Forte Energy NL
LSE : FTE

April 11, 2012 02:00 ET

70% Increase in Total Resource Tonnes at A238 Prospect in Mauritania

                                                                                           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

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