Valencia Uranium Project Overview

PROJECT OVERVIEW

The 100% owned Valencia Deposit is located 35 km along strike to the world class producing Rössing Uranium Mine and 40 km north of the Langer Heinrich Uranium Deposit.

May 2009 NI 43-101 Technical Report prepared by Snowden Mining Industry Consultants (Pty) Limited describes the Valencia mineral reserve and mineral resource as follows:

Summary of Valencia Uranium Mineral Resource , November 2009

Table 1 –Summary of Valencia Uranium Mineral Resources as at November 2009

Category	Cut-off U₃O₈ (ppm)	Tonnes (M)	Grade U₃O₈ (ppm)	U₃O₈ Metal (Mlbs)
Measured	60	24.3	151		8.1
Indicated	60	245.9	124		67.4
Total Measured and Indicated	60	270.3	127		75.5
Inferred	60	32.0	126		8.4
Measured Indicated	100 100	18.6 140.2	172 158		7 48.9
Total Measured and Indicated	100	158.8	160		55.9
Inferred	100	15.3	163		5.5

Summary of Valencia Uranium Deposit Mineral Resources, estimated at the anticipated SMU scale, as at November 2009

Category*	Cut-off U₃O₈ (ppm)	Tonnes (M)	Grade U₃O₈ (ppm)	U₃O₈ Metal (Mlbs)
Measured	60	21.0	161		7.4
Indicated	60	219.6	144		69.8
Total Measured and Indicated	60	240.7	146		77.2
Inferred	60	30.0	144		9.5
Measured Indicated	100 100	13.8 130.0	203 190		6.2 54.3
Total Measured and Indicated	100	143.8	191		60.5
Inferred	100	17.6	190		7.4

* 50^th percentile of 100 simulations based on metal content

A resource upgrade as part of a pre-feasibility technical report prepared by Snowden Mining Industry Consultants in May 2009 states that, “Snowden considers that the Valencia Property represents an advanced stage project which has potential for development as a profitable open-pit mining operation."

Forsys has completed initial scoping, pit optimization, metallurgical environmental and economic studies with the objective to fast track a production decision. Given the advanced stage of the project, its location close to existing infrastructure in a politically stable country with a track record of supporting the successful development and exploitation of its uranium resources, the Valencia project presents a rare opportunity for the investor to participate in what could potentially be the next uranium deposit put into production.

Enviro Dynamics and ERM. 2007. Valencia Uranium Project Environmental Assessment and Environmental Management Plan Scoping Report. Prepared for Forsys Metals Corp. 77 pp.