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Freestone Forms Joint Venture to Utilize EncapSol for Downhole Oil Recovery

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^{Published in Stocks and Investing on Thursday, December 17th 2009 at 7:40 GMT by Market Wire}  

DALLAS, TX--(Marketwire - December 17, 2009) - Freestone Resources, Inc. (OTCBB: [ FSNR ]) announces that the Company has begun to conduct laboratory demonstrations of the EncapSol solvent technology to prominent Oil and Gas Companies, and has entered into a joint venture on a lease in Corsicana, Texas with Haas Petroleum, LLC, listed as one of the top 60 oil producers in the state of Kansas.

The management and scientists at Freestone have begun presenting information on EncapSol, and performing demonstrations of the solvent technology to prominent Oil and Gas Companies. The ultimate goal of these meetings is to form strategic relationships and partnerships with companies that can benefit from our unique EncapSol technology as a downhole recovery agent, a fracing additive, an environmental cleanup technology, and as a state of the art oil sand and oil shale extraction solvent. Each company that has been presented to has a niche market that can benefit from the utilization of the EncapSol technology. The Company also plans bring prominent industry leaders, in both Canada and the United States, to the Freestone Team to help further the mission and business of the Company.

Freestone has also entered into a joint venture with Haas Petroleum in an effort to utilize EncapSol as a fracing agent, and as a downhole enhanced oil recovery method. The joint venture includes the complete acquisition of a lease in Corsicana, Texas which is comprised of approximately 1,280 acres and three producing oil wells. This lease has four proven pay zones that are compatible with Freestone's new EncapSol technology and, according to a report conducted by a local geologist, potential for large quantities of recoverable reserves when produced properly. The Company intends to work with Haas Petroleum in order to begin a drilling program on this lease. Freestone's CEO, Clayton Carter, stated, "It is rare to acquire a lease with this much potential, and we are excited to enter into this joint venture with Haas Petroleum. Mark Haas and his Company bring unsurpassed drilling expertise, knowledge on secondary recovery methods, and the honesty and integrity that is necessary for a successful venture."

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.