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FSE - Firestone Energy Limited - Coal off-take agreement and withdrawal of cautionary announcement FIRESTONE ENERGY LIMITED (Incorporated in Australia) (Registration number ABN 058 436 794) Share code on the JSE Limited: FSE Share code on the ASX: FSE ISIN: AU000000FSE6 (SA company registration number 2008/023973/10) ("FSE" or "the Company") COAL OFF-TAKE AGREEMENT AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT Firestone Energy Limited, "Firestone" (ASX/JSE: FSE), wishes to announce that it has received notification from its Joint Venture partner, Sekoko Resources, that a Memorandum Of Understanding "MOU" was signed last Friday, 28th January 2011, between Eskom Limited and Sekoko Coal in Johannesburg. The parties have formally agreed on a Coal Off-take Agreement whereby the FSE/Sekoko Joint Venture`s farms, which are all located within the Waterberg coal region, will supply coal product to the nearby Eskom state owned coal power station, called Matimba, which is 20km from the Smitspan open pit. The first term of the supply contract is for 6 years with first delivery by April 2012. An extension for an additional 15 year period to the year 2032 is being negotiated, in good faith, and will form part of the same MOU when the boards of both companies have finalised certain details. The specifics of this 21 year supply contract will be submitted when a final written copy is received by the Firestone board. Withdrawal of Cautionary Announcement With reference to the cautionary announcement published on Friday, 28 January, and on Monday, 31 January, shareholders are advised that caution is no longer required to be exercised when dealing in the Company`s securities. The Company has therefore requested the JSE to lift the trade halt on its securities, effective with the commencement of trade today. Enquiries: Firestone Energy Limited +61 8 9287 4600. David J Perkins Chairman Jerry Monzu Company Secretary Johannesburg 2 February 2011 Sponsor and Corporate Advisor River Group Date: 02/02/2011 07:05:16 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.
