Paarl Waste Water Treatment Plant Agreement 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 FSE01 – ISIN: AU00000FSE02 (SA company registration number 2008/023973/10) ("FSE" or "the Company") ASX Release 3 August 2015 Paarl Waste Water Treatment Plant Agreement FIRESTON ENERGY LIMITED ABN 71 058 436 794 The Board of Firestone Energy Limited (Company) is pleased to advise that the Waterberg Coal Project Joint Venture Partners, Registered office: through Sekoko Coal Pty Ltd (Sekoko), have now entered into an Level 2, 1 Walker Avenue agreement with the Lephalale Municipal Council (LMC) to take West Perth, Western over the management and operation of the Paarl Waste Water Australia 6005 Treatment Facility (the Facility) for the purposes of supplying Australia water to the Waterberg Coal Projects (WCP). Tel: +61 8 9485 0888 In its September 2014 Quarterly Activities Report the Company Fax: +61 8 9485 0077 advised that the WCP joint venture partners had engaged with LMC in respect of a proposal for taking over the management and South African office: operation responsibility for the Facility so as to ensure the long Level 1, The Place, term availability of treated water for utilisation in the proposed 1 Sandton Dr project development and operations. Sandton, 2146 South Africa The agreement entitles, but does not oblige, Sekoko, on behalf of the WCP, to access treated water for 30 years with an option to Tel: +27 10 594 2240 renew the agreement for a further term. Fax: +27 10 594 2253 The Facility has a treatment capacity of 10 million litres per day, or Contact: 3.64 million cubic metres per annum and will provide the WCP Mr Stephen Miller with sufficient water not only for its proposed Export Project Managing Director development, but also Stage 1 of its proposed IPP development, which is currently under technical and economic assessment. Or Securing this water agreement is a very significant and necessary Investor relations step towards the development of the WCP which the joint venture in South Africa: partners are targeting a project start up for the Export Project Lawrie Mackintosh towards the end of Q4 of 2015. E-mail: Stephen Miller info@waterbergcoal.net Managing Director Directors and Officers: Firestone Energy Limited Non-Executive Directors: Dr Mathews Phosa 3 August 2015 (Chairman) Johannesburg Edwin Leith Boyd Sponsor River Group Officers: Mr Stephen Miller Managing Director Ms Amanda Matthee CFO Mr Edwin Leith Boyd Company Secretary ASX / JSE Symbol:FSE Date: 03/08/2015 09:39:00 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.