Stonefire Energy Corp. is a junior exploration and production company based in Calgary, Alberta. Stonefire was founded as a private corporation in July 2005 and entered the public markets in March 2006 through an initial public offering. Stonefire’s first exploration well, drilled in Alberta’s prolific West 5 region in Q1 2006, was a new pool discovery that came on-stream in June 2006.

Stonefire’s business plan is to generate growth in its net asset value per share through exploration and exploitation of its Edson exploration area properties in west central Alberta. Stonefire maintains a high working interest (W.I.) and operatorship of its properties in this area, which hold numerous Deep Basin natural gas prospects with multi-zone potential. The Company became cash flow-positive in Q4 2007.

Stonefire drilled four exploration wells in 2007 with 100 percent success, discovering six new pools with combined reserves potential of 6 to 8 bcf. The Company also expanded its Edson land base, adding 9,280 gross acres by year-end. Stonefire’s 100 percent working interest Edson 10-28 Gas Plant was commissioned in Q3 2007. This strategic asset will provide Stonefire with control over development of its Edson assets, lower operating costs, higher netbacks on its natural gas production and greater natural gas liquids recovery.

Stonefire has experienced management and technical teams with past success growing exploration-focused junior oil and natural gas companies at all stages of the commodity price cycle. Production at the end of 2007 was 611 boe/d based on the final week of field estimated production in December. Stonefire trades on the TSX Venture Exchange (TSX-V) under the symbols SFE.A and SFE.B. At December 31, 2007 there were 18.265 million Class A shares and 1.012 million Class B shares issued and outstanding.