Freestone Resources, Inc. Unveils Petrozene Marketing Campaign.

FAIRFIELD, Texas -- Freestone Resources, Inc. (FSNR.PK) is proud to unveil the initial marketing campaign for our Petrozene treatment line. Petrozene, formerly called NR206, is a revolutionary product, previously unavailable to the Oil and Gas Industry. Freestone is the exclusive world-wide provider and distributor for this new technology. This product has been thoroughly tested and displayed unparalleled results in solving several key oilfield and refinery problems. The unique performance of Petrozene, combined with our aggressive marketing campaign, will rapidly move this product into the forefront of the Oil and Gas Industry, and quickly generate a new dependable long-term revenue stream for our company.

Petrozene is a unique blend of organic compounds combined with specialized solvents that are designed to prevent and eliminate paraffin buildup. Paraffin buildup is an industry-wide, multi-billion dollar problem that occurs when paraffin crystals within the oil base combine into a waxy buildup. This problem is especially prevalent in cooler climates. The resulting wax constricts production & strains equipment, causing losses from lowered production efficiency and increased maintenance costs. In some cases, the buildup can fully incapacitate oil operations. Petrozene is particularly effective in removing these types of sludge, paraffin and other wax based deposits.

There are many methods for dealing with paraffin buildup in the industry, however none are as clean and cost effective as Petrozene. Unlike other products in the industry, Petrozene is an environmentally friendly, non-contaminating additive. Petrozene facilitates the dispersion of the paraffin crystals, and since it is also a dispersant, it serves to retain the paraffin in the oil phase. Further, treatment with Petrozene requires little or no costly downtime or halt in production. It is simply used as an additive to the oil base, and can be applied at any convenient point in the production process. Tests have shown that Petrozene can optimally be applied to any surface equipment where accumulations of paraffin occur, as well as added into flow lines and down hole. Other specific uses include: removal of tanker sludge during transport, tank bottom cleanup, back washing filters, and to proactively aid in cleanup during well work over operations.

A key use example of Petrozene is its use in oil tankers. During the transport of oil, the tankers accumulate a vast amount of oil waste buildup, which costs millions of dollars in cleanup fees and downtime. This cleanup must be done multiple times a year. Along with the oil, Petrozene can be added to the oil tankers prior to transport and will reduce, even eliminate, the need for such costly cleanups.

Freestone, as well as independent researchers, have put Petrozene through extensive testing and have accumulated a vast amount of technical data that confirms its performance and cost effectiveness. To date, Petrozene has been used in approximately 20 oil storage tanks to aid in the removal and extraction of accumulated tank bottom sludge. With proper application and treatment, these tests have shown Petrozene to be one hundred percent effective in clearing tank bottom sludge and allowing for the sale of previously unusable oil.

Petrozene has also shown unbelievable results in treating shallow oil wells with paraffin restriction in the production tubing or in the perforated formation. After treating over 25 wells, Petrozene has been shown to produce up to 400% increase in oil production in these wells, with an average of a 200% increase in barrels of oil per day per well. The potential market for Petrozene is huge. In the state of Texas alone, there are over 40,000 producing oil wells that could benefit from Petrozene. We expect the future domestic market to be very lucrative, especially due to the recent remarks made by President George W. Bush during the 2007 State of the Union address, calling for the U.S. oil industry to "step up domestic oil production in environmentally sensitive ways" (see State of the Union 2007).

Petrozene is now being actively marketed by authorized sales representatives placed in key markets throughout the United States and abroad. Freestone has recently signed agency agreements for sales agents in California and Texas, and is directly engaging potential clients in Yemen, the United Arab Emirates, and Libya. We are primarily focusing on solutions for tank bottoms, high paraffin oil wells, oil transport and refineries. Our agents have already contacted dozens of potential end-users and have distributed hundreds of gallons of sample product for operational tests and lab analysis.

Freestone Resources has retained a marketing firm to conduct the worldwide campaign for Petrozene. This aggressive campaign begins today with the launch of Petrozene.com. The website, www.petrozene.com, discusses the origins and history of Petrozene, introduces its uses and test data, and allows potential clients to contact sales representatives for consultation and purchase. All interested parties should visit the site to keep up-to-date on details and for sales and product information.

Petrozene is a primary focus for us and we are dedicating significant resources to push this innovative product into new markets. We are anticipating several large orders within the next few weeks, based on positive feedback from our initial test clients. Freestone Resources has been contacted and has had conversations with two of the major oil companies as well as numerous independent oil companies and chemical companies about the product. We expect to have contracts in place with some of these contacts within the next two weeks. At this time, it is premature to make economic projections for the sales of Petrozene, but we anticipate that by fourth quarter 2007 Freestone Resources shareholders should expect to see a substantial net profit from this new and exciting revenue stream.

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, re-completions, 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.