Forum Uranium Corp.
TSX VENTURE : FDC

Forum Uranium Corp.

May 04, 2011 14:47 ET

Forum Closes $5.7 Million Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 4, 2011) - Forum Uranium Corp. (TSX VENTURE:FDC) (the "Company") is pleased to announce that it has closed its brokered private placement previously announced on April 7, 2011 with Dundee Securities Ltd. ("Dundee") The Company has raised $5,730,157.50 through the issuance of 7,667,050 units (the "Units") and 25,556,450 flow through common shares (the "Flow Through Shares"). The Flow Through Shares were sold at a price of $0.18 per Flow Through Share. The Units were sold at a price of $0.15 per Unit and are comprised of one common share (each a "Common Share") and one-half of one share purchase warrant of the Company (each whole warrant, a "Warrant"). Each whole Warrant will entitle the holder to purchase one additional Common Share at a price of $0.25 per Common Share at any time prior to May 4, 2014.

Dundee received a cash commission of $368,040.95 and 2,085,102 agent's warrants entitling them to acquire up to 2,085,102 Common Shares at a price of $0.15 per Common Share until May 4, 2013. All securities issued pursuant to this financing are subject to a four month hold period expiring September 5, 2011.

The gross proceeds of the Flow Through Share offering will be used for exploration of the Company's Canadian-based projects and the net proceeds of the Unit offering will be used for general corporate purposes. With respect to the Flow Through Shares, the Company will renounce Canadian Exploration Expenses with an effective date of no later than December 31, 2011.

The Company also announces the re-pricing of certain outstanding options granted to directors, officers and consultants of the Company. The Company proposes to reprice options to purchase up to an aggregate of 1,025,000 Common Shares in the capital of the Company at an exercise price of $0.30 to an exercise price of $0.15 in order to more closely reflect the current trading range of the Company's Common Shares. The repricing of all options remains subject to approval by the TSX Venture Exchange. As well, the repricing of certain of the options to directors and officers will be subject to receipt of disinterested shareholder approval at the Company's next annual general meeting.

About Forum Uranium

Forum Uranium Corp. is a Canadian-based energy company with a focus on the acquisition, exploration and development of Canadian uranium and rare earth projects. 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 in the Athabasca Basin, Saskatchewan and the Thelon Basin, Nunavut by exploring on its 100% owned properties and through strategic partnerships and joint ventures. The Company is also evaluating North American rare earth prospects.

Forward-Looking Information

The information in this press release has been prepared as at May 4, 2011. Certain statements contained in this press release constitute forward looking information under the provisions of Canadian provincial securities laws. Such statements include statements regarding the Company's use of the proceeds from the private placement. Although the Company believes, in light of the experience of its officers and directors, current conditions, expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, the Company can give no assurance that they will prove to be correct. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in forward-looking information. The Company does not intend, and does not assume any obligation, to update this forward-looking information, except as required by the law. Accordingly, readers are advised not to place undue reliance on forward-looking information.

ON BEHALF OF THE BOARD

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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