Forte Energy NL
LSE : FTE

October 27, 2011 02:23 ET

Quarterly Activities and Cashflow Report

                                                                                       FORTE ENERGY NL
                                                                                       ACN 009 087 852
                                                                                     ASX/AIM CODE: FTE
                                                       Telephone: +618 9322 4071, Fax: +618 9322 4073
                                                                                                     
                                                                                                     
                                                                                         Quarterly Report

                                                                                           September 2011

Forte  Energy  NL  ("Forte Energy" or "the Company") (ASX/AIM: FTE) is an emerging international  uranium
company  focused on the exploration and development of a portfolio of uranium assets in the Republics  of
Mauritania and Guinea, West Africa.

                             Highlights of 1st Quarter to 30 September 2011

Uranium Exploration - Mauritania (West Africa)
        
*   Reverse  Circulation (RC) infill and extension drilling programme underway at  A238  aiming  to
    increase the initial JORC Code compliant Inferred Mineral Resource of 26.5Mt @ 256ppm U3O8 for 14.9Mlbs
    U3O8 (100ppm cut-off) that was announced in June 2011.

*   Other targets planned for drilling this season include:
        
            o    Tisram prospect to follow-up successful exploratory drilling carried out last field season where
                 all seven holes intersected uranium mineralisation, including several thick intersections of moderate
                 grade, and
        
            o    Initial drilling to test a number of targets within the new Hasi Baida permit where a surface
                 sampling programme returned assay results greater than 1,000ppmU from eight anomalies, including one
                 sample of 25,900ppmU (2.59%U) from Anomaly 204.

Uranium and REE Exploration - Guinea (West Africa)

*    A programme of up to 5,000m of extension and infill RC drilling scheduled to commence by the end
     of November 2011 at the Firawa prospect which remains open along strike and at depth. Resource drilling
     to date has only tested a 2.5km section of the 5km anomaly.

*    While the recent re-assay programme has confirmed the presence of Rare Earth Elements (REEs) and
     a positive correlation between the uranium and the REEs, the Company at this stage has decided to focus
     its attention on significantly increasing the existing JORC compliant resource of 17.7Mt @ 296ppm U3O8
     for 11.6Mlbs contained U3O8 (100ppm cut-off).


Republic of Mauritania, West Africa

During the September quarter activity focussed on analysis of drilling and field survey results from  the
successful 2010/11 field season in Mauritania and planning and preparations for the commencement  of  the
2011/12  field season. Staff have returned to the field and RC drilling has commenced at the A238 uranium
prospect, located 55km south-east of the town of Bir Moghrein.

The  focus  of  this  drilling  campaign is to increase the maiden JORC Code compliant  Inferred  Mineral
Resource  for A238 of 26.5Mt @ 256ppm U3O8 for 14.9Mlbs contained U3O8 (100ppm cut-off) announced  on  22
June  2011. The resource at A238 remains open at depth and along strike with additional potential in  the
high grade zones that have so far been poorly defined by the sparse first pass drilling.

This  season's drilling programme will also target the Tisram prospect, located approximately 40km  north
of  the  A238 uranium prospect, on Forte Energy's northern-most licence, permit 284. Drilling will follow
up  promising  results  from last season where seven exploratory RC holes were  drilled  with  all  holes
intersecting uranium mineralisation, including several thick intersections of moderate grade.

During  the quarter, Forte Energy announced the granting of two new uranium exploration permits, Licences
948  and 949, in Mauritania. Known as Hasi Baida and Gin Ouissat, the licences cover an area of 1790  km2
and  are located near the Company's existing licences in the north of the country. The Company now  holds
eight uranium exploration permits within Mauritania with a total area of more than 8600 km2.

To view Figure 1: Forte Energy new uranium exploration permits, Mauritania, please open the following link
in a new window: http://media3.marketwire.com/docs/fte_1027_uk_fig_1.pdf

Assay results announced this month from a surface sampling programme carried out by the Company confirmed
the  presence  of  uranium hosted in calcrete mineralisation at a number of anomalies within  the  permit
area. The surface sampling yielded uranium grades up to 2.59% U (25,900ppmU). Assays from eight anomalies
within  the Hasi Baida permit area returned results greater than 1,000ppmU. A table showing these results
follows:

   Anomaly        Sample         Zone        Easting          Northing              Uppm
     203           203C          29R          398216          2793618              1,600
     204           204A          29R          398755          2794916             25,900
     204           204B                                                           12,200
     204           204C                                                            2,330
     204           204D                                                            4,870
     206           206B          29R          396918          2796592              1,050
     209           209B          29R          395433          2799950              4,950
     209           209C                                                            2,150
     210           210A          29R          396503          2801464              2,700
     210           210B                                                            1,540
     210           210C                                                            1,240
     275           275C          29R          398403          2798620              1,570
     321           321D          29R          415152          2808481              1,010
     330           330D          29R          399546          2806037              1,620
     330           330F                                                            1,990

Figure 2: Hasi Baida reconnaissance samples > 1,000ppmU.

