- Local i ty- History- Regional Geology- Local Geology and Mineral isat ion- Borehole Log Interpretat ion- Dri l l ing- Data Verif icat ion- Sampling Method and Approach- Sampling Results and Interpretat ion- Mining TECHNICAL STATEMENT

thas at 11 JULY 2008Firestone Energy Ltd. - Vetleegte Coal Project South Africa

Pg 1 of 7

Information in this statement is to be used for marketing and illustrative purposes only. This report contains data supplied by Firestone Energy Ltd. These diagrams and the information herein are copyrighted. It may not be edited

or transmitted in any form or by any means without prior written permissionFirestone'08_Vetleegte-Technical Statement.cdr

LOCALITY

Major RoadsMajor RailwaysTowns/CitiesPower StationsDistrict BoundaryLimpopo ProvinceCoal Fields

LEGEND:

KEY FEATURES

Alldays

Lephalale

Limpopo River

BOTSWANA

ZIMBABWE

MOZAMBIQUE

Mokopane

Polokwane Palaborwa

WarmbathsNylstroom

Thabazimbi

Pretoria

BrakLouis Trichardt

VOLATILES

RANK

Mokolo

Musina

Beit Bridge

SWAZILAND

Matla

Secunda

KendalKomatiKelvin

Camden

Johannesburg

Tutuka

HendrinaDuvha

Kriel

N1N11

Grootvlei

Komatipoort

CAPRICORN

MOPANI

GREATERSEKHUKHUNE

BOHLABELA

KRUGERPARK

WATERBERG

SOUTH AFRICA

Pafuri

Tuli/Limpopo

TshipiseMopane

Waterberg

Springbok Flats

HighveldErmelo/Eastern Transvaal

Witbank

Kangwane

100 km

VETLEEGTEPROJECT

MatimbaCape Town

Durban

Johannesburg

Kimberley

LIMPOPO

The Vetleegte Property is located within5km of the Grootegeluk Colliery mininglease boundary in the WaterbergCoalfield, and approximately 250km northof Pretoria (Tshwane). The property isaccessed via a tarred road runningwestwards. A rail line from Thabazimbiterminates immediately north ofGrootegeluk Colliery and power lines fromthe Matimba Power Station traverse thearea.

Qualified Persons (NI1): Mr. R. Hatherly, B.Sc. Hons. (Geol), M.Sc. (Min.Eng.) Pr.Sc.Nat, MGSSA.Mr. M. Tyndall, B.Sc. Hons. (Geol), GDE (Min. Eng.), Pr.Sc.Nat, MGSSA, MSAIMM.

thEffective Date (NI1): 11 July 2008.Prepared For (NI4): Firestone Energy Limited (Firestone).Purpose (NI4): Listing the Firestone-Sekoko Coal (Pty) Ltd (Sekoko) Joint Venture vehicle on the Australian Stock Exchange (ASX).Sources of information (NI4): All sampling data was sourced from the South African Council for Geoscience’s database.Personal Inspection (NI4): A site visit was conducted by Venmyn during September and October 2006. The purpose of the inspection was to

validate the localities of the Sekoko Coal properties and verify borehole findings.Reliance on Other Experts (NI5): The authors of this technical statement have reviewed the legal title documentation and whilst this does not constitute a

legal opinion, the authors have satisfied themselves that the information presented here is materially correct.Property Description and Location (NI6): The property is located on the farm Vetleegte 304 LQ, which has an area of 1,133.5 ha, and is approximately 250km

north of Pretoria (Tshwane), South Africa and 25km southeast of the border with Botswana.Licence Status (NI6): The mineral rights to the property are held by Uzalile Property Services (Pty) Ltd (Uzalile) (60%) and Sekoko Resources

(Pty) Ltd (Sekoko Resources) (40%) under a New Order Prospecting Licence No 504PR for coal, valid from th th13 November 2006 until 12 November 2011. An agreement between Uzalile and Sekoko Resources has been

concluded which states that Uzalile will ultimately have a 10% stake in Vetleegte once a further agreement, yet to be finalized between Sekoko Resources and Firestone has been signed, wherein Firestone will have a 55% stake, and Sekoko Resources the remaining 45%. The surface owner is Petrus Stefanus Sauer (Pty) Ltd.

Royalties and Payments (NI6): The Royalty Bill is a proposed piece of South African Legislation with the proposed quantum of revenue royalty on coal remaining under debate. Recent proposals suggest a 1% royalty on coal with an ash content of greater than 15% and a 3% royalty on coal with less than 15% ash. This legislation is anticipated to be enacted in 2009.

