Firestone Raises USD5,000,000 by Convertible Notes Issue 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") 10 November 2014 FIRESTONE RAISES USD5,000,000 BY CONVERTIBLE NOTES ISSUE Firestone Energy Limited (Firestone or the Company) advises that it has signed a term sheet with Four Oaks Credit Fund Limited for the provision of USD5.0 million in new funding by way of the issue of Convertible Notes (CN), each with a current face value of ZAR0.07 (seven South African cents). Completion of the transaction is subject to execution of formal documentation and completion of due diligence by Four Oaks Credit Fund Limited. The funds are proposed to be drawn down over two tranches comprising USD2.7 million and USD2.3 million respectively. The Tranche 1 CN will be issued pursuant to the Company's current 15% capacity under ASX Listing Rule 7.1 with Tranche 2 to be issued subsequent to shareholder approval at the Company's AGM to be held on 28 November 2014. Funds raised are to be used for advancing Firestone's Waterberg Coal Project Joint Venture located in the Waterberg district of Limpopo Province, South Africa and for other working capital purposes. The salient terms of the issue of the Convertible Notes are as follows: 1.Principal amount is USD5,000,000; 2.Drawing over 2 Tranches, as above; 3.Face value of each note is ZAR0.07; 4.Redemption to be in equivalent USD; 5.Coupon interest rate is 6% p.a.; 6.PIK interest rate is 6% p.a.; and 7.Maturity date is 30 November 2016. The face value of each note represents a 28% premium to the prior 20 day VWAP of Firestone's securities on the ASX. The Company is pleased to have the support of Four Oaks Credit Fund Limited to enable it to progress the Company's Waterberg Coal Project Joint Venture. Shareholders are advised to continue to exercise caution as discussions relating to further funding are ongoing. Stephen Miller Managing Director Corporate Details Registered office: Level 2, 1 Walker Avenue West Perth, Western Australia 6005 Australia Tel:+61 8 9485 0888 Fax: +61 8 9485 0077 South African office: Level 1, The Place, 1 Sandton Dr, Sandton, 2146, South Africa Tel: +27 10 594 2240 Fax: +27 10 594 2253 Contacts: Mr Stephen Miller Managing Director Investor relations in South Africa: Bruce Tinney +27 (83) 408 3028 E-mail: info@waterbergcoal.net Major Shareholder: The Waterberg Coal Company Ltd Directors and Officers: Non Executive Directors: Dr Mathews Phosa (Chairman) George Oupa Magashula Edwin Leith Boyd Officers: Mr Stephen Miller Managing Director Ms Amanda Matthee CFO Mr Edwin Leith Boyd Company Secretary Web: www.firestoneenergy.com.au Johannesburg 10 November 2014 Sponsor River Group Date: 10/11/2014 10:30:00 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.