FIRESTONE ENERGY WATERBERG COAL PROJECT

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1 FIRESTONE ENERGY WATERBERG COAL PROJECT the place, the project, the coal 20 July 2009 firestoneenergy.com.au

2 DISCLAIMER This presentation may include forward-looking statements. These forward-looking statements are based on management s expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Firestone Energy Limited, that could cause actual results to differ materially from such statements. Firestone Energy Limited gives no assurance that the events expressed or implied in the forward looking statements in this presentation will actually occur and makes no undertaking to subsequently update or revise the forward-looking statements made in this presentation to reflect events or circumstances after the date of this release. July

AN EMERGING COAL PRODUCER An independent Australian coal group focusing on coal exploration and mining in South Africa Listed on the ASX and JSE Significant farm-in JV with recognised South African

3 AN EMERGING COAL PRODUCER An independent Australian coal group focusing on coal exploration and mining in South Africa Listed on the ASX and JSE Significant farm-in JV with recognised South African BEE partner, Sekoko Coal, to develop and mine coal in the Waterberg Coal Region of South Africa Earning an interest in 6 tenements (64km 2 ) In-situ JORC compliant Indicated & Inferred coal resource of 3.5 billion tonnes (1.4 billion tonnes of coal) 1 The objective of the JV is to complete a BFS to mine and beneficiate coal in the Waterberg Region for domestic and export consumption Firestone to develop an open pit mining operation capable of extracting up to 50Mt ROM per annum Coal to be marketed to Eskom domestically with significant upside from exports of thermal and semi-soft coking coal 1 In-situ tonnage of saleable coal after washing process July

4 CAPITAL STRUCTURE Market Capitalisation $67m Share Price 5.1c Shares on issue 1,355m Unlisted options 262.8m 30,000, cents 30 Nov ,000, cents 31 May 13 96,904, cents 30 Jun 13 22,750, cents 30 Jun 14 Top 20 shareholders 61% July

5 Share Price Performance (LTM) 12 Jun 09 24% increase in Vetleegte resource to 629Mt & $2.1m placement at $0.04 with an attaching 1 for 2 free option ex at $0.06 & Non-executive directors Lee Boyd and Daryl Henthorn resign from Board $0.06 $0.05 $ Oct 08 Sekoko representatives Tim Tebeila and Amanda Matthee join Board 24 Nov 08 Garth Higgo appointed CEO 8 Apr 09 Former Anglo Mining Executives John Dreyer and John Wallington appointed to Board 1 Apr 09 Sign 2 nd JV with Sekoko which adds resources of 996Mt 14 Apr 09 Malcolm Smartt resigns from Board 11 May 09 $0.5m Convertible Note Issue 3 Jul 09 Finalisation of 2 nd coal JV with Sekoko & Increase in JORC coal resources to 2.9Bt 50.0m 40.0m 30.0m $ Jul 09 Colin McIntyre appointed to Board 20.0m $ Oct 08 $0.01 Coal JV with Sekoko finalised with resources of 508Mt 10.0m $0.00 Jul-08 Sep-08 Oct-08 Dec-08 Jan-09 Feb-09 Apr-09 May-09 Jun m July

6 BOARD AND MANAGEMENT Garth Higgo - CEO Previously COO of Consolidated Minerals in Perth, Group Manager for JVs, Corp Finance and Bus. Development for Anglo Platinum. Experienced in BEE joint ventures in South Africa. Civil Engineer and Accountant by profession John Dreyer Chairman Formerly Executive Director of Anglo Platinum, MD of Shell Minerals SA, CEO of JCI Coal and Director of Richards Bay Coal Terminal. Lawyer by profession Tim Tebeila Sekoko Resources Amanda Matthee Sekoko Resources Colin McIntyre Independent Director John Wallington - Independent Director Executive Chair and co-founder of Sekoko Resources. A mining entrepreneur for many years of successful active involvement in exploring and developing mining projects CFO of Sekoko Resources. Chartered Accountant (CA) with over 20 years of corporate and business management experience in the mining sector Colin McIntyre has considerable Directorial and Corporate experience in the resources sector. Formerly Chairman of Perilya and Tectonic and non-executive director of Macmahon s. Colin is a Mining Engineer with 35 years experience Former Global CEO of Anglo Coal with 27 years coal experience. Established Anglo Coal strategy and responsible for BEE initiatives. A Mining Engineer by profession July