Hasi  Baida is a highly prospective calcrete area situated approximately 50km north-east of the  existing
Forte  Energy  licences  and  covers over 800km2. It is anticipated that a 1,500  -  2,000m  RC  drilling
programme  will  commence  early in 2012 to drill-test the above eight prospects.  The  targets  are  all
uranium in shallow calcrete deposits.


Republic of Guinea, West Africa

Forte  Energy  has  four  exploration permits in Guinea covering its Firawa and  Bohoduo  prospects.  The
permits  cover  847km2 and are valid for both uranium and REEs. The Firawa prospect has an  initial  JORC
code compliant Inferred Resource of 17.7Mt at 296ppm for 11.6Mlbs U3O8 (100ppm cut-off), and remains open
along strike and at depth.

To  view  an  image  associated  with this release, please open the  following  link  in  a  new  window:
http://media3.marketwire.com/docs/fte_1027_uk_map.pdf

A  programme  of  up to 5,000m of extension and infill RC drilling is planned for Firawa for  this  field
season  with  a  drill rig currently being mobilised and drilling scheduled to commence  by  the  end  of
November.  The  drilling will test extensions to the east and west with previous drilling campaigns  only
testing  a 2.5km section of the anomaly's 5km length. Drilling is aimed at increasing both the  size  and
confidence level of the current Inferred JORC compliant U3O8 resource.



To view Figure 3: Planned drilling for Firawa prospect in Guinea, please open the following link in a new
window: http://media3.marketwire.com/docs/fte_1027_uk_fig_3.pdf

Drilling  will  concentrate  on the uranium mineralisation in the laterite profile.  The  programme  will
initially focus on the east and west extensions with plans to drill 40 holes (3,000m). The next stage  of
infill drilling is estimated to be 20 holes (2,000m).

During  H1  of  2011, Forte Energy conducted a project to re-assay old drill samples from two  historical
drilling  programmes  at Firawa following the identification of the REE potential  in  2007  and  several
metallurgical  samples  in  late  2010. All re-assay results have now  been  released  with  the  results
demonstrating  a positive correlation between the uranium and the REE mineralisation. Whilst  recognising
the potential significance of the REE to future mining considerations the Company has been advised by its
consultants,  who  have completed an internal study, that notwithstanding the above, further  field  work
will  be  required to enable a JORC compliant resource to be calculated. The company remains focussed  on
increasing  the size and confidence of its current uranium resources at Firawa, as a priority  and  funds
will  be utilised on that first. Any activities that can be completed in parallel with the uranium  field
work will be undertaken.

Field  staff  plan to return to the Bohoduo uranium prospect, north-east of Firawa, during  H1  of  2012.
Airborne  survey and ground follow up survey have indicated a weak 12 km long anomaly extending eastwards
from  the  eastern end of the 700m uranium mineralisation zone previously drilled in 2008. An RC drilling
programme  comprising 12 drill holes for a total of 1,200 metres is planned to investigate  this  anomaly
following  completion of the drilling in Firawa. Field studies are also scheduled  to  the  west  of  the
mineralised zone.


Corporate

Scott Yelland commenced as Chief Operating Officer for Forte Energy on the 1st September 2011. Scott is a
mining engineer with over 28 years experience in the mining industry and joins Forte Energy from Berkeley
Resources  Ltd,  an  ASX  and  AIM  listed  exploration company with  advanced  uranium  exploration  and
development  projects  in Spain. Scott has increased the internal expertise of the company's  operational
team through additional appointments to support the current and planned drilling programmes.


Conclusion

Forte  Energy  is in a strong financial position as it commences its next field exploration campaigns  in
both  Mauritania  and Guinea with a cash balance at the end of September 2011 of more than  A$7  million.
Following the doubling of its uranium resources with the June 2011 announcement of a maiden resource  for
A238,  the  Company is looking forward to potential increases to its uranium resource base  from  planned
drilling  at  Firawa  and  A238, as well as drill-testing other identified Mauritanian  targets  included
within the new Hasi Baida permit.



Mark Reilly
Managing Director
27 October 2011


For further information contact:

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

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

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

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

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



Forte Energy NL

Australia                                        United Kingdom

Suite 3, Level 3                                 Chesterfield House
1292 Hay Street                                  1 Chesterfield Street
West Perth WA 6005                               London W1J 5JF
Ph: +61 (0(8 9322 4071                           Ph: +44 (0)203 300 0188
Fax: +61 (0)8 9322 4073                          Fax: +44 (0)207 409 2857
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 Guinea and Mauritania in West Africa.  The Company has an extensive
pipeline  of assets and total JORC resources of 45.5Mt @ 284ppm U3O8 for 28.5Mlbs contained U3O8  (100ppm
cut-off).

