Projects

Lara Property

The Lara property is favourably located at a moderate elevation only 40-km from the Pan American Highway near the southern coast of Peru. Redzone acquired the right to earn up to a 75% interest in the Project from Lara Exploration Ltd. (LRA: TSXV) via earning into Minas Dixon BVI (“Minas”), a wholly owned subsidiary of Lara. Under the agreement, Redzone must spend US$2.5 million in exploration on the Property and issue 850,000 Redzone common shares to Lara over a three year term to earn an initial 55% interest in the Project. Redzone can then elect to earn an additional 20% interest in the Project by completing a bankable feasibility study and making a one-time cash payment of US$1.5 million on or before January 28, 2015. Lara retains a 1% net smelter royalty on all production from the Project. Under the terms of the agreement, Redzone must spend US$500,000 on or before October 26, 2011 and this expenditure has been met.

2010 DRILL PROGRAM PRESULTS:

Recent results from the 2010 drill program on the Lara property include the following:

In-Fill Hole LA10-30 intersects 126m (46-172m) of 0.32% Cu and 0.015% Mo (0.41% CuEq), including 30m (46-76m) of 0.69% Cu & 0.015% Mo (0.78% CuEq).
In-Fill Hole LA10-31 intersects 126m (44-170m) of 0.43% Cu & 0.009% Mo (0.48% CuEq), including 30m (44-74m) of 0.77% Cu & 0.011% Mo (0.86% CuEq).
Hole LA10-32 establishes a higher-grade, east-west corridor on section 11350N by intersecting 108m (54-162m) of 0.81% Cu & 0.015% Mo (0.90% CuEq), including 40m (58-98m) of 1.39% Cu & 0.012% Mo (1.46% CuEq).
Hole LA10-34 expands the enriched copper mineralization 225m to the east on section 11220N by intersecting 30m (56-86m) of 0.71% Cu.
Step-Out Hole LA10-35 intersects 218m (30-248m) of 0.57% Cu & 0.042% Mo (0.81% CuEq), including 30m (30-60m) of 0.88% Cu & 0.051% Mo (1.19% CuEq) and 28m (206-234m) of 0.74% Cu & 0.017% Mo (0.84% CuEq).
Hole LA10-36 expands mineralization to the south on section 11130N by returning 6m (24-30m) of 2.14% Cu and 94m (36-130m) of 0.38% Cu and 0.016% Mo (0.48% CuEq). Hole terminates in mineralization grading 0.30% Cu and 0.035% Mo (0.51% CuEq).

Hole LA10-29 was collared 90 west of hole LA10-31 and intersected an aplite dyke that terminated mineralization at 47.4 metres downhole, while hole 28 was collared 60 metres north- northwest of hole LA10-29 and was terminated in lower grade mineralization (0.26% Cu) at 90.2 metres downhole.

Hole LA10-30 was collared approximately 380 metres west of hole LA10-35 and 40 metres northwest of hole LDD-14 drilled in 1997 (the hole was terminated at 108 metre with the final 39 metres returning 0.87% copper with no analysis for molybdenum), while hole 31 was collared approximately 150 metres south of hole LA10-30.

Hole LA10-32 was collared on section 11350N approximately 140 metres west of LRC-21 drilled in 1997 (0.76% copper over 36 metres and stopped in mineralization grading 0.46% copper at 114 metres with no analysis for molybdenum) and 275 metres west of hole LA10-35 ((0.57% copper and 0.042% molybdenum over 218 metres (press release February 1, 2011)).

Hole LA10-33 was collared on section 11130N approximately 60 metres east of 1997 drill hole LRC-02 (0.42% copper over 20 metres from surface and 0.46% copper over 26 metres from 42 metres downhole). This hole expands the mineralization to the east by returning 0.39% copper over 48 metres from 2 metres downhole.

Hole LA10-34 was collared on section 11220N approximately 225 metres east of 1997 drill hole LRC-24 (0.42% copper over 13 metres) and expanded the mineralization to the east by returning 0.71% copper over 30 metres.

Hole LA10-35 was collared approximately 140 metres east of LRC-21 drilled in 1997 (0.76% copper over 36 metre and stopped in mineralization grading 0.46% copper at 114 metres with no analysis for molybdenum). Along with the copper-molybdenum grades reported above, hole LA10-35 also returned 0.10 gram gold per tonne and 1.9 grams silver per tonne over 22 metres from 212-234 metres downhole.

Hole LA10-36 was collared on section 11130N approximately 270 metres west of hole LA10-33 and intersected an oxide sample at 26 metres downhole that returned 5.88% copper over 2 metres followed by 94 metres grading 0.38% copper and 0.016% molybdenum starting at 36 metres downhole. This hole terminated in mineralization grading 0.30% copper and 0.035% molybdenum.

Hole LA10-37 was collared 60 metres northwest of hole LA10-35 and hole LA10-38, which is the southwestern most drill hole, was collared on section 11130N approximately 65 metres southwest of 1997 drill hole LRC-23 (terminated in mineralization at 90 metres downhole with the final 64 metres grading 0.38% copper and no analysis for molybdenum).