VISION AND STRATEGY Vision: To become a leading producer of coal and energy in Africa Strategy : Rapid exploration programme to expand the Waterberg resource base Develop a world-scale

7 VISION AND STRATEGY Vision: To become a leading producer of coal and energy in Africa Strategy : Rapid exploration programme to expand the Waterberg resource base Develop a world-scale mining operation with internationally significant exports To develop an environmentally conscious Independent Power Producer strategy Indentify further joint venture opportunities July

SOUTH AFRICAN POWER - SUPPLY AND DEMAND MW 100000 95000 90000 85000 80000 75000 70000 65000 60000 55000 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 Demand Growth @4% pa South African

8 SOUTH AFRICAN POWER - SUPPLY AND DEMAND MW Demand pa South African Power - Supply and Demand Existing and New Capacity Existing Plant New Capacity 4% pa July Power Shortfall

SOUTH AFRICA S ELECTRICITY SUPPLIER ESKOM South Africa needs 40 new coal mines by 2020 Between R90 billion and R110 billion needs to be invested in new coal mines in South Africa South Africa is

9 SOUTH AFRICA S ELECTRICITY SUPPLIER ESKOM South Africa needs 40 new coal mines by 2020 Between R90 billion and R110 billion needs to be invested in new coal mines in South Africa South Africa is expected to consume 374 million tonnes of coal by 2020 Eskom will require 200 million tonnes of this coal to supply all its power stations Eskom is studying three potential sites in the Waterberg area for a third plant expected to produce around 5,000MW July

PROJECT LOCATION THE WATERBERG COAL FIELD Strategic coal field with thick near surface coal seams Identified as next growth area to supply South Africa s electricity utility Eskom Located 400 kms

10 PROJECT LOCATION THE WATERBERG COAL FIELD Strategic coal field with thick near surface coal seams Identified as next growth area to supply South Africa s electricity utility Eskom Located 400 kms north of Johannesburg Mining by Iscor Mining (now Exxaro) commenced in 1980, the only operating coal mine in the Waterberg coal field Average coal seem width between 90m -110m, characterised by 11 discrete zones, of with upper zones (6 11) holding highest commercial value (semi-soft coking coals) Estimate to contain 50% of South Africa s remaining coal resources (up to 400 years of coal) Eskom building a new 4,800MW coal fired facility, Madupi Power Station, commencing operations by 2012 and requiring 18Mt thermal coal per annum July

THE WATERBERG JOINT VENTURE WITH SEKOKO COAL First JV with Sekoko Coal Sekoko Coal has contributed the Waterberg prospecting rights over two tenements (approx 22.

11 THE WATERBERG JOINT VENTURE WITH SEKOKO COAL First JV with Sekoko Coal Sekoko Coal has contributed the Waterberg prospecting rights over two tenements (approx 22.3 km 2 ) to form the first Waterberg JV Drilling to-date reflects a JORC Inferred and Indicated resource of 629Mt of coal (262 Mt deshaled saleable coal) Firestone participation commencing at 30%, and increasing by 5% for every R10m spent on the BFS (up to a maximum of 55% following expenditures of R50m) Second JV with Sekoko Coal A second joint venture was concluded with Sekoko Coal in march 2009 over another 4 tenements (area of 43.4 km 2 ) Current exploration has resulted in a JORC compliant Inferred and Indicated coal resource of 2.9 billion tonnes (1.1 Bt deshaled saleable coal) Firestone participation commencing at 30%, and increasing by 6% for every R10m spent on the BFS (up to a maximum of 60% following expenditures of R50m) The properties lie adjacent to Exxaro s Grootegeluk Mine July

12 THE WATERBERG JOINT VENTURE LOCATION OF PROPERTIES June

DRILLING RESULTS First Joint Venture (2 Tenements) Vetleegte Tenement - Resources Inferred Resources Indicated Resources Zone In-situ Tonnage Mt Coal Tonnage Mt In-situ Tonnage Mt Coal Tonnage Mt

13 DRILLING RESULTS First Joint Venture (2 Tenements) Vetleegte Tenement - Resources Inferred Resources Indicated Resources Zone In-situ Tonnage Mt Coal Tonnage Mt In-situ Tonnage Mt Coal Tonnage Mt Total Second Joint Venture (4 Tenements) Farm In-situ Tonnage Total Mt Coal Tonnage Inferred Mt Coal Tonnage Indicated Mt Coal Tonnage Total Mt Smitspan 306LQ 1, Hooikraal 315LQ Minnasvlakte 258LQ Massenberg 305LQ TOTAL 2, ,122.8 July

COAL QUALITY PRELIMINARY RESULTS Coal Resources and Coal Qualities (after de-shaling) Farm Name Resource Category Zone GTIS Coal Tonnage Mt CV (MJ/kg) AIR DRIED QUALITIES AT RD=1.

