Forte Energy NL

April 30, 2009 07:57 ET

Quarterly Activities and Cashflow Report

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

                                                                                               March 2009

Forte  Energy  (ASX: FTE; AIM: FTE) is a uranium and copper explorer listed on the ASX and  AIM,  with  a
portfolio of emerging projects in West Africa and Australia.


Uranium Exploration - Mauritania

*   Geophysical ground surveys undertaken at Bir En Nar and at several locations near Bir Moghrein -
    further work to be carried out this Quarter.

*   6,000m  diamond  drilling  programme aimed at delineating initial  JORC-code  compliant  uranium
    resource planned to commence in July 2009.

Uranium Exploration - Guinea

*   Resource  drilling programme completed along a 2.5 km section of a 5km long uranium  anomaly  at
    the Firawa prospect.
*   Calculation  of  initial JORC-code compliant resource estimate for Firawa  uranium  prospect  is
    expected shortly after delays in assay samples.

Appendix 5B
Mining exploration entity quarterly report

Republic of Mauritania, West Africa

During the Quarter ended 31 March 2009, geophysical ground surveys were carried out at Bir En Nar and  at
several locations near Bir Moghrein in Mauritania, West Africa.

Altogether,  ten  anomalies  identified from previous airborne radiometric  surveys  were  visited,  with
vehicle-based  radiometric surveys conducted at five of these locations. Following the results  of  these
surveys, further fieldwork is underway, including VLF-EM (Very Low Frequency Electromagnetic) surveys and
a review of other identified anomalies.

A  6,000m diamond drilling programme is planned to commence at Bir En Nar in July 2009. The programme has
been  developed using information from the latest geophysical survey work together with the results  from
previous drilling carried out at Bir En Nar by Forte Energy in December 2007.

The  drilling  programme has been developed in consultation with technical specialists from  the  French-
based multinational industrial and nuclear energy company, Areva NC (previously Cogema). Forte Energy has
a  co-operation  agreement  with Areva in relation to its Mauritania exploration  projects  (see  below).
Results  from  this  drilling  should  enable  an initial JORC-code  compliant  uranium  resource  to  be
established for Bir En Nar later this year.

To view Fig.1 Planned 6,000m resource drilling programme at Bir En Nar, please open the following link in
a new window.

The  Bir  En  Nar  prospect  is a 900 metre long radioactive zone extending 50-70  metres  in  width  and
following a tectonic structure in a north-west to south-east direction. A smaller parallel zone occurs  a
few hundred metres to the south-west.

Down-hole radiometric logging results from the maiden Reverse Circulation (RC) drilling programme carried
out  in December 2007 included seven holes containing intercepts exceeding 5,000ppm eU3O8, with a maximum
intercept  of  1.55m  at  18,280ppm  eU3O8.  In addition to  the  planned  drilling  programme,  detailed
geophysical and radiometric studies will also be undertaken at Bir En Nar.

Forte  Energy  holds a number of uranium exploration permits at Bir En Nar and near Bir Moghrein  in  the
Zednes  region of northern Mauritania. In June 2008, the Company entered into a wide-ranging  Cooperation
Agreement  with  Areva NC, in relation to its Mauritanian uranium projects. As part  of  the  Cooperation
Agreement,  Areva  is  providing technical support to the project, especially  with  the  processing  and
interpretation of geophysical data and hydrogeology, with the latter an important consideration in desert

To view Fig.2 Forte Energy's exploration permits in Mauritania, please open the following link in a new

The  Company's  exploration  permits in Mauritania consist mainly of stony desert  terrain  with  a  thin
weathered  cover underlain by granites and gneisses of the Archaen Reguibat shield complex  of  the  West
African  craton. They consist predominantly of north-north-west  to south-south-east tectonic structures.
Significant  calcrete deposits occur in places, as well as some sebkhet (dry lake beds) in  the  northern
part of the concessions.

Republic of Guinea, West Africa

Forte  Energy  has  three  uranium  exploration projects in Guinea, with  exploration  licences  covering
3,563km2. A predominantly in-fill programme of diamond core drilling was completed at the Firawa prospect
in January 2009, aimed at enabling an initial JORC-code compliant uranium resource to be delineated.

In the course of drilling, highly encouraging results based on handheld scintillometer readings from core
samples were observed in some areas where no mineralisation was previously indicated. This resulted in  a
decision to significantly extend the programme by undertaking over 1,800m of additional drilling,  for  a
total of around 5,850m. The Company is still awaiting final assay results, mainly due to the expansion of
the  original  drilling programme, and expects that the initial uranium resource for the Firawa  prospect
will be available shortly.

