Significant Advance of the Financial Restructure 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") 3 September 2012 Significant Advance of the Financial Restructure On 25 July 2012 the Board of Firestone Energy Limited (ASX/JSE: FSE) (the Company or FSE) announced that an Investment Agreement with Ariona Company SA and the Company had been executed. Under the Investment Agreement, Ariona will provide funding to the Company for up to A$40.7 million through a new convertible note facility. The Company is pleased to announce that it has been advised by Ariona that it has completed technical, legal and financial due diligence to its satisfaction. The new convertible note facility is still subject to other conditions precedent, with the most significant being: 1) Obtaining all necessary regulatory approvals in Australia and South Africa; and 2) Obtaining Firestone shareholder approval to the issue and for the conversion of the new convertible notes to be issued to Ariona. The Company expects to call a Shareholders meeting to approve the transaction in the near future. Yours sincerely, Mr Tim Tebeila (Chairman) Dr Pius Kasolo David Knox Chief Executive Officer www.firestoneenergy.com.au Tel: Australia (+61 08 9287 4600) South Africa (+27 11 706 3548) About Firestone Energy Firestone Energy Limited is an independent, Australian exploration and development company listed on the Australian Stock Exchange Ltd (ASX) and the JSE LIMITED (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 Ms Amanda Matthee CFO 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 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. 3 SEPTEMBER SPONSOR RIVER GROUP Date: 03/09/2012 09:00:00 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.