Debt Refinancing, Corporate Restructure and Proposed Equity Financing Arrangements 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 Release 17 SEPTEMBER 2015 FIRESTON ENERGY LIMITED ABN 71 058 436 794 Registered office: Debt Refinancing, Corporate Restructure Level 2, 1 Walker Avenue and West Perth, Western Proposed Equity Financing Arrangements Australia 6005 Australia The Board of Firestone Energy Limited (FSE or the Company) is Tel: +61 8 9485 0888 pleased to advise that it and The Waterberg Coal Company Fax: +61 8 9485 0077 Limited (WCC) (collectively the Waterberg Coal Group (WCG)) have entered into a non-binding term sheet with South Africa’s South African office: largest gold producing company, Sibanye Gold Limited (Sibanye) Level 1, The Place, whereby, inter alia, Sibanye, have agreed terms with Standard 1 Sandton Dr Bank of South Africa Limited (SBSA) (as Facility agent) to acquire Sandton, 2146 the existing WCC funding facility held by SBSA (the Facility). South Africa It is proposed, subject to completion of due diligence and formal Tel: +27 10 594 2240 transaction documentation, the Facility acquired by Sibanye will, Fax: +27 10 594 2253 upon the completion of a corporate restructure; and subject to the various regulatory requirements and court, regulatory & shareholder approvals; be converted to equity in the enlarged Contact: company. Mr Stephen Miller Managing Director The proposed restructuring will see FSE and WCC merge through a proposed scheme of arrangement in accordance with the Or provisions of the Australian Corporations Act (Cth) 2001. The scheme of arrangement will be subject to formal documentation, E-mail: shareholder, regulatory and court approvals. info@waterbergcoal.net In addition to the acquisition of the Facility and the conversion of same into equity in the enlarged group, Sibanye will: Directors and Officers: Contemporaneous with the acquisition by Sibanye of the Non-Executive Directors: Facility and the execution by the Parties of the transaction Dr Mathews Phosa agreements and the provision by WCG Parties of the (Chairman) security, provide AU$8.5 million as additional working Edwin Leith Boyd capital to WCG. Officers: Subject to shareholder approval and other Corporations Mr Stephen Miller Managing Act (Cth) 2001 and ASX Listing Rules requirements, Director subscribe for shares based on a conversion price of Ms Amanda Matthee CFO AU$0.0154 per ordinary share in the capital of the Mr Edwin Leith Boyd consolidated WCG following the Corporate Consolidation Company Secretary (“the Sibanye Loan”). The consolidated WCG will issue the shares which are to be offset against the loan principal ASX / JSE Symbol: repayable by the consolidated WCG. FSE Enter into a coal off-take agreement with WCG. This agreement will specify the term, quantity, quality, target 1 price and delivery of coal which will be produced and sold to Sibanye (or a nominated representative) for the purpose of Sibanye’s power requirements as part of the IPP Platform (to support Sibanye’s IPP/s). The Parties undertake that the terms of the off-take agreement will be such that it conforms to international standard IPP debt financing requirements. These coal sales will be in addition to the proposed 4 million tonnes of high quality export thermal coal product that WCG anticipate producing for the export market. With respect to the proposed export project, WCG are finessing the optimisation studies which accrue from the definitive feasibility study (DFS) competed during the course of 2014 and 2015. WCG are now working on funding arrangements for the proposed development. It is the view of WCG that the suite of transactions now proposed and outlined above will greatly enhance the proposed export project development. The proposed suite of transactions (with Sibanye) will be subject to due diligence and the completion of the formal transaction documentation. It is anticipated that both of which will be completed by mid November 2015. It is anticipated that the current voluntary suspension of the Company’s securities will remain until the completion of the due diligence and transaction documentation referred to above by Sibanye. The Company will update the market as and when the various conditions precedents are satisfied. It should be noted that the matters referred to in this announcement are subject to documentation and a number of regulatory, court and shareholder approvals. Accordingly at this stage there is no certainty that the transactions contemplated will eventuate. Stephen Miller Managing Director Firestone Energy Limited 17 September 2015 Johannesburg Sponsor River Group Date: 17/09/2015 08:29:00 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.