REDSTONE RESOURCES LIMITED — Interim / Quarterly Report 2012

Jul 30, 2012

Appendix 5B

Rule 5.3

Year to date (12 mths)

$A'000

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity
----------------	--	--

Redstone Resources Limited

42 090 169 154 30 June 2012

ABN Quarter ended ("current quarter")

Current quarter $A'000

Consolidated statement of cash flows

Cash flows related to operating activities

1.1	Receipts from product sales and related debtors	-	-
1.2	Payments for(a) exploration & evaluation(b) development	(597)-	(3,559)-
	(c) production(d) administration	-(118)	-(789)
1.3	Dividends received	-	-
1.4	Interest and other items of a similar nature
	received	3	90
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	(712)	(4,258)
	Cash flows related to investing activities
1.8	Payment for purchases of:(a) prospects	-	-
	(b) equity investments	-	-
	(c) other fixed assets	-	(18)
1.9	Proceeds from sale of:
	(a) prospects	110	375
	(b) equity investments	-	-
	(c) other fixed assets	-	-
1.10	Loans to other entities	-	-
1.111.12	Loans repaid by other entitiesOther (provide details if material)	--	--
	Net investing cash flows	110	357
1.13	Total operating and investing cash flows
	(carried forward)	(602)	(3,901)

+ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows
	(brought forward)	(602)	(3,901)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	360	360
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 (provide details if material)	(2)	(2)
	Net financing cash flows	358	358
	Net increase (decrease) in cash held	(244)	(3,543)
1.20	Cash at beginning of quarter/year to date	569	3,868
1.21	Exchange rate adjustments to item 1.20	-	-
1.22	Cash at end of quarter	325	325

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	57
1.24	Aggregate amount of loans to the parties included in item 1.10	-

1.25 Explanation necessary for an understanding of the transactions

Director and Consulting 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$A'000	Amount used$A'000
3.1	Loan facilities	-	-
3.2	Credit standby arrangements	-	-

Estimated cash outflows for next quarter

	Total	320
4.4	Administration	180
4.3	Production	-
4.2	Development	-
4.1	Exploration and evaluation	140
		$A'000

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	295	539
5.2	Deposits at call	30	30
5.3	Bank overdraft	-	-
5.4	Other (provide details)	-	-
	Total: cash at end of quarter (item 1.22)	325	569

Changes in interests in mining tenements

		Tenementreference	Nature of interest(note (2))	Interest atbeginningof quarter	Interest atend ofquarter
6.1	Interests in miningtenements relinquished,reduced or lapsed	Nil
6.2	Interests in miningtenements acquired orincreased	Nil

+ 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 note	Amount paid up persecurity (see note 3)
				3) (cents)	(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	131,969,390	131,969,390		Fully Paid
7.4	Changes during
	quarter
	(a) Increases
	through issues	2,000,000	2,000,000	$0.18	Fully Paid
	(b) Decreases
	through returns
	of capital, buy
	backs
7.5	+Convertible
	debt securities
	(description)
7.6	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreasesthrough
	securities
	matured,
	converted
7.7	Options	Unquoted Options		Exercise price	Expiry date
	(description and	1,000,000		95 cents	28/11/12
	conversion	500,000		120 cents	28/11/12
	factor)	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
		500,0001,100,000		50 cents50 cents	01/12/1324/02/14
		950,000		35 cents	06/07/15
		850,000		45 cents	06/07/15
		1,000,000		30 cents	21/12/14
		1,000,000		30 cents	26/02/15

+ See chapter 19 for defined terms.

7.8	Issued duringquarter
7.9	Exercised duringquarter
7.10	Expired duringquarter	400,000	150 cents	29/06/12
7.11	Debentures(totals only)
7.12	Unsecurednotes (totalsonly)

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 5).
• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 31 July 2012............ (Company secretary)

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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.