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FSE - Firestone Energy Limited - Cornerstone Investor 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") CORNERSTONE INVESTOR The Board of Firestone Energy Limited (ASX/JSE: FSE) ("Firestone" or the "Company") is pleased to advise shareholders that the Firestone and Sekoko joint venture (JV) has received a formal offer from The Tata Power Company Ltd (Tata) to invest in the JV. If Firestone accepts the offer and if all of the conditions precedent are satisfied, the ownership interests of the JV will be adjusted so that Tata will hold 30% of the Project. The proposed investment offer is based on 100% of the JV`s Waterberg Coal Project being valued at ZAR1,045 million (approximately AUD 130 million). The highly conditional offer proposes that Tata enters into a new joint-venture arrangement with Firestone and Sekoko to develop the Waterberg Coal Project and envisages acquiring a 30% interest in the JV in two stages, being: * an interim funding stage during which Tata will provide debt funding to the Waterberg Coal Project that will be converted into equity upon completion of the final stage; and * a final funding stage during which Tata will subscribe for shares in the JV company. David Knox, the Chief Executive Officer of Firestone said "The Board is very pleased to have received this formal offer for a substantial portion of the Waterberg Coal Project from such a highly respected multinational power company. The Firestone Board is assessing the offer to ensure that it fully reflects the value of this significant asset. The receipt of such an offer vindicates the Board`s belief in the Waterberg Coal Project and adds confidence for the future." The Board is reviewing the offer and will communicate its findings and proposed further actions to shareholders in a future announcement. Yours sincerely, David Knox Chief Executive Officer www.firestoneenergy.com.au About Sekoko Resources Sekoko Resources (Pty) Ltd is a South African-based black-owned energy and minerals company developing the coal, magnetite iron ore and PGMs Projects in the Limpopo Province of South Africa. This includes a significant exploration program and development of the Waterberg Coal Joint Venture Project based on significant Coal Zone Resources. About Firestone Energy Firestone Energy Limited is an independent, Australian exploration and development company listed on the Australian Stock Exchange Ltd (ASX) and the Johannesburg Stock Exchange (JSE). Firestone Energy has entered into a Joint Venture with Sekoko Resources (Pty) Ltd through which Firestone Energy has acquired the right to 60% participation interests in the Waterberg Coal Project located in Lephalale area, Limpopo Province, South Africa. The first stage of the project is to develop the Smitspan mine which has a substantial measured thermal coal resource and to develop the Vetleegte mine which is a substantial metallurgical coal deposit. Firestone Energy is committed to becoming a profitable independent coal and energy producer at its projects in South Africa, thereby making a substantial contribution to the social and economic development of the Lephalale area and South Africa. Corporate Details ASX: FSE JSE: FSE Issued Capital: 3,114 million ordinary shares Major Shareholders: Sekoko Resources (Pty) Ltd Linc Energy Ltd BBY Nominees Pty Ltd Bell Potter Nominees Ltd Directors and Officers Non Executive Directors: Mr Tim Tebeila (Chairman) David Perkins (Deputy Chairman) Dr Pius Kasolo Ben Mphahlele Kobus Terblanche Officers: Mr David Knox CEO Mr Jerry Monzu Company Secretary Contact: Suite B9, 431 Roberts Road Subiaco, Western Australia 6008 Tel: +61 (08) 9287 4600 Web: www.firestoneenergy.com.au 07 March 2012 Pretoria Sponsor River Group Date: 07/03/2012 08:32:19 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.
