REDSTONE RESOURCES LIMITED — Interim / Quarterly Report 2014

Mar 13, 2014

REDSTONE RESOURCES LIMITED ACN 090 169 154

CONSOLIDATED FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the Annual Report for the year ended 30 June 2013 and any public announcements made by Redstone Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

ACN 090 169 154

CONTENTS

Corporate Directory	2
Directors' Report	3
Auditor's Independence Declaration	8
Consolidated Statement of Comprehensive Income	9
Consolidated Statement of Financial Position	10
Consolidated Statement of Changes in Equity	11
Consolidated Statement of Cash Flows	12
Notes to the Half-Year Financial Statements	13
Directors' Declaration	20
Independent Auditor's Review Report to the Members	21-22

ACN 090 169 154

CORPORATE DIRECTORY

DIRECTORS:	Mr Richard Homsany (Chairman) Mr Edward van Heemst (Non-Executive Director) Mr Clinton Wolf (Non-Executive Director) Mr Brett Hodgins (Executive Director)
COMPANY SECRETARY:	Ms Miranda Conti
REGISTERED AND PRINCIPAL OFFICE:	60 Havelock Street WEST PERTH WA 6005 Tel: (08) 9328 2552 Fax: (08) 9328 2660 Internet: www.redstone.com.au email: contact@redstone.com.au
SHARE REGISTRY:	Advanced Share Registry Services 150 Stirling Highway NEDLANDS WA 6009 PO Box 1156 NEDLANDS WA 6909 Tel: +61 8 9389 8033 Fax: +61 8 9389 7871 Level 6, 225 Clarence Street SYDNEY NSW 2000 PO Box Q1736 QUEEN VICTORIA BUILDING NSW 1230 Website: www.advancedshare.com.au
HOME STOCK EXCHANGE:	Australian Stock Exchange Limited Level 2 Exchange Plaza 2 The Esplanade PERTH WA 6000 ASX Code: RDS
AUDITOR:	Butler Settineri (Audit) Pty Ltd Unit 16, Level 1 100 Railway Road (Cnr Hay Street) SUBIACO WA 6008

ACN 090 169 154

DIRECTORS' REPORT

Your directors submit the financial report of the Redstone Resources Limited and its controlled entities ("Redstone" or the "Entity") for the half-year ended 31 December 2013. In order to comply with the provisions of the Corporations Act 2001, the directors' report follows:

The Board of Directors

The names of Redstone Resources Limited's directors in office during or since the end of the half-year until the date of this report are:

Richard Homsany (Chairman) Edward van Heemst (Non-Executive Director) Clinton Wolf (appointed 28 February 2014) (Non-Executive Director) Brett Hodgins (appointed 29 November 2013) (Technical Director) Anthony Ailakis (resigned 29 November 2013) (Executive Director)

Review of Operations

The consolidated loss after income tax for the half year is \$511,760 (2012: \$921,309).

WEST MUSGRAVE

PROJECT LOCATIONS

During the period Redstone held an interest in 3 exploration licences in two 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 1,800km2 . Project locations are shown on Figures 1 and 2.

TOLLU PROJECT (REDSTONE 100%)

Redstone's 100% owned Tollu Project is located in the southeast portion of the West Musgrave region of Western Australia (Figure 1). The project is approximately 20km south east of the Blackstone Community on Company's 100% owned tenement E69/2450 (Figure 2).

The Tollu Project consists of a large swarm of hydrothermal copper rich quartz veins in a mineralised system covering an area at least 5km² . Malachite rich gossans associated with quartz veins are exposed at surface and form part of a dilatational system between two major structures within the Tollu Fault Zone.

DIRECTORS' REPORT

Figure 1 – West Musgrave ‐ Location Map Figure 2– Tollu Project – Location Map

The Tollu Project currently comprises 16 Prospects (Figure 3). The initial focus is on the Chatsworth Prospect (former Central Zone Subzone 1), Eastern Reef Prospect (former Eastern Zone), Main Reef Prospect (former Western Zone) and the Dawyck Prospects (former Central Zone Subzone 4).