Climate (NI7): The Western Bushveld climatic region is characterised by hot to very hot temperatures in summer with rainfall patterns dominated by summer thundershowers between October and April. Rainfall statistics for Lephalale, approximately 28km east of the project area, indicate an annual rainfall of 435mm. The warm climate ensures that exploration and mining is possible all year round. The vegetation consists of sparse Bushveld and the area is largely utilised for game farming. The Vetleegte Prospect lies at an elevation of 950m above mean sea level (amsl).

Environmental (NI6): Prospecting operations must be conducted in accordance with an Environmental Management Plan and adequate financial provision must be made for rehabilitation in accordance with the Mineral and Petroleum Resources Development Act, 2002.

Infrastructure & Accessibility (NI7): No existing mining infrastructure is currently available on the property. The area is accessed via a tarred road extending westwards for 40km from Lephalale. A rail line from Thabazimbi terminates immediately north of Grootegeluk Colliery and power lines from the Matimba Power Station traverse the area.

Deposit Types (NI10): Cretaceous Karoo Supergroup Coal consisting of the Vryheid and Volksrust Formations.

INTH

ISD

OC

UM

EN

T:- Coal Quali ty Data- Modell ing- Mineral Processing- Mineral Resource and Reserve Statement- Conclusion

TECHNICAL STATEMENTFirestone Energy Ltd. - Vetleegte Coal Project South Africa

thAS AT 11 JULY 2008

Pg 2 of 7

Information in this statement is to be used for marketing and illustrative purposes only. This report contains data supplied by Firestone Energy Ltd. These diagrams and the information herein are copyrighted. It may not be edited

or transmitted in any form or by any means without prior written permissionFirestone'08_Vetleegte-Technical Statement.cdr

REGIONAL GEOLOGY

HISTORY

LOCAL GEOLOGY AND MINERALIZATION

The exploration history in the Waterberg Coalfield dates from 1920, although largerscale exploration did not commence until the 1940's. Coal was first discovered inthe north-western part of the Limpopo Province in March 1920 during explorationdrilling for water on the farm Grootegeluk 459 LQ. This coalfield later becameknown as the Waterberg coalfield, but is also referred to as the Ellisras coalfield. Occurrences of coal intersected in historical boreholes are shown on the mapalongside.

The Prospecting area in the Waterberg is superimposed over the regional geologyof the western half of the Limpopo Province as shown on the accompanying map.The Goedgedacht/Swartrand, Endragtpan and Greenwich Formations form part ofthe Karoo Sequence and consist of shales, sandstones, mudstones and coaloccurrences. Coal in the Waterberg occurs in the Vryheid and VolksrustFormations.

Structurally, the stratigraphy, especially in the area of Vetleegte and other Sekokoproperties, appears to be significantly faulted in an east-west orientation. TheWaterberg Coalfield is a fault-bounded coal deposit, dividing the deposit intoshallow and deep areas. The Eenzaamheid, Zoetfontein and Daarby faults controlthe regional fault pattern. The Daarby fault is the most significant fault structure,with displacements that vary between 240m and 300m. Graben and horststructures are present, where the individual coal zones are either preserved ordestroyed. Understanding the structural-geological environment of the coalfieldcan be considered more important than understanding the distribution of the coalquality characteristics.

It is often generally believed that the geological and structural environment shouldbe similar to that encountered at the mine, due to its relatively close proximity toGrootegeluk. Grootegeluk was established in the most favourable

mining/geological environment and by inference, areas in close proximity to themine are expected to have similar favourable conditions. However, due to thepresence of fault structures indicated in the map above, and confirmed by thelatest drilling data, conditions are considered to be less favourable.

