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FSE - Firestone Energy Limited - Cancellation of Nonbinding MOU (with Jindal Steel and Power Limited) 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") Cancellation of Nonbinding MOU (with Jindal Steel and Power Limited) On 4 February 2011 Firestone Energy (Firestone) (ASX/JSE: FSE) announced that the shareholders of Sekoko Resources had approved the transfer of the properties referred to as the "T3 Properties" to the Firestone/Sekoko Joint Venture. In that announcement Firestone also referenced a related transaction pursuant to which it and Sekoko had entered into a Nonbinding Memorandum of Understanding with Jindal Steel and Power Limited. Proceeding with the contemplated transaction would have meant an adjustment of the ownership interest in the T3 Properties. In light of subsequent developments the Board of Firestone has determined that it is in the Company`s best interests to concentrate its efforts on working with its established joint venture with Sekoko Resources, rather than have Jindal come in to the Joint Venture. As a result, Firestone has confirmed that it will not be proceeding to negotiate a definitive agreement pursuant to the Nonbinding Memorandum of Understanding. Chairman David Perkins said "The primary focus of Firestone will continue to be bringing the Smitspan project into production to supply coal offtake to Eskom and developing the metallurgical coal deposit which we have identified on our southern farms. It is anticipated the T3 properties will provide for a 3rd phase of development for the Firestone/Sekoko Joint Venture." Yours sincerely Firestone Energy Limited David Perkins Chairman www.firestoneenergy.com About Firestone Energy Firestone Energy is an independent Australian exploration company focused on developing coal projects in South Africa. The company is currently exploring the richly endowed Waterberg coal field in the Limpopo Province of South Africa. The Company is committed to value-added growth through becoming an independent coal and energy producer at its projects in South Africa. The Company has entered into three joint ventures with Sekoko Resources, a South African black economic empowerment company (BEE) and Sekoko has two directors on the Board of Firestone Energy. Corporate Details ASX: FSE JSE: FSE Issued Capital: 2,793 million ordinary shares Major Shareholders: Sekoko Resources (Pty) Ltd BBY Nominees Ltd Colbern Fiduciary Nominees Ltd Bell Potter Nominees Ltd Directors and Officers Non Executive Directors: David Perkins (Chairman) Dr Pius Kasolo Colin McIntyre Executive Directors: Sizwe Nkosi Company Secretary: Jerry Monzu Contact: Suite B9, 431 Roberts Road Subiaco, Western Australia 6008 Tel: +61 (0)8 9287 4600 Web: www.firestoneenergy.com.au Pretoria 13 July 2011 Sponsor River Group Date: 13/07/2011 08:28:13 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.