Figure 3 Tollu Project - Prospect Location Map for 15 of the 16 Prospects

ACN 090 169 154

DIRECTORS' REPORT

Strategic and Operational Review

During the period the Company announced a range of initiatives following the conclusion of its Strategic and Operational Review. The review was completed by the Company's board of directors ("Board") under the direction of the Company's Technical Director, Brett Hodgins. Key findings from the review include:

• Redstone will remain a copper focused company exploring in the West Musgrave region of Western Australia.
• Redstone will significantly reduce its ongoing administrative overheads.

As a consequence the Company's key initiatives will be:

• Staged exploration approach on its 100% owned Tollu Copper Project.
• Appointment of key technical consultants.
• Repositioning and promotional activities.
• Organisational restructure.
• East Perth office closure.
• Commence funding solution for next stage of work.
• Divest Brazilian assets.

Staged exploration approach on the Tollu Copper Project

One of the key findings from the strategic and operational review was that Redstone will remain a copper focused company exploring in the West Musgrave region of Western Australia. With this direction the Company intends to stage the exploration at its 100% owned Tollu Copper Project in a manner that the Board believes will maximise value for the Company's shareholders.

Appointment of key technical consultants

The Company has engaged BM Geological Services ("BMGS") to manage Stage 1 of the geological evaluation and exploration activities on the Tollu Project. BMGS are experienced geoscientists with an extensive technical support network which the board believes will enable the Company to unlock the economic potential which exists on Redstone's highly prospective tenure.

Stage 1 Exploration Program

• Near surface hydrothermal copper targets are the short term priority to accelerate the Tollu Project's value.
• Leverage off existing data by further analysis and interpretation of existing geophysical and geological data.
• Focus on expanding the exploration target with detailed further mapping and sampling programs.
• Assay program of existing samples for metallurgical composites and extending geological continuity across the Project.
• Timeframe for Stage 1 is approximately 4 months.

ACN 090 169 154

DIRECTORS' REPORT

BLACKSTONE RANGE FARMIN/JOINT VENTURE

(REDSTONE EARNING 90%: RESOURCE MINING CORPORATION LTD (ASX: RMI) 10%) (E69/2108 AND E69/2109)

The Halley and Saturn Projects are located approximately 25km east of the BHP Babel and Nebo Ni‐Cu‐ PGE deposits. The Halley Project is prospective for Cu‐Ni‐PGE‐(Au) whereas the Saturn Project is prospective for Ni‐Cu mineralisation

CORPORATE

Board Changes

In November 2013 Redstone announced changes to its board of directors as it prepares for the next stage of development of the Tollu Project. Mr Brett Hodgins was appointed as Technical director and Mr Anthony Ailakis resigned as Executive director on 29 November 2013.

Share Options

During the half‐year period to 31 December 2013 no options were issued. The following options expired or lapsed during the period:

• 3,700,000 \$0.50 options exercisable on or before 19 October 2013;
• 600,000 \$0.50 options exercisable on or before 4 November 2013;
• 500,000 \$0.50 options exercisable on or before 1 December 2013;
• 200,000 \$0.35 options exercisable on or before 6 July 2015; and
• 100,000 \$0.45 options exercisable on or before 6 July 2015.

Subsequent Events

Capital Raising and Options

In February 2014 Redstone announced completion of a placement of 35,000,000 fully paid ordinary shares in the Entity at \$0.05 per share to raise \$1.75 million (before costs) (Placement).

In addition on the same date, Redstone issued a total of 1,000,000 Listed Options at an issue price of \$0.001 per option to a consultant and employee. The Options are exercisable at \$0.20 on or before 28 February 2016.

On 24 February 2014 1,100,000 \$0.50 unquoted options expired.

Board Appointment

Clinton Wolf was appointed to the board of the Company as a non-executive director on 28 February 2014.

No other matters or circumstances have arisen since the end of the half-year which have significantly affected or may significantly affect the operations or the state of affairs of the Entity in future financial years.

ACN 090 169 154

DIRECTORS' REPORT

Auditor's Independence Declaration

Section 307C of the Corporations Act 2001 requires our auditors, Butler Settineri (Audit) Pty Ltd, to provide the directors of Redstone with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration is set out on the following page and forms part of this directors' report for the half-year ended 31 December 2013.

