REDSTONE RESOURCES LIMITED — Capital/Financing Update 2019

Nov 19, 2019

20 November 2019

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

Electronic Lodgement

DRILLING COMMENCES AT REDSTONE'S WEST MUSGRAVE PROJECT

HIGHLIGHTS

• RC drilling program for approximately 2.000m has commenced at Redstone's 100% owned West Musgrave Project in Western Australia.
• The RC drill program will include drill testing of the 5 best EM targets EM2 to EM6 confirmed by ground EM surveys, some of which are close to discrete magnetic anomalies.
• The program will also include additional RC drilling to further test the Tollu Cu Vein system at depth and provide information on the nature of the structure and its relationship with the surrounding geology.
• Detailed geological mapping and prospectivity assessment will be conducted over additional areas of interest.
• . Outside of the already defined JORC compliant Copper and Cobalt resource at Tollu. the best prospects on the Project may not yet have been identified and tested.

Redstone Resources Limited (ASX: RDS) ("Redstone" or the "Company") is pleased to announce that it has commenced RC drilling at its 100% owned West Musgrave Project (the "Project").

The geological team and drilling contractors have mobilised to site and commenced the planned drilling program of approximately 2,000m of reverse circulation (RC) drilling at various depths.

The RC drill program is aimed at drill testing the five best EM targets identified from the completed ground EM survey, namely EM targets EM2 through to EM6. Targets EM2, EM3 and EM4 occur along strike to the north and south of the Tollu Copper Vein Project (Tollu), while targets EM5 and EM6 are close to discrete magnetic anomalies along a NE trend from Tollu (Figure 1).

The RC drill program will also include some further drilling to test the Tollu copper vein system at depth and to provide information to aid in the understanding of the structural setting hosting the copper mineralisation and its relationship with the surrounding rocks. In particular, this hole is aimed at gathering information in the contact zone between the main fault and the abutting gabbro to the east at depth.

As part of this exploration campaign the geological team will also undertake detailed geological mapping over areas identified as potentially prospective from airborne magnetic geophysical data. These areas will include, but not be limited to, the South Tollu, Northside, New Tollu, Transfer Zone, Opal Flats and North East Structural Zone identified from a recently completed Project prospectivity assessment (ASX announcement 24 October 2019). These additional potentially prospective areas have further enhanced Redstone's confidence that the most prospective areas of the Project have not yet been tested outside of the already defined JORC compliant Copper and Cobalt resource at Tollu.

The Project has the right geological and structural setting for large magmatic Ni-Cu sulphide deposits like that of Nebo-Babel (located approximately 40km to the west of the Project) as well as other deposit types Redstone has under consideration. The Board remains confident in the potential for further mineralisation at the Project as its evaluation of Tollu and the broader West Musgrave Project area continues.

Figure 1 - Prioritised EM Targets EM1 to EM6 and airborne EM anomalies. Ground EM locations on reduced to pole magnetic image on the West Musgrave Project tenements E69/2450 and E69/3456. Ground EM lines are shown in purple. Historical drilling and Tollu Project shown in green.

ENDS

Competent Persons Statement

The information in this document that relates to exploration results was authorised by Dr Greq 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.

ABOUT REDSTONE RESOURCES

Redstone Resources Limited (ASX: RDS) 100% owned Tollu Copper Project ("Tollu"), part of the Company's broader West Musgrave Project (the "Project"), is located in the southeast portion of the prospective West Musgrave region of Western Australia. The Project is located central to the Cassini Resources Nebo Babel prospect to the West and the Metals X Ltd Wingellina Ni-Co project to the East.

In 2017 the Company completed a detailed ground-up review of the project geology incorporating the historic geological, geochemical and geophysical dataset. This review identified the suitability of the electromagnetic (EM) geophysical method for identifying potential targets. The EM surveys (airborne and ground) have delineated a large thick disseminated sulphide rich volcanoclastic (ASX announcement 27 April 2018) and several targets to the north and south of Tollu.

For further information please contact:

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