Corporate Presentation July 2010 Primary Listing – TSX: FSY Website – www.forsysmetals.com 1
Cautionary Note Concerning Forward Looking Statements Cautionary Note Concerning Forward Looking Statements Some of the statements contained in the following material are forward looking statements and not statement of facts. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently available. Forward looking statements are subject to various risks, uncertainties and other factors that could cause actual results to various risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Readers must rely on their own evaluation of these uncertainties. Note: all dollar amounts in US dollars unless otherwise indicated This presentation comprises inputs from independent consulting firms as well as Company management. 2
Corporate Profile Corporate Profile Share Price Performance Management Last 6 Months Martin Rowley Chairman • C$ Volume (000 ’ s) Marcel Hilmer CEO • 6 800 Craig Bamford CFO • 5 600 Market Details Ordinary Shares 79.4MM • Options 8.1MM • 4 400 Market Capitalization C$208MM • Debt nil • 3 200 Cash C$15.4MM as of 30 June 2010 • TSX Code FSY • Frankfurt Exchange F2T • 2 0 V P Namibian Exchange FSY Jan-10 Feb-10 Mar-10 Mar-10 Apr-10 May-10 Jun-10 • 3
Company Overview Company Overview • Exploration and development Company in the business of advancing projects in Namibia • 100% ownership of the Valencia Project, one of the worlds premier undeveloped uranium projects • 70% interest in Namibplaas uranium exploration license • Other assets in the portfolio include Ondundu Gold Deposit and Omaruru Gold Project • Publicly Traded on Toronto Stock Exchange (TSX), Namibian Stock Exchange (NSE) & Deutsche Börse • Management with extensive African mining experience 4
Key Investment Highlights Key Investment Highlights Attractive Sector Dynamics Expansion Future World Potential with Class Asset Gold Upside Fully Permitted Experienced Project Ready to Management Launch Ideally Located with Infrastructure Issues Addressed 5
Attractive Sector Dynamics Attractive Sector Dynamics Global Uranium Supply/Demand Balance 000s lbs U 3 O 8 000s lbs U 3 O 8 75,000 350,000 50,000 300,000 25,000 250,000 0 0 200,000 200,000 -25,000 150,000 -50,000 100,000 -75,000 50,000 -100,000 0 2003A 2004A 2005A 2006A 2007A 2008A 2009E 2010E 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E Net Balance World Supply World Requirements Source: World Nuclear Association 6
Valencia Asset Overview Valencia Asset Overview What Sets Valencia Apart • Proven Uranium Mining Environment – Rössing (largest opencast U mine contributing 8% world supply) – Paladin - Langer Heinrich (first new U start-up in 25 Yrs) • Recently completed Addendum to the Snowden Technical Report confirmed a large and growing reserve & resource base – 77.2 MMlbs of resources and 60.5 MMlbs of reserves of U 3 O 8 metal • 25 Year Mining License 25 Year Mining License – deploying proven conventional mining methods with EIA/EMP approvals obtained • No Betafile with Low Marble Content • Infrastructure Addressed – Coastal desalination plant completed – Transmission line construction commenced – Construction of access road began completed in Q2 2010 • One of only two fully permitted development uranium mine in Namibia 7
A Future World Class Asset A Future World Class Asset Top 10 Global Uranium Producers MMlbs U 3 O 8 14 12.0 12 9.1 10 7.8 7.5 8 6 4.7 3.9 3.9 3.7 3.6 4 2.6 2 0 Ranger Olympic Dam Rössing Krazbokamensk Arlit Rabbit Lake Valencia Langer Heinrich Akouta Akdala (ERA) (BHPB) (Rio Tinto) (ARMZ) (AREVA/ (Cameco) (Forsys)— (Paladin) (AREVA/State (Uranium State of Niger) Full Production of Niger) One) (2013) Source: WNA, 2007 data updated by ProStra Consulting Cash Cost Profile (US$/lb) 50 45 40 34 34 35 34 34 33 29 30 20 10 0 2012 2013 2014 2015 2016 2017 2018 2027 Source: Company Information 8
Potential for an Expanded Production Profile Potential for an Expanded Production Profile Production Profile MMlbs / year 5 4 3 2 1 0 2012 2013 2014 2015 2016 2017 2018 2027 Base case Expanded case Source: Company Information 9
Large Resource Base Large Resource Base Summary of Valencia Uranium Mineral Resources and Reserves Ore Grade U 3 O 8 U 3 O 8 Metal Category (MMt) (ppm) (MMlbs) Resources at U 3 O 8 Cut-Off 60ppm Measured 21.0 161 7.4 Indicated 219.6 144 69.8 Total Measured and Indicated 240.7 146 77.2 Inferred 30.0 144 9.5 Reserves Proven 19.6 168 7.2 Probable 156.1 155 53.3 Total 175.7 156 60.5 10