A  total  of 56 holes were drilled with lengths of between 80 and 154 metres, generally inclined at  50 degrees.
The  drilling, which targeted a 2.5km section of a 5km uranium anomaly, followed up the Company's  maiden
1,800m drilling programme carried out in May 2007.

To view Fig.3 Location of Forte Energy's Guinea Projects, please open the following link in a new window.

Australian Copper-Cobalt Projects

Forte Energy has two copper-cobalt projects in Australia. These are:

*   The  Maroochydore Copper project - a 50:50 Joint Venture between Forte Energy and  its  partner,
    Aditya Birla Minerals Limited ("Birla"), which is also the project operator.
    The  project  is  strategically located in Western Australia's Pilbara  region,  approximately  100km
    southeast  of  Aditya  Birla's  Nifty  Copper  Mine near Telfer.  The  JORC-code  compliant  resource
    calculated for the Maroochydore project is:
                              Tonnes (Mt)        Cu%       Co%
            Measured                   -           -         -
            Indicated               36.7         0.8      0.04
            Inferred                 4.5         0.7      0.04
            Total                   41.2         0.8      0.04
    Maroochydore resource estimate 2008 (100% basis), calculated at a 0.5% copper cut-off

*   The  Millenium mining leases - located some 35 kilometres north-west of Cloncurry in  north-west
    Queensland. The five adjacent leases include the historical "Federal" copper mine and cover  an  area
    approximately 3.5 kilometres long and 500 metres wide extending in a northerly direction.

To view Fig.4 Location of Forte Energy's Copper/Cobalt Projects, please open the following link in a new

Forte Energy remains focussed on the exploration and development of its portfolio of uranium projects  in
West Africa as the basis for the establishment of a substantial long-term uranium business.

While the Company continues to work with Aditya Birla Minerals to advance the Maroochydore Project, it is
also exploring several other avenues to realise value from these assets.

Mark Reilly
Managing Director
30 April 2009

RFC Corporate Finance
Stuart Laing
Tel: +618 9480 2506

Fairfax I.S. PLC
Ewan Leggat / Laura Littley
Tel: +44 207 598 5368


The information in this report that relates to exploration results in West Africa 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"). Mr Bosse 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 the 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 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserve'.  Mr  Gustafsson  consents  to  the inclusion in this report  of  the  matters  based  on  their
information in the form and context in which it appears.

Downhole  gamma logging/probing of drill holes provides a powerful tool for uranium companies to  explore
for,  and evaluate, uranium deposits. Such a method measures the natural gamma rays emitted from material
surrounding  a drill hole out to around 0.5 metre from its centre - the gamma probe is therefore  capable
of  sampling  a much larger volume than that which would normally be recovered from a core  or  RC  hole.
These  measurements  are  used  to estimate uranium concentrations with  the  commonly  accepted  initial
assumption  being  that  the uranium is in (secular) equilibrium with its daughter  products  (or  radio-
nuclides)  which  are  the  principal  gamma  emitters.  If  uranium  is  not  in  equilibrium  (viz.  in
disequilibrium)  -  as a result of the redistribution (depletion or enhancement) of  uranium  and/or  its
daughter products - then the true uranium concentration in the holes logged using the gamma probe will be
higher or lower than those reported in the announcement.

Total  count  gamma  logging  does  not account for energy derived from  thorium  and  potassium  but  is
calibrated  on  the  uranium band and factor applied to account for the average  effect  of  thorium  and
potassium and thus the result is expressed as an equivalent value or ppm eU308. The logging programme was
undertaken  by  Poseidon  Geophysics  (Pty)  Ltd utilising an Auslog  Logging  System  using  instruments
calibrated  at  Pelindaba,  South  Africa, an IAEA accepted and  approved  standard  facility.  Data  was
converted  from  raw  counts  per second of natural gamma rays to eU3O8 using  the  calibration  constant
obtained  from measurements made at the Pelindaba calibration borehole. Poseidon Geophysics  carried  out
regular  checks to validate the accuracy of probe data using a test hole, BNR14, located on site. Uranium
mineralisation grades through this report annotated with a sub-prefix 'e' have been reported  as  uranium
equivalent  grades  derived  from  downhole  gamma  ray  logging  results  and  should  be  regarded   as
approximations only.

