Forte Energy NL

November 22, 2010 05:12 ET

Operational Update, Guinea

                                                                                                  FORTE ENERGY NL
                                                                                                  ACN 009 087 852
                                                                                                ASX/AIM CODE: FTE
                                                                  Telephone: +618 9322 4071, Fax: +618 9322 4073
                                                                                          ASX, AIM and Media Release
                                                                                                 22 November 2010
                                             Operational Update, Guinea
    *       Mapping and sampling to better define the Firawa strike extensions to commence in December 2010
    *       Infill and resource extension drilling at Firawa to commence Q1 2011
    *       Recent routine metallurgical analysis revealed Rare Earth Element (REE) potential at Firawa. Further test
            work underway to determine the occurrence over the ore body
International  uranium  company  Forte  Energy  NL (ASX/AIM: FTE; "Forte  Energy"  or  "the  Company")  provides  an
operational  update at its Firawa uranium project, Guinea. The Firawa resource currently stands at a JORC  compliant
Inferred Resource of 17.7Mt at 296ppm for 11.6Mlbs U3O8 (100ppm cut-off), but remains open in all directions.

Work Program:
Following  a  recent  visit  to  Firawa by management, the Company has decided to undertake  some  road  and  bridge
rehabilitation  to facilitate the transport of drilling equipment to site. This rehabilitation work is  expected  to
commence in the coming weeks.

Discussions  with earth moving contractors have commenced and scout teams will be on site this week  to  assess  the
amount  of  remediation work required.  Commencement of drilling will depend entirely upon the timing of this  work,
but  the Company hopes to be drilling by the middle of Q1 2011.  This timetable would leave three to four months for
drilling  before  the  return of the rains, which is expected to be more than sufficient for the  resource  drilling
program that is being planned.

Local  site  access  works  however have been underway for some weeks, with village teams  from  the  Firawa  region
clearing vegetation and reopening old tracks overgrown since the last field season in 2009.

In the meantime, other important works that do not require heavy vehicle access will be commencing soon.

Mapping  and  sampling - the resource at Firawa is contained within a 2.5km long section of an East  West  structure
that  has  been mapped over a strike length of over 5.5km. Once track clearing is completed, geological  teams  will
return and carry out a period of mapping and sampling to better define these strike extensions.

Metallurgical  Testing  -  preliminary metallurgical tests have been completed on  small  samples  with  encouraging
results,  but  a  more comprehensive series of tests is now required to fully define and design the  process  route.
Discussions  are  now  being held with various engineering groups with a view to commencing the  full  metallurgical
design process.  Awarding of contracts is expected in December, and once larger samples are then recovered from  the
core  store  at Firawa, work is expected to commence in the New Year.  This process however could be complicated  by
the  recently discovered Rare Earth Element (REE) potential (see table at bottom of announcement) which the  Company
is in the process of ratifying.

Environmental and social studies - comprehensive environmental and anthropological studies are planned  to  commence
in the New Year, and again discussions are now underway with various contractors.

Drill  planning  - drill databases are being recompiled now and a comprehensive drill program is being  designed  to
infill  the existing resource, push the resource depth below the current 80m and to extend the strike of  the  known
mineralisation into anomalous areas that could not be accessed in the last drill program.

On  the 15th November 2010, results of the democratic presidential election were announced, while the Forte team was
in  the country, with Alpha Conde being declared the winner, subject to Supreme Court ratification which is expected
in due course.

Apart  from  some  minor unrest in the capital and some western areas dominated by the defeated  candidate's  ethnic
group  ('the Peul'), the process was largely peaceful, although clearly not yet complete.  The eastern half  of  the
country,  including the area which contains the Firawa project is almost completely dominated by the Malinke  ethnic
group and other groups sympathetic to the Malinke - as the victorious candidate Conde, is a Malinke, this region  is

Rare Earth Element (REE) potential:
During  recent routine metallurgical analysis of a sample of Firawa ore, standard XRF analysis found a mass  balance
deficit  (a  proportion  of  the ore that could not be identified).  The Company subsequently  commissioned  a  more
detailed  ICP analysis of this sample to identify this unknown material which subsequently showed a total REE  grade
of 1.3%.

