re: Ann: Operational Update - BFS Ahead of Sc... Follow up...

re: Ann: Operational Update - BFS Ahead of Sc... Follow up article in reference to the BFS announcement, but comments a little more, particularly about the progress of the conerstone investors:

http://www.onenewspage.com.au/news/Business/20100513/10992484/Firestone-Energy-reports-BFS-at-Waterberg-Coalfield-ahead.htm

Firestone Energy reports BFS at Waterberg Coalfield ahead of schedule

Reported by Proactive Investors on Thursday, 13 May 2010 (35 minutes ago)

Firestone Energy (ASX, JSE: FSE) has reported that good progress is being made on the bankable feasibility study (BFS) at the companys flagship Waterberg coal project in South Africa, with results now expected in July 2010.

The BFS follows on the Prefeasibility Study which was completed and approved in January 2010.

The company said the objective of the study is to define an open cast mine that could meet expected customer requirements and which can be brought into production by mid 2011 on the Smitspan farm.

A further 12 boreholes, of which 6 were large diameter(165mm) as required for detailed customer analysis have been completed by the end Aril 2010. This significantly enhances the qualitative and technical data base that was developed with the 122 boreholes drilled previously.

Additional holes are currently being drilled on a selected area of the Vetleegte and Hooikraal Farms to confirm the presence of higher yielding metallurgical coal at potentially attractive stripping ratios.

The company also said that although Firestone's last quarterly report indicated that FSE has $1,684 million of cash, the company, as previously announced, entered into a $25 million fully underwritten draw down facility in September 2009, which still has $10 million left to be drawn.

John Wallington, managing director, said at its present and projected rate of cash utilisation FSE remains fully funded (including the acquisition of Hooikraal and Smitspan farms), until the second quarter of 2011. This excludes any further capital injections from the cornerstone investor process.

Firestone has engaged with over twenty interested international parties, some of which are undertaking detailed due diligence and site visits.

The current strong global demand for both metallurgical and thermal coal is bringing strong interest to FSEs project.