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Wed 23 Mar 2011, 9:34 FSE - Firestone Energy Limited - New issue announcement application for
FSE
FSE                                                                             
FSE - Firestone Energy Limited - New issue announcement, application for        
quotation of additional securities and agreement                                
FIRESTONE ENERGY LIMITED                                                        
(Registration number: ABN 058 436 794)                                          
(SA company registration number: 200/023973/10                                  
Share code on the JSE: FSE                                                      
Share code on the ASX: FSE                                                      
ISIN: AU000000FSE6                                                              
("FSE" or "the Company")                                                        
Appendix 3B                                                                     
New issue announcement, application for quotation of additional securities and  
agreement                                                                       
Information or documents not available now must be given to ASX as soon as      
available.  Information and documents given to ASX become ASX`s property and    
may be made public.                                                             
Introduced 1/7/96.  Origin: Appendix 5.  Amended 1/7/98, 1/9/99, 1/7/2000,      
30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.                                     
Name of entity                                                                  
Firestone Energy Limited                                                        
ABN                                                                             
71 058 436 794                                                                  
We (the entity) give ASX the following information.                             
Part 1  All issues                                                              
You must complete the relevant sections (attach sheets if there is not enough   
space).                                                                         
1  +Class of +securities issued or to be       Convertible Notes                
  issued                                                                        

                                                                                
2  Number  of +securities issued or to be      7 X $100,000                     
  issued (if known) or maximum number which                                     
may be issued                                                                 
                                                                                
                                                                                
3  Principal terms of the +securities (eg,                                      
if options, exercise price and expiry       As per amended terms of the       
  date; if partly paid +securities, the       convertible note deed             
  amount outstanding and due dates for        announced to the market on        
  payment; if +convertible securities, the    23 August 2010 the following      
conversion price and dates for              applies to this issue.            
  conversion)                                                                   
                                              7 x $100,000 converts to          
                                              34,146,341 ordinary shares        
(2.05 cps conversion)             
                                                                                
                                              General Terms of the              
                                              Convertible Notes                 

                                              * First repayment date is 22      
                                              March  2014                       
                                              * Notes are unsecured             
* Interest is payable on a        
                                              semi-annual basis at 10% per      
                                              annum                             
                                                                                
Do the +securities rank equally in all      Not until conversion takes        
  respects from the date of allotment with    place.                            
  an existing +class of quoted +securities?                                     
                                                                                
If the additional securities do not rank equally, please state:               
  * the date from which they do                                                 
  * the extent to which they participate for the next dividend, (in the         
  case of a trust, distribution) or interest payment the extent to which        
they do not rank equally, other than in relation to the next dividend,        
  distribution or interest payment                                              
                                                                                
5  Issue price or consideration                  7 x $100,000 notes =           
$700,000                          
                                                                                
6  Purpose of the issue                        Meeting all commitments          
  (If issued as consideration for the         due to its Joint Venture          
acquisition of assets, clearly identify     partner, Sekoko Coal              
  those assets)                               (PTY) Limited and                 
                                              working capital                   
                                              requirements, as                  
announced to Market on            
                                              11 September 2009.                
                                                                                
                                                                                
7   Dates of entering +securities into    22 March 2011                         
   uncertificated holdings or despatch                                          
   of certificates                                                              
                                                                                
Number  +Class                         
                                                                                
8   Number and +class of all              2,627,0 Ordinary                      
   +securities quoted on ASX             28,020  fully paid                     
(including the securities in clause           shares                         
   2 if applicable)                              (FSE)                          
                                                                                
                             Number                 +Class                      
9   Number and +class of all  Unlisted Options       Unlisted Options           
   +securities not quoted                           Exercise     Expiry         
   on ASX (including the     30,000,000  FSEAK      5 cents   30 Nov 12         
   securities in clause 2    110,000,000 FSEAM      6 cents   31 May 13         
if applicable)            96,904,767  FSEAO      6 cents   30 Jun 13         
                             25,875,000 FSEAI       6 cents   30 Jun 14         
                                                                                
