Forsys Metals Corp
TSX : FSY
FRANKFURT : F2T

Forsys Metals Corp

November 01, 2005 09:00 ET

Forsys Completes Financing

TORONTO, ONTARIO--(CCNMatthews - Nov. 1, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Forsys Metals Corp (the "Company" or "Forsys") (TSX VENTURE:FSY) is pleased to announce the completion of an underwritten private placement of 9,152,100 Units at a price of $1.15 per Unit for total gross proceeds of $10,524,915 (the "Private Placement"). Each Unit consists of one common share and one-half of one common share purchase warrant (the "Warrants"). Each whole Warrant entitles the holder to purchase one common share of the Company at a price of $1.50 on or before October 31, 2007. The common shares issued pursuant to the Private Placement are subject to a four month hold period which expires on March 1, 2006.

The Private Placement was underwritten by Sprott Securities Inc., Orion Securities Inc. and Quest Securities Corporation (collectively, the "Underwriters"). The Underwriters were paid a commission equal to 6.5% of the gross proceeds raised in the Private Placement plus received broker's warrants which entitles them to acquire 594,886 Units at a price of $1.15 per Unit. Each Unit has the same attributes as the Units sold pursuant to the Private Placement.

The proceeds from the Private Placement will be used towards the development of the Valencia Uranium Deposit, as detailed in the Company's press release dated July 6, 2005 and for general working capital.

Forsys Metals Corp. is an innovative exploration company in the business of advancing high value advanced stage projects in Namibia, Africa.

Shares Outstanding: 36,322,768

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release

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