Fully Permitted Project Ready to Launch Fully Permitted Project Ready to Launch Valencia Permit Summary Permit Issued By � Environmental Clearance —Valencia Village Ministry of Environment and Tourism � Accessory Works Ministry of Mines and Energy � Mining Licence Ministry of Mines and Energy � � Environmental Clearance Ministry of Environment and Tourism � Desalination Ministry of Agriculture, Water and Forestry � Petroleum Consumer Installation Ministry of Mines and Energy 11
Ideally Located with Infrastructure Ideally Located with Infrastructure Areva Valencia Uranium Mine Valencia Uranium Mine Rio Tinto Paladin 12
Current State of Infrastructure Current State of Infrastructure • Water Supply – The desalination plant with participation of national bulk water utility NamWater will supply Valencia during operation – Water supply for construction phase will require a temporary 31 km pipeline and is under design • Power Supply – 30 km of transmission line and substation upgrade necessary – 30 km of transmission line and substation upgrade necessary – Cost is equally shared between Company and national power utility NamPower • Roads – 26 km of new access road linking mine to highway complete in Q2 2010 – Internal service roads have already been constructed • Buildings – Central office and admin complex will be constructed – Semi-permanent camp will be established 8 km from plant 13
A Focused and Experienced Management A Focused and Experienced Management • Forsys benefits from a strong management team with a deep understanding of the mining sector and African business environment • Key executives have extensive experience working in African in developing and operating successful mining ventures – Chairman Martin Rowley, co-founder of First Quantum Minerals – CEO Marcel Hilmer, former business development executive with First Quantum, 25 years of executive management experience – CFO Craig Bamford, previously CFO for Denison Energy, 25 years experience in the uranium industry • Clear strategic vision of creating value for shareholders through development/operation of projects in Africa 14
Strategic Review Process Strategic Review Process • On 14 October, 2009, Forsys hired Morgan Stanley & Co. Limited (“Morgan Stanley”) as its exclusive financial advisor with the aim of undertaking a strategic and financial review of the Company • The Company reports that negotiations with the interested parties have not, to date, resulted in any formal agreement being reached. The Company and Morgan Stanley are continuing open discussions with selected parties, which may or may not result in a transaction being concluded. • The Company’s Board and senior management, with the assistance of Morgan Stanley, continue to focus on maximizing the value of the Company’s wholly- owned Valencia Uranium Project (“Valencia”) in order to fully realize its potential value for the Company. 15
Other Projects Other Projects Namibplaas Uranium Project – 70% Forsys owned since 2006, 30% owned by Gold Enterprises • – Located 7.5 km northeast of Valencia Uranium deposit in the Erongo Region – Land access agreement granted in April 2008 – Second phase of drilling commencing in Q3 2010 and sampling campaign is in progress Ondundu Gold Deposits – 100% Forsys owned • – Located in the Erongo Region, Namibia – Open pittable shallow dipping stratiform deposit – Open pittable shallow dipping stratiform deposit – Historical resource of approximately 500 Koz of gold (4.5 MMt at 3.387 g/t) – Exploration and resource definition project joint venture with Angus Mining commenced Omaruru Gold Project – 100% Forsys owned • – Located in the Damara Belt, Namibia – Historical production from the Epako mine located on the property – Six airborne structural targets identified having potential to host Navachab style mineralisation 16
Key Investment Highlights Key Investment Highlights Attractive Sector Dynamics Expansion Future World Potential with Class Asset Gold Upside Fully Permitted Experienced Project Ready to Management Launch Ideally Located with Infrastructure Issues Addressed 17
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