The  information  in  this report which relates to the Mineral Resource for the Maroochydore  project  is
based  on and accurately reflects reports prepared by Mr Geoff Bullen (MAIG). Mr Bullen has the necessary
experience  relevant to the style of mineralisation, the type of deposit and the activity  undertaken  to
qualify  as a 'Competent Person' under the JORC Code for Reporting of Mineral Resources and Ore  Reserves
(2004  Edition). Mr Bullen has given his consent to the inclusion of the material in the form and context
in which it appears. Mr Bullen is an employee of Aditya Birla Minerals Ltd.

Appendix 5B

Mining exploration entity quarterly report
Introduced 1/7/96.  Origin:  Appendix 8.  Amended 1/7/97, 1/7/98, 30/9/2001.

            Name of entity
            FORTE ENERGY NL

            ABN                                                Quarter ended   ("current quarter")
            59 009 087 852                                               31 March 2009

                                                            Current quarter          Year to date
Cash flows related to operating activities                        A$'000                (9 months)
1.1       Receipts from product sales and related debtors              -                        -
1.2       Payments for  (a)  exploration and evaluation          (2,670)                  (3,677)
               (b)  development                                        -                        -
               (c)  production                                         -                        -
               (d)  administration                                 (544)                  (1,731)
1.3       Dividends received                                           -                        -
1.4       Interest  and  other items of a  similar  nature                                       
          received                                                   123                      214
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                               (3,091)                  (5,194)
          Cash flows related to investing activities                    
1.8       Payment for purchases of:                                                              
               (a) prospects                                           -                        -
               (b) equity investments                                  -                        -
               (c) other fixed assets                                  -                      (6)
1.9       Proceeds from sale of:                                                                 
               (a) prospects                                           -                        -
               (b) equity investments                                  -                        -
               (c) other fixed assets                                  -                        1
1.10      Loans to other entities                                      -                        -
1.11      Loans repaid by other entities                               -                        -
1.12      Other (provide details if material)                          -                        -
          Net investing cash flows                                     -                      (5)
1.13      Total   operating  and  investing   cash   flows       (3,091)                  (5,199)
          (carried forward)

Consolidated statement of cash flows

1.13      Total   operating  and  investing   cash   flows       (3,091)                  (5,199)
          (brought  forward)
          Cash flows related to financing activities                                             
1.14      Proceeds from issues of shares, options, etc.                -                    2,699
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                                     -                    2,699
          Net increase (decrease) in cash held                   (3,091)                  (2,500)
1.20      Cash at beginning of quarter/year to date                4,251                    3,660
1.21      Exchange rate adjustments to item 1.20                    (30)                     (30)

1.22      Cash at end of quarter                                   1,130                    1,130

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
        Aggregate  amount of payments to the parties included  in  item                   203
        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

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

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

4.1       Exploration and evaluation                                               800
4.2       Development                                                                0
          Total                                                                    800

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

5.1     Cash on hand and at bank                               1,130                  1,551

5.2     Deposits at call                                           -                  2,700

5.3     Bank overdraft                                             -                      -

5.4     Other (provide details)                                    -                      -
        Total: cash at end of quarter (item 1.22)              1,130                  4,251

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                                                        
        reduced or lapsed      
6.2     Interests  in  mining                                                        
        tenements    acquired
        or increased

Issued and quoted securities at end of current quarter
Description  includes rate of interest and any redemption or conversion rights together with  prices  and

                                       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                                                               
7.2     Changes during quarter                                                                   
        (a)  Increases through
        (b)  Decreases through
        returns of capital, buy-
        backs, redemptions
7.3     +Ordinary securities          444,658,031        444,658,031                             
                                        2,250,000                  -             25             1
7.4     Changes during quarter                                                                   
        (a) Increases through                                                                    
        Issue to Areva under                                                                     
        Cooperation Agreement for
        technical services and
        access to database
         (b)  Decreases through
        returns of capital, buy-
7.5     +Convertible          debt                                                               
        securities (description)
7.6     Changes during quarter                                                                   
        (a)  Increases through
        (b)  Decreases through
        securities matured,
7.7     Options  (description  and                                         Exercise      Expiry
        conversion factor)                                                    price        date
                                        7,500,000                  -            5.5     19/5/10
                                        2,500,000                  -            5.5     30/6/10
                                        2,000,000                  -            5.5    29/11/10
                                        6,000,000                  -            7.5     3/05/10
                                        5,000,000                  -           11.0    21/12/12
                                        3,000,000                  -           10.0    17/12/13
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:   30  April   2009.
                                        Managing Director

Print name:      .............Mark Reilly......................


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

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