7390

000N

LIMPOPO PROVINCE

Grootegeluk MinePit Layout (40 years)

To Thabazimbi

To Thabazimbi

Goedgedacht 20

Grootwater 218

Blinkwater 23

Haaskraal 221

Weltevreden 219

Klippan 224

Majama Zyn Koppie 254

Oliphantspad 255

Wolvepan 253Kleinberg 252

Welgelegen 228

Eigendomsbult 222

Sterkwater 24

Klimopfontein 223

Kalkvlakte 256

Elandsvley 453Eeendragtpan 451

Grootpan 452Leeuwfontein 400

Kurzabonakop 399

Koedoeslaagte 171Woestevlakte 172

Kerryfontein 402

Nooitgedacht 403

Wildebeestpan 173

Withoutpan 404

Paddakraal 405

Welgevonden 444

Schrikvoorby 445

Geelbekpan 226

Ganzepan 446Gelykebult 455

Gelykebult 450

Droeheuvel 447

Appelvlakte 448

Nelsonskop 464

Vooruit 449

Toezight 323

Minnaarspan 322

Kameelbult 298

Zandbult 300

Kringgatspruit 318

Buffelsjagt 317

Vergulde Helm 316

Ringbult 303Gannavlakte 299

Loopleegte 302

Kuipersbult 511

Zwartwater 507

Kaffirsdraai 513

Eenzaamheid 512

Naauw Ontkomen 509

Hanglip 508Hanglip 508

Grootestryd465

Duikerfontein263 LQ

Tambotievley261 LQ

Swanepoelpan262 LQ

Maaiamazamshoek 259

Smitspan306 LQ

Elandsbosch 260

McCabesvley 311

Van der Waltpan 310

Onbelyk 257

Minnasvlakte258 LQ

Zaagput 307

Hooikraal315 LQ

Massenberg305 LQ

Vaalpensloop 313

Jackalsvley 309

Hieromtrent 460

Grootegeluk459

Enkelbult 462

Turfvlakte 463

Leeuwdrift 312

Graaffwater 456

Goedehoop 457

Daarby 458

Matimba Power Station

Olieboomsfontein220

Vetleegte304 LQ

WATERBERG COALFIELD LOCALITY AND PROSPECTING RIGHTS MAP

Farm BoundaryMain RoadSecondary RoadFarm RoadRailwayPowerlineGrootegeluk Mine

Prospecting Rights:VetleegteOlieboomsfonteinSekoko Properties

Grootegeluk Colliery Mining Lease

7380

000N

7400

000N

540000E 550000E 560000ELEGEND:

5 km

ToBotswana

ToBotswana

To Lephalale

To Lephalale

GEOLOGY OF THE ELLISRAS AREA

Goedgedacht/Swartrant FormationEndragtpan FormationGrootegeluk FormationGreenwich FormationLimpopo River

CFaultCoal OccurrenceSekoko FarmsVetleegte ProjectOlieboomsfontein Prosject

Olieboomsfontein220LQ

Vetleegte304LQ Grootegeluk

459LQ

BOTSWANA

C

CCC

C

CC

C C

C

C

C

C C

C

LEGEND:5 km

Eenzaamheid Fault

Zoetfontein Fault

Daarby Fault

A total of 36 exploration boreholes on Sekoko's farms of interest in the Waterbergwere available for analysis and for coal resource modelling. Venmyn reviewed allavailable data for accuracy and applicability for modelling purposes and coalresource estimation. Drilling information on the farms Hooikraal 315 LQ,Massenburg 305 LQ, Smitspan 306 LQ, Minnasvlakte 258 LQ and Vetleegte 304LQ was considered adequate in light of the demonstrated geological structure andstratigraphy encountered at Grootegeluk Colliery.

The information obtained for Vetleegte shares similar geological characteristics tothat of Grootegeluk as shown overleaf in the accompanying diagrams. The coalzones encountered at Grootegeluk have been identified on the borehole logs fromVetleegte. However, in three of the five boreholes reviewed, Zone 6-11 were notpresent, possibly due to the faulting and subsequent erosion of the upper horizons.

The structural impact from the east-west orientated fault pattern expected inVetleegte is believed to be significant. The combined vertical displacement isexpected to be in excess of 100m where the Volksrust Formation has either beenpreserved on the down-thrown side towards the south, or partially or totallydestroyed on the up-thrown side.

TECHNICAL STATEMENTFirestone Energy Ltd. - Vetleegte Coal Project South Africa

thAS AT 11

Pg 3 of 7

Information in this statement is to be used for marketing and illustrative purposes only. This report contains data supplied by Firestone Energy Ltd. These diagrams and the information herein are copyrighted. It may not be edited

or transmitted in any form or by any means without prior written permissionFirestone'08_Vetleegte-Technical Statement.cdr

