Forum Uranium Corp.
TSX VENTURE : FDC

Forum Uranium Corp.

July 08, 2008 07:00 ET

Forum Acquires 100% Interest in the North Thelon JV Property Adjacent to AREVA's Kiggavik Uranium Deposit, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2008) - Forum Uranium Corp. (TSX VENTURE:FDC) ("Forum"), operator and 50% owner of the North Thelon Joint Venture ("NTJV"), has entered into an agreement with partner Northern Superior Resources Inc. (TSX VENTURE:SUP) (Northern Superior) to acquire Northern Superior's 50% interest in the Joint Venture. This acquisition will give Forum a 100% interest in over 500,000 acres of claims located adjacent to AREVA's 148 million pound Kiggavik uranium deposits, currently undergoing a full feasibility study.

Rick Mazur, President & CEO, stated, "We have acquired 100% ownership in a project with tremendous potential. We are thrilled to have complete control of this strategic land position bordering AREVA's Kiggavik development. Forum will actively advance exploration towards discovery of an economic uranium deposit."

2008 Drill Program

Structurally-controlled uranium mineralization grading up to 1.3% U3O8 was identified on 10 showings during the 2007 prospecting and mapping program. A 3,000 metre drill program has commenced on targets that have been delineated through the integration of airborne and ground geophysical surveys with these uranium occurrences. This method of exploration has proven successful in the discovery of two of the Kiggavik deposits that occur along east-northeast and north-northeast trending lineaments. Field crews have also been mobilized to follow-up on past geological mapping and prospecting programs, as well as new areas identified by the geophysical surveys.

Agreement Terms

Forum will acquire all of Northern Superior's right, title and interest in and to all agreements and property interests related to the NTJV. As consideration for the acquisition to be closed on or before July 31, 2008, Forum shall:

(i) Issue to Northern Superior, 2,700,000 common shares of Forum at a deemed price of $0.50 per share, such that 675,000 shares will be tradeable 4 months following the closing date and a further 675,000 shares will be tradeable on each of 12, 18 and 24 months after the closing date.

(ii) Grant to Northern Superior a 5% net profits royalty on the mineral properties that are currently held 100% by the NTJV; and

(iii) Effective as of the closing date, release Northern Superior from and assume any and all obligations of Northern Superior which are then outstanding under the Agreements or which may arise under the Agreements following the closing date.

The agreement is subject to the acceptance of the TSX Venture Exchange.

The Kiggavik Uranium Deposit

Exploration for uranium in the northern Thelon Basin was conducted primarily from the mid-1970's to the mid-1980's culminating in the discovery of the Kiggavik deposits located 80 km west of Baker Lake, Nunavut. AREVA acquired the project in 1993. Forum has assembled a strategic land position adjacent to AREVA's Kiggavik property by staking in 2006 and optioning prospective ground in the district in 2007 and 2008. A uranium development policy for the Territory of Nunavut was adopted in September, 2007 and shortly thereafter, AREVA and partners announced the commencement of a two year feasibility study and the regulatory process to obtain the necessary approvals for a uranium mine and mill complex on the Kiggavik deposits (See AREVA News Release dated December 3, 2007). AREVA reports a resource estimate of 148 million pounds of uranium at an average grade of 0.24% U (0.28% U308).

Ken Wheatley, P.Geo. (Saskatchewan and Nunavut), Forum's Vice President of Exploration, is the Qualified Person that has reviewed the contents of this news release. The Company is also pleased to announce the allocation of options to purchase 100,000 common shares in the capital of the Company to certain employees and consultants at an exercise price of $0.50.

About Forum Uranium

Forum Uranium Corp. is a Canadian-based energy company with a focus on the acquisition, exploration and development of Canadian uranium projects in the Athabasca Basin, Saskatchewan and the Thelon Basin, Nunavut. Forum has assembled a highly experienced team of exploration professionals with a track record of mine discoveries for unconformity-style uranium deposits in Canada. The Company has a strategy to discover near surface uranium deposits nearby existing infrastructure by exploring on its 100% owned properties and through strategic partnerships and joint ventures.

ON BEHALF OF THE BOARD

Richard J. Mazur, P.Geo., President & CEO

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

Contact Information