Background to Voluntary Suspension Announcement 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') 20 March 2015 The Waterberg Coal Company Limited Background to Voluntary Suspension Announcement 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 (Announcement) in the attached form. As Firestone also has a voluntary suspension of trading for its securities in place, and currently being reliant on WCC for funding of its continuing operations, the Announcement has the same relevance for the Company as it does for WCC. 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 THE WATEERBERG COAL COMPANY LIMITED 20 March 2015 Background to Voluntary Suspension As announced on 16 March 2015, The Waterberg Coal Company Limited (Company) entered into a trading halt whilst it finalises negotiations with certain banks and funding agencies to effect the funding required to retire its existing facility with the Standard Bank of South Africa as well as all other indebtedness of the Company and its controlled entities. The funding arrangements are also expected to provide the Company with funding for development of the Export Project and for the Company's general working capital requirements Under the ASX Listing Rules, a trading halt may continue for only two trading days. As such, the Company today requested that ASX and JSE impose a voluntary suspension of trading in its securities while these negotiations are being finalised to ensure that no trading in its shares occurs on an uninformed basis. The Company's suspension will continue until an announcement is made regarding the availability of the proposed funding. As previously announced to the market on 16 March 2015: * in February 2015 the lead manager of the proposed banking syndicate commissioned a reputable, international mineral consultancy to be its independent technical expert for the production of a due diligence report for the syndicate's project funding approvals process; * an off take agreement is a condition precedent for the drawdown of any funding to be provided by the project financiers; * the Waterberg Coal Project partners have reached agreement in principle with a large international power generation utility to be the sole "off taker" of the export quality product accruing from the Export Project. The drafting of a legally binding "off-take" agreement is in process; * the Waterberg Coal Project partners have reached agreement in principle with an international mining and EPC contractor to contribute funding for the Group's working capital requirements; and * 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. 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 20 March 2015 Sponsor River Group Date: 20/03/2015 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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