This report is signed in accordance with a resolution of the Board of Directors made pursuant to s306(3) of the Corporations Act 2001.

On behalf of the Directors

R Homsany Chairman Perth, Western Australia 14 March 2014

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

	Note	Half-year ended 31 December 2013 \$	Half-year ended 31 December 2012 \$
Revenue
Other Income Total revenue		66,696 66,696	65,400 65,400
Expenses
Administration and other expenses from ordinary activities		(43,050)	(274,678)
Employee benefit expense		(402,780)	(480,479)
Depreciation and amortisation expense		(11,172)	(15,911)
Finance costs		(732)	(224)
Write off of deferred exploration expenditure	5	(8,000)	(164,154)
Exploration expenditure		(116,800)	(57,594)
Total expenses		(582,534)	(993,040)
Loss before interest and taxes		(515,838)	(927,640)
Interest revenue		4,078	6,331
Loss before income tax		(511,760)	(921,309)
Income tax expense		-	-
Loss after income tax for the period		(511,760)	(921,309)
Other comprehensive income		-	-
Movement in foreign exchange translation reserve		-	3,750
Total comprehensive income for the period		(511,760)	(917,559)
Earnings per share (cents per share)		Cents	Cents
- Basic and diluted loss for the half-year	10(c)	(0.34)	(0.67)

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2013

	Note	At 31 December 2013 \$	At 30 June 2013 \$
CURRENT ASSETS
Cash and Cash Equivalents		122,052	740,845
Trade and Other Receivables		284,623	70,590
Other Assets		34,064	24,391
TOTAL CURRENT ASSETS		440,739	835,826
NON-CURRENT ASSETS
Deferred Exploration Expenditure	5	5,098,636	5,176,925
Property, Plant and Equipment		70,003	76,568
Other financial assets		6,000	6,000
TOTAL NON-CURRENT ASSETS		5,174,639	5,259,493
TOTAL ASSETS		5,615,738	6,095,319
CURRENT LIABILITIES
Trade and Other Payables		535,428	421,294
Provisions		70,387	20,408
TOTAL CURRENT LIABILITIES		605,815	441,702
NON-CURRENT LIABILITIES
Trade and Other Payables		70,000	130,000
Provisions		16,251	88,545
TOTAL NON-CURRENT LIABILITIES		86,251	218,545
TOTAL LIABILITIES		692,066	660,247
NET ASSETS		4,923,312	5,435,072
EQUITY
Issued Capital	10	20,538,618	20,538,618
Reserves		938,308	1,712,736
Accumulated Losses		(16,553,614)	(16,816,282)
TOTAL EQUITY		4,923,312	5,435,072

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

ACN 090 169 154

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

Six months ended 31 December 2013

	Issued Capital	Accumulated Losses	Share based Payments Reserve	Foreign Currency Translation Reserve	Total Equity
	\$	\$	\$	\$	\$
At 1 July 2013	20,538,618	(16,816,282)	1,712,736	-	5,435,072
Total comprehensive income attributable to members	-	(511,760)	-	-	(511,760)
Share capital issued	-	-	-	-	-
Equity raising costs	-	-	-	-	-
Share-based payments expiring	-	774,428	(774,428)	-	-
Share-based payments	-	-	-	-	-
At 31 December 2013	20,538,618	(16,553,614)	938,308	-	4,923,312

Six months ended 31 December 2012

	Issued Capital	Accumulated Losses	Share based Payments Reserve	Foreign Currency Translation Reserve	Total Equity
	\$	\$	\$	\$	\$
At 1 July 2012	18,523,536	(12,046,035)	2,368,172	(29,468)	8,816,205
Total comprehensive income attributable to members	-	(921,309)	-	3,750	(917,559)
Share capital issued	2,143,569	-	-	-	2,143,569
Equity raising costs	(102,609)	-	-	-	(102,609)
Share-based payments expiring	-	767,586	(767,586)	-	-
Share-based payments	-	-	157,000	-	157,000
At 31 December 2012	20,564,496	(12,199,758)	1,757,586	(25,718)	10,096,606

