Freestone Resources Inc. (fka FSNR)

[ponzi_implosion]

Based on the amount of money to

set up, finance and operate a tar sand operation FSNR current unable to even begin any sort of commercial extraction

http://www.sec.gov/Archives/edgar/data/1089319/000112178111000041/fri10q123110.htm

Total Cash & Receivables = less than $38K
Total Short term Liabilites = over $266K

Need for Additional Financing

The Company believes it will not generate sufficient liquidity from its operations so the need for additional funding will be necessary. We may sell stock and/or issue additional debt to raise capital to accelerate our growth.

Going Concern Uncertainties

As of the date of this annual report, there is doubt regarding our ability to continue as a going concern as we have not generated sufficient cash flows to fund our business operations and loan commitments. Our future success and viability, therefore, are dependent upon our ability to generate capital financing. The failure to generate sufficient revenues or raise additional capital may have a material and adverse effect upon the Company and our shareholders.