REDSTONE RESOURCES LIMITED — Capital/Financing Update 2020

Aug 9, 2020

Update Summary

Entity name

REDSTONE RESOURCES LIMITED

Announcement Type

Update to previous announcement

Date of this announcement

Monday August 10, 2020

Reason for update to a previous announcement

Shares to be issued pursuant to ASX listing rule 7.1 capacity rather than placement capacity approved under ASX listing rule 7.1A.

Refer to next page for full details of the announcement

Part 1 - Entity and announcement details

1.1 Name of +Entity

REDSTONE RESOURCES LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ABN

Registration Number

42090169154

1.3 ASX issuer code

RDS

1.4 The announcement is

Update/amendment to previous announcement

1.4a Reason for update to a previous announcement

Shares to be issued pursuant to ASX listing rule 7.1 capacity rather than placement capacity approved under ASX listing rule 7.1A.

1.4b Date of previous announcement(s) to this update

Thursday July 30, 2020

1.5 Date of this announcement

Monday August 10, 2020

1.6 The Proposed issue is:

A placement or other type of issue

Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue?

• +Security holder approval
• Court approval
• Lodgement of court order with +ASIC
• ACCC approval
• FIRB approval
• Another approval/condition external to the entity

Yes

7A.1a Conditions

Approval/Condition	Date for determination	Is the date estimated or	** Approval
+Security holder approval	Friday September 25, 2020	actual?	received/condition met?
		Estimated

Comments

Approval for 6,785,715 Shares to parties referred to in Listing Rule 10.11

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ASX +security code and description

RDS : ORDINARY FULLY PAID

Number of +securities proposed to be issued

53,571,429

Reason for the update of 'Maximum Number of +securities proposed to be issued'

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration? Yes

In what currency is the cash consideration being paid?

AUD - Australian Dollar

What is the issue price per +security? AUD 0.01400

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Part 7C - Timetable

7C.1 Proposed +issue date

Monday August 10, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1?

46,785,714 Fully paid ordinary shares

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? No

7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? Yes

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? Yes

7E.1a Who is the lead manager/broker?

Barclay Wells Ltd

7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

6% of Placement funds secured

7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

N/A

Part 7F - Further Information

7F.01 The purpose(s) for which the entity is issuing the securities

For the evaluation and development of the recently acquired HanTails Gold Project and continued exploration and evaluation of the Company's West Musgrave Project

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue