EMAIL FROM LEE (12-March-2008)The statement you refer to has...

EMAIL FROM LEE (12-March-2008)


The statement you refer to has been required to be stated by our auditor due to the fact that Firestone is currently not an active mineral producer and therefore does not have sources of funds available to it other than from equity, debt or a combination of both.



You will have noted that the current cash position of the company is strong and it has no debt other than trade creditors (ie, ASX, Computershare, etc). There is no question of insolvency which is clearly demonstrated by the balance sheet.



Firestone is currently continuing negotiation with parties in South Africa with respect to coal assets, and, in the event that the company should proceed to develop one or more of these projects, there will undoubtedly be a need for additional funding of several millions of dollars. The source of future funds may take the form of debt (backed by a bankable feasibility study), fresh equity, or a combination of both. It is with this in mind that the auditors require the generalized statement.





Lee Boyd

Director/Company Secretary

Firestone Energy Limited