10 0.88 2.31 Smitspan Indicated All 541.2 19.96 33.66 25.83 0.91 2.47 Inferred All 150.3 20.93 31.13 26.37 0.94 2.52 Total Average Smitspan 691.5 20.16 33.14 25.94 0.92 2.

14 COAL QUALITY PRELIMINARY RESULTS Coal Resources and Coal Qualities (after de-shaling) Farm Name Resource Category Zone GTIS Coal Tonnage Mt CV (MJ/kg) AIR DRIED QUALITIES AT RD=1.9 Ash Vol Sulphur (%) (%) (%) Moisture (%) Minnasvlakte Indicated All Inferred All Total Average Minnasvlakte Smitspan Indicated All Inferred All Total Average Smitspan Massenberg Indicated All Inferred All Total Average Massenberg Hooikraal Indicated All Inferred All Total Average Hooikraal TOTAL AVERAGE RESOURCE 1, Zone Moisture % TYPICAL FINAL PRODUCT COKING COAL Ash % Volatiles % Fixed C % S % CV MJ/kg < TYPICAL FINAL PRODUCT ESKOM COAL Yield % Zone Moisture % Ash % Volatiles % Fixed C % S % CV MJ/kg 6 11 < Yield % 14

15 INDICATIVE PROJECT STATISTICS JV Terms - FSE earning up to 60% interest Drilling to date Diamond & 7 RC drill holes demonstrating full succession of coal Proposed Production Rate up to 20 Mtpa saleable product Mine Life - ~30+ years Mine Design - Open pit to 130 metres - 0.7:1 Strip Ratio - Top 60 metres of coal sequence contains highest quality - 4 year ramp up to full production Product Mix - Domestic Thermal coal - Export Thermal coal - Semi-soft coking coal Infrastructure Rail within 5 km of tenements July

16 INDICATIVE PROJECT FINANCIALS Mine to be developed using contract mining and beneficiation Capex - ~ A$250 million (excluding wash plant & mining fleet) Year ROM (Mt) Export Coal (Mt) Domestic Coal (Mt) Strip ratio EBITDA (A$m) FX - AUD/USD 0.82 ZAR/AUD 6.39 Exports Domestic Sales price (A$/t) Operating Costs (A$/t) Mining mined +20% contractor margin Processing mined +100% contractor margin Handling saleable product Slimes saleable product Administration saleable product Rehabilitation saleable product July

17 PROJECT RISKS Negotiating Off-Take Agreements for Domestic and Export coal Water Supply existing dam and new pipeline to be erected Negotiating Rail Access Agreement Mining Approvals (Mining Rights) July

18 INVESTMENT PROPOSITION VALUE UPLIFT POTENTIAL Company Resources Mt Market Cap A$M Comments Riversdale Mining 4,000 1,200 Small specialized anthracite colliery in SA. Vast majority of resources in Mozambique Coal of Africa 1, Commencing production late Mtpa coking coal, 10Mpa by late 2010 CIC Energy 2, Large Meas. Res in Botswana. Proposed IPP for sale of power to Eskom Firestone Energy 3,500 (100%) 67 Large Ind./Inf. resource base on a number of separate farms. Adjacent to rail and existing and planned power generation plants Resource Generation 2, Inferred Resources in Waterberg, adjacent to Botswana Continental Coal Number of small near production assets in established coal fields July

RAPID TRAJECTORY TO PRODUCTION 2009 2010 2011 2012 Resource Definition Drilling Program

Definition Obtain mining Right (30yrs) Complete BFS Pre-strip First phase of operations Mining

19 RAPID TRAJECTORY TO PRODUCTION Resource Definition Drilling Program Commence Bankable Feasibility Study Obtain Mining Permit for small mine Complete Resource Definition Obtain mining Right (30yrs) Complete BFS Pre-strip First phase of operations Mining Additional Plant Capacity Commence wash plant operations Ongoing Operations Expansion Studies July

20 KEY REQUIREMENTS FOR SUCCESS Quality Resource Resources adjacent to Exxaro s Grootegeluk mine Total coal thickness typically m Firestone s assets within an area of shallow open pit coal resources Infrastructure Access Export rail connection to Richards Bay Coal Terminal from Grootegeluk Mine Access by Firestone requires construction of new siding Export allocation at expanded Richards Bay Coal Terminal (RBCT) Experienced, management and board, supportive partners Extensive executive experience in South Africa, Coal, Marketing, Logistics, Power Generation, BEE agreements Strong BEE alignment with project success via equity holdings in company and the assets Growth Potential Very large tonnage potential Power station demand growth Export capability Value Uplift Company undervalued compared to peers Substantial increases in resource likely Cashflow from coking coal exports within 3 years July

INVESTMENT OPPORTUNITY IN FIRESTONE ENERGY Development of leading

JV carries full BEE compliance (a legal requirement in South

to Grootegeluk mine) Significant upside as company moves towards

fundamentals expected to continue Company plans to grow into the

21 INVESTMENT OPPORTUNITY IN FIRESTONE ENERGY Development of leading African coal company in a well established low risk environment The JV carries full BEE compliance (a legal requirement in South Africa) Low exploration and geological risk (resources are adjacent to Grootegeluk mine) Significant upside as company moves towards production goals Full ASX and JSE exposure Robust coal market fundamentals expected to continue Company plans to grow into the market demand for coal Recruiting a strong exploration and mining team July

Appendix A EXXARO'S GROOTEGELUK MINE - A DEVELOPMENT TEMPLATE Grootegeluk mine is situated 25 km from town of Lephalale (Ellisras), in the Limpopo province Grootegeluk employs 1 700 people and

22 Appendix A EXXARO'S GROOTEGELUK MINE - A DEVELOPMENT TEMPLATE Grootegeluk mine is situated 25 km from town of Lephalale (Ellisras), in the Limpopo province Grootegeluk employs people and produces 18,1- million tons of thermal and semi-soft coking coal a year Mining method: Open pit Total proven and probable reserves as at January 2006, were 740-million tons. Resources: Total measured, indicated and inferred resources as at January 2006, were 12,7-billion tons Ownership: Exxaro (100%) The Grootegeluk mine has the world s largest beneficiation complex, where 8,000 t/h of run-of-mine coal is upgraded in five different plants EBITDA (estimation) 2005 A$249 m 2006 A$246 m 2007 A$255 m 2008 A$390 m July

Appendix B GROWTH POTENTIAL AS EXPORTER OF COKING COAL Proximity to rail infrastructure RICHARDS BAY COAL TERMINAL Rail line operated by government owned Transnet Freight Rail Multi user facility

23 Appendix B GROWTH POTENTIAL AS EXPORTER OF COKING COAL Proximity to rail infrastructure RICHARDS BAY COAL TERMINAL Rail line operated by government owned Transnet Freight Rail Multi user facility Firestone Energy s Coal Farms lie within 5kms of this line Rail line connects to Richards Bay Coal Terminal (RBCT) Minor Capital required to construct siding Access to port RBCT overall capacity of 76 Mtpa annum, increasing to 91 Mt by end 2009 Largest coal terminal in the world July

Appendix C SUBSTANTIAL GROWTH PROSPECTS AS INDEPENDENT POWER PRODUCER Sekoko short-listed as one of 23 companies prequalified by Eskom to provide a base load Independent Power Producers (IPP)

24 Appendix C SUBSTANTIAL GROWTH PROSPECTS AS INDEPENDENT POWER PRODUCER Sekoko short-listed as one of 23 companies prequalified by Eskom to provide a base load Independent Power Producers (IPP) solution Matimba Power Station Waterberg Future power generation capacity to be divided between Eskom (70%), and IPP s (30%) Eskom to be the sole buyer of electricity generated by IPP s Build-own-operate basis, with envisaged contract term of 40 years Eskom's immediate requirement ranges from megawatts to approximately megawatts July

25 FIRESTONE ENERGY LIMITED the place, the project, the coal firestoneenergy.com.au

Laboratory worker at Goedgevonden Coal Mine

82 Laboratory worker at Goedgevonden Coal Mine Integrated Annual Report 2013 Operational review ARM Coal 83 ARM Coal F2013 F2012 % change ARM Coal attributable sales volumes (000t) Headline earnings Rm