ZONE LITHOLOGY

Zone 11 Bright coal (without siderite) intercalated with grey mudstone, carbonate lenses ± 50cm x 3mZone 10 Bright coal with little siderite intercalated with carbonaceous shale; carbonate lenses ± 50cm x 3m; thick coal bands in lower half Zone 9 Bright coal with prominent siderite at base intercalated with carbonaceous shale; thick coal band in lower halfZone 8 Bright coal; prominent siderite at base; intercalated with carbonaceous shale; thick coal bands in lower halfZone 7 Bright coal sideritic throughout, intercalated as numerous thin bands with carbonaceous shale; prominent sideritic band at baseZone 6 Bright coal, very sideritic in lower half, intercalated as numerous thin bands with carbonaceous shaleZone 5 Carbonaceous shale with coal bands in lower two thirds; siderite less prominentInterbeds Carbonaceous shale to coaly shaleZone 4 Coal, dull, heavy, some bright coal in lower half and at top, few thin shale bands; yields coking fractionInterbeds Shale, black to dark grey, carbonaceous, 1m fossiliferous siltstone at baseZone 4a Coal, dull, few bright stringers, thin shale bandsInterbeds Shale, dark greyZone 3 Coal, dull bright laminae in lower 1,8m which yields low ash, slightly coking coal, few thin shale bandsInterbeds Sandstone with shale bandsZone 2 Coal, dull, bright luminae in lower 2m which yields lower ash slightly coking coal; thin shale bandsInterbeds Sandstone, medium to coarse grained, few thin shale bands, thin coal band near topZone 1 Coal, dull, very few bright laminae, thin shale bands

GROOTEGELUK COAL MINE - COAL ZONES

Upp

erE

cca

Vol

ksru

stFo

rmat

ion

Gro

oteg

eluk

Form

atio

n

Mid

dle

Ecc

a

Vry

heid

Form

atio

n

Goe

dged

acht

Form

atio

n

4.83m

0.76m

VL4/66

OB

WeatheredSS & ST

Interlayered CS & SS

SS

Sandy CS

CS & SS Zone 1

Zone 2

EOH 45.6m

BOREHOLE LOG INTERPRETATION

EOH 117.5m

11.3m

10.4m

Borehole 112

OB

Pyritic Coal

WeatheredCS & Coal

InterlayeredCS & SS

Dull Coal

1.55m

2m

4.6m

1.1m

EOH 110.4m

OB

WeatheredCS & SS

InterlayeredCS, SS & Coal layers

CS

InterlayeredMS, CS & Coal

MS

SS

SS

InterlayeredSS & CS

Interlayered SS & CS

VLI/66

Zone 2

Zone 3

Zone 4

Zone 1

EOH 128.0m

1.7m

3.5m

4.3m

0.9m

VL5/66

OB

WZ

InterlayeredCS & MS

InterlayeredMS & SS

Interlayered CS & SS

CS

Zone 2

Zone 1

Zone 5

Zone 3

Zone 4

23m

EOH 150.3m

7.3m

3.1m

0.7m

4m

0.2m

0.9m

VL3/66

OB

WZ

InterlayeredMS & CS

Interlayered SS & CS

Zone 2

Zone 1

Zone 4a

Zone 4

Zone 6-11

Zone 5

Zone 3

SS

Mudstone, SS & CS

Interlayered SS & CS

41m

VL2/66

InterlayeredCS, SS & Coal layers

OB

WZ

InterlayeredCS, ST

InterlayeredCS, SS & ST

SS & CS

InterlayeredSS & CS

Interlayered SS & CS

Zone 5

Zone 6-11

Zone 4

Zone 3

Zone 2

Zone 1

EOH 119.1

1.1m

12.8m

4m

1.3m

4m

1m

OB = OverburdenSS = SandstoneCS = ShaleMS = MudstoneST = SiltstoneWZ = Weathered ZoneVolksrust FormationVryheid Formation

LEGEND:

TECHNICAL STATEMENTFirestone Energy Ltd. - Vetleegte Coal Project South Africa

thAS AT 11 JULY 2008

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Information in this statement is to be used for marketing and illustrative purposes only. This report contains data supplied by Firestone Energy Ltd. These diagrams and the information herein are copyrighted. It may not be edited

or transmitted in any form or by any means without prior written permissionFirestone'08_Vetleegte-Technical Statement.cdr

DRILLING

The major coal bearing horizons of the Ecca Group in the Waterberg are theVolksrust Formation and the Vryheid Formation. The Volksrust Formation differsfrom that of the main Karoo Basin by being cabonaceous where it is represented byintercolated carbonaceous shale and mudstone, and bright coal. This coalsuccession requires beneficiation or upgrading to produce an acceptable coalquality for the market, which varies from semi-soft coking coals to internationally traded and local power station coals.

