Forsys Metals Corp
TSX : FSY
FRANKFURT : F2T

Forsys Metals Corp

May 12, 2011 09:33 ET

Forsys Metals Corp.: Proposed Changes to Namibian Mineral Policy Will Not Affect Forsys Interests

TORONTO, ONTARIO--(Marketwire - May 12, 2011) - Forsys Metals Corp (TSX:FSY)(FRANKFURT:F2T)(NSX:FSY) ("Forsys" or the "Company") welcomes the official media statement (the "Statement") issued on May 10, 2011 by Namibia's Minister of Mines and Energy, the Honourable Isak Katali in which he clarifies that "the existing exploration and mining licenses will not be affected" by proposed changes in government policy. This confirms that the exploration and mining licenses held by Forsys subsidiaries for its uranium projects, Valencia (Mining License "ML" 149), Namibplaas (Exclusive Prospecting License "EPL" 3638), and for its gold projects, Ondundu (EPL 3195) and Omaruru (EPL 3166), will not be impacted.

The Statement was issued to clarify previous comments on April 20, 2011 by Mr. Katali in the Namibian Parliament regarding the proposed rights of state-owned mining company, Epangelo Mining Company (Pty) Ltd, in the development of certain specified "strategic minerals" which include uranium and gold. The Statement confirmed that existing MLs and EPLs will be unaffected by proposed policy changes. The Minister has commented in the Statement that the ultimate conditions of a mining licence might require the holder to approach the Namibian Government first regarding investment opportunities for development of the mining licence before approaching other parties. The Statement in its entirety can be found at http://www.mme.gov.na/news.htm .

Marcel Hilmer, Chief Executive Officer of Forsys, commented: "Forsys has made significant investments in exploration and development of its Valencia and Namibplaas uranium projects. We welcome the Minister's clarification in his recent media statement."

About Forsys - Forsys was granted ML 149 in 2008 for its Valencia Uranium Project (100% ownership), which is valid for 25 years to 2033. Since this licence was granted, the exploration program at Valencia has increased NI 43 - 101 compliant measured and indicated reserves to 77.2 MMlbs of resources, including 60.5 MMlbs of reserves of U3O8 metal. A detailed review and optimization of the Valencia plant design is in progress.

The Company is progressing a substantial drilling program on its Namibplaas Uranium Project (70% ownership) in 2011; which includes an additional 3,500 metres of diamond drilling and 50,000 metres of percussion drill holes that will allow completion of a NI 43-101 compliant resource statement by the end of Q3 2011.

Pursuant to an option agreement with Angus Mining Namibia Inc., the drilling program is nearing completion at the Ondundu Gold Project with assay results expected in Q3 2011.

On behalf of the Board of Directors of Forsys Metals Corp.

Marcel Hilmer, Chief Executive Officer

For further information, visit our website at www.forsysmetals.com.

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The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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