Freestone Resources Inc.'s Progress of Wells and Merger

Freestone Resources Inc. (PINKSHEETS: FSNR) is in the process of reworking of the Byrd A1 oil and gas well in Mitchell County, Texas. Freestone Resources will treat the well with Petrozene after the work over is complete. Petrozene has worked successfully in 3 wells in this area. These wells had problems with iron sulfides as well as paraffin. We will report the progress of this well as it is brought on line.

The Carroll#1 treatment with Petrozene is complete. The company unloaded the column of oil and blew down the well to zero pressure. Twelve 55-gallon drums of Petrozene were pumped down the well followed by 168 barrels of crude oil. The company anticipated the Petrozene to be forced into the mile of laterals at the bottom of the 9,800 vertical well bore. It is evident that the treatment is working. So far we have flowed back all of the crude oil and additional barrels of oil. The well produced a large volume of yellow wax and drilling mud. The wax initially used years ago to divert the frac of the well was dissloved by the Petrozene.The gas and oil pressure is pushing out the drilling mud and wax, opening new fractures for production. The column of oil has increased by 3,000 feet as well as the gas pressure. We are still evaluating the increase of production this treatment produced. We will keep you informed.

Freestone has been in negotiations with a multi-million dollar company in merger talks. This merger if complete will make Freestone Resources Inc. a large player in the oil and gas industry. Again we will keep you informed as this evolves.

About Freestone Resources Inc.:

Freestone Resources Inc. is an East Texas-based Oil and Gas company which is actively pursuing opportunities in Texas and New Mexico oil and gas fields in the areas of lease acquisitions, exploration, production, recompilations, and waste disposal.

Freestone Resources Inc. is also diligently working to develop and utilize emerging technologies and products related to increasing oil and gas production, efficiency and profitability.

SAFE HARBOR STATEMENTS:

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Contact: Freestone Resources, Inc. Lloyd Lane 903-389-6300 Investor Relations: Email Contact