REDSTONE RESOURCES LIMITED — Interim / Quarterly Report 2012

Apr 30, 2012

QUARTERLY REPORT

FOR THE PERIOD ENDING 31 MARCH 2012

30 April 2012

The Board of Redstone Resources Limited (ASX: RDS) is pleased to present its quarterly report for the period ending 31 March 2012.

Redstone's primary focus is the Tollu Copper Nickel Project in Western Australia. This 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. Depth of mineralisation now stands at 379m open at depth. Redstone expects the Project's mineralised area and the volume of hydrothermal mineralisation will increase significantly with further drilling.

HIGHLIGHTS

• Chemical assays were received for diamond drill holes TD-1 and TD-2.
• TD-1 has returned 10m @ 2.5 % Cu within a sulphide rich hydrothermal copper mineralised zone of 25m from 274m at the Eastern Zone. The copper sulphide mineralisation intercepted by TD-1 is open at depth and along strike.
• TD-2 has returned 10m @ 3.25% Cu from 127m at the Central Zone (Subzone 1). The copper sulphide mineralisation intercepted by TD-2 is open at depth and along strike.
• Chemical assay results from RC drill hole TC-80 were received late in the Quarter and have extended the depth from surface of known Cu mineralisation in Central Zone from 219 metres to 379 metres.
• TC-80 has returned 11.25m @ 3.1% Cu from 367.75m to 379m. The mineralisation remains open at depth. This represents an approximate 70% increase in depth of mineralisation at the Central Zone.
• Eastern Zone RC chemical assay results received during the Quarter included:
  • o TC-76 returned 20m @ 1.45% Cu from 231m
  • o TC-77 returned 10m @ 1.64% Cu from 196m
  • o TC-78 returned 10m @ 1.84% Cu from 248m

PROJECTS

The Company holds an interest 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 Figures 1 and 2.

Six of the exploration licences held by Redstone comprise the Baggaley Hills Farmin/Joint Venture, which is an exploration joint venture between Redstone and HJH Nominees Pty Ltd (HJH), where Redstone is farming out an 80% interest.

A further two exploration licences are part of the Blackstone Range Farmin/Joint Venture between Redstone and Resource Mining Corporation where Redstone is earning in to 90%. The remaining exploration licence is wholly owned and operated by Redstone and comprises the Tollu Copper Nickel Project.

Figure 1 (Left) Location of Redstone Projects in Western Australia Figure 2 (Right) Location of Redstone Project Tenements in the West Musgrave Region

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 Project hosts multiple mineralised target zones (Figure 3).

Figure 3 Target Zones at the Tollu Copper Nickel Project

Tollu Central Zone

The Central Zone is a swarm of hydrothermally mineralised bodies formed in a dilation system between two larger N-S bodies in an area of approximately 1.3 km long and 700 – 800m wide. Eight main clusters of mineralised bodies (subzones) have been mapped at surface. So far, exploration has only been concentrated in Subzone 1.

During the Quarter, RC drill hole TC-80 intercepted the most significant copper sulphide intersection at depth at the Central Zone (see Figure 5).

Chemical assay results from RC drill hole TC-80 were received late in the Quarter and have extended the depth from surface of known Cu mineralisation in Central Zone from 200-220 metres to 379 metres.

Drill hole TC-80 has intercepted the same mineralised body drilled by earlier drill holes TC-32 (at 85 metres depth), TC-15 (150m), TC-20 (152m), and TC-21 (212 m) (see Figure 6). TC-80 has returned 11.25m @ 3.1% Cu from 367.75m to 379m. All five of these drill holes have demonstrated mineralisation grades between 2.4% and 3.1% Cu. Their thicknesses of mineralisation are 6.1m, 15.6m, 10.4m, 3.5m, and 11.25m respectively.

The average grade of mineralisation within this body so far is 2.68%, the average thickness is 9.37 metres and the average specific gravity of the mineralised body is estimated to be 2.86.

