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Freestone Resources, Inc. Announces the Formation of Aqueous Services, LLC, a Joint Venture Shale Water Management Company

DALLAS, TX -- (Marketwire) -- 11/16/12 -- Freestone Resources, Inc. (OTCQB: FSNR) announces the formation of Aqueous Services, LLC, a joint venture between Freestone Resources, Inc., Pajarito W&M, LP. and International Aqueous Investment, LLC for the purpose of developing a shale oil and gas water management facility in Wilson County, Texas.

Freestone Resources will own a one-third interest in Aqueous Services, LLC, which has signed a Water Right's Agreement to produce from an existing equipped and permitted fresh water well on the Pajarito Ranch. The Water Right's Agreement allows Aqueous Services the right to produce up to 1,500 acre-feet (the equivalent of 11,637,535 barrels) of fresh water per year.

Aqueous Services will immediately begin construction of a load out facility to begin selling fresh water, and will simultaneously be in development of a frac water and produced water recycling facility. The primary mission of Aqueous Services is to provide exploration and production companies with a full water management program that not only can provide a cost effective and constant supply of fresh water, but also promote the recycling of their produced and flowback water to advance sustainable environmental stewardship.

"The formation of Aqueous Services is an exciting opportunity to align Freestone with partners that have the same goal," said Clayton Carter, President and CEO of Freestone Resources. "This goal includes promoting energy independence through the exploration of our vast shale formations while providing resources and technologies that can achieve this goal in an environmentally responsible way."

Frates Seeligson, CEO of Aqueous Services, LLC, commented further stating that, "using state-of-the-art technologies, Aqueous Services is positioned to provide the oil and gas industry with an environmentally sound option to traditional water disposal. As demands increase on our limited water resources, stewardship of this asset is vital to everyone. To be a good corporate citizen, sound water management focusing on reuse is imperative. With Freestone Resources' position in the industry, Aqueous Services' ability to source, recycle and reuse water increases exponentially. With the development of our first full water management site we intend to prove this model and begin building these facilities throughout the United States."

About Mr. Seeligson: Frates Seeligson is President of Pajarito W&M, LP and CEO of Aqueous Services, LLC. A native of South Texas, Mr. Seeligson has been actively involved in the development and management of fresh water for over 10 years. For the past 2 years he has focused primarily on developing opportunities for the oil and gas industry to reduce demands on fresh water resources.

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. http://www.freestoneresourcesinc.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 and other 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.
Don Edwards
214.880.4870

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