Its  flagship assets are the Bir En Nar project in Mauritania (2.06Mlbs U3O8) and the Firawa  project  in
Guinea  (11.6Mlb  U3O8),  with  a maiden resource at the A238 prospect in Mauritania  recently  announced
(14.9Mlbs U3O8). The Company has also received encouraging rare earth elements results from Firawa,  with
a re-assay programming confirming correlation of REEs with uranium mineralisation.
        
Forte Energy U3O8 JORC resources (all at a 100ppm cut-off):

Project              Resource Category                 M tonnes            ppm U3O8     Contained U3O8
                                                                                                  Mlbs
Bir En Nar           Indicated                             0.55                 886                1.0
(Mauritania)
                     Inferred                              0.78                 575                1.0
                     Total                                 1.33                 704                2.0
A238                 Inferred                              26.5                 256               14.9
(Mauritania)
                     Total                                 26.5                 256               14.9
Firawa               Inferred                              17.7                 296               11.6
(Guinea)
                     Total                                 17.7                 296               11.6
Total                Indicated                              0.5                 886                1.0
                     Inferred                                45                 277               27.5
                     Total                                 45.5                 284               28.5


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 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.

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 or Forte Energy NL and Mr Galen White BSc  (hons)
FGS, MAUSIMM, Principal Geologist of CSA Global Inc (UK).

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, 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,  Mr.
Inwood 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.



Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96.  Origin:  Appendix 8.  Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity
FORTE ENERGY NL

ABN                                                                      Quarter ended      
                                                                      ("current quarter")
59 009 087 852                                                         30 September 2011

                                                            Current quarter       Year to date
Cash flows related to operating activities                       A$'000            (3 months)
                                                                                     A$'000
1.1       Receipts from product sales and related debtors              -                   -
1.2       Payments for  (a)  exploration and evaluation          (1,062)             (1,062)
               (b)  development                                        -                   -
               (c)  production                                         -                   -
               (d)  administration                                 (661)               (661)
1.3       Dividends received                                           -                   -
1.4       Interest  and  other items of a  similar  nature                                  
          received                                                   268                 268
1.5       Interest and other costs of finance paid                     -                   -
1.6       Income taxes paid                                            -                   -
1.7       Other (provide details if material)                          -                   -
                                                                                            
          Net Operating Cash Flows                               (1,455)             (1,455)
                                                                                                 
          Cash flows related to investing activities                    
1.8       Payment for purchases of:                                                              
               (a) prospects                                           -                   -
               (b) equity investments                                  -                   -
               (c) other fixed assets                               (16)                (16)
1.9       Proceeds from sale of:                                                                 
               (a) prospects                                           -                   -
               (b) equity investments                                  -                   -
               (c) other fixed assets                                  -                   -
1.10      Loans to other entities                                      -                   -
1.11      Loans repaid by other entities                               -                   -
1.12      Other (provide details if material)                          -                   -
                                                                                            
          Net investing cash flows                                  (16)                (16)
1.13      Total   operating  and  investing   cash   flows       (1,471)             (1,471)
          (carried forward)


Consolidated statement of cash flows

1.13      Total   operating  and  investing   cash   flows       (1,471)             (1,471)
          (brought  forward)
                                                                                            
          Cash flows related to financing activities                                        
1.14      Proceeds from issues of shares, options, etc.                -                   -
1.15      Proceeds from sale of forfeited shares                       -                   -
1.16      Proceeds from borrowings                                     -                   -
1.17      Repayment of borrowings                                      -                   -
1.18      Dividends paid                                               -                   -
1.19      Other - Settlement of Guarantee                                                   
          Net financing cash flows                                     -                   -
                                                                                            
          Net increase (decrease) in cash held                   (1,471)             (1,471)
          
1.20      Cash at beginning of quarter/year to date                8,717               8,717
1.21      Exchange rate adjustments to item 1.20                       2                   2
1.22      Cash at end of quarter                                   7,248               7,248
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the
related entities
                                                                              Current quarter
                                                                                  $A'000
                                                                                             
        Aggregate  amount of payments to the parties included  in  item                   215
        1.2
                                                                                             
        Aggregate amount of loans to the parties included in item 1.10                      0
        
        Explanation necessary for an understanding of the transactions
        Salaries and rental of office premises
Non-cash financing and investing activities
2.1     Details of financing and investing transactions which have had a material effect on
        consolidated assets and liabilities but did not involve cash flows
        Nil

2.2     Details  of  outlays  made  by other entities to establish or  increase  their  share  in
        projects in which the reporting entity has an interest
        Nil


Financing facilities available
Add notes as necessary for an understanding of the position.

