REDSTONE RESOURCES LIMITED — Capital/Financing Update 2018

Sep 17, 2018

==> picture [115 x 115] intentionally omitted <==

18 September 2018

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

Redstone Resources – Special Investor Briefing – September 19 5.00pm WST

Redstone Resources Limited ( ASX Code: RDS ) ( Redstone or the Company ) would like to invite investors and shareholders to attend a special briefing with Chairman Richard Homsany, who will provide an outline for the Company’s planned activities within the highly prospective West Musgrave region.

Date: Wednesday, September 19 Time: 5.00pm (WST) – (7.00pm EST)

Investors will also have the opportunity to ask questions and are encouraged to register at: ‐ http://www.redstone.com.au/webinar register/. Details to login for the Investor Briefing will be provided on registration using this link.

Redstone also reminds Shareholders of its partially underwritten pro rata non renounceable entitlement offer to raise up to $2,152,960 (before costs) being made to eligible shareholders on the basis of one (1) new fully paid ordinary share in the capital of the Company ( New Shares ) for every three (3) existing fully paid ordinary shares in the capital of the Company at an issue price of $0.017 per New Share. Subscribers will also receive one (1) free attaching option (to be listed on ASX), exercisable at $0.035 on or before 30 April 2021 for every two (2) New Shares issued under the Entitlement Offer.

The Entitlement Offer prospectus and Entitlement and Acceptance Forms were despatched to Shareholders last week, however Shareholders are also able to request their personalised ‐ application form to be emailed to them directly at: http://www.redstone.com.au/app request/.

For non‐shareholders who would like to participate in the Shortfall Offer pursuant to the Entitlement Offer prospectus, they can submit an application at: http://www.redstone.com.au/shortfall‐register/.

Redstone Resources Limited ABN 42 090 169 154 60 Havelock Street, West Perth WA 6005 Tel: 08 9328 2552 Fax: 08 9328 2660

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

1

ASX: RDS

==> picture [52 x 35] intentionally omitted <==

Investment Highlights

• The Offer is attractively priced at a significant discount of approximately 25% to the July 2018 and August 2018 volume weighted average share price.

• The Company owns a 100% interest in the West Musgrave Project ( the Project ), in the West Musgrave, Western Australia, which includes the Tollu Copper Vein Project ( Tollu ), a potential large scale, high grade, near surface copper project.

• Funds raised from the issue of New Shares will be used to undertake a ground electromagnetics (EM) survey over all 13 EM (VTEMmax) targets identified from the airborne survey undertaken in May 2017, further exploration and evaluation activities and for a reverse circulation (RC) drilling programme of at least circa 7,500m (assuming Full Subscription) to test certain of these EM targets.

• This follows from the 2017 RC drilling of the high priority EM1 target, located 3.5km east of Tollu, which intersected a 100m thick zone of high grade hydrothermal pyrite mineralisation with anomalous trace elements.

• A key outcome of the imminent RC drilling programme is to test the EM (VTEMmax) targets confirmed by the ground EM survey and to better understand the mineralisation and prospectivity of the region.

• The RC drilling programme will commence following completion of the analysis of the ground EM survey results, which should be no later than early 2019. All approvals have been obtained.

• The Company has already defined a maiden resource at its Tollu Copper Vein Project of 38,000t of Cu and 535t of Co (Indicated and Inferred at a cut‐off of 0.2% Cu – JORC 2012) and a conceptual exploration target ( the Target ) also suggests up to 627,000t of Cu may be present ‐ grades intersected by drilling are as high as 3.25% Cu over 14m (2017 drilling)

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

• The Project has significant exploration upside with less than 5% of the Project explored to date.

• The West Musgrave province is highly prospective and underexplored.

Use of Funds

Funds raised under the Offer will be applied towards advancing the Company’s 100% owned West Musgrave Project, located in the West Musgrave, Western Australia including a reverse circulation (RC) drilling programme (the Programme ), for working capital and for meeting the expenses of the Offer.

The Programme includes a ground electromagnetic ( EM ) survey over 13 EM (VTEMmax) targets identified from an airborne survey completed in May 2017 and follows from the 2017 drill results of the high priority EM1 target, which proved that the VTEMmax survey positively identified sulphides in the Project area.

2

ASX: RDS

==> picture [52 x 35] intentionally omitted <==

The high priority EM1 target, intersected a 100m thick zone of high grade hydrothermal pyrite mineralisation with anomalous trace elements and represents another major zone of hydrothermal sulphide mineralisation just 2.5‐3km to the NW of the Tollu Copper Vein Project, confirming the Project’s high prospectivity. Following analysis of the ground EM survey results and further exploration and evaluation activities, the Company will then undertake RC drilling of at least approximately 7,500m (assuming Full Subscription) to test certain of the EM (VTEMmax) targets confirmed by the ground EM survey.

In addition to drill testing certain of the EM (VTEMmax) targets, a key outcome of this Programme will also be to gain better knowledge and understanding of the geology and potential mineralisation of the Project area. The geochemical analysis of the EM1 drill results suggest that the geology of the Project area may differ from previous interpretations, and therefore mineralising systems other than Ni‐Cu magmatic sulphides, need to be considered, including epithermal gold, intrusion related gold, stratabound Au‐Ag, IOCG, granite related Sn‐ W, intra‐continental‐type Mo‐Porphyry and VHMS deposits.

For further information please contact:

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

Competent Persons Statement

The information in this document that relates to exploration results was authorised by Dr Greg Shirtliff, who is employed as a consultant to the company through Zephyr Professional Pty Ltd. The information in this report that relates to Geophysical Exploration Results is based on information compiled by Mr Barry Bourne, who is also employed as a consultant to the Company through geophysical consultancy Terra Resources Pty Ltd. Mr Bourne is a fellow of the Australian Institute of Geoscientists and a member of the Australian Society of Exploration Geophysicists and Dr Shirtliff is a Member of the Australian Institute of Mining and Metallurgy. Both Mr Bourne and Dr Shirtliff have sufficient experience of relevance to the tasks with which they were employed to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Both Mr Bourne and Dr Shirtliff consent to the inclusion in the report of matters based on information in the form and context in which it appears.

The information in this announcement that relates to Exploration Targets and Mineral Resources was authorised by Mr Darryl Mapleson, a Principal Geologist and a full time employee of BM Geological Services, who was engaged as consultant geologists to Redstone Resources Limited. Mr Mapleson is a Fellow of the Australian Institute 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 as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore 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.

3