Stonefire Provides 2008 Year End Reserves Summary

Stonefire Energy Corp. ("Stonefire" or the "Company") (TSX VENTURE:SFE.A) (TSX
VENTURE:SFE.B) is pleased to provide a summary of its reserves evaluation as of
December 31, 2008 as prepared by GLJ Petroleum Consultants Ltd. ("GLJ"), the
Company's independent reserves evaluator. The reserves evaluation has been
prepared in accordance with National Instrument 51-101 Standards of Disclosure
for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation
Handbook reserves definitions.


The Company's annual audit of its financial statements is not yet complete and
accordingly all financial amounts referred to in this press release are
management's best estimates. Stonefire expects to issue audited financial
statements for 2008 in early April 2009.


In this press release "Company Interest before Royalty" is the working interest
reserves before royalty burdens payable are deducted. Reserves and production
are stated in "barrels of oil equivalent" (boe) derived by converting gas to an
oil equivalency in the ratio of six thousand cubic feet of gas to one barrel of
oil. "Boe" may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.


The aggregate of the exploration and development costs incurred in the most
recent financial year and the change during that year in estimated future
development costs generally will not reflect total finding and development costs
related to reserve additions for that year.


Highlights of the Reserve Report:

- Year end 2008 proved plus probable (P+P) reserves total 5.742 million boe an
increase of 145% over year end 2007 reserves of 2.346 million boe.


- Proven reserves at year end 2008 totaled 2.991 million boe a 181% increase
over year end 2007 proven reserves of 1.064 million boe.


- During 2008 total reserve additions were 3.709 million boe of P+P reserves and
2.24 million boe of proven reserves. P+P reserve additions replaced production
11.8 times and proven reserve additions replaced production 7.2 times.


- Estimated total capital spent in 2008 was $21.115 million resulting in all-in
finding and development costs (F&Ds) including future development capital (FDC)
of $8.42 per boe for P+P reserve additions and $13.08 per boe for proven reserve
additions.


- Based on the GLJ 2009 P+P forecast Stonefire's reserve life index (RLI) is 9.4
years.


- Since the start of operations in March 2006 Stonefire has added proven and P+P
reserves including production of 3.378 million boe and 6.129 million boe,
respectively. Over 99% of reserve additions have resulted from drilling with no
significant acquisitions. The resulting 3 year F&D costs including all FDC are
$11.41 per boe for P+P reserves and $18.43 per boe for proven reserves.


- Stonefire achieved a P+P recycle ratio in 2008 of 3.6 based on a 2008 funds
flow netback of $30.13 per boe and a P+P recycle ratio of 4.3 based on a 2008
operating netback of $36.01 per boe.




Summary of Oil and Natural Gas Reserves - Company Interest Before Tax and
Royalty

December 31, 2008 Company Interest Reserves Summary Before Tax and Royalty
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                     Light Oil    Natural Gas    Natural Gas          Total
Reserve Category         (Mbbl)         (Mmcf) Liquids (Mbbl)         (Mboe)
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Proved Producing           295          8,530            303          2,019
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Proved Developed -
Non Producing                0             45              2             10
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Proved Undeveloped           0          4,795            163            962
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Total Proved               295         13,369            468          2,991
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Total Probable             216         12,573            440          2,751
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Total Proved plus
Probable                   510         25,942            908          5,742
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Net Present Value of Reserves

Below is a table showing the Company's net present value of future net revenue
attributable to reserves using forecast prices and costs. The prices used were
GLJ Forecast Prices as at January 1, 2009. The estimated future net revenues are
presented before deducting future estimated site restoration costs, and are
reduced for estimated future abandonment costs and future capital costs
associated with non-producing, undeveloped and probable additional reserves.
Estimated values disclosed do not necessarily represent fair market value.




Summary of Future Net Revenue Before Income Taxes - At December 31, 2008
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$ (000's)
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 Discounted at:                             0%        5%       10%       15%
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Total Proved:                          97,451    70,925    55,840    46,251
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Total Probable:                       112,684    61,475    40,357    29,315
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Total Proved plus Probable            210,136   132,400    96,197    75,567
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Finding and Development Costs

The table below summarizes F&D costs for 2008 as well as for the past 3 years.
All cases include FDC. Total capital spent in 2008 was $21.115 million and
average production was 856 boe per day.




