REDSTONE RESOURCES LIMITED — Interim / Quarterly Report 2011

May 1, 2011

29 April 2011

QUARTERLY REPORT FOR THE PERIOD ENDING 31 MARCH 2011

HIGHLIGHTS

TOLLU COPPER PROJECT (Western Australia)

• Further significant copper sulphide mineralisation over a 210m strike at the Central Zone.

• RC drill intercepts form Central Zone include:

  • o TLC 020: 12m @ 2.7% Cu from 187m including 7m @ 3.8% from 191m.
  • o TLC 032: 8m @ 3.4% Cu from 57m including 4m @ 5.3% from 60m and 7m @ 2.5% Cu from 101m.
  • o TLC 031: 9m @ 2.8% Cu from 127m.
  • o TLC 034: 13m @ 1.5% Cu from 137m.

• Copper sulphide mineralisation at the Central Zone has been extended to over 200m strike length and to a depth of 253m and remains open along strike to the southeast and open at depth, highlighting the potential to increase the size of the mineralised body.

• Indication of second zone of copper sulphide mineralisation (Eastern Zone) 400m southeast from the Central Zone mineralisation. TLC 42 has returned 3m @ 5.0% from 248m (mineralisation open at bottom of hole).

• TLC 42 is the first hole to test the major Tollu Shear at depth.

• Second copper sulphide zone (Eastern Zone) is approximately 500m southeast from Central Zone discovery hole TLC 12.

• TLC 42 copper sulphide intersection is the first to contain nickel and cobalt sulphides. This provides further evidence of magmatic Cu-Ni-(Co) style mineralisation being the source of the copper sulphide mineralisation which has been delineated to date.

• Copper sulphide mineralisation has now been intersected in an area of 1.8km x 1km at the Tollu project.

• RC and diamond drilling scheduled to commence in the next quarter to extend the Central Zone and the Eastern Zone mineralisations. Other copper sulphide mineralisation will be tested to the northwest and west of the Central Zone.

TOLLU PROJECT (Redstone 100%)

During the Quarter, Redstone reported further significant assay results from reverse circulation (RC) drilling, completed late in the previous quarter at its 100% owned Tollu copper project in Western Australia.

The Tollu project comprises a 6km2 swarm of hydrothermal copper-rich veins. High grade copper sulphide mineralisation was discovered in April 2010 following RC drilling to test at depth, part of the Central Zone of the vein swarm. Three holes intercepted high-grade massive copper sulphide mineralisation (see ASX releases of 21 June 2010 and 28 June 2010).

A new programme of RC drilling commenced at Tollu in November 2010. The programme was focused on:

• increasing the depth and strike length of the copper sulphide mineralisation in the Central Zone.
• testing geophysical targets (chargeable anomalies) identified from a ground electromagnetic (EM) survey and induced polarisation (IP) (Dipole-Dipole) survey completed in 2010.
• testing at depth a large low grade copper oxide halo with coincident EM and IP anomalies adjacent to the major North-South Tollu shear. The oxide mineralisation was previously identified by a shallow RAB and RC drilling programme conducted in 2008.

Drilling Results – Central Zone

Assay results from the Central Zone are summarised below:

TLC 020: 12m @ 2.7% Cu from 187m including 7m @ 3.8% from 191m TLC 021: 4m @ 2.5% Cu from 249m TLC 023: 10m @ 1.6% Cu from 210m TLC 024: 4m @ 2.7% Cu from 194m TLC 030: 5m @ 1.9% Cu from 89m TLC 031: 9m @ 2.8% Cu from 127m TLC 032: 8m @ 3.4% Cu from 57m and 7m @ 2.4% Cu from 101m

TLC 033: 6m @ 2.0% Cu from 101m TLC 034: 13m @ 1.5% Cu from 137m TLC 038: 5m @ 2.6% Cu from 71m

The outcomes from this drilling are:

• The Cu-only mineralisation is interpreted as a hydrothermal mineralisation occurring almost certainly during the Petermann Orogeny (±600MA).
• The mineralisation has been extended to a depth of 253m (downhole) and remains open at depth.
• The strike length of the copper sulphide mineralisation has been extended to 210m to the Southeast and remains open.
• The volume of copper ore has been significantly increased.

