Forte Energy NL
LSE : FTE

June 06, 2012 07:16 ET

Placement

                                                                                            Forte Energy NL
                                                                                                           
                                                                                            ACN 009 087 852
                                                                                                       
                                                                                 ASX, AIM and Media Release
6 June 2012
                                                     


Forte (ASX/AIM:FTE)

                             PLACING TO RAISE UP TO £2.5 million (A$4 million)
                                                     
                    CAPITAL RAISING TO FURTHER PROGRESS WEST AFRICAN URANIUM PORTFOLIO



International  uranium company Forte Energy NL ("Forte Energy" or "the Company") (ASX: FTE,  AIM:  FTE)  is
pleased  to  announce  that  it  has received investor commitments to a  share  placing  to  raise  £2.117m
(approximately A$3.3 million) before expenses (the "Placing"). The Placing will comprise the issue of up to
200 million ordinary shares ("Placing Shares") at 1.25 pence (approximately 2 cents) per share to raise  up
to £2.5 million (approximately A$4 million) before expenses, to new and existing institutional shareholders
in the United Kingdom, North America, Asia and Australia

The  proceeds  of  the  Placing  will  be used to continue exploration drilling  on  the  Company's  highly
prospective  Mauritanian  and  Guinean uranium projects and advance feasibility  work  on  these  projects,
initially through the completion of scoping studies.

For  each  two  new  ordinary shares issued under the terms of the placing, the investor will  receive  one
warrant,  exercisable  at 3 pence per share for 12 months from 3 August 2012.  The  warrants  will  not  be
admitted to trading on either AIM or ASX.

The Placing is being undertaken in two tranches. The first tranche, comprising 98,325,000 ordinary will  be
issued  pursuant  to the Company's existing placement authority. The second tranche of  up  to  101,675,000
ordinary  shares  is  to be placed subject to shareholder approval at a general meeting.  All  warrants  in
relation  to  both  the first and second tranche shares are also subject to shareholder approval.  In  this
regard,  it  is  anticipated that a Notice of Meeting will be sent to shareholders in July  for  a  general
meeting on or around 2 August 2012.

Application will be made for all the Placing Shares to be admitted to trading on both ASX and AIM and it is
anticipated  that the first tranche will be admitted to trading on AIM on or around 13 June  2012  and  the
second tranche will be admitted on 3 August 2012.

The  directors of Forte are participating in the Placing, with details of their commitments to the  Placing
and their shareholdings in the Company before and after the Placing set out in the table below:


Director             Current No. of     % of      Subscription to    Shares held      % of      Warrants &
                      Shares Held      Issued      Placing Shares   post-Placing     Issued      Options
                                       Capital                                      Capital        Held

Mark Reilly              11,733,333        1.69          4,000,000     15,733,333        1.76     3,500,000
Glenn Featherby          10,657,286        1.53          1,600,000     12,257,286        1.37     2,300,000
David Grannell            2,500,000        0.36          5,200,000      7,700,000        0.86     4,100,000
James Leahy                       0           0          1,600,000      1,600,000        0.18       800,000

The  directors' participation in the Placing will be subject to the approval of shareholders at the general
meeting.


Commenting   on  the Placing, Mark Reilly, Managing Director of Forte Energy, said: "We are  very   pleased
to  have received  such  a  high level of support from new and existing institutional shareholders for this
capital  raising in what remains an extremely challenging capital market.

The  proceeds will enable Forte Energy to continue to add to its rapidly growing resource base of over  37m
lbs U3O8 and to progress the scoping studies in both Mauritania and Guinea".



For further information contact:


Mark Reilly, Managing Director
Forte Energy NL                          Tel: +44 (0) 203 3849555

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

Geoff Nash/Ben Thompson                  Tel: +44 (0)207 220 0550
Elizabeth Johnson (broking)
finnCap

Rob Collins/Tarica Mpinga
Canaccord Genuity Limited                Tel: +44 (0) 207 050 6500

Bobby Morse/Louise Hadcocks
Buchanan                                 Tel: +44 (0) 207 466 5000



Forte Energy NL

Australia                                United Kingdom

Suite 3, Level 3                         3C Princes House
1292 Hay Street                          38 Jermyn Street
West Perth WA 6005                       London SW1Y6DN
Ph: +61 (0)8 9322 4071                   Ph: +44 (0)203 3847474
Fax: +61 (0)8 9322 4073                  Fax: +44 (0)207 2878387
Email: info@forteenergy.com.au           Email: info@forteenergy.co.uk
Web: www.forteenergy.com.au



About Forte Energy

Forte  Energy is an Australian-based minerals company focused on the exploration and development of uranium
and  associated bi-products in Mauritania and Guinea in West Africa.  The Company has an extensive pipeline
of assets and total JORC resources of 64.2Mt @ 262ppm U3O8for 37.0Mlbs contained U3O8 (100ppm cut-off).

Its  flagship  assets are the A238 prospect (23.4Mlbs U3O8) and the Bir En Nar project (2.06Mlbs  U3O8)  in
Mauritania, and the Firawa project in Guinea (11.6Mlb U3O8).


Forte Energy U3O8 JORC resources (all at a 100ppm cut-off):
        Project              Resource Category             M tonnes           ppm U3O8   Contained U3O8
                                                                                                   Mlbs
        A238*                         Inferred                 45.2                235             23.4
        Bir En Nar                   Indicated                 0.55                886              1.0
                                      Inferred                 0.78                575              1.0
        Firawa                        Inferred                 17.7                296             11.6
        Total                        Indicated                  0.5                886              1.0
                                      Inferred                 63.7                256             36.0
                                         Total                 64.2                262             37.0
*       A238NW Anomaly included in the A238 Inferred Resources
    
Forte  Energy's  strategy is to target high grade uranium ore bodies and build a  low  cost  West  African-
focused uranium producer.  The Company is quoted on the Australian Stock Exchange (ASX: FTE) and AIM market
of the London Stock Exchange (AIM: FTE). For more information, visit www.forteenergy.com.au

Note:
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 the A238 prospect in Mauritania  is
based on information compiled by Mr. Bosse Gustafsson of Forte Energy NL and Mr Galen White BSc (Hons) FGS,
FAUSIMM, Principal Geologist of CSA Global Inc (UK).

The information in this report that relates to the Mineral Resource at Bir En Nar in Mauritania is based on
information  compiled by Mr. Bosse Gustafsson of Forte Energy NL and Mr. Neil Inwood of Coffey Mining  Ltd.
Neil  Inwood is the Competent Person responsible for the resource estimation and classification.  Mr Inwood
is  a  Fellow  of the AusIMM.  As Mr Inwood is now no longer employed by Coffey Mining, Coffey  Mining  has
reviewed  this  information  release  and  consent to the inclusion,  form  and  context  of  the  relevant
information  herein  as  derived  from the original resource reports for  which  Mr  Inwood's  consent  has
previously been given.

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 BSc (Hons)  MAIG,  R.P.
Geo (Mining) of Coffey Mining Ltd.

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

Contact Information

  • Forte Energy NL