Figure 1, Full sample assay

 Aluminium                 Al           (%)             6.63
 Calcium                   Ca           (%)             0.90
 Copper                    Cu           (%)            0.014
 Iron                      Fe           (%)             29.3
 Phosphorous               P            (%)             3.56
 Sulphur                   S            (%)             0.01
 Silica                   SiO2          (%)            17.58
 Strontium                 Sr           (%)             1.13
 Titanium                  Ti           (%)             1.19
 Uranium                   U           (ppm)             962
 Vanadium                  V            (%)            0.067
 Zirconium                 Zr           (%)            0.077
 Rare Earth Elements (REE):
 Cerium                    Ce          (ppm)            5330
 Dysprosium                Dy          (ppm)             235
 Erbium                    Er          (ppm)              80
 Europium                  Eu          (ppm)             154
 Gadolinium                Gd          (ppm)             448
 Holmium                   Ho          (ppm)            31.6
 Lanthanum                 La          (ppm)            2409
 Lutetium                  Lu          (ppm)             5.6
 Neodymium                 Nd          (ppm)            2953
 Praseodymium              Pr          (ppm)             760
 Samarium                  Sm          (ppm)             530
 Terbium                   Tb          (ppm)            54.8
 Thulium                   Tm          (ppm)               8
 Ytterbium                 Yb          (ppm)              44
 Total REE                              (%)              1.3

It  cannot  be  determined  from only one sample if this REE occurrence is wide spread,  across  the  entire  Firawa
deposit,  but as the sample assayed was not specifically selected for its REE potential, but rather, was simply  the
sample that was in the lab at the time and the only sample on which a full mass balance has ever been undertaken, it
is  possible that a substantial body of REE mineralisation may exist at Firawa.  Further tests will be undertaken to
better  define  the  mineralogy of these REEs before considering the decision of whether to  embark  on  a  re-assay
program - almost 10,000m of drilling has been undertaken at Firawa, but no REE assays were undertaken (REE assay  is
expensive  and  so  not routinely undertaken unless there is good evidence to suggest it should  be).   All  of  the
historical  core  and  RC samples are intact and stored on site at Firawa and as such re-assay  could  start  almost
immediately. The Company's exploration permits in Guinea, which have all recently been renewed, include  exploration
for both uranium and REEs.

On  paper,  the  in-situ value of the REE contained in this sample would seem to exceed the value of  the  contained
Uranium.  The  emergence of a possible REE component to the existing Firawa uranium resource  would  complicate  the
planned  metallurgical design process, and therefore some additional work will be required to allow the  company  to
reach  a decision on which course the testing and process design should take.  However this additional work  is  not
expected to delay the start of the testing process significantly, as that timing will be largely determined  by  the
time required to retrieve bulk samples from the field. The Company will update the market once the further test work
on the REE has been received.

Mark Reilly
Managing Director

For further information contact:

Mark Reilly, Managing Director
Forte Energy NL                                  Tel: +44 (0) 203 300 0187

Alastair Stratton/Tim Graham
Matrix Corporate Capital LLP                     Tel: +44 (0) 203 206 7000

Jos Simson/Emily Fenton
Conduit PR                                       Tel: +44 (0) 207 429 6603

Nicholas Read/Paul Armstrong
Read Corporate                                   Tel: +61 (0) 8 9388 1474

Stuart Laing
RFC Corporate Finance Ltd                        Tel: +61 (0) 8 9480 2506
(AIM Nominated Adviser to the Company)


The  information in this report that relates to Exploration Results is based on information compiled  by  Mr.  Bosse
Gustafsson,  who  is  a  Member  of  the  European Federation of Geologists,  a  'Recognised  Overseas  Professional
Organisation'  ('ROPO') included in a list promulgated by the ASX from time to time. Mr Gustafsson is  a  full  time
Technical  Director of Forte Energy NL and is responsible for exploration activities in Mauritania and  Guinea.  Mr.
Gustafsson  has  sufficient experience which is relevant to the style of mineralisation and type  of  deposit  under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined  in  the  2004
Edition  of  the  'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.  Mr.
Gustafsson consents to the inclusion in this report of the matters based on his information in the form and  context
in which it appears.

The  information  in  this report that relates to the Mineral Resource at Firawa in Guinea is based  on  information
compiled by Mr. Bosse Gustafsson of Forte Energy NL and Mr. Doug Corley of Coffey Mining Ltd. Mr. Gustafsson and Mr.
Corley  have  sufficient  experience which is relevant to the style of mineralisation  and  type  of  deposit  under
consideration and to the activity which they have undertaken to qualify as a Competent Person as defined in the 2004
Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Mr.  Gustafsson and Mr. Corley consent to the inclusion in this report of the matters based on their information  in
the form and context in which it appears.

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