DISCUSSION DRAFT 10 November 2014 ASX Release 10 November 2014 FIRESTONE RAISES USD5,000,000 BY CONVERTIBLE NOTES ISSUE

Firestone Energy Limited (Firestone or the Company) advises that it has signed a term sheet with Four Oaks Credit Fund Limited for the provision of USD5.0 million in new funding by way of the issue of Convertible Notes (CN), each with a current face value of ZAR0.07 (seven South African cents).
Completion of the transaction is subject to execution of formal documentation and completion of due diligence by Four Oaks Credit Fund Limited.
The funds are proposed to be drawn down over two tranches comprising USD2.7 million and USD2.3 million respectively. The Tranche 1 CN will be issued pursuant to the Company's current 15% capacity under ASX Listing Rule 7.1 with Tranche 2 to be issued subsequent to shareholder approval at the Company's AGM to be
held on 28 November 2014.
Funds raised are to be used for advancing Firestone's Waterberg Coal Project Joint Venture located in the Waterberg district of Limpopo Province, South Africa and for other working capital purposes.
The salient terms of the issue of the Convertible Notes are as follows:
1. Principal amount is USD5,000,000;
2. Drawing over 2 Tranches, as above;
3. Face value of each note is ZAR0.07;
4. Redemption to be in equivalent USD;
5. Coupon interest rate is 6% p.a.;
6. PIK interest rate is 6% p.a.; and
7. Maturity date is 30 November 2016.
The face value of each note represents a 28% premium to the prior 20 day VWAP
of Firestone's securities on the ASX.
The Company is pleased to have the support of Four Oaks Credit Fund Limited to
enable it to progress the Company's Waterberg Coal Project Joint Venture.
Shareholders are advised to continue to exercise caution as discussions relating to further funding are ongoing.

Stephen Miller Managing Director FIRESTONE ENERGY LIMITED ABN 71 058 436 794

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 Managing Director Or

Investor relations

in South Africa: Bruce Tinney
+27 (83) 408 3028

E-mail:

info@waterbergcoal.net

Corporate Details:

Major Shareholders:
The Waterberg Coal Company Ltd

Directors and Officers: Non Executive Directors:

Dr Mathews Phosa (Chairman) George Oupa Magashula Edwin Leith Boyd

Officers:

Mr Stephen Miller Managing Director
Ms Amanda Matthee CFO
Mr Edwin Leith Boyd Company
Secretary

ASX / JSE Symbol: FSE

Web: www.firestoneenergy.com.au

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