Firestone and The Waterberg Coal Company Limited Group Financing 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') 16 March 2015 The Waterberg Coal Company Limited - Group Financing Firestone Energy Limited (Company or Firestone) advises that it has received advice from its parent company and financier, The Waterberg Coal Company Limited (WCC), of its having submitted to ASX an announcement in the attached form. As a consequence, Firestone has also requested a trading halt for its securities from market pre- opening Tuesday 17 March 2015 until the earlier of commencement of trading on Thursday 19 March 2015 or when a relevant announcement regarding the Group's financing update is released by WCC to the market. 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 ASX RELEASE 16 March 2015 The Waterberg Coal Company Limited - Group Financing As previously announced, the Standard Bank of South Africa (SBSA) Convertible Secured Facility (Facility) entered into between The Waterberg Coal Company Limited (Company or Group) and SBSA on 26 March 2013 had been extended from its maturity date of 9 October 2014 on an on-demand basis by mutual agreement. The Company has now received advice from SBSA in its capacity as facility and security agent for the Facility, seeking repayment of the outstanding principal and accrued interest in the amount of approximately A$43 million by 9 April 2015. The Company advises that it has been, and still is, in discussions with certain banks and funding agencies with respect to the funding required to retire the Group's indebtedness (which includes the Facility) and also to provide the capital required to develop the Export Project (which forms part of the broader Waterberg Coal Project (WCP)) and for general working capital. To this end the lead manager of the proposed banking syndicate, has commissioned an international mineral consultancy as its independent technical expert to produce a due diligence report for the purposes of credit committee approval and project funding. As part of the funding requirements for the Export Project, the WCP Partners have now reached agreement in principle with an international power utility for that party to be the sole "off taker" of the export quality product accruing from the development. In principle commercial terms, product qualities and specifications have been agreed. As at today, the parties have commenced drafting a legally binding off take agreement. An off take agreement is a condition precedent for the drawdown of any funding to be provided by the project financiers. Furthermore, the Waterberg Coal Project Partners have also reached an agreement in principle with an international mining and EPC contractor to contribute funding for the Group's working capital requirements. Subject to completion of satisfactory funding arrangements as contemplated above, the Export Project is scheduled to commence production of export quality thermal coal during the 3rd quarter of 2016. The Company has requested a trading halt for its securities from market pre-opening Tuesday 17 March 2015 until the earlier of commencement of trading on Thursday 19 March 2015 or when a relevant announcement regarding the Group's financing update is released to the market. Stephen Miller Executive Director and CEO The Waterberg Coal Company Limited Corporate Details ABN 64 065 480 453 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 Contact: Mr Stephen Miller Executive Director/CEO Or Investor relations in South Africa: Lawrie Mackintosh E-mail: info@waterbergcoal.com.au Directors: Dr Mathews Phosa (Chairman) Stephen Miller (Executive Director and CEO) Lee Boyd (Director and Company Secretary) Johannesburg 17 March 2015 Sponsor River Group Date: 17/03/2015 09:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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