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FSE - Firestone Energy Limited - Feasibility Study On Firestone`s Waterberg Coal

Release Date: 16/03/2010 14:21
Code(s): FSE
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FSE - Firestone Energy Limited - Feasibility Study On Firestone`s Waterberg Coal Project On Track 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") 16 March 2010 FEASIBILITY STUDY ON FIRESTONE`S WATERBERG COAL PROJECT ON TRACK Firestone Energy Limited (ASX/JSE: FSE) today released results for the half-year ended 31 December 2009. In line with expectations for a development company, the company reported a net loss for the six months to 31 December 2009 of A$1,532,146. This is a basic loss per share of A$0.08. The Board is pleased to report that the Pre-feasibility Study on Firestone`s flagship Waterberg Project was completed and approved in January 2010 and the Bankable Feasibility Study is expected to be completed in the third quarter of 2010. During the half year, the group raised $25 million to complete the Bankable Feasibility Study. Other highlights of the period were: - surface rights acquired at Smitspan. - shareholder approval of the acquisition of interests in four additional properties - third agreement signed to acquire a further two properties from Sekoko in the Waterberg area, bringing the total number of farms in the JV to eight - Tim Tebeila, Executive Chairman of Sekoko Resources, appointed as Deputy Chairman of Firestone Energy. - continued participation in the Eskom Request for Proposal (RFP) process. - the company remains cash positive with 50% of the convertible note still intact. "Work is now proceeding at an accelerated pace to complete a more detailed Bankable Feasibility Study," says John Wallington, Firestone managing director. "Environmental baseline studies have been completed and social and labour plans are underway. "A particularly encouraging feature of the Pre-feasibility Study has been the increase in the SAMREC and JORC-compliant measured resource at Smitspan, rising to 97 million tonnes, thus improving our confidence in the project. The current focus of exploration is on the Smitspan farm, which supports a mine layout covering 507ha, extending for 3.5km (east to west) and 1.8km (north to south). This area contains sufficient coal to produce 85 million tonnes of domestic coal for local power stations and 20 million tonnes of high grade coal. The latter is suitable for both the metallurgical and the thermal export market. Note to editors: Firestone Energy Limited is a Perth based exploration and development company listed on the Australian Stock Exchange (ASX: FSE) and the JSE Limited (JSE: FSE). Firestone`s strategy is to maximise shareholder value by sourcing and developing viable mineral projects, with a particular focus on coal prospects in the highly prospective Waterberg coalfield in South Africa. Firestone has joint ventures with broad-based Black Economic Empowerment (BEE) mining and energy company Sekoko Coal, a subsidiary of Sekoko Resources, over eight farms located in the Waterberg coalfield. This coalfield 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, become depleted over the next 20 to 30 years. Firestone is on track to commence mining operations by the end of 2010, with ramp-up to be determined by off-take agreements. Results from the exploration work completed to date and the Pre-feasibility Study of the Phase 1 area indicate the potential for Firestone Energy to produce 5.5 million tonnes per annum from 2011. Background on the Waterberg coalfield: - Contains approximately 50% of South Africa`s remaining coal resources - Thick, near surface coal seams - Located in the growth area to supply SA`s electricity utility Eskom - 4,800MW Medupi power station is currently under construction and a further 4,000MW power station is on the horizon. For further information go to the Firestone Energy (www.firestone.com.au) and Sekoko Resources (www.sekoko.co.za) websites. Queries: Charmane Russell Russell and Associates + 27 11 880 3924 + 27 82 372 5816 Charmane@rair.co.za Sponsor and Corporate Advisor River Group Date: 16/03/2010 14:21:01 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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