FIRESTONE'S RESPONSE TO RANGE RIVER'S TAKEOVER 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") About Firestone Energy Firestone Energy Limited is an 18 December 2012 independent, Australian exploration and development company listed on the Australian Stock Exchange Ltd (ASX) and Takeover Offer Announced by Range River Gold Limited the Johannesburg Stock Exchange (JSE). Firestone Energy has entered into a Joint Venture with Sekoko Resources (Pty) Ltd SHAREHOLDERS SHOULD TAKE NO ACTION through which Firestone Energy has acquired the right to 60% participation The Board of Firestone Energy Limited (ASX/JSE: FSE) (the “Company” or interests in the Waterberg Coal Project “Firestone”) advises that on 17 December 2012 Range River Gold Limited (ASX: located in Lephalale area, Limpopo Province, RNG) (“Range River”) announced to the ASX an unsolicited, conditional proposal South Africa. to acquire all of the ordinary shares in Firestone by way of an off market takeover offer (the “Range River Offer”). A formal Bidders Statement has not yet been The first stage of the project is to develop the received from Range River. Smitspan mine which has a substantial measured thermal coal resource and to develop the Vetleegte mine which is a In summary, under the Range River Offer Firestone shareholders will be offered substantial metallurgical coal deposit. one (1) Range River share for every two (2) Firestone shares. Firestone Energy is committed to becoming a The Board is unanimous in its view that Firestone shareholders should take no profitable independent coal and energy action and not make any decision in relation to their shareholding in the producer at its projects in South Africa, Company until the Board has received and has had an opportunity to consider thereby making a substantial contribution to the Range River Offer. Pursuant to the requirements of Australian Corporations the social and economic development of the law, the Range River Offer will be outlined in a Bidder’s Statement to be lodged Lephalale area and South Africa. with the Australian Securities and Investments Commission, released to the ASX Corporate Details and despatched to Firestone shareholders. Following careful consideration of ASX: FSE the Range River Offer, the Board will determine and advise Firestone JSE: FSE shareholders of its recommendation. Issued Capital: 3,114 million ordinary shares The Range River Offer will not open for acceptance until its Bidder’s Statement is despatched to Firestone shareholders and must remain open for at least one month Major Shareholders: Sekoko Resources (Pty) Ltd Linc Energy Ltd BBY Nominees Pty Ltd Bell Potter Nominees Ltd The Board’s focus will be on maximising value for shareholders and the Range River Offer will be considered in that context. The Board will keep shareholders Directors and Officers informed of any further developments and will provide updates to the market as Non Executive Directors: appropriate. The Company has retained Kelly & Co. Lawyers as its legal adviser Mr Tim Tebeila (Chairman) and BBY Limited as its corporate adviser in relation to this matter. David Perkins (Deputy Chairman) Dr Pius Kasolo Ben Mphahlele Yours sincerely, Kobus Terblanche Officers: Mr David Knox CEO Ms Amanda Matthee CFO David Knox Mr Jerry Monzu Company Secretary Chief Executive Officer www.firestoneenergy.com.au Contact: Tel: Australia (+61 08 9287 4600) Suite B9, 431 Roberts Road Subiaco, Western Australia 6008 South Africa (+27 11 706 3548) Tel: +61 (08) 9287 4600 Web: www.firestoneenergy.com.au JOHANNESBURG 18 DECEMBER 2012 SPONSOR AND CORPORATE ADVISER SA RIVER GROUP Date: 18/12/2012 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.