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

ACN 090 169 154

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

	Half-year ended 31 December 2013 \$	Half-year ended 31 December 2012 \$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees Interest received Interest paid	(257,941) 4,319 -	(714,318) 6,331 -
Net cash flows used in operating activities	(253,622)	(707,987)
CASH FLOWS FROM INVESTING ACTIVITIES
Exploration expenditure Payments for property, plant and equipment Insurance proceeds from motor vehicle claim Payment for acquisition of wholly owned	(369,629) - 12,458	(486,328) (4,815) -
subsidiary Proceeds on sale of foreign interests	(8,000) -	- 280,000
Net cash flows used in investing activities	(365,171)	(211,143)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares Payment of share issue costs	- -	2,143,569 (91,773)
Net cash flows from financing activities	-	2,051,796
Net increase/(decrease) in cash held Cash at the beginning of the half-year	(618,871) 740,845	1,132,666 325,173
CASH AT THE END OF THE HALF-YEAR	122,052	1,457,839

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

ACN 090 169 154

NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

1. Corporate Information

The financial report of Redstone Resources Limited (the "Company") for the half-year ended 31 December 2013 was authorised for issue in accordance with a resolution of the directors on 14 March 2014.

Redstone Resources Limited is a company limited by shares incorporated and domiciled in Australia whose shares commenced public trading on the Australian Stock Exchange on 3 August 2006.

The nature of the operations and principal activities of the Company are described on pages 3 to 7 in the Directors' Report.

2. Summary of Significant Accounting Policies

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Entity as the full financial report.

This half-year financial report should be read in conjunction with the annual financial report of Redstone Resources Limited for the year ended 30 June 2013.

It is also recommended that the half-year financial report be considered together with any public announcements made by the Company during the half- year ended 31 December 2013 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

a) Basis of Consolidation

The half-year consolidated financial statements comprise the financial statements of Redstone Resources Limited and its controlled entities as at 31 December 2013 (the "Entity" or "Group") - refer note 9.

b) Basis of Accounting

The half-year financial report is a general purpose financial report which has been prepared in accordance with the requirements of the Corporations Act 2001 and AASB 134 "Interim Financial Reporting" and other mandatory professional reporting requirements.

For the purposes of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

ACN 090 169 154

NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

2. Summary of Significant Accounting Policies (continued)

c) Significant Accounting Policies

The half-year consolidated financial statements have been prepared using the same accounting policies as the annual financial statements for the year ended 30 June 2013.

The Entity has reviewed all of the new and revised standards and interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2013. It has been determined that there is no impact, material or otherwise, and therefore no change is required to the Entity's accounting policies.

The Entity has also reviewed all new standards and interpretations that have been issued but are not yet effective for the half-year ended 31 December 2013. As a result of this review, the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and therefore, no change necessary in the Entity's accounting policies.

d) Going Concern

The Entity recorded a loss of \$511,760 for the half-year ended 31 December 2013 and as at 31 December 2013 had net current liabilities of \$165,076 and exploration and operating commitments for the following 12 months to 31 December 2014 of \$788,728 (note 6). Although these matters are indicative of a material uncertainty, the financial report has been prepared on a going concern basis, as the Directors are of the opinion that the Entity will be able to pay its debts as and when they fall due. The Directors contemplate continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business

Subsequent to the end of the half-year ended 31 December 2013 the Entity completed a capital raising by way of placement to sophisticated and professional investors of 35,000,000 fully paid ordinary shares at an issue price of \$0.05 per share to raise \$1.75 million (before costs).

ACN 090 169 154

NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTE 3: DIVIDENDS

The Entity has not declared or paid a dividend during the half-year ended 31 December 2013.

NOTE 4: SEGMENT INFORMATION

The Entity has two operating segments being mineral exploration in the geographical segments of Australia and South America (the Entity's primary basis of segmentation).

The Entity has identified its operating segments based on the internal reports that were reviewed and used by management and the Board of Directors in determining the allocation of resources.

