Forte Energy NL ACN 009 087 852 11th April 2012 ASX, AIM and Media Release 70% INCREASE IN TOTAL RESOURCE TONNES AT THE A238 PROSPECT IN MAURITANIA International uranium company Forte Energy NL (ASX/AIM: FTE; "Forte Energy" or "the Company") announces that following completion of the first stage of the 63 hole Reverse Circulation (RC) drilling campaign at the A238 Prospect in Mauritania and receipt of all of the chemical assay results, CSA Global (UK) Ltd has finished the JORC Compliant Mineral Resource update. In comparison to the maiden resource compiled in June 2011, the total ore tonnes within the resource have increased by 70% to 45.2 million tonnes at a 100ppm U3O8 cut off. Highlights * A238 Inferred Resource increased to 23.4Mlbs from 14.9Mlbs at a cut-off grade of 100ppm U308 * 46% of contained uranium (10.2Mlbs) within the resources lies between surface and 150m vertical depth in the main zone of A238 over a strike length of 1.75km * A238NW anomaly located 800m to the north west of the A238 Main zone included in the resource and has added over 1.4Mlbs of uranium * A238 remains open at depth and along strike and is currently undergoing further drilling with another resource update scheduled in July * Forte Energy's total resource increased to 37Mlbs from 28.5Mlbs, with Guinea resource update expected to be announced in June * Forte Energy's JORC compliant Resource Statement for A238 as at April 2012 (100ppm U308 cut-off) ------------------------------------------------------------------------------------------------- Area Resource Tonnage Grade Contained U3O8 Category (Mt) (ppm U3O8) (Mlbs) ------------------------------------------------------------------------------------------------- A238 Prospect Inferred 42.8 233 22.0 ------------------------------------------------------------------------------------------------- A238NW Inferred 2.4 266 1.4 ------------------------------------------------------------------------------------------------- A238 Total Inferred 45.2 235 23.4 ------------------------------------------------------------------------------------------------- Mauritania The maiden resource estimate for the A238 prospect calculated in June 2011 was based on assay data from drilling programs during 2010 and 2011 in which a total of 10,450m of drilling was completed, together with detailed radiometric information and geological modelling. Following the completion of the first phase of the RC drilling programme at the A238 prospect and NW anomaly and the receipt of chemical assay results from 55 holes and gamma survey results for 6 holes, CSA Global (UK) Ltd (CSA) have completed a JORC compliant resource update. To view Figure 1: Mauritania Licences and Resources, please open the following link in a new window: [ http://media3.marketwire.com/docs/fte_0411_fig_1.pdf ] Chemical assays were conducted at the Stewart Group Laboratories in Ireland and South Africa. Gamma logging has been conducted on all of the holes drilled during this campaign by Poseidon Geophysics (Pty) Ltd. The results have been reviewed and interpreted by CSA and David Wilson (Consulting Geophysicist). The gamma logging data was obtained using a total count gamma tool calibrated at the Pelindaba calibration facility in South Africa. The U3O8 (eU3O8) values were calculated from this data by applying the calibration factors and after applying corrections for hole size and water content. The gamma data, which is primarily obtained from the uranium decay series daughter products, is currently assumed to be in equilibrium with uranium. CSA have reviewed the gamma data against the chemical assay results and concludes that a good correlation exists and that no systematic bias has been introduced into the estimate as a result of the inclusion of the gamma data. Table 1: A238 JORC Compliant Resource Statement (April 2012) ------------------------------------------------------------------------------------------ Area Resource Tonnage Grade Contained U3O8 Category (Mt) (ppm U3O8) (Mlbs) ------------------------------------------------------------------------------------------ A238 Prospect Inferred 42.8 233 22.0 ------------------------------------------------------------------------------------------ A238NW Inferred 2.4 266 1.4 ------------------------------------------------------------------------------------------ A238 Total Inferred 45.2 235 23.4 ------------------------------------------------------------------------------------------ Note: Figures have been rounded and are stated at a100ppm U308 cut off. To view Figure 2: A238 and NW Holes used in resource compilation, please open the following link in a new window: [ http://media3.marketwire.com/docs/fte_0411_fig_2.pdf ] The resource model has identified a main zone of mineralisation over a strike length of 1.75km with mineralisation extending down to over 250m from surface with widths of over 60m within 50m of the surface. The latest model indicates a significant increase in the total tonnes of ore of over 18.7Mt; however the grades have dropped from an average grade of 256ppm U3O8 to 233ppm U3O8. The slight drop in grade is due to: a) Additional resource tonnage incorporated into the model from northerly extensions of the main zone. Drilling results from this area have returned lower grades than those within the main zone; b) Refinement of the geological model which forms the basis for interpreting the geometry of mineralised zones. In 2011 near vertical mineralised zones of mixed higher and lower grades were interpreted. In 2012 a refined interpretation of shallow dipping higher grade zones has constrained higher grade data which has resulted in a lowering of grade within the resource volume that falls outside of these zones and which makes up a significant proportion of the resource volume. The company believes the refined interpretation is more robust than that used in 2011 and additional drilling will target extensions to these higher-grade zones. The A238 mineralisation is hosted within metasomatised granite. Previous mapping and drilling has identified a strong structural control on the uranium mineralisation at A238. The recognised mineralisation is controlled within a north-westerly striking, sub-vertically orientated ductile shear zone. The latest interpretation suggests both sub-vertical shear related mineralisation, together with possible high grade mineralisation controlled by 20-35 degrees west dipping zones developed between the sub parallel bounding structures (See Figure 3). Grade interpretation and limited surficial structural data also suggest rolling to shallow northerly plunging shoots and lenses of uranium mineralisation over a strike length of 1.5km in the main zone (See Figure 4). This mineralisation is open, particularly to the south where thin alluvial cover has masked any radiometric surface expression. To view Figure 3: A238 Main Zone - Section L52, please open the following link in a new window: [ http://media3.marketwire.com/docs/fte_0411_fig_3.pdf ] To view Figure 4: A238 Main Zone Long Section, please open the following link in a new window: [ http://media3.marketwire.com/docs/fte_0411_fig_4.pdf ] From a mining perspective the high grade wide sections near to surface over a strike length of 1.75km is likely to result in low strip ratios in the early stages of a mining operation. The model has identified that 46% of the inferred mineral resources in the main zone are between surface and 150m vertical depth. In addition to the A238 main zone, the April resource model also includes the A238NW anomaly, which was a small surface outcrop situated 800m to the North West of A238. A total of 21 holes were drilled in the 238NW anomaly of which 16 holes were sampled and assayed. The results indicate a zone of mineralisation trending north west - south east shallow dipping to the west from surface down to over 150m in depth. Interpretation of the resource model has identified a number of areas in the main zone where the recent drilling programme has not been drilled deep enough to intersect the north plunging shoots of uranium mineralisation. A small campaign is now being planned to drill these areas in May. The current drilling at site is concentrated on the area between the main zone and the North West anomaly and will then switch to the south of the main zone testing the potential extensions of the mineralisation to the south under the thin alluvial cover. It is anticipated that the results of this drilling, supported by chemical assays, will be incorporated in another resource update in July 2012. In addition to the A238 deposit, preliminary exploration work by Forte Energy has identified numerous other prospects on its extensive Mauritanian tenement package that covers the main regional shear zones that Forte Energy believes are prospective for mineralisation. These other prospects are being prioritised for follow up exploration and drill testing to assess their resource potential. Environmental base line and social impact studies have been completed on the 286 Leglaya licence, which covers the A238 prospect, by Mauritanian Consulting and Contracting, which will provide the basis for the pre-feasibility studies. ANSTO Minerals, Sydney, Australia are currently conducting a number of standard leach tests, supported by mineralogical examination