REDSTONE RESOURCES LIMITED — Interim / Quarterly Report 2011

Oct 31, 2011

QUARTERLY REPORT For the Period ending September 30 2011

31 October 2011

The Board of Redstone Resources Limited ("the Company" or "Redstone") is pleased to present its quarterly report for the period ending 30 September 2011.

Redstone is confident that the Tollu Copper Nickel Project has the potential to be a world class deposit. Intersections of copper sulphide mineralisation of greater than 1% Cu now extend over an area of 1.8km long and up to 1km wide. Redstone expects that both the mineralised area and the volume of hydrothermal mineralisation will increase significantly with further drilling.

HIGHLIGHTS

• A 5,000m RC drilling programme commenced at the Tollu Cu-Ni Project in September 2011.
• The drilling has intersected thick zones of copper sulphide mineralisation at the Eastern Zone.

FUTURE WORK

Redstone is planning the following exploration activity for the coming months with the following programmes to be implemented:

• The completion of the current RC drilling programme at the Tollu Cu-Ni Project.
• Plan and commence further RC drilling at the Tollu Cu-Ni Project during the December Quarter.
• Commencement of diamond drilling program at the Tollu Cu-Ni Project during the December Quarter.
• Commencement of RC drilling at the Blackstone Range project during the December Quarter.

PROJECTS

The company holds interest in 9 exploration licenses in three project areas in the West Musgrave region of Western Australia. mineralisation. The exploration licenses cover in excess of 2,20 on Figures 1 and 2. Six of the exploration licenses held by Redstone comprise the Bagg Farmin/Joint Venture, which is Pty Ltd (HJH), where HJH is e the Blackstone Range Farmin/Joint where Redstone is earning in to 90%. The remaining exp operated by Redstone and comprises the Tollu The projects are prospective for major copper, nickel 2,200km2 . Project locations are shown an exploration joint venture between Redstone and HJH Nominees earning an 80% interest. A further two exploration licenses are part of Farmin/Joint Venture between Redstone and Resource Mining Corporation exploration license is wholly owned and Copper Nickel Project. nickel-copper and PGE Baggaley Hills

Figures 1 & 2 Location of Redstone Resources Projects

Tollu Copper Nickel Project (Redstone 100%) (E69/2450)

The Tollu Project area hosts a giant swarm of hydrothermal copper rich veins in a mineralised system covering an area of at least 6km shears. Copper mineralisation exposed at the surface comprises malachite, The project hosts multiple mineralised target zones (Figure 3). During the quarter a review of the IP survey was completed and a 5,000m RC drill programme commenced. 2 and forming part of a dilation system between two major

Figure 3 Target Zones at the Tollu Copper Nickel Project

RC Drilling Program

The 5,000m RC drill program commenced in early September 2011 and during the Quarter has initially focused on the Eastern Zone. The program was designed to:

• Investigate the extension at depth, to the southeast and northwest of the Central Zone mineralisation;
• Confirm the significance of the discovery of high grade hydrothermal copper sulphide mineralisation (5% Cu) at the Eastern Zone; ension 5% (mafic) at depth which is interpreted to be the
• Identify the presence of gabbro stock (ma magmatic source for the mineralisation at Tollu; and fic)
• Test part of the 1km surface mineralisation which has recently been identified at the Western Zone.

As previously reported on 2 encouraging with thick zones of visible copper sulphide mineralisation being observed from holes TLC045, TLC052 and TLC054. High water flow rates resulted in high copper sulphide loss from drill samples within the minerali the true copper grades intersected. 22 September 2011, Redstone's drilling results to date are very LC052 mineralised zones. This has made it difficult to properly evaluate ed

Diamond Drill Program

As a result of the loss of copper sulphides from drill samples due to the high water flows, a diamond drill programme is being planned to provide accurate samples of the mineralisation intersected at the Eastern Zone. This drill programme is expected to co December Quarter. commence during the mmence eophysics consultant's

Induced Polarisation (IP) Survey

The ground based IP Survey was completed in l report on the results of the survey was received in September 2011. late June 2011. The geophysics consultant

The DDIP surveys at Tollu have shown a good correlation of chargeability anomalism major north-south (N-S) faults and the the chargeability anomalism is likely to be the disseminated pyrite and chalcopyrite mineralisation associated with outcropping hydrothermal quartz veining along these northwest (NW) oriented shear zones. The source of anomalism with the these zones.