                             Unlisted Convertible   Conversion number-          
Notes                  Variable  per Note          
                                                    Repayment dates -           
                             Con Note 1 - 12 FSEAQ  2 October 2012              
                             Con Note 2 - 3         16 November 2012            
FSEAS                  18 December 2012            
                             Con Note 3 - 3         21 January 2013             
                             FSEAU                  23 February 2013            
                             Con Note 4 - 3         23 March 2013               
FSEAY                  30 April 2010               
                             Con Note 5- 3          04 June 2013                
                             FSEAW                  04 June 2013                
                             Con Note 6 - 3  FSEAZ  13 July 2013                
Con Note 7 - 3 FSEAA   8 November 2013             
                             Con Note 8 -  1 x      23 November 2013            
                             ($500k)                22 December 2013            
                                                    24 January 2014             
4 x ($100k)            22 February 2014            
                             Con Note 9 -  9 x      22 March 2014               
                             ($100k)                                            
                             Con Note 13 -  6 x                                 
($100k)                                            
                             Con Note 14 - 6 x                                  
                             ($100k)                                            
                             Con Note 15 - 6 x                                  
($100k)                                            
                             Con Note 16 - 6 x                                  
                             ($100k)                                            
                             Con Note 17 - 9 x                                  
($100k)                                            
                             Con Note 18 - 7x                                   
                             ($100K)                                            
                                                                                

10  Dividend policy (in the   Company may pay dividends to ordinary             
   case of a trust,          shareholders as the Directors resolve.             
   distribution policy) on                                                      
the increased capital                                                        
   (interests)                                                                  
Part 2   Bonus issue or pro rata issue                                          
11  Is security holder approval required?           N/A                         

                                                                                
12  Is the issue renounceable or non-               N/A                         
   renounceable?                                                                

13  Ratio in which the +securities will be          N/A                         
   offered                                                                      
                                                                                
14  +Class of +securities to which the offer        N/A                         
   relates                                                                      
                                                                                
15  +Record date to determine entitlements          N/A                         

16  Will holdings on different registers (or        N/A                         
   subregisters) be aggregated for calculating                                  
   entitlements?                                                                

17  Policy for deciding entitlements in relation    N/A                         
   to fractions                                                                 
                                                                                

18  Names of countries in which the entity has      N/A                         
   +security holders who will not be sent new                                   
   issue documents                                                              
Note: Security holders must be told how their                                
   entitlements are to be dealt with.                                           
   Cross reference: rule 7.7.                                                   
                                                                                
19  Closing date for receipt of acceptances or      N/A                         
   renunciations                                                                
                                                                                
20  Names of any underwriters                       N/A                         

                                                                                
                                                                                
21  Amount of any underwriting fee or commission    N/A                         

22  Names of any brokers to the issue               N/A                         
                                                                                
                                                                                

23  Fee or commission payable to the  broker to     N/A                         
   the issue                                                                    
                                                                                
24  Amount of any handling fee payable to brokers   N/A                         
   who lodge acceptances or renunciations on                                    
   behalf of +security holders                                                  
                                                                                
25  If the issue is contingent on +security         N/A                         
   holders` approval, the date of the meeting                                   
                                                                                
26  Date entitlement and acceptance form and        N/A                         
prospectus or Product Disclosure Statement                                   
   will be sent to persons entitled                                             
                                                                                
27  If the entity has issued options, and the       N/A                         
terms entitle option holders to participate                                  
   on exercise, the date on which notices will                                  
   be sent to option holders                                                    
                                                                                
28  Date rights trading will begin (if              N/A                         
   applicable)                                                                  
                                                                                
29  Date rights trading will end (if applicable)    N/A                         

                                                                                
                                                                                
30  How do +security holders sell their             N/A                         
entitlements in full through a broker?                                       
                                                                                
31  How do +security holders sell part of their     N/A                         
   entitlements through a broker and accept for                                 
the balance?                                                                 
                                                                                
32  How do +security holders dispose of their       N/A                         
   entitlements (except by sale through a                                       
broker)?                                                                     
                                                                                
33  +Despatch date                                  N/A                         
                                                                                

Part 3  Quotation of securities                                                 
You need only complete this section if you are applying for quotation of        
securities                                                                      
34   Type of securities                                                         
    (tick one)                                                                  
                                                                                
(a)      Securities described in Part 1.                                        

