Firesteel receives 4.7 million shares of Blacksteel in exchange for oil sands leases



    Trading Symbol: FTR- TSX: V

    VANCOUVER, Feb. 13 /CNW/ - Mr. Walter Wakula, President and CEO of
Firesteel Resources Inc. ("Firesteel"), and Chairman of the Board of
Blacksteel Oil Sands Inc. ("Blacksteel") is pleased to announce that Firesteel
has concluded a purchase and sale agreement ("PSA") with Blacksteel whereby
Firesteel shall receive Blacksteel shares in consideration for Firesteel's
interest in certain oil sands leases in the Peace River area of Alberta. Under
terms of the PSA Firesteel shall receive 4,723,091 common shares at $1.00 per
share for total consideration of $4,723,091. Blacksteel is also in the process
of acquiring oil sands leases from two private equity groups ("PEGs") in
exchange for Blacksteel common shares. After giving effect to these share
issues and earlier private placement share issues of Blacksteel, Firesteel's
ownership in Blacksteel is expected to represent 41 percent of the issued and
outstanding shares of Blacksteel.
    The consideration for the PSA was agreed to pursuant to a letter of
intent ("LOI") entered into between Firesteel, Blacksteel and the PEGs.
Subsequent to that Blacksteel had received the results of an oil resource
report prepared by the independent qualified reserves evaluation firm DeGolyer
and MacNaughton Canada Ltd. ("D&M") on oil sands properties Blacksteel had
agreed to acquire. D&M had evaluated these oil sands properties and had
reported on the barrels of estimated original bitumen in place. Details of
this LOI, the oil sands leases and the D&M evaluation report were disclosed by
Firesteel in news releases dated September 13, 2007 and January 28, 2008. A
copy of these news releases may be viewed at www.sedar.com.
    As part of the PSA transaction Firesteel has also concluded a Voting
Agreement which deals with aspects of corporate governance of Blacksteel. The
Voting Agreement restricts the number of directors that may be appointed to
the Blacksteel board of directors to six, of which Firesteel has the right to
nominate two directors and the PEGs may nominate two directors. These four
directors may then nominate up to an additional two directors for appointment
to the Blacksteel board of directors. Blacksteel shareholders have elected the
initial four directors, namely, Don Leitch, Jacques Soroka, Steve Strawson and
Walter Wakula, to its board. As previously disclosed, the LOI contemplates an
initial public offering ("IPO") of Blacksteel's common shares subject to a
dilution penalty should the IPO not occur. The Voting Agreement shall
terminate if all parties agree or in the event of the IPO.
    In announcing the Blacksteel share issue to Firesteel Mr. Wakula said,
"We are very excited about the value proposition posed by the investment
Firesteel has made in the oil sands business. Based on Blacksteel's latest
common equity issue these 4.7 million shares have an implied value of
$7.1 million. We expect the value of these shares to grow significantly as
Blacksteel drills, delineates and proves up its resources and begins oil
production from these properties."
    In its January 10, 2008 news release Firesteel had disclosed details of
incentive stock options granted to its President and CEO. The dates of expiry
and vesting of these stock options have been amended. The date of expiry has
been amended to September 25, 2012 from the previously disclosed December 28,
2012. The vesting schedule has been amended to September 25, 2008 (versus
December 28, 2008) for one third of the options and to September 25, 2009
(versus December 28, 2009) for one third of the options.

    Firesteel is a junior exploration company which explores for and develops
quality precious and base metal prospects in British Columbia, the NWT and
Mexico. Firesteel has recently been actively drilling and trenching on its
Copper Creek property in northern British Columbia with strong indications of
copper and gold mineralization. Firesteel has entered the oil sands business
through its purchase of oil sands leases in the Peace River Area of Alberta
and through its shareholdings in Blacksteel. Blacksteel has confirmed
1.4 billion barrels of original bitumen in place on its oil sands properties.

    ON BEHALF OF THE BOARD OF DIRECTORS OF
    FIRESTEEL RE

SOURCES INC. "Walter Wakula" ------------------------ Walter Wakula, President and CEO The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Advisory Regarding Forward Looking Statements This news release contains forward-looking statements which include, but are not limited to: statements regarding future drilling, expectations for exploration prospects, as well as operations plans, outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Firesteel believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with mineral and oil and gas exploration, production and transportation, such as loss of market, volatility of commodity prices, currency fluctuations, imprecision of resource and reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to generate sufficient cash flow from operations to meet its current and future obligations, and risks associated with existing and potential future lawsuits and regulatory actions made against the Company; as a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise. %SEDAR: 00004336E

For further information:

For further information: please contact us at (604) 669-5768, (888)
669-5768 or visit our web site at www.firesteelresources.com

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Firesteel Resources Inc.

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