Forsys Metals Corp

Forsys Metals Corp

March 06, 2008 10:47 ET

Forsys Prepares for Contract Mining at Valencia

TORONTO, ONTARIO--(Marketwire - March 6, 2008) - Forsys Metals Corp. (the "Company") (TSX:FSY) is pleased to announce that Valencia Uranium (Pty) Ltd., a wholly-owned subsidiary of the Company ("VUL"), has entered into a Heads of Agreement (the "Agreement") with Basil Read (Pty) Ltd. ("Basil Read") for the provision of mining services for the Company's 100% owned Valencia Uranium Mine ("Valencia") located in Namibia, Africa. Basil Read, based in South Africa since 1952, is a diversified construction company possessing capacity, expertise and a considerable track record in the fields of building, civil engineering, structures, roads and opencast mining. Basil Read is currently performing select contract mining services across southern Africa, including the Rossing Uranium Mine, located approximately 35 km from Valencia.

Pursuant to the Agreement, VUL and Basil Read have entered into negotiations on the commercial terms for the provision of mining and construction services for the establishment and operation of Valencia. Priorities at Valencia which will be addressed immediately by Basil Read and the VUL include the development of a mining plan, mining programme and a mining budget. These services will be provided by Basil Read (Namibia) Ltd., a wholly-owned subsidiary of Basil Read.

Mr. Duane Parnham, Forsys President & CEO stated: "The relationship with Basil Read brings operational expertise with relevant experience directly related to the conditions at Valencia. This represents another important step forward in the continued development of the Valencia Uranium Mine."

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

Duane Parnham, President and CEO

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