Termination of Restated Investment Agreement FIRESTONE ENERGY LIMITED (Incorporated in Australia) (Registration number ABN 058 436 794) Share code on the JSE Limited: FSE About Firestone Energy Share code on the ASX: FSE ISIN: AU000000FSE6 Firestone Energy Limited is an (SA company registration number 2008/023973/10) ("FSE" or "the Company") independent, Australian exploration and development company listed on the Australian Stock Exchange Ltd (ASX) and the Johannesburg Stock Exchange (JSE). Termination of Restated Investment Agreement 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 Firestone Energy Limited (ASX/JSE:FSE) (“Firestone” or the located in Lephalale area, Limpopo Province, “Company”) had previously announced that it was in negotiations South Africa. regarding setting a revised date for second stage completion to occur under the terms of the Restated Investment Agreement with Ariona SA, The first stage of the project is to develop the Smitspan mine which has a substantial BBY Nominees Pty Ltd and Jaguar Funds Management Limited. measured thermal coal resource and to develop the Vetleegte mine which is a The negotiations failed to resolve a revised date for second stage substantial metallurgical coal deposit. completion, which had been expected to occur on 28 March 2013. As a result, the Restated Investment Agreement has terminated. Firestone Energy is committed to becoming a profitable independent coal and energy The Company is nevertheless continuing discussions with the parties producer at its projects in South Africa, concerning alternative arrangements as well as considering alternative thereby making a substantial contribution to funding from other sources. The Company expects to be able to update the social and economic development of the the market on the outcome of those negotiations by mid April 2013 and Lephalale area and South Africa. has requested to remain in voluntary suspension until that time. The Corporate Details Company will update the market once those negotiations are concluded. ASX: FSE JSE: FSE Firestone retains the use of the Share Purchase Agreement signed on Issued Capital: 26 April 2012 between the Company and BBY Nominees Pty Ltd and 3,549 million ordinary shares this A$2.2million facility may be drawn down upon to meet the Major Shareholders: Company’s short term funding needs. Sekoko Resources (Pty) Ltd Linc Energy Ltd Yours sincerely, BBY Nominees Pty Ltd Bell Potter Nominees Ltd Directors and Officers Non Executive Directors: David Knox Mr Tim Tebeila (Chairman) Chief Executive Officer David Perkins (Deputy Chairman) www.firestoneenergy.com.au Dr Pius Kasolo Ben Mphahlele Tel: Australia (+61 08 9287 4600) Kobus Terblanche South Africa (+27 11 706 3548) Oren Zohar Jack James 2 April 2013 Officers: Johannesburg Mr David Knox CEO Ms Amanda Matthee CFO Sponsor Mr Jerry Monzu Company Secretary River Group Contact: Suite B9, 431 Roberts Road Subiaco, Western Australia 6008 Tel: +61 (08) 9287 4600 Date: 02/04/2013 08:55:00 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.