Forte Energy NL
LSE : FTE

January 19, 2011 02:00 ET

Placing to Raise A$15 Million / GBP 9.35 Million

                                                                                                                   
                                                                                                  FORTE ENERGY NL
                                                                                                  ACN 009 087 852
                                                                                               ASX/AIM CODE: FTE,
                                                                   Telephone: +618 9322 4071, Fax: +618 9322 4073
                                                                                                                   
                                                                                                                   
                                                                                         ASX, AIM and Media Release
                                                                                                  18 January 2011

                                                          
                                    PLACING TO RAISE A$15 million/ £9.35 million
                                                          
                              CAPITAL RAISING TO PROGRESS WEST AFRICAN URANIUM PORTFOLIO
                                                          

                                                     HIGHLIGHTS

*   Forte Energy to raise A$15 million (approximately £9.35 million), before expenses, through the issue of 120
    million ordinary shares at 12.5 cents per share  (approximately eight pence) to new and existing institutional
    shareholders in the United Kingdom, North America, Asia and Australia

*   Proceeds  to  be  used to accelerate exploration and feasibility work on Forte Energy's highly  prospective
    West African uranium portfolio
    
*   The placing price of 12.5 cents per share represents a discount of 10.7% to the closing price of the shares
    on the ASX on Friday 14 January 2011.

International uranium company Forte Energy NL ("Forte Energy" or "the Company") (ASX: FTE, AIM: FTE) is  pleased  to
advise  that it has received commitments from new and existing institutional investors in the United Kingdom,  North
America,  Asia  and Australia to a placement to raise A$15 million (approximately £9.35 million),  before  expenses,
through  the  issue of 120 million ordinary shares at an issue price of 12.5 cents (approximately eight  pence)  per
share.

Commenting  on  the placement, 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,
which  was significantly oversubscribed. The proceeds will enable Forte Energy to remain on track to release a  JORC
Code  compliant  resource at our A238 uranium prospect during the first half of 2011, further explore  the  numerous
other  high  priority prospects on its Mauritanian ground holding  and to commence the Pre-Feasibility work  at  our
Firawa project in Guinea."

The  net proceeds of the Placing after allowing for expenses are expected to be A$14.7 million (approximately  £9.18
million).  The proceeds will be used to accelerate the advancement of the Company's high quality portfolio  of  West
African uranium projects towards development, including:

    *   The ongoing resource drilling campaign at the Company's A238 uranium anomaly in the north of Forte Energy's
        leases in Mauritania to establish a JORC Code compliant resource in H1 2011
        
    *   Additional exploration work at the A29 uranium anomaly, located 20km south along strike from  the  A238
        uranium anomaly in Mauritania, and at the other high priority prospects on its Mauritanian ground holding
        
    *   Commence the Pre-Feasibility Study at the Company's 100% owned Firawa Uranium Project in Guinea
        
    *   Further assaying and metallurgical testwork on the recently discovered presence of Rare Earth Element (REE)
        at the Company's Firawa Uranium Project, to establish a JORC Code compliant resource in H1 2011

    *   Ongoing investigation and targeting of other resource opportunities in West Africa.

The  share issue is being undertaken in two tranches. The first tranche, comprising 87,098,704 shares at 12.5  cents
per  share,  will  be issued pursuant to the Company's 15% placement authority and is to be issued in  approximately
seven  days.  The second tranche of 32,901,296 shares is to be placed subject to shareholder approval at  a  general
meeting. In this regard, a Notice of Meeting (NOM) will be forwarded to shareholders shortly.

StoneBridge  Group acted as bookrunner for the Placing in Asia and Australasia and Matrix acted as the Company's  UK
broker.

Application  will  also be made to the AIM market of the London Stock Exchange for admission  to  trading  of  these
ordinary shares.






Mark Reilly
Managing Director

For further information contact:

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

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

Jos Simson/Emily Fenton
Tavistock Communications                         Tel: +44 (0) 207 920 3150

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)


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.

Contact Information

  • Forte Energy NL