The Vryheid Formation coal seams or zones consist predominantly of dull coal orinertinite-rich coal, with some bright coal. This coal is suitable for steam-raising,gasification or as a direct-injection coal in the metallurgical industry and requires limited or no beneficiation to upgrade the coal quality parameters.

Drilling was done by the Council of Geoscience between 1941 and 1946 in pursuitof groundwater. Borehole 112 was one such hole for which there are no co-ordinates provided. The borehole log was also not detailed enough to differentiatethe coal seams due to the focus not being directed towards coal generatingresources. However, coal quality analyses were carried out and shown overleaf.Sasol drilled five boreholes on Vetleegde in 1966. Two of these boreholes (VL4/66,VL5/66) had identical borehole co-ordinates therefore were not used in themodelling exercise. The position of the other three boreholes is illustrated in theaccompanying figure and the results of the coal quality analyses are providedoverleaf.

DATA VERIFICATION

Since the data available is all historical in nature, it was not possible to comment onthe data verification process that may have been carried out. However, Venmynwarrant that the data presented is a true reflection of the information madeavailable on the properties.

SAMPLING METHOD AND APPROACH

Although actual sampling data in terms of coal quality results and associated logswith recovered sample thicknesses were available, information on the actualsampling procedures and methods applied was not available. These procedures and methods include sampling biases, techniques employed, sample preparationprocedures and methods, sample quality control, sample density for geologicalcontinuity, whether the samples were wet or dry, the number of splits and themethod of splitting and any contamination issues.

In addition, no evidence of sample compositing or weighted averaging techniqueswere available for the data received.

SAMPLING RESULTS AND INTERPRETATION

The six boreholes drilled on Vetleegte 304 LQ are only sufficient to conduct apreliminary assessment of the coal in the area. Additional drilling and sampling willbe required to define a SAMREC Compliant Mineral Resource Estimate beyondthe Inferred category. The borehole logs indicate the presence of multiple coalseams ranging in thickness between 1.1m to 41m for Zones 6-11 (including partingwaste), 7.3m to 23m for Zone 5 (including parting waste), 1.5m to 4m for Zone 4,0.2m to 3.5m for Zone 3, 4m to4.6m for Zone 2 and 0.8m to 1.1m for Zone 1. Theinfluence of fault structures within the property is evidenced by the difference inintersection depth of as much as 35m with respect to Zone 4, which is the topmostconsistent layer in all the available logs.

Borehole 112 intersected several coal seams at depths of between 95m and 117mbelow surfsce. Coal seams intersected in the Sasol boreholes range in CalorificValue (CV) from 0.0 MJ/kg to12.6 MJ/kg. CVs average at approximately 10MJ/kgfor all five Sasol boreholes. Moisture contents are below 4% and ash contents varybetween 12.2% and 67.9% for Zone 5. Volatile matter content ranges between11.8% and 34.3%. Fixed carbon content for VL1/66, VL2/66 and VL3/66 rangedfrom 38.7% to 49.9% and swelling numbers were all below 3.

Trends in the CV across the area vary from zone to zone and need to be modelledaccurately before further comment can be made.

The ash content of individual coal samples within the sequence can be as high as60% or more. A preliminary assessment indicates that neither the lateral variationsacross the area, nor the vertical variations from zone to zone are consistent.However, Zone 1 does have a significantly lower average ash content (12% to21%) compared to the other zones (14% to 68%).

The volatile matter content is lowest in Zone 3 (18%) and Zone 2 (12% to 29%).Elsewhere in the sequence it ranges between 18% and 34%. Laterally thevariations appear to be inconsistent.

WATERBERG RESOURCE BOREHOLE LOCATIONS

540000 544000 548000

7378

000

7382

000

7386

000

7390

000

VL2/66

VL3/66

VL1/66

Minnasvlakte

Smitspan

Massenburg

Vetleegte

Hooikraal

Firestone Prospecting RightsSekoko Prospecting RightsBoreholes

LEGEND:

2 km

MINING

No mining is currently taking place on the property. Grootegeluk Colliery is the onlyoperating coal mine in the Waterberg Coal Field although the structural complexityand the diverse coal quality characteristics of the numerous coal zones hasdemanded a high-volume low-value mining strategy. The overall coal product yieldfrom Grootegeluk's run of mine production is approximately 50%, with the majorityof the product being relatively low-value power-station feed.

