REDSTONE RESOURCES LIMITED — Capital/Financing Update 2018

Sep 3, 2018

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4 Se p tember 20 1 8

Dea r Option hol d er

PRO-RATA NON-RENOUNCEABLE ENTITLEMENT ISSUE NOTICE TO OPTION HOLDERS

This letter is to n otify you that on 3 Se p tember 2018 Redston e Resource s Ltd ( ASX: RDS ) ( Redstone or the Company ) announc e d a pro rata non reno u nceable e n titlement is s ue of fully p aid ordina r y shares o n the basis o f one (1) fully paid ordinary share ( New Shares ) for ever y three (3) f ully paid o r dinary sha r es in the C ompany ( Shares ) to e ligible hold e rs of Shares ( Shareholders ) registered at 5:00pm (WS T ) on 7 Se p tember 2018 ( Record Date ) at a n issue pri c e of $0.0 1 7 per Ne w Share ( Offer Price ) together w ith one (1 ) free atta c hing option exercisable at $0.035 o n or before 30 April 20 2 1 ( New Listed Options ) for ever y two (2) N ew Share s issued under the Pr o spectus, t o raise up to approxi m ately $2,1 5 2,960 (bef o re costs) b a sed on th e number of Shares on issue at the date of this letter ( Entitlement Offer ).

Eligibility to participate in the Entitlement Issue

The Entitlement Offer is only open to s hareholde r s of the Company ( Shareholders ) who are r egistered a s Shareholders at 5. 0 0pm (WS T ) on the R ecord Dat e and who have registered addresses in Australia or Ne w Zealand ( Eligible Shareholders ) .

Prospectus and Entitlement Issue Details

Details of the E n titlement O ffer, togeth e r with all other releva n t informati o n, are set o ut on the C ompany’s prospectus which was lodged wit h the ASX a nd the Au s tralian Sec u rities and I nvestment s Commissi o n on Frida y , 31 Augus t 2018 ( Prospectus ). T he Prospe c tus is curr e ntly availa b le from t h e Compa n y’s websit e , www.re d stone.com. a u, or the ASX web s ite, www.a s x.com.au, b y searchin g under the C ompany’s ASX code “RDS”.

Und e r the terms of the opti o ns you cur r ently hold in the Com p any ( Existing Options ) you are n ot entitled to particip a te in the E n titlement I s sue unles s you exer c ise your E x isting Opti o ns and are entered on t o the Com p any’s Shar e register a s a Shareh o lder on or b efore 5.00 p m (WST) o n the Reco r d Date.

Redstone Resources Limited ABN 42 090 1 6 9 154 60 Havelock Str e et, West Perth WA 6005 Tel: 08 9328 2552 Fax: 0 8 9328 2660

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

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ASX: RDS

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To e x ercise you r Existing O p tions and t h ereby part i cipate in th e Entitleme n t Offer in r e spect of y o ur Existing O ptions yo u will need t o deliver to t he register e d office of t he Compa n y the follo w ing:

1. a compl e ted applic a tion form t o exercise options specifying the n u mber of E x isting Options t o be exerci s ed ( Option Exercise Notice );

2 . your Exi s ting Option certificate( s ) covering t hat number of Existing Options; a n d 3 . payment for the ex e rcise price for those E x isting Opti o ns by way of cheque made payable t o the Company.

Eac h Share allo t ted as a result of the e xercise of a n Existing Option will rank equall y with all other issued S hares.

Opti o n Exercise Notices an d cleared f u nds must b e received no later th a n 5.00pm (WST) on F r iday, 7 Se p tember 2018.

If yo u do not wi s h to partici p ate in the E ntitlement I ssue in res p ect of you r Existing O p tions you d o not need to take any action.

If yo u have any queries co n cerning th e Entitleme n t Issue ple a se contact the Company on +61 ( 8) 9328 25 5 2.

Your s sincerely

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Mira n da Conti Company Secre t ary REDSTONE RESOURCES LIMITED

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