Firesteel to raise $1,050,000 by selling 700,000 of its shares in Blacksteel; Blacksteel to raise $450,000 in a private placement



    Trading Symbol: FTR- TSX: V

    VANCOUVER, June 17 /CNW/ - Mr. Walter Wakula, President and CEO of
Firesteel Resources Inc. ("Firesteel" or the "Company"), and Chairman of the
Board of Blacksteel Oil Sands Inc. ("Blacksteel") is pleased to announce that
Firesteel will be undertaking a non-brokered private placement financing by
offering up to 700,000 shares of its 4.7 million share holdings in affiliated
company Blacksteel. The offering price will be $1.50 per share for gross
proceeds of $1,050,000. Blacksteel will also be undertaking a non-brokered
private placement financing of up to an additional 300,000 shares to raise
$450,000 in new equity. Gross proceeds from both offerings is expected to
total $1,500,000.
    The private placement by Firesteel will consist of a secondary offering
of Class "A" common shares of Blacksteel (the "Shares") at a price of
$1.50 per Share under prospectus exemptions to accredited and eligible
investors in Alberta, British Columbia, Saskatchewan and Ontario. Initial
closing of this financing is scheduled for June 30, 2008 with proceeds to be
used for Firesteel's 2008 exploration program, to pay down a portion of its
debt and for general corporate purposes. The offering will be made by means of
purchase and sale agreements between investors and the Company.
    The Blacksteel equity offering will consist of a maximum of 300,000
Shares to be issued at a price of $1.50 per share under prospectus exemptions
to accredited and eligible investors in Alberta, British Columbia,
Saskatchewan and Ontario. Initial closing of this financing is scheduled for
July 14, 2008 with proceeds to be used for Blacksteel's 2008 drilling program
and for general corporate purposes. The offering will be made by means of
subscription agreements between investors and Blacksteel.
    Both issues of Blacksteel Shares will contain provisions for finders'
fees of 7 percent in cash and 7 percent finders' warrants. The finders'
warrants will have an exercise price of $1.50 per Share and may be exercised
at the earlier of 12 months after issue or two weeks prior to Blacksteel
listing its shares on a Canadian stock exchange. Purchasers of these Shares
must not trade them before the date that is 4 months and a day after the date
Blacksteel becomes a reporting issuer. After giving effect to these private
placement issues, if fully undertaken, Firesteel's shareholdings will be
reduced from 40.4% to 33.6% of the issued and outstanding shares of
Blacksteel.
    In announcing this financing Mr. Wakula said; "This offering of
Blacksteel shares by Firesteel initializes Firesteel's strategy to sell
portions of its Blacksteel holdings as Blacksteel continues to add value to
its oil sands properties. This will significantly accelerate Firesteel's
mineral exploration programs financing them on a non-dilutive basis as its
advances towards achieving its vision on its discovery properties."

    Firesteel is a junior exploration company which explores for and develops
quality precious and base metal prospects in the resource rich Stikine Arch
area of British Columbia, and in the NWT and Mexico. Firesteel has been
actively drilling and trenching on its Copper Creek property in northern
British Columbia with strong showings of copper and gold mineralization.
Firesteel maintains its interests in the oil sands business through its
40 percent shareholding in Blacksteel Oil Sands Inc., a junior oil sands
operator.

    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,
1-888-669-5768 or visit our web site at www.firesteelresources.com

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Firesteel Resources Inc.

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