TECHNICAL STATEMENTFirestone Energy Ltd. - Vetleegte Coal Project South Africa

thAS AT 11 JULY 2008

Pg 5 of 7

Information in this statement is to be used for marketing and illustrative purposes only. This report contains data supplied by Firestone Energy Ltd. These diagrams and the information herein are copyrighted. It may not be edited

or transmitted in any form or by any means without prior written permissionFirestone'08_Vetleegte-Technical Statement.cdr

COAL QUALITY DATA

BOREHOLENo ZONES SAMPLE

No. CV (Mj/kg) MOISTURE(%) ASH (%) VOL (%)

FIXEDCARBON

(%)

SIZE OF COAL

WASHEDSG

FLOATYIELD

(%)CV (Mj/kg) MOISTURE

(%) ASH (%) VOL (%)FIXED

CARBON(%)

R640 A 25.1 59.9 25.96 3.5 15.6 23.5 57.4R641F 19.4 74.5 27.31 3.6 12.6 22.5 61.3R641E 23.4 60.4 26.19 3.5 15.9 23.4 57.2R641D 25.3 74.4 25.51 3.3 18.0 23.2 55.5R641C 23.7 69.4 27.54 3.4 13.0 28.1 55.5R641B 26.4 60.6 26.86 3.1 15.8 28.1 53.0R641A 19.0 79.4 27.99 3.9 12.1 26.1 57.9

23.2 68.4 26.77 3.5 14.7 25.0 56.8Zone 4 66/1235 No data 2.3 35.6 25.2 36.9

66/1236 B 24.38 3.6 25.3 20.1 51.666/1236 A No data 2.6 34.5 17.8 45.166/1237 G 18.06 No data 1.3 61.3 11.866/1237 F 21.29 2.7 29.6 20.0 47.766/1237 E No data 2.2 48.5 15.2 34.166/1237 D 18.04 2.4 35.1 26.1 36.466/1237 C 21.51 2.5 29.0 24.6 45.966/1237 B 23.39 2.7 24.1 22.3 50.9

Zone 1 66/1237 A 24.65 2.5 20.4 29.4 47.721.62 2.6 28.3 26.2 40.8

Zone 6-11 66/832 A No data 41.0 No data No data -25.4mm 1.70 45.2 24.40 3.3 22.0 30.9 43.866/833 B 2.6 47.0 19.4 31.066/833 B 18.40 2.8 37.4 22.4 37.4

Zone 3 66/834 A 23.91 3.2 22.1 22.3 52.466/835 E No data No data 51.8 No data No data66/835 D 24.36 3.6 21.7 22.0 52.766/835 C 24.65 3.4 20.1 23.6 52.966/835 B 18.74 2.7 36.9 20.4 40.066/835 A 24.58 3.1 22.0 25.7 49.2

Zone 1 66/836 A 24.85 3.2 21.4 23.9 51.522.78 3.1 32.1 22.5 45.9 45.2 24.40 3.3 22.0 30.9 43.8

66/827 N 29.0 82.8 24.42 3.0 23.3 31.3 42.466/827 M 36.2 75.4 22.42 2.6 28.8 29.9 38.766/827 L 49.3 52.5 22.03 2.6 29.7 28.5 39.266/827 K 31.9 70.3 25.51 2.8 20.0 32.2 45.066/827 J 32.5 69.2 24.24 2.9 23.6 30.0 43.566/827 H 39.9 63.3 22.39 2.7 27.7 28.7 40.966/827 G 26.9 78.1 25.33 3.0 20.1 32.3 44.666/827 F 30.7 87.7 22.71 2.3 27.7 29.9 40.166/827 E 29.6 76.5 24.81 2.5 21.9 32.0 43.666/827 D 26.5 71.1 25.87 2.6 19.0 34.3 44.166/827 C 30.8 64.5 27.18 2.8 15.7 34.0 47.566/827 B 24.0 77.7 27.77 2.9 14.2 33.0 49.966/827 A 24.1 78.3 26.64 3.0 16.2 33.2 47.666/828 C 43.866/828 B 20.50 2.6 31.4 22.8 43.266/828 A 17.47 1.9 39.2 23.9 35

