REDSTONE RESOURCES LIMITED — Interim / Quarterly Report 2011

May 1, 2011

Appendix 5B

Rule 5.3

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

Redstone Resources Limited

42 090 169 154 31 March 2011

ABN Quarter ended ("current quarter")

Consolidated statement of cash flows

	Cash flows related to operating activities	Current quarter$A'000	Year to date(9 months) $A'000
1.1	Receipts from product sales and related debtors	-	-
1.2	Payments for(a) exploration & evaluation(b) development	(520)-	(1,301)-
	(c) production	-	-
	(d) administration	(179)	(627)
1.3	Dividends received	-	-
1.4	Interest and other items of a similar naturereceived	52	115
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Other (provide details if material)	-	-
	Net Operating Cash Flows	(647)	(1,813)
	Cash flows related to investing activities
1.8	Payment for purchases of:(a) prospects	-	(13)
	(b) equity investments	-	-
1.9	(c) other fixed assetsProceeds from sale of:(a) prospects	(1)250	(54)560
	(b) equity investments	-	-
	(c) other fixed assets	-	-
1.10	Loans to other entities	-	-
1.11	Loans repaid by other entities	-	-
1.12	Other (provide details if material)	-	-
	Net investing cash flows	249	493
1.13	Total operating and investing cash flows
	(carried forward)	(398)	(1,320)

+ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows
	(brought forward)	(398)	(1,320)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	912	5,349
1.15	Proceeds from sale of forfeited shares	-	-
1.16	Proceeds from borrowings	-	-
1.17	Repayment of borrowings	-	-
1.18	Dividends paid	-	-
1.19	Other – payment of share issue costs	(11)	(167)
	Net financing cash flows	901	5,182
	Net increase (decrease) in cash held	503	3,862
1.20	Cash at beginning of quarter/year to date	3,761	402
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	4,264	4,264

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	26
1.24	Aggregate amount of loans to the parties included in item 1.10	-

1.25 Explanation necessary for an understanding of the transactions

Directors Fees

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Nil

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Nil

+ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available	Amount used
		$A'000	$A'000
3.1	Loan facilities	-	-
3.2	Credit standby arrangements	-	-

Estimated cash outflows for next quarter

		$A'000
4.1	Exploration and evaluation	500
4.2	Development	-
4.3	Production	-
4.4	Administration	200
	Total	700

Reconciliation of cash

Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.		Current quarter$A'000	Previous quarter$A'000
5.1	Cash on hand and at bank	98	63
5.2	Deposits at call	4,166	3,698
5.3	Bank overdraft	-	-
5.4	Other (provide details)	-	-
	Total: cash at end of quarter (item 1.22)	4,264	3,761

Changes in interests in mining tenements

		Tenementreference		Nature of interest(note (2))	Interest atbeginning	Interest atend of
6.1	Interests in miningtenements relinquished,reduced or lapsed		N/A		of quarter	quarter
6.2	Interests in miningtenements acquired orincreased		N/A

+ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price persecurity (see note3) (cents)	Amount paid up persecurity (see note 3)(cents)
7.1	Preference
	+securities
	(description)
7.2	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns
	of capital, buy
	backs,
	redemptions
7.3	+Ordinary
	securities	129,969,390	129,969,390		Fully paid
7.4	Changes during
	quarter
	(a) Increases
	through issues	3,913,110	3,913,110		Fully paid
	(b) Decreases
	through returns
	of capital, buy
	backs
7.5	+Convertible
	debt securities
	(description)
7.6	Changes duringquarter
	(a) Increases
	through issues
	(b) Decreases
	through
	securities
	matured,
	converted
7.7	Options	Unquoted Options		Exercise price	Expiry date
	(description and
	conversion	400,000		150 cents	29/06/12
	factor)	1,000,000500,000		95 cents120 cents	28/11/1228/11/12
		300,000		75 cents	20/02/13
		6,716,668		25 cents	30/11/12
		1,500,000		25 cents	30/11/14
		500,000		30 cents	30/11/14
		500,000		35 cents	30/11/14
		3,750,000		50 cents	19/10/13
		650,000		50 cents	04/11/13
		500,000		50 cents	01/12/13
7.8	Issued duringquarter	1,100,000		50 cents	24/02/14

+ See chapter 19 for defined terms.

7.9	Exercised	500,000	25 cents	17/06/11
	during quarter	1,186,110	25 cents	30/11/12
7.10	Expired during	100,000	75 cents	20/02/13*
	quarter
7.11	Debentures
	(totals only)
7.12	Unsecured
	notes (totals
	only)

*employee options lapsed upon termination of employment

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2 This statement does give a true and fair view of the matters disclosed.

(Company secretary)

Sign here: ......................................................... Date: 29 April 2011..................

Miranda Conti

Print name: .........................................................

Notes

• 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• 2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities*.*
• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == ==

+ See chapter 19 for defined terms.