Redstone Resources Limited : Oversubscribed Redstone Capital Raising to Accelerate Tollu

ASX ANNOUNCEMENT
5 February 2014
REDSTONE ANNOUNCES OVERSUBSCRIBED CAPITAL RAISING TO ACCELERATE TOLLU COPPER PROJECT
• Redstone raises $1.65m to fund exploration on its 100% owned highly prospective
Tollu Copper Project in Western Australia
• Placement heavily oversubscribed
• Stage 1 exploration programme to commence that will demonstrate the significant potential to increase the scale of the Company's copper discovery at Tollu
Redstone Resources Limited (ASX Code: RDS) ("Redstone" or "the Company") is very pleased to announce that it has received firm commitments in respect of a placement of 33 million fully paid ordinary shares in the Company at $0.05 per share ("Shares") to raise $1.65 million (before costs) ("Placement").
The Placement, which was heavily oversubscribed, has been well supported by a number of new and existing sophisticated and professional investors.
The Board is extremely pleased with the investor response to this capital raising, exceeding the Board's expectations in the current difficult market conditions for junior resource exploration companies. This strong response highlights investor's recognition of the significant underlying potential at the Company's 100% owned Tollu Copper Project ("Tollu") in Western Australia.
Commenting on the Placement, Redstone Chairman, Mr Richard Homsany, said "Given the challenging market conditions that currently prevail, we are very pleased with the strong support shown for the Placement which reflects the quality of Tollu. With new management and the outcomes from the recent strategic and operational review, the Company is well positioned to focus on demonstrating Tollu's extensive exploration potential. Shareholders can
look forward to an exciting period of assay results and news flow in the short term."

Redstone Resources Limited ABN 42 090 169 154 www.redstone.com.au

60 Havelock Street, West Perth WA 6005 Tel: [phone] Fax: [phone] Email: [e-mail]

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ASX: RDS

Funds raised under the Placement will be used to proceed with and complete the Stage 1 Tollu exploration program, as announced on 11 December 2013 following a strategic and operational review of the Company, and for working capital. The Program is anticipated to be completed within approximately 4 months. Its main objective is to identify additional exploration targets and to significantly increase the size of existing targets with a focus on shallow copper mineralisation. This will be accomplished by assaying existing drill samples, field mapping and sampling along existing surface geology, subject to all required approvals. In addition, a review of existing data will be commissioned to generate additional targets within a
10km radius of the current project.
Mr Homsany said it was strategically important to undertake a focused capital raising at this stage of the Company's transformation to accelerate Tollu's value. "The Board would like to thank participating shareholders in the Placement for their support and confidence. The Stage
1 Tollu exploration program will provide a stream of news flow and an excellent platform for
future drilling programmes and resource development. We look forward to an active and successful 2014 to maximise value for the Company's shareholders," Mr Homsany said.
The Placement was made in accordance with the Company's existing placement capacity under Listing Rules 7.1 and 7.1A and the new Placement shares will rank equally with the existing Redstone shares quoted on ASX. Completion of the Placement and issue of the Placement shares will take place over the next week, after which the Company will apply to the ASX for the listing of the Placement shares.

For further information please contact:

Richard Homsany

Chairman

Redstone Resources Limited

[phone] [e-mail]

Brett Hodgins

Technical Director

Redstone Resources Limited

[phone] [e-mail]

About Redstone Resources Limited

Redstone Resources Ltd is a Perth-based company focused on copper and nickel with a portfolio of

highly prospective mineral exploration properties in the West Musgrave region of WA.

Redstone Resources Limited ABN 42 090 169 154 www.redstone.com.au

60 Havelock Street, West Perth WA 6005 Tel: [phone] Fax: [phone] Email: [e-mail]

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ASX: RDS

About the Tollu Project

The Company's 100% owned Tollu Project is located within the West Musgrave Region of Western Australia. A number of mineral occurrences are associated with intrusion-hosted Ni-Cu-PGE deposits and Ni-Co laterite deposits within the region.

Tollu is a hydrothermal Cu-rich mineralised system which is considered to represent the distal part of a Voisey's Bay Style magmatic Cu-Ni-(Co) system. Key indicators that support a mafic primary source of mineralising fluids in accordance with this model include the extent and volume of remobilised copper sulphides, hydrothermal copper sulphide mineralisation and the association of mineralisation with cobalt.

The geological evolution of Tollu is interpreted as follows:

• The ultramafic Giles Complex (1070Ma) intruded layered volcanic host rocks of the Tollu Group (1100Ma). This complex is the source of Ni-Cu-(Co) magmatic mineralisation which gave rise to known mineral deposits in surrounding properties throughout the region.

• The Peterman Orogeny (550Ma) provided the structural setting for the development of regional strike-slip faults and associated dilational/en-echelon structures. These structures provided favourable pathways for hydrothermal fluids to migrate from deeper mafic source rocks into the overlying layered felsic volcanics of the Tollu Group.

• The Tollu Group provided the source of sulphur to assist chalcopyrite and bornite deposition during fluid mixing/wall rock interaction from deeper fluids. This interaction resulted in a rich swarm of hydrothermal veins dominated by Cu mineralisation with Co association at depth. Mineralisation is hosted both within steep N-S structures and parallel sets of dilatational/en-echelon structures throughout the property.

The project area hosts a giant swarm of hydrothermal copper rich veins as part of a 700-800m wide mineralisation corridor that extends over an area of at least 6km2. Copper mineralisation comprises an oxidised assemblage of malachite, tenorite, cuprite and azurite within quartz veins to vertical depths between 30 to 80m. Quartz veins also display boxwork textures in areas of pervasive copper oxide

mineralisation.

Oxide zones transition into sulphide mineralisation consisting of chalcopyrite, minor bornite and chalcocite veins. These veins are demonstrated to be continuous to vertical depths exceeding 350m based on the current limits of drilling at Tollu. Veins are repeated via en-echelon structures within the broader structural corridor which represent additional targets for copper mineralisation.

The information in this report that relates to exploration results is based on information compiled by Dr Joao Orestes Santos, a consultant to 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.

Redstone Resources Limited ABN 42 090 169 154 www.redstone.com.au

60 Havelock Street, West Perth WA 6005 Tel: [phone] Fax: [phone] Email: [e-mail]

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