Eskom MOU Update 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") About Firestone Energy Firestone Energy Limited is an independent, Australian exploration and development company listed on the 28 November 2012 Australian Stock Exchange Ltd (ASX) and the Johannesburg Stock Exchange (JSE). Firestone Energy has entered into a Joint Venture with Sekoko Resources (Pty) Ltd ESKOM MOU UPDATE through which Firestone Energy has acquired the right to 60% participation interests in the Waterberg Coal Project located in Lephalale area, Limpopo Province, Firestone Energy Limited (ASX/JSE: FSE) (the “Company” or “FSE”) is pleased South Africa. to announce that it has been advised by Sekoko Resources, its joint-venture partner in the Waterberg Coal Project, that Eskom and Sekoko Resources have The first stage of the project is to develop the agreed that the final Bankable Feasibility Study “BFS” is to be completed by 31 Smitspan mine which has a substantial March 2013. measured thermal coal resource and to develop the Vetleegte mine which is a This amended completion date for the final BFS makes allowance for additional substantial metallurgical coal deposit. drilling and technical components required to support the BFS. Firestone Energy is committed to becoming a The BFS is a necessary condition of the amended MOU with Eskom to provide 10 profitable independent coal and energy million tons per annum of thermal coal for 30 years. producer at its projects in South Africa, The technical components of the Feasibility Study will be provided to Eskom in thereby making a substantial contribution to December. Derivative specialist studies, which are currently underway, are the social and economic development of the expected to be completed during first quarter, 2013. Lephalale area and South Africa. Corporate Details The Chairman of FSE commented: “The scale of the anticipated relationship ASX: FSE between Firestone and Eskom has evolved over the past 12 months as more JSE: FSE information about our thermal coal resources and Eskom’s requirements have has come to light. We are working cooperatively to react to these changed Issued Capital: circumstances and have agreed to revise earlier studies. This does not alter the 3,114 million ordinary shares previously announced expectation that production will commence in 2014” Major Shareholders: Sekoko Resources (Pty) Ltd Linc Energy Ltd BBY Nominees Pty Ltd Bell Potter Nominees Ltd Yours sincerely, Directors and Officers Non Executive Directors: Mr Tim Tebeila (Chairman) David Perkins (Deputy Chairman) Dr Pius Kasolo David Knox Ben Mphahlele Chief Executive Officer Kobus Terblanche www.firestoneenergy.com.au Tel: Australia (+61 08 9287 4600) Officers: Mr David Knox CEO South Africa (+27 11 706 3548) Ms Amanda Matthee CFO Mr Jerry Monzu Company Secretary About Sekoko Resources Sekoko Resources (Pty) Ltd is a South African-based black-owned energy and minerals Contact: company developing the coal, magnetite iron ore and PGMs Projects in the Limpopo Suite B9, 431 Roberts Road Subiaco, Western Australia 6008 Province of South Africa. This includes a significant exploration program and development Tel: +61 (08) 9287 4600 of the Waterberg Coal Joint Venture Project based on significant Coal Zone Resources. Web: www.firestoneenergy.com.au 28 November 2012 Johannesburg Sponsor River Group Date: 28/11/2012 08:34:00 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.