Forsys Metals Corp

Forsys Metals Corp

August 28, 2009 12:43 ET

Forsys Metals Corp.: Termination of GFI Agreement Update

TORONTO, ONTARIO--(Marketwire - Aug. 28, 2009) - Forsys Metals Corp ("Forsys" or the "Company") (TSX:FSY)(FRANKFURT:F2T)(NSX:FSY) advises that George Forrest International Afrique S.P.R.L. ("GFI") responded yesterday to the Company's termination notice referred to in the Company's news release of August 25, 2009. In their response, GFI has accepted that the arrangement agreement (the "Agreement") dated November 14, 2008, as amended, between the Company and GFI is terminated. GFI has, however, disputed the Company's right to claim the reverse break fee payment of CAD$20,000,000 under the terms of the Agreement and alleged certain breaches of the Agreement by Forsys. The Company strongly disagrees with GFI's assertions and will be vigorously pursuing the payment of the reverse break fee and any other legal remedies that it may have.

About Forsys Metals Corp

Forsys Metals Corp, having BEE sponsorship, is an emerging uranium producer with 100% ownership in the fully permitted Valencia Uranium Project. With an expanding reserve base, production is expected to commence in 2011 with a 15 year life of mine. Current NI 43-101 compliant reserves at Valencia are 51.4 Mlbs U308 and current Measured and Indicated resources are 70 Mlbs U308 with a further 11 Mlbs Inferred U308. Additional infill drilling is currently underway and is designed to bring the Inferred category resources into the Indicated category so they can be incorporated into a future reserve update. The Company also has an extensive portfolio of uranium exploration projects totaling over 252,000 ha located in Namibia, Africa, a politically stable and mining friendly jurisdiction.

On Behalf of the Board of Directors of Forsys Metals Corp

Duane Parnham, President and CEO

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Forward-Looking Information

This news release contains projections and forward looking information that involve various risks and uncertainties regarding future events. Such forward looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward looking information. Actual results and future events could differ materially from anticipated in such information. These and all subsequent written and oral forward looking information are based on estimates and opinions of management on the dates they are made and expressed qualified in their entirety by this notice. The Corporation assumes no obligation to update forward looking information should circumstances or management's estimates or opinions change.

Shares Outstanding: 78,985,231

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

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