Abstract: A fireplace includes a controlled external air intake and means to preheat this air during its passage to the firebox through a heat exchanger system. This heated air also passes into the room in which the fireplace is situated. This air routing is fully controlled by dampers and when entering the room may induce a slight positive pressure within the room rather than the negative pressure caused when combustion air is drawn from the room. A chimney damper is provided with a plurality of positions and when fully closed, seals off the chimney so that cold air cannot flow down the chimney and into the room. The outer skin or shell is insulated thus enabling installation with relatively little clearance and glass closure doors may be used to close off the front of the grate area from the room thereby preventing air from being drawn from the room and also preventing ashes, cinders or the like from falling from the firebox component.