Freestone Resources Issues a Letter to Shareholders

DALLAS, TX, Apr 06 (MARKET WIRE) --
Freestone Resources, Inc. (OTCBB: FSNR), an oil and gas technology
development company issues a Letter to Shareholders to update existing
Freestone investors on the current status of the Company and its future
growth outlook. Text from the letter is as follows:

"Dear Fellow Shareholders,

The past few months have been very exciting at Freestone Resources, Inc.
(OTCBB: FSNR). The Company has experienced positive transformations and
changes that have allowed the Company to attain its next stages of
growth. These changes include a new audit firm, the addition of oil and
gas industry veteran Michael McGhan to the Freestone team, the
development of the Seguin Oil Project, and the ongoing effort to advance
and commercialize the EncapSol technology in the oil sand industry, gas
compression industry, and waste oil recycling industry.

New Audit Firm:

The Company was very impressed by the audit work
performed by The Hall Group CPAs in regards to their work on the Earth
Oil Services, Inc. audit. Thus, the Board of Directors at the Company has
made the decision to work with The Hall Group CPAs as the Company's
independent audit firm.

Michael McGhan:

Michael McGhan's experience in developing two
large-cap gas compression companies (Hanover Compression and Valerus
Compression Services, LLP) has been invaluable to the development of the
Company's latest business model. Mr. McGhan has provided the Company with
an opportunity to demonstrate the EncapSol technology to multiple oil and
gas industry veterans and certain Oil and Gas Processing and Treating
Companies, as well as other Natural Gas Handling Service Companies. We
believe that his assistance will expedite the Company's ability to
develop a commercialized EncapSol process.

Seguin Project:

Over the past year the Company has been in development
of the oil property in Seguin, Texas. This property is now fully online
with an anticipated monthly production in excess of 200 barrels of oil.

Commercialization of EncapSol:

The Company has begun to receive oil
sand, oil shale, paraffin wax, and waste oil samples from established oil
and gas companies that believe they can benefit from the use of EncapSol.
The Company has been very impressed by the test results. The Company
anticipates that these results will lead to formal agreements with these
companies.

The Company is also working to finalize the 4th Generation EncapSol Oil
Recovery Machine. This machine is in its final stages of completion. The
demonstration of this machine will show the oil industry that we have
developed a closed loop, zero-discharge, environmentally friendly, and
economically viable oil recovery system. The Company will continue to
update shareholders as the machine reaches its completion date."

About Freestone Resources, Inc.:

Freestone Resources is a Dallas,
Texas-based oil and gas technology development company. The continuing
goal of the Company is to develop new technologies that allow for the
utilization of our vast resources in an environmentally responsible and
cost effective way.

About EncapSol:

EncapSol is a unique, proprietary, environmentally
friendly and non-flammable oil recovery solvent that chemically breaks
the molecular bonds that bind hydrocarbon (oil) molecules to water, clay,
sand, rock and other mediums leaving them clean and free of oil. The end
result of this process produces a complete separation of the encapsulated
hydrocarbons from its original environment while avoiding the typical
detrimental impact of current industry methods. (For more information
please visit: http://encapsol.com)

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.
Clayton Carter
Chief Executive Officer
Phone Contact: 214.880.4870
Email Contact: Email Contact

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