Redstone Resources : Quarterly Activities and Cashflow Report

ASX ANNOUNCEMENT 30 April 2022

QUARTERLY REPORT

For the Period Ending 31 March 2022

Redstone Resources Limited (ASX: RDS)(Redstone or the Company) presents its quarterly report for the period ending 31 March 2022 (the Quarter).

WEST MUSGRAVE PROJECT

Redstone's 100% owned West Musgrave Project (the West Musgrave Project) which includes the Tollu Copper Vein deposit (Tollu), is located in the southeast portion of the West Musgrave region of Western Australia. The West Musgrave Project has the right geological and structural setting for large magmatic Ni‐Cu sulphide deposits just 40km east of the world‐class Nebo‐Babel Ni‐Cu deposit.

Tollu hosts a giant swarm of hydrothermal copper rich veins in a mineralised system covering an area at least 5km2. Copper mineralisation is exposed at the surface and forms part of a dilation system within and between two major shears.

Redstone expects the initial JORC 2012 resource at Tollu of 3.8 million tonnes at 1% Cu, containing 38,000 tonnes of copper, and 0.01% cobalt, which equates to 535 tonnes of contained cobalt (ASX release 15 June 2016 and 1 May 2017), the mineralised area, and the volume of hydrothermal mineralisation, to increase with further drilling.

Geological interpretation suggests that the West Musgrave Project may also be prospective for Volcanic Hosted Massive Sulphide (VHMS) deposits, large continental type Molybdenum (Mo)‐porphyry deposits, strata‐bound Gold (Au)‐ Silver (Ag) deposits, Tin (Sn) - Tungsten (W) mineralisation related to granites, granite stockworks or greissens, intrusion related polymetallic veining and Intrusion Related Gold deposits (IRG).

WEST MUSGRAVE PROJECT - MARCH 2022 QUARTER ACTIVITIES

Lab assay results for the initial phase of an RC drilling and exploration programme (the Programme) on its 100% owned West Musgrave Project, completed in late 2021, remain pending with significant delays being experienced by the laboratory due to high demand and staff absenteeism due to COVID‐19. This initial phase comprised 3,000m of shallow reverse circulation (RC) drilling at the Tollu copper veins, including at both the Chatsworth and Forio prospects, and surrounding prospective Target Areas.

Redstone Resources Limited ABN 42 090 169 154

60 Havelock Street, West Perth WA 6005 Tel: [phone]

www.redstone.com.auEmail:[e-mail]

Planning and preparations continued during the Quarter for the next phase of deeper RC drilling on the Project. Despite having secured a suitable drill rig, delays to planned commencement this quarter of the Programme are currently being experienced due to limited geological resources and unavoidable COVID‐19 related issues. This next phase of the Programme is anticipated to commence in coming months, subject to availability of the required drilling and geological personnel.

HANTAILS GOLD PROJECT - FARM‐IN AND JOINT VENTURE AGREEMENT (RDS: 80%)

Redstone has entered into a Farm‐in and Joint Venture (the Agreement) to farm‐in to an 80% interest in the HanTails Project (HanTails or the Project). HanTails is a historic large scale gold mine Tailings Storage Facility (TSF) located on the historic Hannans South Gold Mill site, just 15kms south of Kalgoorlie‐Boulder, Western Australia.

The Company has completed Stage 1 of the Agreement by sole funding a minimum $75,000 to earn a 51% legal and beneficial interest in the Project and has subsequently entered into a joint venture with the vendor. Redstone has also elected to earn into Stage 2 of the HanTails farm‐in and joint venture by sole funding further farm‐in spend of $75,000 for an additional interest of 29% (for a total 80%) in the Project, in accordance with the terms of the Agreement.

During the Quarter the Company commenced an initial review and assessment of HanTails for a proposed small‐scale RC drilling programme to test for potential gold bearing structures under the TSF.

Other than as described above, during the Quarter there were no substantive mining exploration activities or substantive mining production and development activities.

CORPORATE

Capital Raising - Director Participation in Placement

On 28 February 2022 the Company issued 17,833,333 fully paid ordinary shares (Shares) at an issue price of $0.012 per Share to the Directors (and/or their nominee/(s)) of the Company pursuant to shareholder approval. Participation in the private placement by directors raised $214,000 (before costs).

Issue of Unlisted Options to Directors, Employee and Consultant

On 28 January 2022 the Company issued 32,000,000 unlisted options exercisable at $0.0188 on or before 23 January 2027 to Directors, employee and consultant of the Company pursuant to shareholder approval.

Cash

At the end of the Quarter the Company had available cash of $2,184,000. Cash requirements are considered sufficient for the short to medium term.

During the Quarter the Company incurred exploration spend of $4,000.

Payments to related parties of $71,000 is for remuneration of directors (refer section 6 of Appendix 5B).

