Name and Location
Norasa uranium project, Namibia.

Client
Forsys Metals.

Project Description
A feasibility study completed on Norasa has confirmed the robustness and economics of the project.

The study shows a material increase in mineral reserve estimates to 90.7-million pounds of uranium oxide (U₃O₈), up 14.8% from 79-million pounds of U₃O₈ in October 2013. The changes to the mineral reserve estimates are primarily the result of the addition of 10.7-million pounds of U₃O₈ reserves from the Namibplaas deposit, using a 140 parts per million cutoff grade.

The Norasa production schedule has been modified to incorporate the updated mineral reserves and to include a processing rate increase to 11.2-million tonnes a year from 8.2-million tonnes a year in 2010. Estimated yearly production over the 15-year life-of-mine is estimated at 5.2-million pounds of U₃O₈.

Net Present Value/Internal Rate of Return
The base case scenario estimates a pretax net present value, at a discount rate of 8%, of $622.6-million. Using the initial investment and operating cash flows from inception, the pretax internal rate of return is estimated at 32%.

Value
The base case capital expenditure is estimated at $432-million.

Duration
The feasibility study assumes a schedule of about 24 months from the start of detailed engineering to the start of plant production. While this timeline is predicated on the confirmation of suitable financing for the project, Forsys expects to optimise this timeframe during the detailed engineering phase.

Latest Developments
Forsys believes that the study results will attract strategic partners and investors, and provide the company with alternatives for the next phase of Norasa’s development.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
TMX Equicom investor relations on behalf of Forsys Metals, Joe Racanelli, tel +1 416 815 0700 ext 243 or
email: jracanelli@tmxequicom.com.