Firesteel and Blacksteel increase private placement financing to $3,300,000

    Trading Symbol: FTR - TSX: V

    VANCOUVER, July 3 /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 and Blacksteel have increased the amount of their joint private
placement financing to $3,300,000 from the $1,500,000 amount announced in the
Company's June 17, 2008 news release.
    Tranche 1 of the private placement by Firesteel will remain unchanged for
the secondary offering of up to 700,000 Blacksteel shares at $1.50 per share
for gross proceeds of up to $1,050,000. The initial closing date of this
offering has been extended to July 11, 2008, or such other date(s) as
determined by Firesteel.
    Tranche 2 of the private placement for gross proceeds up to $2,250,000
(previously announced $450,000) is the Blacksteel equity offering which has
been increased to a maximum of 1,500,000 Shares (previously announced
300,000 Shares) to be issued at a price of $1.50 per share. The initial
closing date for this offering has been extended to July 25, 2008, or such
other date(s) as determined by Blacksteel.
    Other provisions for both tranches of the financing for finders' fees,
trading restrictions and so forth remain unchanged. After giving effect to
these private placement offerings, if the maximum shares are sold, Firesteel's
shareholding will be reduced from 40.4% to 30.5% (previously disclosed 33.6%)
of the issued and outstanding shares of Blacksteel.
    In announcing this increase in the financing Mr. Wakula said; "The
$1.8 million increase in this share offering is a reflection of the strength
of the oil sands sector, the quality of Blacksteel's oil sands properties and
the value which Firesteel continues to build from its investment in this
affiliate. The extra funds will enable us to accelerate Blacksteel's
exploration program."

    Firesteel is a junior exploration company which explores for and
discovers 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 exploration company.


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

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