Drilling Results – North-South Tollu Shear (Eastern Zone)

Drill hole TLC 42 was drilled into the Tollu Shear which is a North-South regional scale structure extending approximately 9km and exposed and mineralised at surface along 2.8 km at Tollu. This structure was untested at depth by drilling prior to TLC 42. As previously reported, the drill hole was halted at a depth of 250m due to drill rig failure. The hole encountered significant copper sulphide mineralisation open at end of hole, indicating the presence of a second zone (Eastern Zone) of copper sulphide mineralisation approximately 400m South East from the Central Zone mineralisation.

TLC 42 returned assay results of 3m @ 5.0% from 248m (mineralisation open at end of hole).

The TLC 42 intersection is significant for several reasons:

• 1. The drill hole ends in high grade copper sulphide mineralisation.
• 1. It has established that the Tollu Shear hosts sulphide mineralisation at depth. The size of this structure means it has the potential to host a substantial deposit.
• 1. The drill hole was positioned to test at depth a large low grade halo of copper oxide mineralisation with coincident EM and IP anomalies adjacent to and within the Tollu Shear zone. (The copper oxide mineralisation was previously identified by a shallow RAB and RC drilling programme conducted by Redstone in 2007).

1. It is the first copper sulphide intersection to also contain nickel and cobalt sulphides. This provides further evidence of magmatic Cu-Ni-(Co) style mineralisation being the source of the copper sulphide mineralisation which has been delineated to date.

Shallow RAB and RC drilling had previously been conducted over the Eastern Zone in 2008. A large low grade copper oxide halo was identified with intersections such as 43m @ 0.13% Cu open at depth and 35m @ 0.18% Cu open at depth.

A total of seven shallow drill holes previously intersected copper oxide mineralisation which remains open at depth.

EM and IP surveys conducted in 2010 both detected anomalies located on the major North-South Tollu shear and near these drill holes. TLC 042 was located to test the EM/IP anomalies and the transition of the surface copper oxide mineralisation to sulphide mineralisation at depth.

Redstone is pursuing a dual targeting strategy at Tollu:

1. Hydrothermal Copper sulphide is interpreted as having been remobilised from a primary magmatic copper-nickel-(cobalt) sulphide source. The drilling to date is showing this hydrothermal mineralisation to be more extensive than originally indicated. Intersections of copper sulphide mineralisation now extend over an area 1.8km long by up to 1km wide. It is anticipated that this area will be significantly increased with further drilling.

Within the hydrothermal zones at Tollu, Redstone is targeting a deposit with an average copper grade greater than 2%. Redstone expects to increase the size of the Tollu deposit with further drilling at the Central Zone, the Eastern Zone and a third zone 800m to the North East of the Central Zone, where two drill holes 200m apart intersected copper sulphide mineralisation which is associated with a large EM anomaly.

2. Magmatic Cu-Ni-(Co) sulphide is the main target style of mineralisation which is interpreted to be the primary source of the hydrothermal mineralisation at Tollu. Typically, magmatic Cu-Ni-(Co) sulphide deposits are large to giant sized deposits often in excess of 100M tonnes of ore. The extent and volume of the remobilised copper sulphide mineralisation at Tollu suggests a major primary source of magmatic Cu-Ni-(Co) sulphide.

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 Western Australia and in Brazil.

Redstone is a diversified explorer focused on nickel and copper in Western Australia and phosphate and potash in Brazil. 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 that relates to exploration results is based on information compiled by Dr Joao Orestes Santos, a member of the Australiasian Institute 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 matters based on his information in the form and context in which it appears.