Summary of Finding and Development Costs
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                                                                Proven plus
                                                      Proven  Probable (P+P)
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2008 All-in F&D Costs
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2008 Total Reserve Additions (Mboe):                   2,240          3,709
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2008 Capital plus change in FDC ($MM):               $29.309        $31.238
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2008 All-in F&D Costs ($/boe):                        $13.08          $8.42
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3 Year All-in F&D Costs (since Inception)
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Total Reserve Additions (Mboe):                        3,378          6,129
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Total 3 year Capital plus FDC ($MM):                 $62.244        $69.913
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3 Year All-in F&D Costs ($/boe):                      $18.43         $11.41
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2009 Outlook

In 2009 Stonefire will direct the majority of its $11.5 million capital budget
to drilling and completions with plans to drill 6 gross (4.5 net) operated wells
in the Edson and McLeod areas. The 2009 budget is expected to be funded
primarily through cash flow. The Company has bank lines of $30 million which
were reviewed and approved in early Q1, 2009 and which are well in excess of the
current net debt and working capital deficiency of approximately $20 million.
Average 2009 production is forecast to be in the 1,500 to 1,600 boe per day
range with approximately 35% light oil and natural gas liquids in the production
mix.


The first well of the 2009 drilling program is a 100 percent working interest
multi-zone gas well drilled to a total vertical depth of 2,357 meters in the
Edson field in February 2009. In addition to multiple gas zones the well
encountered significant oil filled fractures within a 45 meter gross interval of
the Second White Specks zone. Completion operations are currently underway on up
to 6 potential gas zones. The well is close to Stonefire's 100 percent working
interest Edson gas gathering and processing facilities and is expected to
commence production April 1st, 2009 and will qualify for the Alberta government
New Well Royalty Reduction program.


In addition to achieving low finding and development costs Stonefire is also a
low cost producer with estimated Q4 2008 operating costs of $3.91 per boe. The
Company is forecasting 2009 operating costs to average $4.50 per boe plus $1.70
per boe transportation costs. Stonefire's production base is high quality Deep
Basin production with long reserve life and no free water. Stonefire operates
98% of its production and will continue to operate 100% of its capital projects
which includes a drilling inventory of over 45 gross (35 net) operated wells.


With significant unused bank lines, a growing production base and control of all
its capital projects, Stonefire has financial flexibility and is well positioned
to react to changing market conditions. With its low cost structure and quality
drilling inventory Stonefire is also well positioned to show continued growth
and added value in 2009 even in a low commodity price environment.


Stonefire Energy Corp. is an Alberta-based company formed to participate in oil
and gas exploration, development and acquisitions focusing in the West Central
region of Alberta. The Company's shares trade on the TSX Venture exchange under
the symbols SFE.A and SFE.B. The Company currently has 18,265,000 Class A shares
and 1,012,000 Class B shares outstanding. Additional information regarding
Stonefire Energy Corp. is available on Stonefire's website
www.stonefire-energy.com and Stonefire's SEDAR profile at www.sedar.com


Reader Advisory

This news release contains certain forward-looking statements, including
management's assessment of future plans and operations, and capital expenditures
and the timing thereof, that involve substantial known and unknown risks and
uncertainties, certain of which are beyond Stonefire's control. Such risks and
uncertainties include, without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks, competition
from other producers, inability to retain drilling rigs and other services,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources, the
impact of general economic conditions in Canada, the United States and overseas,
industry conditions, changes in laws and regulations (including the adoption of
new environmental laws and regulations) and changes in how they are interpreted
and enforced, increased competition, the lack of availability of qualified
personnel or management, fluctuations in foreign exchange or interest rates,
stock market volatility and market valuations of companies with respect to
announced transactions and the final valuations thereof, and obtaining required
approvals of regulatory authorities. Stonefire's actual results, performance or
achievements could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurances can be given
that any of the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefits, including the amount
of proceeds, that Stonefire will derive therefrom. Readers are cautioned that
the foregoing list of factors is not exhaustive. All subsequent forward-looking
statements, whether written or oral, attributable to Stonefire or persons acting
on its behalf are expressly qualified in their entirety by these cautionary
statements. Furthermore, the forward-looking statements contained in this news
release are made as at the date of this news release and Stonefire does not
undertake any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required by applicable securities laws.