Firesteel provides AGM results and corporate update

Trading Symbol: FTR - TSX: V

VANCOUVER, Feb. 22 /CNW/ - Firesteel Resources Inc. (TSXV:FTR) ("Firesteel" or the "Company") is pleased to announce the results of the Annual General Meeting ("AGM") of shareholders held earlier this month, to announce other developments of the Company and to provide a general corporate update.

Approximately 17 per cent of shareholders were represented at the AGM and they approved all motions put forward to them. The following incumbent directors were re-elected for the coming year:

    Rolland Menard
    Walter Wakula
    Thomas Woodman
    Lloyd Worthing

Director Steve Strawson had decided not to stand for re-election to the Board due to an extremely busy schedule and Firesteel thus reduced the number of directors to four. We extend our sincere thanks to Steve for his dedicated service and sound business advice to the Board since joining us in mid 2007.

Firesteel regrets to announce that Walter Wakula has resigned as President and CEO of the Company but is pleased to advise that he has decided to remain on the Board.

The directors appointed the following officers:

    Walter Wakula - Chairman of the Board
    Thomas Woodman - Interim CEO
    Jeffrey Gold remains in his position of CFO and Corporate Secretary

The following directors were appointed to the Audit and Compensation Committee:

    Rolland Menard
    Walter Wakula
    Lloyd Worthing

The Board of Directors would like to thank Firesteel's shareholders for their continued support.

Firesteel is also pleased to announce that Mr. Thomas Woodman has agreed to assume the role of Interim CEO of the Company. Tom joined Firesteel's Board in 2006 and most recently has served as Chairman of the Audit and Compensation Committee. Educated at Simon Fraser University in Burnaby, B.C. Tom subsequently worked in the forestry industry in British Columbia and in New Zealand. He returned to Canada in the early 1980's and operates a construction company located on Vancouver Island.

In announcing Mr. Wakula's resignation as President and CEO, Thomas Woodman, Interim CEO stated: "Walter has brought his significant oil & gas, corporate finance and executive management experience to Firesteel at a time when tremendous opportunities presented themselves in the oil sands sector and subsequently when the capital and credit markets were going through extreme turmoil. The Company's share price stability relative to the minerals sector and rebound from recent lows can be attributed to Walter's accomplishments. Walter, with the active involvement of all members of the Board and the support of his management team, have advanced the following key projects and accomplished the following milestones during the past year and a half:

    -   Expanding the concept for and further exploring the Copper Creek
        discovery property; continuing discussions with potential partners to
        jointly accelerate the exploration of this property to determine the
        extent and concentration of copper and gold mineralization;

    -   Expanding the ROK - Coyote Project:
        -  through additional staking, prospecting and exploration work; and
        -  granting an option for a 70 to 75% interest in the ROK-Coyote
           Property under a letter of intent for $3.6 million in cash, shares
           and work commitments;

    -   Establishing and developing Firesteel's oil sands business through
        its Blacksteel Oil Sands Inc. ("Blacksteel") subsidiary and
        identifying significant bitumen resources, proving up natural gas
        reserves and commencing natural gas production:
        -  realizing $1.3 million through sale of Blacksteel shares and
           exchanges for debt;
        -  retaining 16.8% of Blacksteel's shares with a deemed value of
           $1.6 million after taking the company public;

    -   Subsequently hunkering down the business and weathering the turmoil
        in capital markets by:
        -  streamlining the property base to the Company's core properties
           and terminating the Wolverine property option;
        -  focusing on cost reduction while maintaining the Company's
           property management, compliance, disclosure, legal, accounting and
           administrative processes;

    -   Strengthening the balance sheet and maintaining liquidity while
        executing key technical and administrative processes and conducting
        exploration work;

    -   Avoiding significant dilution of Firesteel stock when share prices
        were low by continuing business operations without issuing stock;

    -   Strengthening corporate governance of the Company with the
        introduction of Board and director mandates, regular board and
        committee meetings and several policies including a disclosure and a
        stock option policy."

On announcing his change of roles, Mr. Wakula stated, "I would like to thank Tom for taking on the role of Interim CEO pending our recruiting his replacement and thank the Board for their active involvement and dedicated work in all aspects of the Company. I am excited for Firesteel's prospects and Tom and his successor can now use the solid business base we have built to develop the successful minerals exploration company we have all envisioned. As a Firesteel Director and its Chairman I plan to remain actively involved in the Company including project development and future financing."

Firesteel also announces that on February 1, 2010 the Company had been served with a Writ of Summons by Brett Resources Inc. ("Brett") in The Supreme Court of British Columbia (the "Court") with respect to a letter of intent entered into with Brett (the "LOI"). Under the LOI Brett had offered to option a 100% interest in the ROK-Coyote mineral property (the "ROK Property") from Firesteel over a four year period for cash, shares, exploration work commitments and a smelter royalty. On February 5, 2010 Firesteel filed an appearance with the Court and a notice to defendant entering the appearance. The next step in the process is for Brett to file a statement of claim with the Court. As of this date Firesteel has not received a statement of claim.

The LOI was entered into on September 22, 2009 pending completion of either a more detailed letter of intent or a formal agreement by November 3, 2009. An amending agreement had extended this termination date to December 4, 2009. The parties failed to conclude the formal agreement by December 4, 2009 and the LOI terminated by its terms. Firesteel believes the action undertaken by Brett is without merit.

Under this LOI Brett had conducted an exploration work program and paid filing fees totalling about $121,000 with such work to be filed for assessment purposes with the British Columbia Ministry of Mines and Petroleum Resources. If the parties were to fail to conclude the formal agreement prior to termination, Firesteel had agreed to reimburse Brett for the work undertaken. The parties are currently negotiating the terms for reimbursement by Firesteel of the exploration work undertaken and fees paid in exchange for a technical report from Brett and documentation of spending undertaken by them.

On January 21, 2010 Firesteel had entered into a letter of intent ("LOI - LGM") with Lions Gate Metals Inc. ("Lions Gate") to grant Lions Gate a four year option, subject to regulatory approval, to acquire a 75% interest in the Company's ROK-Coyote Property which interest can be reduced to a 70% interest with payment of $200,000. The terms of this LOI - LGM was previously announced by Firesteel in a news release dated January 25, 2010. The TSX Venture Exchange has subsequently approved the transaction on February 9, 2010.

Firesteel is a junior minerals 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. The Company has been exploring its Copper Creek and ROK - Coyote discovery properties in northern British Columbia with strong showings of copper and gold mineralization. Firesteel maintains its interests in the oil and gas business through its 16.8 percent shareholding in Blacksteel Energy.

    "Walter Wakula"
    Walter Wakula, Chairman of the Board

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Advisory Regarding Forward Looking Statements

This press release contains forward-looking statements which include, but are not limited to: evaluations, opinions, forecasts, projections, guidance, expectations about future activities and performance of the Company, the recruitment of a new CEO, Mr. Wakula's future involvement with the Company or other statements that are not statements of fact. Although the Company 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. The matters contained in this news release may be affected by a variety of variables and risks, 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 new 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

Organization Profile

Firesteel Resources Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890