Forte Energy NL
LSE : FTE

August 01, 2012 02:00 ET

Quarterly Activities & Cashflow Report

                                                                                          Forte Energy NL
                                                                                                         
                                                                                          ACN 009 087 852
                                                                                                        
1st August 2012
                                      Quarterly Report - June 2012

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 2nd Quarter to 30 June 2012

    *   JORC compliant resources increased by 21% during the quarter - from 37Mlbs contained U308 to
        45Mlbs contained U308

    *   Forte Energy U3O8 JORC resources (all at a 100ppm cut-off):

         ----------------------------------------------------------------------------------------
         Project                Resource           Tonnage            Grade            Contained
                                Category             (Mt)           (ppm U3O8)         U3O8 Mlbs
         ----------------------------------------------------------------------------------------
         A238*                  Inferred             45.2              235                23.4
         ----------------------------------------------------------------------------------------
         Bir En Nar             Indicated            0.5               886                1.0
         ----------------------------------------------------------------------------------------
                                Inferred             0.8               575                1.0
         ----------------------------------------------------------------------------------------
         Firawa                 Inferred             30.3              295                19.5
         ----------------------------------------------------------------------------------------
                                Indicated            0.5               886                1.0
                                -----------------------------------------------------------------
         Total                  Inferred             76.3              262                43.9
                                -----------------------------------------------------------------
                                  Total              76.8              266                44.9
         ----------------------------------------------------------------------------------------
         * A238NW Anomaly included in the A238 Inferred Resources

    -   68% increase of the Firawa Project Inferred Resource to 19.5Mlbs of contained U308 from 11.6Mlbs
        at an average grade of 295ppm U308 (100ppm cut-off)
    
    -   71% increase in the Firawa Project resource tonnage from 17.7Mt to 30.3Mt
        
    -   Encouraging assay results at Bohoduo, Guinea, confirm mineralisation near to surface over  a
        strike length of 2.3km
        
    -   Total of 2,137m of drilling completed during the quarter, consisting of 14 holes completed at
        the A238 prospect in Mauritania, assay results pending
        
    -   Share  placement comprising of the issue of up to 200 million ordinary shares at 1.25  pence
        (approximately 2 cents) per share to raise up to £2.5 million (approximately A$4 million)  before
        expenses, has been committed to by new and existing institutional shareholders with the first tranche of
        98,325,000 shares completed on 8th June
        
    -   Appointment of finnCap as a joint broker
        
    -   Appointment of Mr James Leahy as a Non-Executive Director


Progress

Commenting on the quarter, Mark Reilly, Managing Director of Forte Energy, said:

"Forte Energy continues to make substantial progress, as demonstrated by the significant 68% increase  in
resources at the Firawa Project during the quarter, taking the Company's total JORC compliant resource up
to  45Mlbs  of  contained  U308. Following a review of all results received during  the  completed  field
season,  we  look  forward  to  initiating scoping studies in both Mauritania  and  Guinea  and  planning
additional  exploration  activities  with the aim of further adding  to  the  Company's  rapidly  growing
resource base."


Corporate

During  the  quarter the Company announced the appointment of Mr James Leahy as a Non-Executive  Director
with effect from the 26th April 2012. Mr Leahy has more than 26 years' experience in the mining sector as
a  senior  mining  analyst  and  as  a  specialist  corporate  broker  with  expertise  in  international
institutional and hedge funds, foreign capital and private equity markets.

Lady  Barbara  Judge and Mr Bosse Gustafsson resigned from their positions as directors,  effective  30th
April 2012, although they continue to be involved with the Company as external consultants.

On the 14th May Forte announced the appointment of finnCap as joint broker.

On  the  6th  June the Company announced 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,  being
undertaken  in  two  tranches,  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 first tranche was successfully completed on the 8th June with the issue of 98,325,000 shares, raising
approximately £1.23 million (approximately A$1.92 million) before expenses. A general meeting  is  to  be
held on 2nd August to seek shareholder approval for the second tranche of the Placing. Further details of
the Placing can be seen in the 6th June announcement and the Notice of Meeting dated 29th June 2012.


Republic of Mauritania, West Africa

Forte Energy has ten 100% owned licences covering over 9,900km2 in Mauritania.


To view Figure 1: Mauritanian Licences, please open the links in a new window:

http://media3.marketwire.com/docs/801FORTE1.jpg

http://media3.marketwire.com/docs/801FORTE2.jpg

Work during the June quarter was focused on the A238 prospect on the 286 Legleya licence and to the north
at the 284 Tisram licence.