Other N-S oriented chargeability trends survey area, which may be reflecting further hydrothermal mineralisation covered by overburden and weathered regolith cover S have been mapped in the northeast ( cover. (NE) part of the mineralisation along structures

Chargeability responses are typically due to disseminated sulp sulphides, and it is likely that the hydrothermal veining system approximately 200m. sulphides, as opposed to , survey is only detecting the top of the system. The depth of investigation of this survey is estimated to be hides, to massive the mineralised

Drill targets generated by the survey will form part of a new RC drill programme planned to commence in the December Quarter.

Exploration Planned at the To he Tollu Cu-Ni Project for the December Quarter uarter

• Complete the third drilling program program consisting of a total of 5,000m RC
• Plan and commence further RC drilling at the Tollu Cu-Ni Project
• Commence a diamond drill programme programme

Blackstone Range Farmin/Joint Venture (Redstone earning 90%: Resource Mining Corporation Ltd (ASX:RMI) 10%) (E69/2108 and E69/2109)

The Blackstone Project is located approximately 25km east of the BHP Babel and Nebo Ni PGE discoveries. The project area is prospective for Cu number of prospects including: Cu-Ni-PGE + Au. The project contains a Ni-Cu-PGE

• Halleys.
• Last Frontier.
• Saturn.

An IP survey was completed across the Halleys Prospect earlier this year. The IP survey was designed to follow up shallow drilling results, soil sampling and a discrete EM anomaly. The preliminary results of the survey are encouraging with the identification of an IP appears to be concordant with a previously identified EM anomaly. Geophysics consultant report on the results of the survey was received after the end of the Quarter and is being assessed. IP anomaly that consultant's

Exploration Planned at Blackstone Range Farmin/ Quarter t Farmin/Joint Venture for the he December

• Assessment of Geophysics consultant consultant's report.
• Plan and commence RC/diamond drill programme.

Baggaley Hills Farmin/Joint Venture (HJH earning 80%) (E69/2053, E69/2054, E69/2339, E69/2340, E69/2249 and E69/2200) ley

The Baggaley Hills project is prospective for both Ni mineralisation. Several areas within the project have been identified as high priority targets based upon geochemical, magnetic and gravity signatures and IP su Ni-Cu-PGE and Iron Oxide Copper Gold (IOCG) surveys.

At the end of the Quarter Redstone Resources ha 6,800m RC drill programme completed earlier this year. The drill programme was designed to test geophysical anomalies (magnetic, gravity and IP). Assay resu are still pending. uarter had not received any data in relation to the results from the drilling program PGE lts Redstone's website.

CORPORATE

Redstone Resources Limited presented at Paydirt's Australia Nickel Conference held in Perth 29-30th September. The relevant presentation is available on he Redstone

About Redstone

Investor Enquiries:

	ASX: RDS
About Redstone
	Redstone Resources Ltd is a Perth Based exploration company with a portfolio of highlyprospective mineral exploration properties in the West Musgrave region of WA and Brazil.
	Redstone is an explorer focused on nickel and copper in Western Australia. Furtherinformation on Redstone can be found on the company's website atwww.redstone.com.auwww.redstone.com.au.
Investor Enquiries:
Telephone:	+61 8 9328 2552
Facsimile:	+61 8 9328 2660
Email:	contact@redstone.com.au
Website:	www.redstone.com.au
Address:	PO Box 8646, Perth Business Centre WA 6849
ATTRIBUTION
time	The information in this report relates to exploration results is babased on information compiled by Dr Joao OrestesSantos, a part-time employee of Redstone Resources Limited. Dr Santos is a member of the Australian Institute of

ATTRIBUTION

The information in this report relates to exploration results is ba Santos, a part-time employee of Redstone Resources Limited. Dr Santos is a member of the Australian Institute of Geoscientists and has sufficient experience relevant to the style of mineralisation under consid activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves'. Dr Santos consents to the inclusion in the report of the matter based on his information in the form and context in which it appears. based on information compiled by Dr Joao Orestes sed consideration and to the