Forum Uranium Corp.

Forum Uranium Corp.

March 03, 2008 07:00 ET

Forum Completes $3 Million Financing With Agnico-Eagle and Options Agnico Uranium Property Adjacent to Kiggavik, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2008) - Forum Uranium Corp. (TSX VENTURE:FDC) ("Forum") is pleased to announce that Agnico-Eagle Mines Limited (TSX:AEM) ("Agnico") has completed a private placement financing in Forum for $3 million and Forum has optioned Agnico's Judge Sissons and Schultz Lake uranium properties (the "Properties") located adjacent to the Kiggavik uranium deposit in Nunavut. AREVA Resources Canada Ltd. ("AREVA") recently announced the commencement of a feasibility study and permitting of the 148 million pound, unconformity-style Kiggavik uranium deposit. Forum has assembled a strategic land position in the area of the Kiggavik deposits since 2006 as Operator of the North Thelon Joint Venture with Superior Diamonds Inc.

Sean Boyd, CEO of Agnico, stated, "Agnico is impressed by the quality of Forum's technical team and believes that Forum is well positioned to advance our non-core uranium properties acquired through our acquisition of Cumberland Resources' Meadowbank gold deposit in Nunavut. In addition, we consider Forum to be a good investment opportunity given its quality uranium assets in Saskatchewan and Nunavut."

Rick Mazur, President & CEO of Forum Uranium Corp., stated, "We are pleased to have an opportunity to evaluate Agnico's well-located uranium prospect adjacent to AREVA's Kiggavik mine feasibility project. Agnico is a strategic financial partner with an enviable track record of over 30 years of continuous gold mining in Canada."

Financing Terms

Under the terms of the private placement Agnico has subscribed for 6,122,449 units of Forum at a price of $0.49 per unit for total subscription proceeds of $3,000,000. Each unit is comprised of one common share and one half of a share purchase warrant, with each whole warrant entitling the holder to acquire a further common share at a price of $0.66 per share for a period of two years. The securities issued to Agnico are restricted from transfer until June 30, 2008. Proceeds from the private placement will be used to fund exploration activity on the Company's mineral properties including, but not limited to, the Properties, and for general working capital.

Judge Sissons and Schultz Lake Option Agreement Terms

The Properties consist of 36 claims, comprising 21,497 hectares that can be viewed on the Company's website at Historical showings of uranium grading up to 0.22% U3O8 have been reported from assessment files in the Nunavut Mining Recorder's Office. Under the option agreement with Agnico, Forum has a right to earn a 51% interest in the Properties by incurring a total of $3,000,000 of expenditures on the Properties over a four year period with a firm commitment of $250,000 in the first year of the option. Forum may also acquire a further 14% interest by completing a bankable feasibility study in relation to the Properties within five years of earning its 51% joint venture interest.

In connection with its North Thelon Joint Venture, Forum has also granted Superior Diamonds Inc. a right to earn a 50% interest in any proceeds accruing to Forum from the development of the Properties by funding 50% of Forum's costs related to the Properties.

History of Uranium Exploration in the Kiggavik Area

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 by Urangesellschaft Canada Ltd. AREVA acquired the project in 1993. Forum, as operator and 50% owner with 50% funding partner Superior in the North Thelon Joint Venture ("NTJV") staked over 100,000 hectares of prospective ground in the area of the Kiggavik deposits in 2006. In 2007, the NTJV entered into an option agreement with Tanqueray Resources Ltd. to earn a 60% interest in uranium and diamonds on their 65,000 hectare gold property by spending $4 million in exploration over five years.

A uranium development policy for the Territory of Nunavut was adopted in September 2007 and, shortly thereafter, AREVA and joint venture partners JCU (Canada) Exploration Company Limited and DAEWOO International Corporation 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). The Kiggavik deposits (Kiggavik, End, Andrew Lake and Jane) also contain significant quantities of gold and platinum.

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.


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

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

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