The mineralisation drilled in Subzone 1 is part of the main mineralised body of the Central Zone, which has mineralisation confirmed along 600 metres at surface. The mineralisation remains open at depth.

During the Quarter, chemical assays from diamond drill hole TD-2 were received and returned 8.7m @ 3.25% Cu from 110m where the mineralisation is open at depth and along strike.

TD-2 intersected the Central Zone (Subzone 1) mineralised body commencing from 110m. The diamond core has provided sufficient volume of mineralisation for metallurgical analysis, which is expected to commence in the next Quarter.

Figure 5 Map of Central Zone showing TC-80 in relation to TC-32, TC-15, TC-20 and TC-21 and position of section 7108550N.

Figure 6 Section slice of mineralised body looking North at 7108550N.

Hole TC-80 intersects the mineralised body, confirming its existence approximately 160m further than previously discovered. The mineralised body remains open at depth.

Tollu Eastern Zone

The Eastern Zone is a single sub-vertical hydrothermal body exposed at surface over a distance of 2500 metres. This is the thickest mineralisation so far detected at Tollu (see ASX announcement of 22 September 2011). This hydrothermal body is exposed over a distance of 2.5km. Less than 5% of the body has been tested by drilling.

During the Quarter, chemical assays from diamond drill hole TD-2 were received and returned 8.7m @ 2.5% Cu within a sulphide rich hydrothermal zone of 22m from 237m. The copper sulphide mineralisation intercepted by drill hole TD-1 is open at depth and along strike.

Eastern Zone chemical assay results were received during the Quarter for RC drill holes TC-76, TC-77 and TC-78:

• TC-76 returned 20m @ 1.45% Cu from 231m,
• TC-77 returned 10m @ 1.64% Cu from 196m, and
• TC-78 returned 10m @ 1.84% Cu from 248m.

The drill core from TD-3 was received from the field late in the Quarter. The significance of contained anomalous cobalt sulphide mineralisation is currently being assessed.

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-Cu-PGE discoveries. The project area is prospective for Cu-Ni-PGE + Au. The project contains a number of prospects including:

• Halleys.
• Last Frontier.
• Saturn.

An auger drilling programme commenced late in the Quarter to provide better quality soil geochemistry data. During the Quarter, surface nickel and copper sulphide mineralisation (pentlandite and chalcopyrite) was discovered in rock samples during exploration at the Saturn Project. Follow up field work is due to commence shortly to assess the significance of this mineralisation.

Baggaley Hills Farmin/Joint Venture (Redstone Farming Out 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, magnetic and gravity signatures and IP surveys.

A ground based magnetic survey commenced during the Quarter to assist in the definition of drill targets for RC drilling.

ABOUT REDSTONE

Redstone Resources Ltd is a Perth-based company focused on nickel and copper with a portfolio of highly prospective mineral exploration properties in the West Musgrave region of WA and Brazil.

Further information on Redstone Resources Ltd 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

The information in this report relates to exploration results is based on information compiled by Dr Joao Orestes 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 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.

CTbl1TllPjRDilliRlttae:ouroecrngesus
DrillHole			Codinteoras		Cu-SlphideIniotetursecns
HoleNubemr	Inclinaiont	Azimhtu	EaingGDAts	NohingGDAtr	Fr()omm	To()m	Inl()tervam	CuGrdeas
TC-67	60°	90°	438185	7108340	231	251	20	1.45%
C-T77	60°	90°	438225	7108340	196	206	10	1.64%
TC-87	60°	90°	438180	7108380	284	285	01	81.4%

Tbl2TllPjtaeouroec:DidDilliCSlhidIittamonrngopperupenersecons
DrillHoleCo			dor	inCu-SlphideIntetetasursec		ions
HoleNubemr	Inclinaiont	Azimhtu	EaingGDAts	NohingGDAtr	Fr()omm	To()m	Inl()tervam	CuGrdeas
TD-1	64°	265°	438463	7108291	274	284	10	2.5%
TD-2	61°	235°	438061	7108635	127	137	10	3.25%