Forsys Metals Corp
TSX : FSY
FRANKFURT : F2T

Forsys Metals Corp

October 06, 2005 08:20 ET

Forsys Metals Corporation Announces $10 Million Financing

TORONTO, ONTARIO--(CCNMatthews - Oct. 6, 2005) -

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

Forsys Metals Corp (TSX VENTURE:FSY) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Sprott Securities Inc., and including Orion Securities Inc. and Quest Securities Inc., pursuant to which the underwriters have agreed to purchase 8,695,654 units on an underwritten private placement basis at a price of $1.15 per unit for aggregate gross proceeds to Forsys of $10 million. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable at a price of Cdn.$1.50 for a period of two years from the closing date. The underwriters also have the option to purchase up to an additional 1,739,130 units at the issue price on or prior to the closing date in respect of the offering. The offering is scheduled to close on or about October 26, 2005 and is subject to certain conditions including, but not limited to, satisfactory due diligence and the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

Proceeds from the offering are to be used for development of the Valencia Uranium Deposit and general corporate purposes.

This press release is not an offer of the securities for sale in the United States. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an application exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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

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