to determine the conditions required to extract uranium from the A238 prospect. The specific tasks being undertaken by ANSTO are: * Analyse the ore by XRF, DNA, NAA and Leco; * Examine the ore by SEM and XRD to identify uranium and gangue minerals; * Determine the distribution of uranium by size in ore crushed to < 2 mm; * Carry out 3 diagnostic leach tests in sulphuric acid to assess the solubility of the uranium minerals; * Carry out 3 sulphuric acid leaches under typical (to be selected) leach conditions to determine uranium extraction and reagent requirements; * Examine one leach residue by SEM to identify unleached uranium and assess possible reasons for non- dissolution; * Prepare a report presenting the results, and discuss findings in the context of developing an economic processing route; Separately, compilation of the resource upgrade for the Firawa project in Guinea, currently 17.7Mt @ 296ppm U3O8 for 11.6Mlbs contained U3O8 (100ppm cut off), is scheduled to be completed by the end of June. Commenting on the A238 Resource update in Mauritania, Mark Reilly, Managing Director of Forte Energy said: "These excellent results demonstrate that Forte Energy is on track to increase its resource base from the recent drilling campaigns in Mauritania and Guinea. Following the completion of the resource upgrade we look forward to initiating further studies on both A238 and Firawa, and to taking Forte Energy onto its next stage of its evolution". Mark Reilly Managing Director For further information contact: Mark Reilly, Managing Director Forte Energy NL Tel: +44 (0) 203 3849555 Rob Collins/Tarica Mpinga Canaccord Genuity Limited Tel: +44 (0) 207 050 6500 Bobby Morse/ Cornelia Browne Buchanan Tel: +44 (0) 207 466 5000 Stuart Laing RFC Corporate Finance Ltd Tel: +61 (0) 8 9480 2506 (AIM Nominated Adviser to the Company) Forte Energy NL Australia United Kingdom Suite 3, Level 3 3C Princes House 1292 Hay Street 38 Jermyn Street West Perth WA 6005 London SW1Y6DN Ph: +61 (0)8 9322 4071 Ph: +44 (0)203 3847474 Fax: +61 (0)8 9322 4073 Fax: +44 (0)207 2878387 Email: [ info@forteenergy.com.au ] Email: [ info@forteenergy.co.uk ] Web: [ www.forteenergy.com.au ] Note: The information in this report that relates to Exploration Results is based on information compiled by Mr. Bosse Gustafsson, who is a Member of the European Federation of Geologists, a 'Recognised Overseas Professional Organisation' ('ROPO') included in a list promulgated by the ASX from time to time. Mr Gustafsson is a full time Technical Director of Forte Energy NL and is responsible for exploration activities in Mauritania and Guinea. Mr. Gustafsson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Gustafsson consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The information in this report that relates to the Mineral Resource at the A238 prospect in Mauritania is based on information compiled by Mr. Bosse Gustafsson of Forte Energy NL and Mr Galen White BSc (Hons) FGS, FAUSIMM, Principal Geologist of CSA Global Inc (UK). The information in this report that relates to the Mineral Resource at Bir En Nar in Mauritania is based on information compiled by Mr. Bosse Gustafsson of Forte Energy NL and Mr. Neil Inwood of Coffey Mining Ltd. The information in this report that relates to the Mineral Resource at Firawa in Guinea is based on information compiled by Mr. Bosse Gustafsson of Forte Energy NL and Mr. Doug Corley of Coffey Mining Ltd. Mr. Gustafsson, Mr. Corley, Mr. Inwood and Mr. White have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they have undertaken to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Gustafsson, Mr. Corley, Mr. Inwood and Mr. White consent to the inclusion in this report of the matters based on their information in the form and context in which it appears. Information in this report relating to the determination of the gamma probe results and geophysical work is based on information compiled by Mr David Wilson. Mr Wilson is a member of the AusIMM and the AIG. Mr Wilson is a consultant to Forte Energy He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves - The JORC Code (2004)". Mr Wilson consents to the inclusion of the information in the report in the form and context in which it appears. Gamma derived uranium mineralisation grades through this report may be annotated with a sub-prefix 'e' because they have been reported as uranium equivalent grades derived from down-hole gamma ray logging results and should be regarded as approximations only. Downhole gamma logging of drill holes provides a powerful tool for uranium companies to explore for and evaluate uranium deposits. Such a method measures the natural