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FSE - Firestone Energy Limited - Convertible Note Issue and Renewal of

Release Date: 12/05/2009 09:21
Code(s): FSE
Wrap Text

FSE - Firestone Energy Limited - Convertible Note Issue and Renewal of Cautionary Announcement FIRESTONE ENERGY LIMITED (formerly Centralian Minerals Limited) (Registration number: ABN 058 436 794) (SA company registration number: 200/023973/10 Share code on the JSE: FSE Share code on the ASX: FSE ISIN: AU000000FSE6 ("FSE" or "the Company") CONVERTIBLE NOTE ISSUE AND RENEWAL OF CAUTIONARY ANNOUNCEMENT CONVERTIBLE NOTE ISSUE The board of directors of FSE announces that the Company has agreed to issue 500,000 Convertible Notes with a face value of $1.00 each to the provider of recently advanced loan funds (in substitution for the loan). The issue will be made under the Company`s 15% placement capacity, for ongoing working capital requirements. The material terms of the convertible notes will be as follows: (a) Repayment Date - 24 months from 18 March 2009; (b) Interest Rate - 15% p.a. on any unconverted amount of the Notes as at the Repayment Date. If the Notes are converted prior to the Repayment Date, 15% p.a. pro-rata to conversion date with a minimum interest amount of $45,000; (c) Conversion Terms - convertible at the election of the holder at any time. On conversion, the holder will be issued shares at an issue price being the greater of 80% of the 14 day volume weighted average price on ASX for the shares prior to the Conversion Date and 1 cent ($0.01) per share; (d) Prepayment - the Company may repurchase the Notes at any time by paying accrued interest up to the date of repurchase; (e) Security - the Notes will be secured by way of a fixed and floating charge over the assets of the Company; (f) Covenants/Representations - the Company has provided covenants and representations which are considered to be on ordinary commercial terms. It is expected that the convertible notes will be issued in the next seven days. RENEWAL OF CAUTIONARY ANNOUNCEMENT Further to the cautionary announcement dated 30 March 2009 shareholders are advised that negotiations are still in progress which, if successfully concluded may have a material effect on the price of FSE`s securities. Accordingly, shareholders are advised to continue exercising caution when dealing in the company`s securities until a further announcement is made. For further information please refer to the website: www.asx.com, Company share code FSE. Contact details: Tel: +61 (0)8 9381 2755 Garth Higgo (CEO) Pretoria 12 May 2009 Sponsor River Group Tel: +27 834 408 365 Andrew Lianos Date: 12/05/2009 09:21:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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