REDSTONE RESOURCES LIMITED — Capital/Financing Update 2021

Oct 19, 2021

ASX ANNOUNCEMENT 20 October 2021

REDSTONE COMMENCES COPPER DRILLING AT TOLLU, WEST MUSGRAVE

HIGHLIGHTS

• Reverse circulation (RC) drilling as part of the 2021 Exploration Programme (the Programme) has commenced at Redstone's 100% owned West Musgrave Copper Project (the Project).
• This initial phase of the Programme will include approximately 3,000m of shallow RC drilling to a maximum depth of 250m at the Tollu copper veins and surrounding prospective Target Areas (identified from the 2019 exploration programme) that are also targeting copper mineralisation.
• Drilling will also include to twin a 1957 historical diamond drill hole (A‐101) completed by Southwestern Mining (SWM – formerly an INCO subsidiary) to test for a repeat of the results of 0.16% Ni over 1.6m from 99m downhole (Laine, 1957)1 .
• Drill hole A‐101 was drilled into a major N‐S trending quartz vein associated with but not hosting the Tollu copper mineralisation – A‐101 was never followed up by SWM, however Redstone believe a nickel grade of 0.16% is significant in the context of nickel sulphide prospectivity proximal to the Tollu copper mineralisation.
• The Tollu copper deposit is situated only 50km to the east of the world class nickel, copper and PGE deposit of Nebo Babel currently undergoing feasibility assessment by Oz Minerals Limited, and Redstone consider that similar geology could be present within its West Musgrave Project (nickel, copper, PGE mineralisation or even more massive sulphide variants of similar geological theme).
• Additional RC drilling to depth is planned and anticipated to be undertaken at a later stage to further test the anomalous copper at the EM5 Target, combined with two other EM5 'look‐a‐like' magnetic anomalies, subject to Redstone securing a suitable RC drill rig that can accommodate deeper drilling and the necessary personnel.
• Further evaluation of the broader highly prospective West Musgrave Project has the potential to add to its current JORC compliant Tollu copper resource (3.8 million tonnes at 1% Cu, containing 38,000 tonnes of copper2 ), both at Tollu and areas outside of Tollu.
• Spot copper prices currently at record highs, surging through more than US$11,000 per tonne due to concerns about supply caused by significant decline in inventories.

Redstone Resources Limited (ASX Code: RDS) ('Redstone' or the 'Company') is pleased to announce that it has commenced its 2021 Exploration Programme (the Programme) on the Company's 100% owned West Musgrave Project (the 'Project') with an initial 3,000m of shallow reverse circulation (RC) drilling at the Tollu copper veins and surrounding prospective Target Areas.

TOLLU COPPER VEIN DEPOSIT

The 2019 RC drilling programme continued to show that the Tollu copper vein system is capable of producing thick high grade lenses of copper mineralisation that can be continuous over the short to medium scale, both shallow and at depth (ASX announcement 25 June 2020). Three (3) RC drill holes were drilled at Tollu in 2019, two (2) of these (TLC172 and TLC173) were aimed at testing continuity of mineralisation lenses at the Forio Prospect and the other (TLC166), was aimed at testing for deeper mineralisation below historical drilling at the intersection of the Chatsworth and Eastern Reef Prospects.

The significant results from this drilling (ASX announcement 25 June 2020) include:

• 26m @ 1.03% Cu from 277m downhole (TLC166), including**:** o 2m @ 2.9 % Cu from 281m downhole.
• 13m @ 3.04% Cu from 56m downhole (TLC172), including**:**
  • o 8m @ 4.4% from 57m downhole.
• 11m @ 1.4% Cu from 4m downhole (TLC173), including:
  • o 4m @ 2.7% from 7m downhole.

Additional shallow RC drilling at Tollu in the 2021 Programme will focus on further testing of the Forio vein system and to test for a northern extension of the Chatsworth prospect at depth.

COPPER TARGETS IN THE TOLLU SURROUNDS

A project scale geological mapping and rock chip sampling programme undertaken in 2019 covered an area of approximately 135 square kilometres. The mapping focused on a region that encompassed the major Tollu Fault from the southern to northern property boundaries, west to cover the EM1 target area and northeast through EM5 to the EM6 target areas (Figure 1). The returned assay results from the rock chip samples along with the observations made in the field highlighted at least four (4) areas of prospectivity for future copper exploration on the Project as shown in Figure 1. The four (4) areas of anomalous copper (ASX Announcement 15 July 2020) include:

• 1. A large 15m long quartz outcrop approximately 2.3km northeast of Tollu, with samples returning up to 0.71% copper.
• 1. An area of exposed opaline quartz lag with up to 0.12% copper and which stretches E‐W for approximately 1km some 3.6km north of Tollu and coincident with the Tollu Fault.
• 1. Anomalous copper in samples of gabbro outcropping near quartz veins some 2.5km SSW of Tollu where a large gabbroic body has intruded into and incorporated parts of the overlying rift related volcanic rocks.
• 1. An area with a large NW trending quartz veins in an exposed hill within the EM6 target area that contained visible secondary copper mineralisation (malachite), some 10km N‐E of Tollu.

The 2021 drilling campaign will priority drill the second of these targets. The opaline quartz is suggestive of a remobilisation of the quartz vein and the 1km length is indicative of a significant structural event/s. Drilling will focus on the western end of the feature where anomalous copper mineralisation coincides with a potential extension of the Tollu Fault, host to the Tollu Copper Deposit further south. The other anomalies may also be drilled if time permits after all other prioritised targets have been tested.

