REDSTONE RESOURCES LIMITED — Director's Dealing 2012

Jul 4, 2012

5 July 2012

Shreeshant Prabhakaran Adviser, Listings (Perth) ASX Compliance Pty Ltd Level 8 Exchange Plaza 2 The Esplanade PERTH WA 6000

Dear Shreeshant

RE: DIRECTOR'S INTEREST NOTICE - APPENDIX 3Y

We acknowledge receipt of your letter dated 4 July 2012 regarding the Change of Director's Interest Notice (Appendix 3Y) lodged by the Company on 3 July 2012 and released to the market pre-open on 4 July 2012.

We acknowledge that the lodgement of the Appendix 3Y occurred outside of the prescribed 5 business day notification period, and we respond to your letter as follows:

• 1. The Appendix 3Y was lodged late due to an administrative oversight combined with the Company Secretary being ill on Monday 2 July, being the date of receipt of notification from the relevant Director. The Appendix 3Y was lodged after business hours the next day.
• 1. The Company has entered into Deeds of Notifiable Interests with all Directors, which requires them to notify details of any changes in interests in Company securities and contracts within 2 business days after the change has occurred. Furthermore, all Directors are aware that the Company has a Securities Trading Policy whereby following completion of proposed dealing in Company securities the Director must immediately provide confirmation to the Company Secretary that the dealing has occurred including details of the deal. Directors of the Company must notify the Company Secretary of any dealings in Redstone securities within 3 business days of the date of any such dealings in order to comply with the requirements of the Corporations Act and the ASX Listing Rules.

ASX: RDS

1. The requirement to notify the Company Secretary of any dealings in the Company's securities within 2 business days will be reinforced to allow for sufficient time for lodgement and to ensure the oversight does not recur. However, apart from this administrative oversight, the Company considers the current arrangements to be adequate to ensure compliance with listing rule 3.19B.

Yours sincerely

Miranda Conti Company Secretary

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ASX Compliance Ptv Limited ABN 26 087 780 489 Level 8 Exchange Plaza 2 The Esplanade PERTH WA 6000

GPO Box D187 PERTH WA 6840

Telephone 61 8 9224 0000 Facsimile 61 8 9221 2020 www.asx.com.au

4 July 2012

Ms Miranda Conti Company Secretary Redstone Resources Limited

By email: mirandac@redstone.com.au

Dear Miranda

Redstone Resources Limited (the "Company") - Appendix 3Y

We refer to the following:

• $\mathbf{1}$ . The Appendix 3Y Change of Director's Interest Notice for Mr David Phillip John Le Roy regarding a change in his interests which occurred on 25 June 2012 and 26 June 2012 (the "Le Roy 3Y");
• $2.$ Listing rule 3.19A which requires an entity to tell ASX the following:
• 3.19A.1 The notifiable interests of a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) at the following times.
  • On the date that the entity is admitted to the official list. $\bullet$
  • On the date that a director is appointed.

The entity must complete Appendix 3X and give it to ASX no more than 5 business days after the entity's admission or a director's appointment.

• 3.19A.2 A change to a notifiable interest of a director of the entity (or in the case of a trust, a director of the responsible entity of the trust). The entity must complete Appendix 3Y and give it to ASX no more than 5 business days after the change occurs.
• $3.19A.3$ The notifiable interests of a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) at the date that the director ceases to be a director. The entity must complete Appendix 3Z and give it to ASX no more than 5 business days after the director ceases to be a director.
• $3.$ Listing rule 3.19B which states as follows.

An entity must make such arrangements as are necessary with a director of the entity (or in the case of a trust, a director of the responsible entity of the trust) to ensure that the director discloses to the entity all the information required by the entity to give ASX completed Appendices 3X, 3Y and 3Z

ć.

within the time period allowed by listing rule 3.19.A. The entity must enforce the arrangements with the director.

1. The Companies Update dated 27 June 2008, reminding listed entities of their obligation to notify ASX within 5 business days of the notifiable interests in securities held by each director and outlining the action that ASX would take in relation to breaches of listings rules 3.19A and 3.19B.

The Le Roy 3Y indicates that a change in Mr Le Roy's notifiable interests occurred on 25 June 2012 and 26 June 2012 so the Appendix 3Y should have been lodged with ASX by 2 July 2012. As the Le Roy 3Y was lodged on 4 July 2012, it appears that the Company may be in breach of listing rules 3.19A and/or 3.19B.

Please note that ASX is required to record details of breaches of the listing rules by listed companies for its reporting requirements.

ASX reminds the Company of its contract with ASX to comply with the listing rules. In the circumstances ASX considers that it is appropriate that the Company make necessary arrangements to ensure there is not a reoccurrence of a breach of the listing rules.

Having regard to listing rules 3.19A and 3.19B and Guidance Note 22: "Director Disclosure of Interests and Transactions in Securities - Obligations of Listed Entities", we ask that you answer each of the following questions:

• 1. Please explain why the Le Roy 3Y was lodged late.
• 1. What arrangements does the Company have in place with its directors to ensure that it is able to meet its disclosure obligations under listing rule 3.19A?
• $\overline{3}$ If the current arrangements are inadequate or not being enforced, what additional steps does the Company intend to take to ensure compliance with listing rule 3.19B?

Your response should be sent to me by facsimile on facsimile number (08) 9221 2020 or by email to shree.prabhakaran@asx.com.au. It should not be sent to ASX Market Announcements.

A response is requested as soon as possible and, in any event, not later than 5:00pm (WST) on Friday 6 July 2012.

Under listing rule 18.7A, a copy of this query and your response will be released to the market, so your response should be in a form suitable for release and should separately address each of the questions asked. If you have any queries or concerns, please contact me immediately.

Yours sincerely

[Sent electronically without signature]

Shreeshant Prabhakaran Adviser, Listings (Perth)