REDSTONE RESOURCES LIMITED — Capital/Financing Update 2019

Sep 23, 2019

24 September 2019

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

Electronic Lodgement

RC DRILL CAMPAIGN PLANNING AND PREPARATIONS COMMENCE TARGETS CONTINUE TO BE ASSESSED

HIGHLIGHTS

• RC drill campaign planning and preparation commences for next quarter at Redstone's 100% owned West Musgrave Project in Western Australia.
• Results of ground electromagnetic (EM) surveys continue to be evaluated.
• Ground EM results identified 5 prioritised EM targets for near term drilling.
• Potential prospective areas other than EM targets also continue to be evaluated for future exploration and testing.
• . Outside of the already defined JORC compliant Copper and Cobalt resource at Tollu. the best prospects on the Project may not yet have been drilled.

Redstone Resources Limited (ASX: RDS) ("Redstone" or the "Company") is pleased to announce that further geological and geophysical analysis is continuing following its ground electromagnetic (EM) survey over twelve priority airborne EM (VTEMmax) targets at its 100% owned West Musgrave Project.

The ground EM survey enabled Redstone to penetrate deeper around all 12 EM anomalies and better delineate targets that warrant further exploration and drilling. The five best targets from the ground EM survey, EM2 through to EM6 (previously 3G, 3E, 3I, 2C and 3J respectively), have been identified and included in a planned RC drill campaign expected to take place next quarter. 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 (Figure 1).

Importantly, the results of further geological and geophysical data evaluation have given Redstone additional areas to consider as potentially prospective for future exploration and testing.

These potentially prospective areas are being evaluated by the Company's technical consultants, and 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.

Redstone will provide an update on its work as the planned drilling campaign nears commencement and as preparations for the campaign advance.

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 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.

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