PROJECT OPPORTUNITIES

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Project	Tenement	Registered Holder Applicant	Holder Interest	Consolidated Entity Interest	Grant Date (Application Date)	Expiry	Blocks	Area km2
Tollu Milyuga Milyuga Milyuga	E 69/2450 E 69/3456 ELA 69/3568 ELA 69/3750	Redstone Resources Limited Redstone Resources Limited Redstone Resources Limited Westmin Exploration Pty Limited	100% 100% 0% 0%	100% 100% 0% 0%	19/09/2008 14/08/2017 (10/05/2018) (17/09/2019)	18/09/2022 13/08/2022 N/A N/A	41 28 27 107	126.4 86.4 83.2 330.0

Project	Tenement	Registered Holder Applicant	Holder Interest	Consolidated Entity Interest	Grant Date	Expiry	Area (Ha)
HanTails HanTails	P 26/4308 P 26/4465	Hannans Gold Pty Ltd Hannans Gold Pty Ltd	100% 100%	51% 51%	03/04/2019 05/08/2019	02/04/2023 04/08/2023	57 168

During the Quarter, the Company continued investigating and reviewing potential new project opportunities to add to the Company's project tenure.

TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3

The Company holds the following tenements at the end of the Quarter.

TENEMENT SUMMARY AS AT 31 MARCH 2022

West Musgrave, Western Australia

18)	N/A	27	83.2
09/2019)	N/A	107	330.0

Kalgoorlie‐Boulder, Western Australia

The Company did not dispose of any interests in any joint ventures or farm out arrangements during the Quarter.

This Announcement has been approved for release by the Board of Redstone Resources Limited.

For further information please contact:

Richard Homsany	Miranda Conti
Chairman	Company Secretary
Redstone Resources Limited	Redstone Resources Limited
[phone]	[phone]
[e-mail]	[e-mail]

1. Initial JORC 2012 resource of 3.8 million tonnes at 1% Cu, containing 38,000 tonnes of copper at the Tollu Copper Vein Project, West Musgrave (ASX Announcement 15 July 2016).

REDSTONE RESOURCES

Redstone Resources Limited (ASX: RDS) is a base and precious metals developer exploring the 100% owned prospective West Musgrave Project, which includes the Tollu Copper deposit, in Western Australia. The West Musgrave Project is located between Cassini Resources' Nebo Babel prospect and Metals‐X Wingellina Ni‐Co project. Redstone is also actively evaluating the HanTails Gold Project at Kalgoorlie, Western Australia for potential development in future.

Competent Persons Statements

The information in this document that relates to exploration results for the West Musgrave Project was authorised by Dr Greg Shirtliff, who is employed as a consultant to the company through Zephyr Professional Pty Ltd. Dr Shirtliff is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience of relevance to the tasks with which he is employed to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Shirtliff consents to the inclusion in the report of matters based on information in the form and context in which it appears.

The information in this report that relates to Mineral Resource for the West Musgrave Project was authorised by Mr Darryl Mapleson, a Principal Geologist and full time employee of BM Geological Services, engaged as consultant geologists to Redstone Resources Limited. Mr Mapleson is a Fellow of the Australian Institute of Mining and Metallurgy. Mr Mapleson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to act as a competent person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Mapleson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

ASX Listing Rule Information

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements, and in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the original market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the competent persons findings have not been materially modified from the original announcement referred to in the release.

Forward‐Looking Statements

This document may include forward‐looking statements. Forward‐looking statements include, but are not limited to statements concerning Redstone Resources Limited's (Redstone) planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward‐looking statements. Although Redstone believes that its expectations reflected in these forward‐looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward‐looking statements.

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

ABN

Quarter ended ("current quarter")

• 1. Cash flows from operating activities

• 1.1 Receipts from customers

• 1.2 Payments for

  • (a) exploration & evaluation

  • (b) development

  • (c) production

  • (d) staff costs

  • (e) administration and corporate costs

• 1.3 Dividends received (see note 3)

• 1.4 Interest received

• 1.5 Interest and other costs of finance paid

• 1.6 Income taxes paid

• 1.7 Government grants and tax incentives

• 1.8 Other (R&D rebate net of fees)

• 1.9 Net cash from / (used in) operating activities

  -

  -

  - - -- - -

  (96) (179)

  21 (94)

  - - - - - - (75)

  - - - -

  156

  (117)

• 2. Cash flows from investing activities

• 2.1 Payments to acquire or for:

  (a) entities

  • (b) tenements

  • (c) property, plant and equipment

  • (d) exploration & evaluation

  • (e) investments

  • (f) other non-current assets

- - - (4)

- - - (559)

- -

- -

ASX Listing Rules Appendix 5B (17/07/20)

+ See chapter 19 of the ASX Listing Rules for defined terms.

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