gamma rays emitted from material surrounding a drill hole. Gamma radiation is measured from a volume surrounding the drill hole that has a radius of approximately 35cm. The gamma probe is therefore capable of sampling a much larger volume than the geological samples recovered from any normal drill hole. Gamma logging or "total count gamma logging" is a common method used to estimate uranium grade where the radiation contribution from thorium and potassium is very small. These background gamma rays add the equivalent of a few parts per million to the equivalent uranium values and are relatively constant in each geological unit. Gamma ray measurements are used to estimate uranium concentrations with the commonly accepted initial assumption being that the uranium is in (secular) equilibrium with its daughter products (or radio- nuclides) which are the principal gamma ray emitters. If uranium is not in equilibrium (viz. in disequilibrium), as a result of the redistribution (depletion or enhancement) of uranium and/or its daughter products, then the true uranium concentration in the holes logged using the gamma probe will be higher or lower than those reported in the announcement. Forte Energy is undertaking measurements to determine if disequilibrium is present and its distribution. The logging programme was undertaken by Posiedon Geophysics Pty Ltd utilising an Auslog Logging System. The gamma tools were calibrated at the Pelindaba Calibration facility in South Africa. Poseidon carries out annual recalibration checks to validate the accuracy of gamma probe data. Furthermore, Forte Energy runs regular checks to validate the accuracy of probe data using reference holes located on site. The gamma ray data was converted from counts per second to eU3O8 using calibration factors obtained from measurements made at the calibration pit. The eU3O8 data may also have been adjusted by an attenuation factor, determined onsite, due to drill rods. These factors also take into account differences in drill hole size and water content. The eU3O8 data has been filtered (deconvolved) to more closely reproduce the true grades and thicknesses where thin narrow zones are encountered. The various calibration factors and deconvolution parameters were calculated by David Wilson BSc MSc MAusIMM from 3D Exploration Ltd based in Perth, Western Australia. About Forte Energy Forte Energy is an Australian-based minerals company focused on the exploration and development of uranium and associated bi-products in Mauritania and Guinea in West Africa. The Company has an extensive pipeline of assets and total JORC resources of 64.2Mt @ 262ppm U3O8for 37.0Mlbs contained U3O8 (100ppm cut-off). Its flagship assets are the A238 prospect (23.4Mlbs U3O8) and the Bir En Nar project (2.06Mlbs U3O8) in Mauritania, and the Firawa project in Guinea (11.6Mlb U3O8). Forte Energy U3O8 JORC resources (all at a 100ppm cut-off): ----------------------------------------------------------------------------------------------------- Project Resource Category M tonnes ppm U3O8 Contained U3O8 Mlbs ----------------------------------------------------------------------------------------------------- A238* Inferred 45.2 235 23.4 ------------------------------------------------------------------------------- Total 45.2 235 23.4 ----------------------------------------------------------------------------------------------------- Bir En Nar Indicated 0.55 886 1.0 ------------------------------------------------------------------------------- Inferred 0.78 575 1.0 ------------------------------------------------------------------------------- Total 1.33 704 2.0 ----------------------------------------------------------------------------------------------------- Firawa Inferred 17.7 296 11.6 ------------------------------------------------------------------------------- Total 17.7 296 11.6 ----------------------------------------------------------------------------------------------------- Total Indicated 0.5 886 1.0 ------------------------------------------------------------------------------- Inferred 63.7 256 36.0 ------------------------------------------------------------------------------- Total 64.2 262 37.0 ----------------------------------------------------------------------------------------------------- * A238NW Anomaly included in the A238 Inferred Resources Forte Energy's strategy is to target high grade uranium ore bodies and build a low cost West African- focused uranium producer. The Company is quoted on the Australian Stock Exchange (ASX: FTE) and AIM market of the London Stock Exchange (AIM: FTE). For more information, visit [ www.forteenergy.com.au ]