REDSTONE RESOURCES LIMITED — Interim / Quarterly Report 2011

Jul 31, 2011

QUARTERLY REPORT

For the period ending June 30 2011

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

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

HIGHLIGHTS:

• Appointment of Mr Anthony (Tony) Howland-Rose to the position of Strategic Advisor.
• Investor roadshow presentations underway.
• Completion of an IP (Induced Polarisation) survey at the Tollu Copper Nickel Project.
• Completion of a 6,800m RC drill program on the Baggaley Hills Farmin/Joint Venture.
• Completion of an IP survey at the Blackstone Range Farmin/Joint Venture.

FUTURE WORK:

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

• A 5,000m RC drilling program to commence at the Tollu Cu-Ni Project.
• Assessment of the results for the IP survey at the Tollu Cu-Ni Project.
• Assessment of the results for the IP survey at Blackstone Range Farmin/Joint Venture and planning a drill program to test identified anomalies.
• Assessment of assay results from the recently completed drilling program at the Baggaley Hills Farmin/Joint Venture.

Projects

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

Figure 1 Location of 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 6km2 and forming part of a dilation system between two major shears. Copper mineralisation exposed at the surface comprises malachite, tenorite and azurite. The hydrothermal copper mineralisation is interpreted to be part of a giant magmatic Ni-Cu system.

During the Quarter an IP survey (dipole-dipole) was completed over part of the Tollu Project area. The survey focussed mainly on an extensive area which is soil covered to the east of the exposed Tollu mineralisation. Previous limited drilling in this area has intersected copper sulphide mineralisation and the survey was designed to assist in determining the significance of these intersections. The IP method of geophysical survey is particularly useful in the detection of disseminated sulphide ore bodies. A full report of the results is expected to be received shortly to assist in the assessment of drill hole placement.

Previous drilling results from the first two drilling campaigns at Tollu include the following results:

• TLC012: 14m @3.5% Cu from 126m and 3m @ 0.14% Co from 130m inc. 4m @ 6.2% Cu
• TLC015: 18m @ 2.7% Cu from 180m including 11m @ 3.7% Cu
• TLC018: 17m @ 2.2% Cu from 144m
• TLC020: 12 m @ 2.7% Cu from 187m including 7m @ 3.8% CU from 191m
• TLC032: 8m @ 3.4% Cu from 57m inc. 4m @ 5.3% from 60m and 7m @ 2.4% from 101m
• TLC031: 9m @ 2.8% Cu from 127m
• TLC034: 13m @1.5% Cu from 137m

Exploration Planned at the Tollu Cu-Ni Project for the Next Quarter

A 5,000m RC drilling program is planned to commence during the coming quarter. This is the third RC drilling program at the Tollu project. The program is designed to:

• Extend the depth and strike length of the hydrothermal copper sulphide mineralisation at the Central Zone.
• Confirm the significance of the discovery of hydrothermal copper mineralisation at the Eastern Zone (see ASX announcement 29 March 2011).

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

E69/2108 and E69/2109

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

• Halleys.
• Halleys NW-Last Frontier.
• Saturn.

During the Quarter, an IP survey (dipole-dipole) was completed across the Halleys Prospect. The IP survey was designed to follow up thick intercepts of disseminated Cu-PGE-Ni sulphide mineralisation identified during two previous drilling programs. The preliminary results of the survey are encouraging with the identification of an IP anomaly that appears to be concordant with a previously identified EM anomaly. The final results are expected shortly.

Exploration Planned at Blackstone Range Farmin/Joint Venture for the Next Quarter

• Review of IP results.
• Planning of RC drilling program at Halleys and Saturn prospects.

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

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

During the quarter a 6,800m RC drill program was completed. The drill program was designed to test geophysical anomalies (magnetic, gravity and IP). Assay results from the drilling program are still pending.

Corporate

New Appointment

During the Quarter the Redstone board recruited Mr Anthony (Tony) Howland-Rose to fill the role of Strategic Advisor.

Tony has 48 years experience in exploration, discovery, development and corporate activity worldwide in the junior exploration sector. He holds a Bachelor of Science Honours degree in Geology, Master of Applied Geophysics and a diploma of Imperial College in Geophysics.

Tony has been involved in over a dozen mineral discoveries, the most recent of which was the Avebury Nickel Project (Tasmania) for which he was co-recipient of the Association of Mining and Exploration Companies (AMEC) Prospector of the Year Award in 2007. He was a Director and Chairman of Allegiance Mining NL from 1996 to 2008 during which time he presided over the discovery, drill out, financing, and building of the $180 million Avebury Nickel Mine and processing facility. Allegiance Mining NL was acquired in a hostile takeover by Oz Minerals (then Zinifex Limited) in 2008 for approximately $860 million.

Tony's extensive experience in project strategy, development, financing and in securing strategic funding will be invaluable to Redstone at this early stage of its discovery.

Investor Roadshow Presentations

Redstone undertook presentations to various potential investors and broking houses during June and July. On the back of strong interest, follow up meetings have been requested by some of these investors and houses which will take place very shortly.

About Redstone

Redstone Resources Ltd is a Perth based exploration company with a portfolio of highly prospective mineral exploration properties in the West Musgrave region of WA.

Redstone is a diversified explorer focused on nickel and cooper in Western Australia. Further information on Redstone can be found on the company's website at www.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

The information in this report relates to exploration results is based on information compiled by Dr Joao Orestes Santos, a member of the Australian Instituted of Geoscientists. Dr Santos has sufficient experience relevant to the style of mineralisation under consideration and to the 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.