Forum Development Corp.

Forum Development Corp.

May 31, 2005 12:20 ET

Forum Announces Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2005) - Forum Development Corp. (TSX VENTURE:FDC) announces that it has engaged Research Capital Corporation (the "Agent") to lead a private placement for an aggregate of up to $2 million of securities consisting of flow-through common shares at a price of $0.25 per flow-through common share and units at a price of $0.25 per unit (the "Offering"). Each unit will be comprised of one non flow-through common share and one-half of one common share purchase warrant. Each whole warrant will entitle the warrant holder to acquire one common share at a price of $0.30 at any time prior to 12 months after closing of the Offering.

The Agent has been granted an option, subject to the approval of Forum, to increase the size of the Offering on the same terms and conditions as set out above for gross proceeds of up to an additional $1,000,000 to a total of $3,000,000. The Offering will be marketed to qualified investors in Ontario, Alberta and British Columbia and is subject to regulatory approval.

The Agent will be paid a cash commission of 7% of the gross proceeds issued pursuant to the Offering in consideration of its efforts in arranging the private placement. The Company will also grant and issue to the Agent upon closing, subject to regulatory approval, share purchase warrants (the "Underwriter Warrants") equal to 8% of the number of units and flow-through shares issued pursuant to the Offering. Each Underwriter Warrant will be exercisable into one common share at a price of $0.30 per common share at any time prior to 12 months after closing of the Offering. The securities issued above will be subject to a four month hold period.

The net proceeds of the financing will be used to advance the Maurice Point and Key Lake Road uranium exploration programs in the Athabasca Basin, Saskatchewan and for general working capital purposes.

The Offering is subject to the Company and the Agent entering into a formal Agency Agreement, standard due diligence and regulatory approval.

Forum Development Corp. is a diversified energy company with a focus on the acquisition, exploration and development of energy projects. In addition to the Company's uranium properties in the prolific Athabasca Basin, Forum is evaluating a natural gas in coal project in the Merritt Coalfield in southern British Columbia as well as coal development opportunities in British Columbia and Alberta. For further information about Forum, visit, or phone (604) 685-6377.


Rick Mazur, President & CEO

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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