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FSE - Firestone Energy - Documents Executed For $25 Million Capital Raising To Fund Growth Plans 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") DOCUMENTS EXECUTED FOR $25 MILLION CAPITAL RAISING TO FUND GROWTH PLANS Firestone Energy Limited (ASX:FSE / JSE:FSE) ("Firestone" or "the Company") is pleased to announce that it has now executed binding documentation for the fully underwritten A$25m capital raising involving the issue of Convertible Notes with a conversion price of A$0,04 per share ("Convertible Notes") announced on 11 September 2009. Use of proceeds As announced on 11 September 2009, Firestone intends to allocate the net proceeds from them the issue of the Convertible Notes towards: - Meeting all financial commitments due to its Joint Venture partner, Sekoko Coal (Pty) Limited per the schedule of Transaction payments announced to the market on 11 September 2009. - The Bankable Feasibility Study for a large scale 18Mt per annum coal mining operation at the Company`s Waterberg coal project in South Africa which cost are anticipated to occur over the next 12 months. - Additional working capital requirements. The issue of the A$25 million of Convertible Notes is at Firestone`s election and is underwritten, and to be managed by BBY Ltd. The Convertible Notes are to be issued to professional and sophisticated investors within the meaning of section 708 of the Corporations Act. An initial issue will be completed without shareholder approval under Firestone`s existing 15% capacity under ASX Listing Rule 7.1. Firestone intends to seek shareholder approval under ASX Listing Rule 7.4 for the initial issues and shareholder approval for the issue of the balance of the Convertible Notes under ASX Listing Rule 7.1 at its 2009 Annual General Meeting. Key terms of the Convertible Note The following is a summary of the key terms of the Convertible Notes. Issuer Firestone Energy Limited Security Unsecured Issue Price A$500,000 per Convertible Note Interest Rate 10% p.a. payable semi-annually Term 3 years from the date of issue Issue Size Up to A$25 million Conversion Process Holders of Convertible Notes may elect to convert them at any time prior to 2:00pm AWST on the last day of the terms.
Conversion Factor On conversion, each Convertible Note will convert into 12.5million fully paid ordinary shares (at an effective issue
price of A$0,04 per share). The shares will rank equally with the existing fully paid ordinary shares in Firestone
except in respect of the restrictions of transferability noted below. Underwriting Agreement The issue of the Convertible Notes is underwritten by BBY Limited on the terms of an underwriting agreement containing customary terms. These terms include terms permitting the underwriter to terminate the agreement on occurrence of certain termination events. These termination events include market fall events based on a 12% fall in either the S&P/ASX200 Index or S&P/ASX 200 Materials Index. The underwriter may only terminate the underwriting agreement based on the occurrence of a termination event if the event would have a material adverse effect on the offering of the Convertible Notes, the likelihood of the underwriter or its agents incurring any liability, or the tax position of Firestone. About Firestone Firestone Energy Limited is a Perth based Company listed on the Australian Securities Exchange (ASX:FSE) and the Johannesburg Stock Exchange (JSE:FSE). The Company sources and develops viable mineral projects with a particular focus at this time on coal prospects in the Waterberg Coal Field, South Africa. The Company has joint ventures with Sekoko Coal over six farms located in the Waterberg coalfield in the Limpopo Province of South Africa. This coal field is becoming increasingly important as coal reserves in the Witbank, Highveld and /Ermelo coalfields of the Mpumalanga Province, which currently supply the majority of Eskom`s coal power stations, are expected to become depleted over the next 20-30 years. Investors are invited to refer to Firestone`s announcements available on www.firestoneenergy.com.au and the Australian Securities Exchange`s website www.asx.com.au for further information about Firestone. For more information please contact: Garth Higgo Chief Executive Officer +61 (08) 9381-2755 www.firestoneenergy.com.au Pretoria 22 September 2009 Sponsor and Corporate Advisor River Group Date: 22/09/2009 08:23:01 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.