Zone 4 A 66/829 A 20.81 2.4 32.3 24.5 40.866/830 D 22.80 2.5 27.7 21.4 48.466/830 C 23.81 2.5 24.9 24.4 48.266/830 B 24.18 2.5 22.8 24.7 5066/830 A 22.39 2.2 28.6 22.8 46.4

Zone 1 66/831 A 28.42 2.9 12.2 27.9 5722.55 2.4 27.4 24.1 46.1 72.9 24.72 2.7 22.1 31.5 43.6

66/1267 D No data 3.2 47.5 14.0 35.366/1267 C 25.60 3.7 16.9 24.5 54.966/1267 B 24.85 3.4 19.0 22.9 54.766/1267 A 23.30 3.2 23.3 24.7 48.8

Zone 1 66/1268 A 27.58 3.5 12.3 26.1 58.125.33 3.4 23.8 22.4 50.4

66/1392 B No data 2.8 43.7 18.6 34.966/1392 A 18.76 2.6 34.6 23.6 39.266/1393 C 23.39 4.1 22.2 19.5 54.266/1393 B 23.91 4.0 20.8 21.6 53.666/1393 A 20.29 3.2 32.0 20.6 44.266/1394 E 23.27 3.8 22.8 23.3 50.166/1394 D No data 2.7 49.3 15.9 32.166/1394 C 20.50 3.2 31.1 20.6 45.166/1394 B 22.48 3.4 23.8 24.3 48.566/1394 A 18.67 2.4 34.7 26.6 36.3

Zone 1 66/1395 A 25.53 3.8 17.5 22.3 56.421.87 3.3 30.2 21.5 45.0

AVERAGE

-25.4mm

No data No data No data No data

VL3/66

AVERAGE

No data No data

Zone 2

No dataNo dataNo data

No dataNo data No dataNo dataNo data

Zone 2

Zone 2

Zone 4

No dataZone 2

AVERAGE

No data

No data

Zone 6-11

Zone 4

No data No dataNo dataNo dataNo data

1.70-25.4mm

No data No data

No data

112

VL1/66

NotDefined

Zone 3

AVERAGE

No data No data

No data No data No data No data

No dataVL2/66

AVERAGE

WASH ANALYSIS OF FLOAT

1.58

AVERAGE

RAW ANALYSIS (AIR DRY BASIS)

AVERAGE

No data

No data No data No data No dataNo data No data No data No dataVL4/66

AVERAGE

No data No data No data No data No data No data No data No dataVL5/66

AVERAGE

Zone 3

Zone 2

Zone 4

CONCLUSION

Analysis of limited reliable drilling information recovered from the farm Vetleegteprovides a reasonable indication of a significant coal resource on the property.Infrastructure, in terms of roads, rail lines and powerlines are readily in place due tothe proximity of the well established Grootegeluk Colliery. Further to this, anindication of the coal zones, qualities and marketing information can be estimatedfrom Grootegeluk. Nonetheless, actual information obtained from the availabledrilling on Vetleegte has substantiated the possibility of block faulting, which has had an effect on the depths and continuity of the coal zones. Further systematicexploration is recommended in the form of drilling, sampling and modelling in orderto assess the full potential of the property.

MINERAL PROCESSING

No mineral processing is currently taking place on the Vetleegte property.

THCOAL RESOURCE & RESERVE STATEMENT - 11 JULY 2008

Information in this report that relates to exploration results, mineral resources orreserves is based on information compiled by geologists Mr M. Tyndall, who is a full-time employee of Venmyn Rand (Pty) Ltd and Mr Hatherly, who is an associateof Venmyn. Mr Tyndall and Mr Hatherly, collectively have sufficient experiencewhich is relevant to the style of mineralisation and type of deposit underconsideration and to the activity which he is undertaking to qualify as a CompetentPerson as defined in the 2004 Edition of the “Australasian Code for the Reportingof Exploration Results, Mineral Resources and Ore Reserves”. Mr Tyndall and MrHatherly consent to the inclusion in the report of the matters based on thisinformation in the form and context in which it appears.

