Redstone Resources : Final Strong Cu Assay Results Confirm Potential at Tollu

476aff0f-a3e3-4b3f-9553-db4daa79bc8a.pdf

28 April 2016‌

The Manager

Company Announcements Office Australian Stock Exchange Limited Level 4, Exchange Centre

20 Bridge Street SYDNEY NSW 2000

Electronic Lodgement

FINAL STRONG COPPER ASSAYS FROM DRILLING PROGRAM CONFIRM POTENTIAL FOR 100% OWNED TOLLU PROJECT

Redstone Resources Limited (ASX: RDS) ("Redstone" or "the Company") is pleased to announce the last of the outstanding copper intercepts from the Company's recently completed drilling program and also from further analysis of historical samples from previous drill programs at its 100% owned Tollu Project ("the Project"), which has achieved a number of the planned key objectives.

KEY OUTCOMES

• Confirmation

  of shallow

  oxide/transitional copper miner lisation potentially amenable to

  evaluation of a low cost development path as part of the broader development strategy of the

  larger and higher grade sul

  hide prospects

• Identification of the Forio prospect over 250m of mineralised strike which remains open in all directions

• Confirmation of up dip co Prospects

  tinuity of the sulphide mineralisation at Chatsworth and Eastern Reef

• Identification of copper mineralisation in re‐assay of historic pr

  spects Kilruddery and Hertsecombe

  Subsequent to the Company's 11 January 2016 and 22 February 2016 announcements, further results from

  the most recently completed drilling program

  have now been received. These

  results, which include

  copper grades of up to 4.02%, are consistent with work previously conducted on the Project area. These results were primarily from the Chatsworth, Main Reef and Eastern Reef Prospects.

  Significant copper intercepts from the recent assaying of samples from both the most recent and historical drill programs, primarily from the Chatsworth, Eastern Reef and Forio Prospects include: Chatsworth Prospect

• 31m at 1.18% Cu from 20m including 6m at 2.98% Cu from 25m (TLC090)

• 4m at 1.22% Cu from 13m (TLC091)

• 12m at 1.45% Cu from 178m including 4m at 2.16% Cu from 18

• 7m at 1.05% Cu from 6m (TLC090)

• 1m at 1.33% Cu from 96m (TLC020)

Redstone Resources Limited ABN 42 090 169 154

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

m (TLC087)

www.redstone.com.au Email: contact@red tone.com.au

Eastern Reef Prospect

• 8m at 0.81% Cu from 299m including 2m at 2.19% Cu from 304m (TLC053)

  Chelsea Prospect

• 4m at 1.23% Cu from 70m (TLC097)

   2m at 0.96% Cu from 247m (TLC059)

  Main Reef Prospect

   3m at 1.15% Cu from 142m (TLC099)

  Killruddery Prospect

• 2m at 3.11% Cu from 96m (TLC009)

  Forio Prospect

• 8m at 0.98% Cu from 151m including 3m at 1.41% Cu from 152m (TLC067)

   5m at 1.10% Cu from 134m (TLC011)

  Hampton Prospect

• 1m at 1.25% Cu from 66m, 1m at 1.43% Cu from 83m and 1m a

 2m at 1.00% Cu from 217m (TLC064)

4.02% Cu from 92m (TLC084)

Herstecombe Prospect

 3m at 1.79% Cu from 140m (TLC069)

Commenting on the continued excellent results, Redstone's Chairman, Richard Homsany stated:

"These additional strong results continue to increase confidence in the

Tollu Project. Drilling

activities have focussed on the known prospects with the exception of Forio. The Project's potential

copper endowment is not

onstrained. The board has enhanced confidence that additional drilling

can lead to further ore grade copper discoveries, both oxide and sulphide.

The

success of the shallow drilling at the previously undri led prospects, especially at Forio,

highlights the underlying potential for the identification of further mineralisation in other narrow veins for near surface copper mineralisation. With only limited drilling, the Forio Prospect shows significantly longer strike length than both the Chatsworth and Eastern Reef Prospects.

The mineralisation at Forio is very significant in that it is located in a dilational zone to the north west of the Tollu Fault, wh ch is in a different location to the previously discovered mineralisation. Its current strike length, which remains open to the south, is y t to be effectively drilled out below

50m. Recent

results demonstrate some of the

widest and strongest

copper mineralisation

discovered at these levels at the Project to date.

These results allow the Company to commence preliminary investigation of the economic viability of the high grade near surface copper mineralisation at Tollu. Such an operation, if studies prove it

to be viable,

may present short term development options generating early cash flow with

significantly lower up front capital expenditure."

Summarised below are key further results for the Chatsworth, Main Reef, Eastern Reef and Forio Prospects. Table 1 annexed to this release contains all drilling results to date.

Tollu Project (Redstone 100%)

Redstone's 100% owned Tollu Project is located in the southeast port on of the West Musgrave region of Western Australia. The Project is approximately 20km south east of the Blackstone Community on the Company's 100% owned tenement E69/2450 (Figure 1). The Company has identified 16 prospects within the Tollu Project (Figure 2).

The 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 the surface and form part of a dilatational system between two major structures within the Tollu Fault Zone.

Figure 1- Tollu Project - Location Map Figure 2 - Tollu Project - Prospect Location Map for 15 of the 16 Prospects Aim of the Most Recent Drilling Program

The Company has identified a number of prospective targets for drilling at the Tollu Project, with the aim of the most recent RC drilling program being to target near surface hydrothermal copper (oxide and sulphide) mineralisation. The main activity concentrated on the known higher‐grade zones at the Chatsworth, Main

Reef and Eastern Reef Prospects within the Tollu Project. mineralised system.

The primary purpose was to validate the Tollu

Aim of Recent Assaying of Previous Drill Samples

Drill campaigns prior to 2015 concentrated on the known higher‐grade zones at the Chatsworth, Main Reef and Eastern Reef Prospects within the Tollu Project. The primary purpose of assaying the historical drill samples was to utilise all available data for geological understanding and potential contribution to the Tollu mineralised system.

FURTHER ASSAY RESULTS Chatsworth Prospect

The Chatsworth Prospect is a singl

sub vertical hydrothermal body exposed at the surface. This Prospect

forms part of the dilation system between two north south trending shears. The Chatsworth Prospect has been the main focus of much of the technical and drilling activity to date. Whilst the prospect appears to have been delineated along strike in the most recent round of drilling there still remains potential to infill the main mineralised zone above current deeper intersections and the ultimate depth continuity remains open (Figure 3). Further recent results are included in Table 1 below.

Hole	Prospect	Easting (m)	Northing (m)	RL (m)	Dip (degree)	Azim (degree)	Depth (m)	From (m)	Interval (m)	True Width (m)	Cu (%)
TLC087	Chatsworth	437900	7108598	587	‐60	90	300	178	12	N/C	1.45
TLC090	Chatsworth	437996	7108654	595	‐60	302	96	6	7	N/C	1.05
TLC090	Chatsworth	437996	7108654	595	‐60	302	96	20	31	N/C	1.18
TLC091	Chatsworth	438003	7108647	604	‐60	320	60	13	4	N/C	1.22
TLC020	Chatsworth	438109	7108556	583	‐60	266	235	96	1	N/C	1.33
TLC053	Chatsworth	438172	7108280	574	‐60	90	403	299	8	N/C	0.81

Table 1 - Chatsworth Prospect Assay Results