The results for the operating segments have been aggregated on the basis that they have the same economic characteristics.

NOTE 5: DEFERRED EXPLORATION EXPENDITURE

The ultimate recoupment of costs carried forward in relation to exploration expenditure is dependent on the successful development and commercial exploitation or sale of the areas of interest at an amount at least equal to the carrying value.

The carrying value of \$5,098,636 relates solely to the net deferred exploration spend incurred on the Tollu Project to 31 December 2013.

NOTE 6: CAPITAL AND EXPLORATION EXPENDITURE COMMITMENTS

Exploration expenditure commitments

Australian tenements

In order to maintain current rights of tenure over its Australian mineral tenement leases, the Entity will be required to outlay amounts in respect of rent and to meet minimum expenditure requirements of the Department of Mines and Petroleum (DMP). Further, those tenements for which access agreements have been signed require annual access payments to be paid to the traditional owners.

Brazilian tenements

In order to maintain current rights of tenure over Brazilian mineral tenement leases, the Company's controlled entity, Redstone Mineracao Do Brasil Ltda, will be required to outlay amounts in respect of annual rent and to meet minimum expenditure requirements of the National Department of Mineral Production (DNMP).

The future exploration commitment (including access costs) of the Entity relating to granted tenements to their expiry is as follows:

Cancellable operating lease commitments for exploration tenements	31 December	30 June
	2013 \$	2013 \$
Within one year	724,065	634,065
One year or later and no later than five years Later than five years	881,000 -	382,000 -
	1,605,065	1,016,065

ACN 090 169 154

NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTE 6: CAPITAL AND EXPLORATION EXPENDITURE COMMITMENTS (continued)

Joint venture commitments

Blackstone Range Joint Venture

The Blackstone Range/Michael Hills Farm-In Deed dated 2 June 2005 is between Giles Exploration Pty Ltd (Giles), Resources Mining Corporation Ltd (RMC), Westmin Exploration Pty Ltd (Westmin) and Rivergold Exploration Pty Ltd (Rivergold).

During the 2010 financial year RMC converted its 25% interest to a 10% free carried interest in which case Westmin assumed RMC's funding obligations to completion of a feasibility study, upon which Westmin will have earned a 90% interest in the EL.

On 26 February 2010 the Joint Venture parties surrendered Exploration Licences EL's 69/2106 and 2107. The Farmin Deed continues in respect of the remaining tenements, EL's 69/2108 and 2109.

Capital Commitments

The Entity does not have any capital commitments as at balance date.

Operating lease – corporate office premises

Effective from 1 August 2013, the Entity has a two year operating lease for its office premises and car bays at a current annual rental of \$44,360 per annum plus variable outgoings plus GST.

Commencing from 1 April 2013 the Entity agreed to a two year operating lease for storage premises expiring on 31 March 2015 at an annual rental of \$24,000 plus variable outgoings (excluding GST).

Cancellable operating lease commitments for	31 December	30 June
exploration tenements	2013	2013
	\$	\$
Within one year	64,663	67,902
One year or later and no later than five years	31,877	65,666
Later than five years	-	-
	96,540	133,568

ACN 090 169 154

NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTE 7: CONTINGENT ASSETS AND LIABILITIES

The Company had no contingent assets or liabilities as at 31 December 2013.

NOTE 8: EVENTS AFTER BALANCE DATE

Capital Raising

On 17 February 2014 the Company issued and allotted 35,000,000 fully paid ordinary shares at a subscription price of \$0.05 per share to sophisticated and professional investors for a total of \$1.75 million (before costs).

Options

On 17 February 2014 the Company issued and allotted 1,000,000 Options exercisable at \$0.20 per option at a subscription price of \$0.001 for a total of \$1,000 to a consultant and employee. The options are quoted (ASX: RDSO) and are exercisable any time on or before 28 February 2016.

On 24 February 2014 1,100,000 \$0.50 unquoted options expired.

Board Appointment

Clinton Wolf was appointed to the board of the Company as a non-executive director on 28 February 2014.

No other matters or circumstances have arisen since the end of the half year which have significantly affected or may significantly affect the operations or the state of affairs of the Entity in future financial years.

