REDSTONE RESOURCES LIMITED — Capital/Financing Update 2021

Feb 28, 2021

Proposed issue of securities

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Announcement Summary

Entity name

REDSTONE RESOURCES LIMITED

Announcement Type

New announcement

Date of this announcement

Saturday February 27, 2021

The Proposed issue is:

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A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

Maximum Number of ASX +security code +Security description +securities to be issued RDS ORDINARY FULLY PAID 216,666,667

Proposed +issue date Friday February 26, 2021

Refer to next page for full details of the announcement

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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

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New announcement

1.5 Date of this announcement

Saturday February 27, 2021

1.6 The Proposed issue is:

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A placement or other type of issue

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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 actual? received/condition met? +Security holder approval Friday April 30, 2021 Estimated

Comments

Shareholder approval required for up to 27,083,333 Placement Shares for 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

216,666,667

Offer price details

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

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In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD 0.01200

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

Friday February 26, 2021

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?

16,891,760

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)? Yes

7D.1c ( i ) How many +securities are proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A?

52,691,573

7D.1c ( ii ) Please explain why the entity has chosen to do a placement rather than a +pro rata issue or an offer under a +security purchase plan in which existing ordinary +security holders would have been eligible to participate

Timing of receipt of funds

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

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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? 180 Markets Pty 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? Yes 7E.2a Who are the underwriter(s)? 180 Markets Pty Ltd 7E.2b What is the extent of the underwriting (ie the amount or proportion of the proposed issue that is underwritten)? Underwriting for up to $2,275,000. 7E.2c What fee, commission or other consideration is payable to them for acting as underwriter(s)? No other fees 7E.2d Please provide a summary of the significant events that could lead to the underwriting being terminated. None 7E.3 Is a party referred to in listing rule 10.11 underwriting or sub-underwriting the proposed issue? 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 continued evaluation and exploration 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 N/A

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