HIDING MAGGIE MAGNETIC TARGET

The Hiding Maggie target is an E‐W oriented untested magnetic rock unit with a number of elevated magnetic centres, seemingly a late magnetic intrusive, that coincides with a district scale E‐W linear feature in the magnetics. The major E‐W lineament is coincident with the orientation of the Tollu sub‐basin and the interpreted rifting responsible for the Tollu volcanic package. A strong near surface airborne electromagnetic (EM) anomaly that also trends across the E‐W lineament hides any potential EM anomaly that may exist at depth. Drilling will aim to identify and characterise the geology and test the magnetic intrusive and its contacts with the surrounding rocks for copper or nickel mineralisation potential.

HISTORICAL SWM HOLE

This initial phase of the Programme is also planned to include RC drilling for nickel prospectivity by drill testing a 1957 Southwestern Mining Ltd (SWM) diamond drillhole, A‐101, which yielded a maximum value of 0.16% Ni over 1.6m from 99m downhole (Laine, 1957)1 . The historical drill hole targeted a N‐S oriented fault that is part of the fault system responsible for the Tollu copper mineralisation but situated to the west of the main body of mineralisation so far delineated by Redstone drilling.

Redstone plan to twin the SWM diamond hole A‐101 to test if the intersection of anomalous nickel values of up to 0.16% NI can be repeated and if so, ascertain the nature of the anomalous nickel, if it is associated with nickel sulphide mineralisation and where it may have originated from.

Figure 1 ‐ Location of the Tollu Cu Project, the 1957 SWM diamond drill hole A‐101 targeting Ni, relative to Tollu and other Target Areas of interest for the Programme.

Given the world class magmatic nickel, copper, PGE Nebo Babel Deposit, discovered in 2000 by Western Mining Corporation and now owned and undergoing feasibility assessment by Oz Minerals Limited, lies only 50km to the west of Tollu, Redstone are of the view it is prudent to test the historical SWM nickel intersection on Tollu's western margin. If the intersection can be confirmed it may indicate that the Nebo Babel like nickel, copper, PGE mineralisation or even more massive sulphide variants of similar geological theme, could also be present near or at depth to Tollu and in the greater Project area.

TARGET EM5 – 7.2KM NORTH EAST OF TOLLU AND SIMILAR MAGNETIC ANOMALIES

The next phase of the 2021 Programme will include deeper RC drilling to further test the anomalous copper at the EM5 Target, combined with two other EM5 'look‐a‐like' magnetic anomalies.

Target EM5, is an EM target coincident with a large circular magnetic anomaly located 7.2km north east of Tollu. The 2019 drilling at the EM5 Target intersected a large gabbroic intrusion over 400m in diameter bearing a thick sequence of anomalous disseminated copper sulphides, continuous for 95m (up to 0.06% copper) from 66m downhole (TLC170) (Figure 1) (ASX announcement 6 July 2020).

The later programme will also test similar magnetic features located within the Project including a cigar shaped anomaly only 800m S‐E of the EM5 Target and which is probably related to the same intrusion at depth.

The deeper RC drilling programme is planned and anticipated to be undertaken at a later stage this calendar year, subject to securing the geological personnel and a suitable RC drill rig that can accommodate deep drilling.

Further evaluation of the Tollu Copper Project, surrounding Target Areas and the broader West Musgrave Project, has the potential to add to the Company's Tollu copper resource of 3.8 million tonnes at 1% Cu, containing 38,000 tonnes of copper (ASX announcement of 15 June 2016).

This Announcement has been approved for release by the Board of Redstone Resources Limited.

For further information please contact:

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

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

• 1. Laine HA (1957) Southwestern Mining Limited, Annual Report 1957, unpublished.
• 1. Initial JORC 2012 resource of 3.8 million tonnes at 1% Cu, containing 38,000 tonnes of copper at the Tollu Copper Vein Project, West Musgrave (ASX Announcement 15 July 2016).

REDSTONE RESOURCES

Redstone Resources Limited (ASX: RDS) is a base and precious metals developer exploring the 100% owned prospective West Musgrave Project, which includes the Tollu Copper deposit, in Western Australia. The West Musgrave Project is located between Cassini Resources' Nebo Babel prospect and Metals‐X Wingellina Ni‐Co project. Redstone is also actively evaluating the HanTails Gold Project at Kalgoorlie, Western Australia for potential development in future.

Competent Persons Statement

The information in this document that relates to Redstone exploration results was authorised by Dr Greg Shirtliff, who is employed as a Consultant to the company through Zephyr Professional Pty Ltd. Dr Shirtliff is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience of relevance to the tasks with which he was 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. Dr Shirtliff consents to the inclusion in the report of matters based on information in the form and context in which it appears.

The information in this report that relates to Mineral Resource for Tollu, West Musgrave Project was authorised by Mr Darryl Mapleson, a Principal Geologist and full time employee of BM Geological Services, who were 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.

ASX Listing Rule Information

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements, and in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the original market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the competent persons findings have not been materially modified from the original announcement referred to in the release.

Forward‐Looking Statements

This document may include forward‐looking statements. Forward‐looking statements include, but are not limited to statements concerning Redstone Resources Limited's (Redstone) planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward‐looking statements. Although Redstone believes that its expectations reflected in these forward‐looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward‐looking statements.