Latest 2010 Lara Copper-Molybdenum Drill Results

Drill Hole #	From (m)	To (m)	Length (m)	Copper (%)	Molybdenum (%)	CuEq	Comments
LA10-28	33.40	90.20*	56.80	0.27	NSV	0.27	End in Mineralization 0.26% Cu
including	38.85	43.85	5.00	0.56	NSV	0.56

LA10-29	4.00	47.4	43.40	0.22	NSV	0.22	Mineralization (last sample 0.44% Cu over 1.6 metres) terminated by aplite dyke
including	35.50	39.25	3.75	0.41	NSV	0.41

LA10-30	46.00	223.00*	177.00	0.28	0.013	0.36
Including	46.00	172.00	126.00	0.32	0.015	0.41
including	46.00	76.00	30.00	0.69	0.015	0.78

LA10-31	44.00	170	126.00	0.43	0.009	0.48
Including	44.00	74.00	30.00	0.77	0.011	0.86

LA10-35	30.00	248.00	218.00	0.57	0.042	0.81
Including	30.00	60.00	30.00	0.88	0.051	1.19
Including	206.00	234.00	28.00	0.74	0.017	0.84

Table notes:

All holes drilled vertically and all intervals are core lengths; Cu equivalent in per cent calculated using $2.50 (U.S.) per pound copper and $15 (U.S.) per pound molybdenum, and the following formula: ((percentage Cu times 22 times price Cu per pound) plus (percentage Mo times 22 times price Mo per pound)) divided by (price Cu per pound times 22).
(*) end of hole
Metallurgical recoveries and net smelter returns are not considered.

Drill Hole #	From (m)	To (m)	Length (m)	Copper (%)	Molybdenum (%)	CuEq	Comments

LA10-32	54.00	162.00	108.00	0.81	0.015	0.90	0.2% Cu Cut-off
Including	58.00	98.00	40.00	1.39	0.012	1.46	0.6% Cu Cut-off
And	172.00	183.1*	11.1	0.27	0.011	0.34	0.2% Cu Cut-off

LA10-33	0.00	90.60*	90.60	0.33	NSV	0.33	0.14% Cu cut-off, End in Mineralization 0.26% Cu
Including	2.00	50.00	48.00	0.39	NSV	0.39

LA10-34	52.00	90.00	38.00	0.61	NSV	0.61	0.2% Cu cut-off
Including	56.00	86.00	30.00	0.71	NSV	0.71	0.3% Cu cut-off

LA10-36	24.00	30.00	6.00	2.14	NSV	2.14	0.2% Cu cut-off
Including	26.00	28.00	2.00	5.88	NSV	5.88
And	36.00	130.00*	94.00	0.38	0.016	0.48	0.2% Cu cut-off, End in Mineralization 0.30% Cu

LA10-37	48.00	362.00	314.00	0.21	0.012	0.28	No Cu cut-off
Including	222.00	344.00	122.00	0.23	0.017	0.33
Including	280.00	344.00	64.00	0.25	0.021	0.38

LA10-38	30.00	220.00	190.00	0.28	0.011	0.35	0.14% Cu cut-off
Including	118.00	178.00	60.00	0.33	0.016	0.43
Including	150.00	178.00	28.00	0.39	0.018	0.50

Table notes:

All holes drilled vertically and all intervals are core lengths; Cu equivalent in per cent calculated using $2.50 (U.S.) per pound copper and $15 (U.S.) per pound molybdenum, and the following formula: ((percentage Cu times 22 times price Cu per pound) plus (percentage Mo times 22 times price Mo per pound)) divided by (price Cu per pound times 22).
(*) end of hole
Metallurgical recoveries and net smelter returns are not considered.

TINGO ESTE RECONNAISSANCE MAPPING AND ROCK SAMPLING RESULTS:

Recent reconnaissance mapping and rock sampling activities have resulted in the discovery of a 200-by-600 metre copper-molybdenum bearing alteration zone in the Suitojasa area of the Tingo East 2 property in southern Peru.

The Tingo East 2 property marks the east-central portion of the Tingo East project that comprises 4 concessions totalling 3700 hectares located 295 km south of Lima. The Tingo East project is located within a belt of occurrences called "Porphyry Copper Cretaceous strip of southern Peru" –Puquio sector. This belt also hosts the Lara copper-molybdenum property (where Redzone recently drilled 0.81% copper and 0.015% molybdenum over 108 metres – Press Release Feb. 22, 2011) the Anita de Tibillos property of Tinka Resources Ltd., the North Pucacorral, South Pucacorral and Puquio Projects of Teck Resources Limited, as well as the Los Pinos porphyry copper deposit. The new discovery lies in the center portion of the Tingo East 2 block in a previously unexplored area.

A total of 18 rock samples collected over the Suitojasa alteration system returned from 0.15-to 0.94% -copper, 4-to-120 parts per million (“ppm”) molybdenum and 0.6-to-2.3 grams silver per tonne. The mineralization consists of veinlets, disseminations of pyrite and chalcopyrite over a 200-by-600 metre area.

In addition to the Suitojasa area, the reconnaissance program identified two other targets on the Tingo East 2 block that yielded values worthy of additional follow-up.

AZULJAJA AREA

The Azuljaja area is located on the east side of the Quebrada Azuljaja and contains some underground informal workings. A 1.2 metre wide structure returned 2.55% copper and 119 ppm molybdenum. Tailings samples from the informal workings returned up to 3.68% copper and 153 ppm molybdenum.

AGUA SALADA (West side):

The Agua Salada area is located to the west of the main alteration and is characterized by a granodiorite cut by hyaline to milky quartz veins up to 0.4 metre thick with hyaline quartz vugs, fractures with jarosite and some boxworks. A sample from this material returned values of 1.5 ppm silver, 133 ppm lead, 804 ppm copper and 295 ppm molybdenum. Samples collected from two informal excavations returned 0.45% copper and 64 ppm molybdenum over 1.5 metres and 2.86% copper and 19 ppm molybdenum over 3 metres.

CAUTIONARY NOTE:

The potential quantity and grade expressed above is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain that further exploration will result in the target being delineated as a mineral resource.