TECHNICAL STATEMENTFirestone Energy Ltd. - Vetleegte Coal Project South Africa

thAS AT 11 JULY 2008

Pg 7 of 7

Information in this statement is to be used for marketing and illustrative purposes only. This report contains data supplied by Firestone Energy Ltd. These diagrams and the information herein are copyrighted. It may not be edited

or transmitted in any form or by any means without prior written permissionFirestone'08_Vetleegte-Technical Statement.cdr

Farm Area ha 1,126sq.m 11,260,000

Borehole Intersections (with qualities) number 2 2 3 2 3 3 3Depth range fromfrom (m) 41 62 55 85 95 80 0

toto (m) 62 75 100 130 135 140 140Anticipated opencast proportion % 100 100 100 100 100 100 100Area of in-situ Coal (minimum width and quality cut-offsapplied) sq.m 4,700,000 6,600,000 8,500,000 6,700,000 8,700,000 8,500,000 7,283,333

Borehole Density bh/100ha 0.43 0.30 0.35 0.30 0.34 0.35 0.27Total Package Thickness (Coal and Parting Waste) m 45.82 13.35Estimated Total Package Volume cu.m 215,354,000 88,110,000.00Average S.G. (Total Package) t/m3 1.88 2.09Total In situ Tonnage (Total Package) tons 404,688,800 184,127,873Average Coal Thickness m 21.00 2.10Total Pay Bench Thickness (all zones) m 68.2Estimated Volume of in-situ Coal cu.m 98,700,000 13,877,325 18,600,000 7,370,000 34,800,000 7,650,000 371,884,000Estimated Volume of Overburden cu.mAverage package SG t/m3 1.95Raw Coal Relative Density t/m3

Total Potential Coal Resource tons 148,050,000 20,815,988 27,900,000 11,055,000 87,000,000 11,475,000 726,246,673Previously Mined tonsTotal In-situ Coal Resource (GTIS) tons 148,050,000 20,815,988 27,900,000 11,055,000 87,000,000 11,475,000 726,246,673Consisting of: Opencast Coal resource tons 148,050,000 20,815,988 27,900,000 11,055,000 87,000,000 11,475,000 726,246,673 and: Underground Coal resource tonsGeological losses Undefined % 30 30 30 30 30 30 30In-situ Opencast Resource tons 103,635,000 14,571,191 19,530,000 7,738,500 60,899,999 8,032,500 508,372,671In-situ Underground Resource tons 0 0 0 0 0 0 0Total In-situ Coal Resource (TTIS) tons 103,635,000 14,571,191 19,530,000 7,738,500 60,899,999 8,032,500 508,372,671Theoretical mining height - opencast metres 21.00 2.10 3.00 1.10 4.00 0.90 68.17Theoretical mining height - underground metres 1.00Opencast resource - theoretical mining height applied tons 508,372,671Mineable In-situ Coal Resource (MTIS) tons 103,635,000 14,571,191 19,530,000 7,738,500 60,899,999 8,032,500 508,372,671Resource classification (based on B/H density) n/aAdditional Boreholes for Indicated Category number 8 8 8 9 8 8 9Estimated metres metres 538 648 851 1,232 1,140 1,181 1,225Additional Boreholes for Measured Category number 36 51 87 88 87 87 88Estimated metres metres 2,318 3,985 8,969 11,715 12,017 12,452 12,538QualitiesSelected wash RD Ratio 1.70 Raw raw raw raw raw RawYield % 15.8Calorific Value Mj/kg 22.1 to 27.8 17.5 to 20.8 20.3 to 24.4 18.0 to 25.6 24.7 to 28.4 17.5 to 28.4Ash Content % 14.2 to 49.3 67.9 31.4 to 47.0 22.1 to 34.5 20.1 to 61.3 12.2 to 21.4 12.2 to 61.3Volatile Matter % 28.5 to 34.3 17.8 19.4 to 25.2 17.8 to 22.3 11.8 to 29.4 23.9 to 27.9 11.8 to 34.3Sulphur Content % nd 0.5 nd nd nd nd ndPhosphorus Content % nd nd nd nd nd nd nd

ZONE 5

n/a

1.50

VETLEEGTE COAL RESOURCE - 11th JULY 2008

UNITS ZONE 6-11 ZONE 3 ZONE 2 ZONE 1 ALL ZONESZONE 4

n/an/a

0

0

Inferred

n/a

n/an/a

n/a

COMPETENT PERSON’S DECLARATION

Gross Tons In Situ 726,246,673Gross Tons In Situ at 55% Attributable to Firestone in terms of Proposed JV Agreement 399,435,670Geological losses (undefined) 30%Total Inferred Coal Resource Tons In Situ 508,372,671Total Inferred Coal Resource Tons In Situ at 55% Attributable to Firestone in terms of Proposed JV Agreement 279,604,969

COAL RESOURCE STATEMENT FOR VETLEEGTE – 11th JULY 2008