has been insufficient exploration to estimate a in the estimation of a Mineral Resource. nature. It is important to note that there sufficient resource and it is uncertain if further exploration will result esource

Figure 1: West Musgrave location

ocation map Figure 2: Tollu Project location m map

Competent Persons Statement

The information in this announcement Mapleson, a Principal Geologist and a full time employee of BM Geological Services, who are engaged as consultant geologists to Redstone Resources Limited. of Mining and Metallurgy. Mr Mapleson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to act as a competent person 2012 edition of the "Australasian Code for that relates to exploration results was authorised by Mr Darryl e Mr Mapleson is a Fellow of the Australian Institute Reporting of Exploration Results, Mineral Resources and Ore person as defined in the esults,

Reserves". Mr Mapleson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

ABOUT REDSTONE RESOURCES

Redstone Resources Limited (ASX: RDS) exploration properties in the West Musgrave region h is a Perth-based company focused on highly prospective of Western Australia. prospective copper

Redstone's 100% owned Tollu Project is located in the southeast portion of the West Musgrave region of Western Australia.

The Company has also identified the potential for a number of other projects on the Tollu tenement (E69/2450) in addition to the Tollu Project.

For further information please contact:

Richard Homsany Chairman Redstone Resources Limited +61 8 9328 2552 contact@redstone.com.au

Andrew Rowell / Warrick Hazeldine Cannings Purple +61 8 6314 6304 arowell@canningspurple.com.au arowell@canningspurple.com.au