Forum Uranium Corp.

Forum Uranium Corp.

October 21, 2010 09:30 ET

Forum Purchases 100% Interest in Tanqueray Claims at the North Thelon Project, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2010) - Forum Uranium Corp. (TSX VENTURE:FDC) and Tanqueray Resources Ltd. (TSX VENTURE:TQY) are pleased to announce that Forum will acquire a 100% interest to certain of Tanqueray's mineral claims that are prospective for uranium and Tanqueray will retain certain claims that are prospective for gold in the Baker Lake area of Nunavut. Tanqueray has been exploring for gold in the region since 2004 and has drilled several prospective targets.

Forum entered into an option agreement with Tanqueray in 2007, whereby Forum could earn a 60% interest in uranium and diamonds on all of Tanqueray's property by completing $4 million in exploration over five years. Forum has spent $2 million in uranium exploration on Tanqueray's property over the past four years and has identified several prospective uranium targets. Two examples of surface showings are the Graphite Zone with numerous uranium exposures along a 2 kilometre strike length with grades of up to 1.07% U, and RD-7 with grades of up to 0.23% U over an area several hundred metres square. Much of the prospective ground has been prospected, mapped and covered by ground gravity surveys. Both targets are ready for drilling.

As an alternative to completing the remaining terms under the existing option agreement, Tanqueray will sell to Forum a 100% interest in claims selected as having uranium exploration potential, which shall supercede and replace the existing option agreement, for the following consideration:

  1. Forum will make a $20,000 cash payment to Tanqueray;
  2. Forum will issue 750,000 common shares of Forum to Tanqueray;
  3. Forum will forgive Tanqueray's indebtedness to Forum of $52,658.07;
  4. Forum will acquire Tanqueray's camp to conduct its exploration activities, and;
  5. Forum will offer Tanqueray the right and option to acquire a 50% interest in any exploration program on the acquired claims for the purpose of assessing gold as a primary deposit. Tanqueray must elect to exercise their option by paying 50% of the cost of the proposed exploration program and a joint venture will be formed with Forum as Operator.

Rick Mazur, President & CEO of Forum stated, "This transaction consolidates Forum's interest in its highly prospective North Thelon project. Forum's strategic land position is adjacent to the Areva/JCU/Daewoo joint venture that is permitting the Kiggavik uranium mine development in Nunavut, the largest uranium deposit in Canada outside the Athabasca Basin."

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 nearby existing infrastructure by exploring on its 100% owned properties and through strategic partnerships and joint ventures.


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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