Update on Funding Negotiations 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) About Firestone Energy ("FSE" or "the Company") 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). Update on Funding Negotiations 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, South Africa. “Company”) previously advised shareholders that it had entered into negotiations with third parties with a view to securing funding for the The first stage of the project is to develop the Company. Smitspan mine which has a substantial measured thermal coal resource and to Negotiations are progressing but the Company is not in a position to develop the Vetleegte mine which is a make an announcement on these negotiations at this point in time. The substantial metallurgical coal deposit. Company expects that it will be able to make an announcement on the Firestone Energy is committed to becoming a outcome of negotiations within the next 1- 2 weeks. 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 Yours sincerely, Issued Capital: 3,549 million ordinary shares Major Shareholders: Sekoko Resources (Pty) Ltd Linc Energy Ltd David Knox BBY Nominees Pty Ltd Bell Potter Nominees Ltd Chief Executive Officer www.firestoneenergy.com.au Directors and Officers Tel: Australia (+61 08 9287 4600) Non Executive Directors: South Africa (+27 11 706 3548) Mr Tim Tebeila (Chairman) 2 May 2013 Johannesburg Sponsor River Group David Perkins (Deputy Chairman) Dr Pius Kasolo Ben Mphahlele Kobus Terblanche Oren Zohar Jack James 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 Date: 02/05/2013 08:14:00 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.