Tranche 1 of USD5.0 Million Convertible Note Funding Received 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") ASX ANNOUNCEMENT 20 January 2015 Tranche 1 of USD5.0 Million Convertible Note Funding Received Firestone Energy Limited (Company or Firestone) advises that it has received AUD3.13 million in cleared funds being net proceeds after costs of tranche 1 (TR1) of the convertible notes (CNs) financing as announced to the market on 10 November 2014. The TR1 CNs are to be issued to Four Oaks Credit Fund Limited (Four Oaks). This issue forms part of the approval shareholders gave at the Company's AGM held on 28 November 2014. The number of CNs to be issued for TR1 is 475,971,429 with each having a face value of AUD0.007 and convertible into one FSE fully paid ordinary share. Additional relevant terms of the CNs include; Conversion at Four Oak's election; Redemption to be in equivalent US dollars; Coupon interest rate is 6% p.a; PIK interest rate is 6% p.a.; and Maturity date is 30 June 2016. The Company is pleased to have the financial support of Four Oaks to assist in advancing the Company's Waterberg Coal Project Joint Venture. ENDS About Firestone Energy 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). 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 located in Lephalale area, Limpopo Province, South Africa.The first stage of the project is to develop the Smitspan mine which has a substantial measured thermal coal resource and to develop the Vetleegte mine which is a substantial metallurgical coal deposit.Firestone Energy is committed to becoming a 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 Issued Capital 3,549 million ordinary shares Major Shareholders The Waterberg Coal Company Ltd Directors and Officers Non Executive Directors Lee Boyd Officers Mr Stephen Miller CEO and Executive Director Ms Amanda Matthee CFO Mr Lee Boyd Company Secretary Contact Firestone Energy Limited ABN 71 058 436 794 Level 2, 1 Walker Avenue West Perth, Western Australia 6005 Australia Tel: +61 (08) 9485 0888 Fax:+61(08) 9485 0077 Web: www.firestoneenergy.com.au 20 Janurary 2015 Johannesburg Sponsor and Corporate Advisor River Group Date: 20/01/2015 10:54:00 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.