                                              Amount available            Amount used
                                                        $A'000                 $A'000
3.1       Loan facilities                                  Nil                    N/A
3.2       Credit standby arrangements                      Nil                    N/A

Estimated cash outflows for next quarter
                                                                                    $A'000
4.1     Exploration and evaluation                                                   1,000
4.2     Development                                                                      -
4.3     Production                                                                       -
4.4     Administration                                                                 600
          Total                                                                      1,600

Reconciliation of cash
Reconciliation  of cash at the end of  the  quarter      Current quarter       Previous quarter
(as  shown  in the consolidated statement  of  cash          $A'000                 $A'000
flows) to the related items in the accounts  is  as
follows.
5.1     Cash on hand and at bank                               1,248                   217
5.2     Deposits at call                                       6,000                 8,500
5.3     Bank overdraft                                             -                     -
5.4     Other (provide details)                                    -                     -
        Total: cash at end of quarter (item 1.22)              7,248                 8,717

Changes in interests in mining tenements

                               Tenement       Nature of interest      Interest   at  Interest  at
                               reference      (note (2))              beginning  of  end       of
                                                                      quarter        quarter
6.1     Interests  in  mining                                                        
        tenements
        relinquished,
        reduced or lapsed
6.2     Interests  in  mining  948            Uranium exploration                    
        tenements    acquired                 permit covering 805                    
        or increased                          km2 in the Republic                    
                                              of Mauritania           0%             100%
                               949            Uranium exploration                    
                                              permit covering 985                    
                                              km2 in the Republic                    
                                              of Mauritania           0%             100%
                                                                                     
Issued and quoted securities at end of current quarter
Description  includes rate of interest and any redemption or conversion rights together with  prices  and
dates.

                                       Total number    Number quoted    Issue price        Amount
                                                                       per security       paid up
                                                                       (see note 3)           per
                                                                            (cents)      security
                                                                                        (see note
                                                                                       3) (cents)
7.1     Preference     +securities                                                               
        (description)
7.2     Changes during quarter                                                                   
        (a)  Increases through                                      
        issues
        (b)  Decreases through
        returns of capital, buy-
        backs, redemptions
7.3     +Ordinary securities          695,589,311      695,589,311                             
                                        2,250,000                -             25             1
7.4     Changes during quarter                                                                 
        (a) Increases through                                                                  
        issues                                                                                 
        Issue for cash                                                                         
         (b)  Decreases through                                                                
        returns of capital, buy-                                                               
        backs                                                     
7.5     +Convertible          debt                                                             
        securities (description)
7.6     Changes during quarter                                                                 
        (a)  Increases through
        issues
        (b)  Decreases through
        securities matured,
        converted
7.7     Options  (description  and                                         Exercise      Expiry
        conversion factor)                                                    price        date
                                                                                               
                                        5,000,000                -       11.0 cents    21/12/12
                                        3,000,000                -       10.0 cents    17/12/13
                                        6,000,000                -       20.0 cents    23/12/12
                                        1,000,000                -          6 pence    24/12/11
                                                 
7.8     Issued during quarter                                                                  
7.9     Exercised during quarter                                                               
7.10    Expired during quarter                                                                 
7.11    Debentures                                                                               
        (totals only)
7.12    Unsecured notes                                                                          
        (totals only)


Compliance statement

1     This  statement has been prepared under accounting policies, which comply with accounting  standards
      as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2     This statement does give a true and fair view of the matters disclosed.





Sign  here:                                                    Date:  27  October 2011.
                Company Secretary

Print name:     Murray Wylie


Notes

1     The  quarterly  report provides a basis for informing the market how the entity's  activities  have
      been  financed  for  the past quarter and the effect on its cash position.  An  entity  wanting  to
      disclose  additional  information is encouraged to do so, in a  note  or  notes  attached  to  this
      report.

2     The  "Nature  of interest" (items 6.1 and 6.2) includes options in respect of interests  in  mining
      tenements acquired, exercised or lapsed during the reporting period.  If the entity is involved  in
      a  joint  venture  agreement and there are conditions precedent, which will change  its  percentage
      interest  in a mining tenement, it should disclose the change of percentage interest and conditions
      precedent in the list required for items 6.1 and 6.2.

3     Issued  and quoted securities  The issue price and amount paid up is not required in items 7.1  and
      7.3 for fully paid securities.

4     The  definitions  in, and provisions of, AASB 1022: Accounting for Extractive Industries  and  AASB
      1026: Statement of Cash Flows apply to this report.

5     Accounting  Standards  ASX will accept, for example, the use of International Accounting  Standards
      for  foreign  entities.  If the standards used do not address a topic, the Australian  standard  on
      that topic (if any) must be complied with.


                                                                                                         
                                                                                                         
                                                                                                         

Contact Information

  • Forte Energy NL