BAGGALEY HILLS

Redstone Resources announced that a 6,000m reverse circulation drilling programme has commenced at the Baggaley Hills Project in the West Musgrave region of Western Australia. The company also reported that samples from the recently completed drilling programme at the Tollu copper project have been submitted for assay and first results are expected in four weeks.

Of the 72 soil (DLag) samples collected over the intrusion, lab assay results have been returned for 38 samples (approximately half the samples). Peak PGE + Au results include 284ppb, 252ppb, 200ppb and 64ppb PGE + Au, from two different lines spaced 1km apart. The PGE anomaly overlaps with the Cu anomaly previously reported and is located near a complex magnetic feature in the centre of the intrusion. PGE and Au results for the peak of the copper anomaly (values of 523ppm Cu, 421ppm Cu and 369ppm Cu) are yet to be received. Eight discrete coincident gravity-aeromagnetic targets were defined, with the Twins target highlighted as an immediate IOCG style (Iron 0xide Copper Gold) drill target In late 2007, a detailed 100m spaced low-level aeromagnetic survey highlighted numerous targets in the project area, and adjacent to Redstone’s previous tenement package. Two new tenements totalling 640.4km2 were acquired in late 2007 based on interpretation of the magnetic data and all tenements have now been granted. A meeting with the Traditional Owners in May 2008 proved successful with an access agreement being negotiated over the entire project area.

Reported that exploration at Baggaley Hills will entail detailed geophysics over the defined target areas, combined with regolith and geological mapping, surface geochemical sampling and RAB drilling, to allow for accurate placement of a series of RC/diamond holes to test the target areas. Down-hole geophysical electrical surveys will be completed where appropriate. Upon successful granting of the remaining Tenement (ELA 69/2053) of this Project, the Company will progress access negotiations with the traditional owners in order for exploration of this Project to commence.