Bluestone Resources Closes First Tranche of $500,000 Private Placement

VANCOUVER, Aug. 28, 2012 - Bluestone Resources Inc. (the "Company" or "Bluestone") (TSX VENTURE:BSR) today announced that it has closed the first tranche of the private placement of units, announced on August 8, 2012. The Company sold, on a non-brokered, private placement basis, 2,491,500 million units of the Company at a price of $0.18 per unit for gross proceeds of $448,470.

As previously disclosed, each unit consisted of one common share and one common share purchase warrant. Each common share purchase warrant is exercisable into one common share for a period of two (2) years from closing at a price of $0.25 per share, subject to the Company's right to accelerate the exercise of the warrants if the daily volume weighted average trading price of the common shares of the Company on the TSX Venture Exchange is equal to or exceeds $0.50 for a period of 10 consecutive trading days during the term of the warrant, commencing four months after the date the warrants are issued.

All securities issued in the private placement are subject to a four-month hold period from the closing of the private placement expiring on December 28, 2012. The Company intends to use the proceeds of the private placement to advance Bluestone's exploration properties and for general working capital purposes.

In connection with the private placement, the Company has agreed to pay a finder's fee to parties permitted by applicable securities laws to act as finders, equal to 5% cash and 5% finder's warrants of the gross proceeds raised from subscribers introduced to the Company by such finders. Accordingly, the Company will pay finder's fees of $18,405 and 102,800 warrants. Each finder's warrant is exercisable at a price of $0.25 per share for a period of two (2) years from the date of closing of the private placement.

Bluestone expects to complete a second tranche of the private placement with a closing date of September 10, 2012, pending TSXV approval.

Three insiders of the Company participated in the private placement on the same terms as arm's length investors, and shareholdings of those insiders in the Company increased as a result of such participation.


About Bluestone Resources Inc.:

Bluestone Resources Inc. is a Canadian exploration company focused on the discovery and development of economic mineral deposits. Founded in 2004, the Company has assembled one of the most qualified technical teams in worldwide exploration.


On behalf of the Board Bluestone Resources Inc.

Bruce Counts, P. Geoph.
President & CEO



This press release includes "forward-looking information" including statements regarding the private placement that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding future fund raising and capital expenditures are subject to all of the risks and uncertainties normally incident with the raising of capital including, but are not limited to, financing risks and risk of regulatory change. Investors are cautioned that any such statements are not guarantees of future events and that actual events or developments may differ materially from those projected in the forward-looking information. Such forward-looking information represents management's best judgment based on information currently available. The Company does not assume the obligation to update any forward-looking information, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.[/

[i]NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES



Contact

Bluestone Resources Inc.
Bruce Counts, President & CEO
(604) 331-4605
www.bluestoneresources.ca