NOTE 9: CONTROLLED ENTITIES

Redstone Resources Limited is the parent entity of the Group.

	At 31 December 2013	At 30 June 2013
	%	%
Particulars in relation to wholly owned entities
Allhawk Nominees Pty Ltd	100	100
Minex Services Pty Ltd	100	100
Westmin Exploration Pty Ltd	100	100
Rivergold Exploration Pty Ltd	100	-
Redstone Mineracao Do Brasil Ltda*	98	98

*The remaining 2% shareholding is held on trust for Redstone Resources Limited. The Board and shareholding structure is in accordance with Brazilian law.

NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTE 10: CONTRIBUTED EQUITY
(a) Issued and Paid Up Capital	31 December 2013 \$	30 June 2013 \$
Shares issued and fully paid – 151,969,390 (June 2013: 151,969,390 ordinary shares fully paid) Listed Options issued and fully paid – 30,356,966 (June 2013: 30,356,966)	20,463,176 75,442	20,463,176 75,442
Issued and fully paid capital	20,538,618	20,538,618

During the half-year period to 31 December 2013 no options were issued and no options were exercised. The following options lapsed or expired during the half-year period to 31 December 2013:

• 500,000 unquoted \$0.50 director options;
• 4,300,000 unquoted \$0.50 employee options;
• 200,000 unquoted \$0.35 employee options; and
• 100,000 unquoted \$0.45 employee options.

Reconciliation of options on issue

Share Options	As at 30 June 2013	Issued/ (Exercised or lapsed)	As at 31 December 2013	Exercise price \$	Exercisable from	Expiry
Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Listed Options - (ASX: RDSO)	1,500,000 500,000 500,000 3,700,000 600,000 500,000 1,000,000 100,000 950,000 850,000 1,000,000 1,000,000 2,000,000 30,356,966	- - - (3,700,000) (600,000) (500,000) - - (200,000) (100,000) - - - -	1,500,000 500,000 500,000 - - - 1,000,000 100,000 750,000 750,000 1,000,000 1,000,000 2,000,000 30,356,966	0.25 0.30 0.35 0.50 0.50 0.50 0.50 0.50 0.35 0.45 0.30 0.30 0.20 0.20	30 Nov 09 30 Nov 09 30 Nov 09 19 Oct 10 4 Nov 10 1 Dec 10 25 Feb 11 25 Feb 11 7 Jul 11 7 Jul 11 22 Dec 11 27 Feb 12 5 Dec 12 10 Oct 12	30 Nov 14 30 Nov 14 30 Nov 14 19 Oct 13 4 Nov 13 1 Dec 13 24 Feb 14 24 Feb 14 6 Jul 15 6 Jul 15 21 Dec 14 26 Feb 15 4 Dec 17 28 Feb 16
Total options	44,556,966	(5,100,000)	39,456,966

ACN 090 169 154

NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

(b) Movement of fully paid ordinary shares during the period

There was no movement in fully paid ordinary shares during the period.

(c) Earnings per Share

	Half-year ended 31 December 2013	Half-year ended 31 December 2012
Basic loss per share (cents per share)	(0.34)	(0.67)
Weighted average number of ordinary shares on issue used in the calculation of basic earnings per share (number)	151,969,390	138,006,347
Earnings used in the calculation of basic loss per share (\$)	(511,760)	(921,309)
As the Entity made a loss for the year, diluted earnings per share is the same

as basic earnings per share.

ACN 090 169 154

DIRECTORS' DECLARATION

In accordance with a resolution of the directors of Redstone Resources Limited, we state that:

In the opinion of the directors:

• 1. The financial statements and notes of the Entity set out on pages 9 to 19 are in accordance with the Corporations Act 2001 including:
• a. giving a true and fair view of the financial position as at 31 December 2013 and the performance for the half-year ended on that date of the Entity; and
• b. complying with Australian Accounting Standards and the Corporations Regulations 2001; and
• 1. there are reasonable grounds to believe that the Entity will be able to pay its debts as and when they become due and payable.

On behalf of the Board

R Homsany Director Perth, Western Australia 14 March 2014