(b)      All other securities                                                   
        Example: restricted securities at the end of the                        
        escrowed period, partly paid securities that                            
become fully paid, employee incentive share                             
        securities when restriction ends, securities                            
        issued on expiry or conversion of convertible                           
        securities                                                              
Entities that have ticked box 34(a)                                             
Additional securities forming a new class of securities                         
Tick to indicate you are                                                        
providing the information or                                                    
documents                                                                       
35      If the +securities are +equity securities, the                          
       names of the 20 largest holders of the                                   
       additional +securities, and the number and                               
percentage of additional +securities held by                             
       those holders                                                            
                                                                                
36      If the +securities are +equity securities, a                            
distribution schedule of the additional                                  
       +securities setting out the number of holders in                         
       the categories                                                           
       1 - 1,000                                                                
1,001 - 5,000                                                            
       5,001 - 10,000                                                           
       10,001 - 100,000                                                         
       100,001 and over                                                         

37      A copy of any trust deed for the additional                             
       +securities                                                              
Entities that have ticked box 34(b)                                             
38  Number of securities for which +quotation is    N/A                         
   sought                                                                       
                                                                                
                                                                                
39  Class of +securities for which quotation is     N/A                         
   sought                                                                       
                                                                                
                                                                                
40  Do the +securities rank equally in all          N/A                         
   respects from the date of allotment with an                                  
   existing +class of quoted +securities?                                       
                                                                                
If the additional securities do not rank                                     
   equally, please state:                                                       
   * the date from which they do                                                
   * the extent to which they participate for                                   
the next dividend, (in the case of a trust,                                  
   distribution) or interest payment                                            
   * the extent to which they do not rank                                       
   equally, other than in relation to the next                                  
dividend, distribution or interest payment                                   
                                                                                
41  Reason for request for quotation now            N/A                         
   Example: In the case of restricted                                           
securities, end of restriction period                                        
                                                                                
   (if issued upon conversion of another                                        
   security, clearly identify that other                                        
security)                                                                    
                                                                                
                                                                                
                                                   Number  +Class               
42  Number and +class of all +securities quoted                                 
   on ASX (including the securities in clause                                   
   38)                                                                          
                                                                                
Quotation agreement                                                             
1    +Quotation of our additional +securities is in ASX`s absolute discretion.  
    ASX may quote the +securities on any conditions it decides.                 
2    We warrant the following to ASX.                                           
The issue of the +securities to be quoted complies with the law and is      
    not for an illegal purpose.                                                 
    There is no reason why those +securities should not be granted              
+quotation.                                                                     
An offer of the +securities for sale within 12 months after their issue     
    will not require disclosure under section 707(3) or section 1012C(6) of     
    the Corporations Act.                                                       
    Note: An entity may need to obtain appropriate warranties from              
subscribers for the securities in order to be able to give this warranty    
*    Section 724 or section 1016E of the Corporations Act does not apply to     
    any applications received by us in relation to any +securities to be        
    quoted and that no-one has any right to return any +securities to be        
quoted under sections 737, 738 or 1016F of the Corporations Act at the      
    time that we request that the +securities be quoted.                        
*    If we are a trust, we warrant that no person has the right to return the   
    +securities to be quoted under section 1019B of the Corporations Act at     
the time that we request that the +securities be quoted.                    
3    We will indemnify ASX to the fullest extent permitted by law in respect    
    of any claim, action or expense arising from or connected with any breach   
    of the warranties in this agreement.                                        
4    We give ASX the information and documents required by this form.  If any   
    information or document not available now, will give it to ASX before       
    +quotation of the +securities begins.  We acknowledge that ASX is relying   
    on the information and documents.  We warrant that they are (will be)       
true and complete.                                                          
Company Secretary                                                               
Jerry Monzu                                                                     
Contact:                                                                        
Suite B9, 431 Roberts Road                                                      
Subiaco, Western Australia 6008                                                 
Tel: +61 (0)8  9287 4600                                                        
Web: www.firestoneenergy.com.au                                                 
Pretoria                                                                        
23 March 2011                                                                   
Sponsor                                                                         
River Group                                                                     
Date: 23/03/2011 09:34:01 Produced by the JSE SENS Department.                  
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