A238 Prospect

Following  the  completion  of the A238 Resource update in April 2012 by CSA Global,  the  focus  of  the
remaining drilling program was to test:

     1.  The potential continuity and potential extensions between the A238 main zone and the A238 NW
         anomaly
         
     2.  The potential extension to the south of the A238 prospect under the alluvial cover
        
     3.  Potential extensions at depth to the North


To view Figure 2: Geological Setting of the A238 Prospect, please open the link in a new window:

http://media3.marketwire.com/docs/801FORTE3.jpg

During  the quarter 14 RC holes were drilled, totalling 2,137m, up until the 6th of May when the drilling
program was stopped as planned due to the increasing temperatures over the summer.

The samples have been prepared and shipped to the ALS Stewart Group laboratories in Ireland for assaying.

Initial  observations on site from visual interpretation of the RC chip samples and the  down-hole  gamma
survey suggest that the potential link between the NW anomaly and the main zone is further to the north.

Three  holes  were  drilled 400m to the south of the previous line. None of these holes  intersected  any
mineralisation. Further investigation of the area suggests that the shear zone is trending to the north.


Republic of Guinea, West Africa

Firawa

The  Firawa  Project  consists  of  two  100% owned licences totalling  over  509km2  which  are  located
approximately 25km to the east of Kissidougou.

To view Figure 3: Guinea Licences, please open the links in a new window:

http://media3.marketwire.com/docs/801FORTE4.jpg

http://media3.marketwire.com/docs/801FORTE5.jpg

Mineralisation at Firawa occurs along an undulating east-west orientated ridge, of up to  60m  in  height
from the surrounding plain and is concentrated in Fe-rich parts of the laterite/saprolite which covers  a
hard rock of granite, gneiss, mafic intrusive and carbonatite. The majority of the mineralised zones  dip
moderately to steeply towards the north.


Previous Drilling and the 2009 Resource Estimate

The  maiden  resource  estimate for the Firawa Project of 17.7Mt, grading 296ppm  U3O8  for  11.6Mlbs  of
contained U3O8, was estimated by Coffey Mining Pty Ltd in July 2009 and was based on the results from  29
RC  holes totalling 1,809m drilled in May 2007 and 56 diamond drill holes, totalling 5,859m, completed in
January 2009.

The 2012 Drilling Programme

A  second RC drilling programme at the Firawa Project was completed in February 2012 by AMCO Drilling Ltd
and consisted of 63 holes drilled, totalling 4,712m, including:

     *   14 RC holes in the central section, which had not been accessible previously, to test potential
         down dip extensions to the north.
         
     *   24 RC holes drilled 1.5km to the east along the east - west ridge.
        
     *   25 RC holes drilled 1km to the west of the initial resource outline.

In  the central area 14 holes were drilled in areas that were not previously accessible to test the  down
dip  continuation  of  the  mineralisation. 10 of these holes intersected mineralisation  confirming  the
extension of the mineralisation down-dip to the north at depth.

A  total  of  24  RC  holes  were  drilled  to the east based on radiometric  anomalies  identified  from
information from a combination of ground radiometric surveys and an airborne survey conducted in the late
1970's.  Encouraging  results were obtained from hole FRW 213, approximately 500m  to  the  east  of  the
original inferred resource, which intersected mineralisation from 5m below surface to 13m, for 8m  at  an
average grade of 347ppm U3O8. A series of shallow holes were drilled over a distance of 1.4km testing the
other radiometric anomalies, with poor results.

A further 25 RC holes were drilled to the west of the initial inferred resource, with 6 holes identifying
intermittent mineralisation between surface and 50m over a strike length of 0.5km. The best of these  was
FRW  232,  intersecting 19m of mineralisation from 31m below surface down to 50m at an average  grade  of
433ppm U3O8. Further holes were drilled to the west at 200m centres on radiometric anomalies but did  not
intersect any mineralisation.

Figure  5  shows  a  cross  section looking east with the RC holes FRW  202  and  216  both  intersecting
mineralisation  dipping to the north down to approximately 80m below surface. FRW  202  intersected  well
mineralised bands alternating with poorly mineralised bands  from 10m below the surface down to 92m  down
hole,  including  9m  from  26m  at  a grade of 539ppm U3O8. FRW 216,  collared  further  to  the  north,
intersected  similar  bands of mineralisation from 31m down to 83m, including a particularly  encouraging
intersection of 21m from 62m in the hole grading 528ppm U3O8, confirming mineralisation dipping and  open
down-dip to the north.

To view Figure 4: Firawa Drilling - 2012, please open the link in a new window:

http://media3.marketwire.com/docs/801FORTE6.jpg


To view Figure 5: Firawa Central Section 411600E, looking east, please open the link in a new window:

http://media3.marketwire.com/docs/801FORTE7.jpg

Following  the completion of the RC drilling programme at the Firawa Project, the sample preparation  was
completed  in  Kissadougou  by  ALS Stewart Group - Monrovia. The samples  were  dried,  split  and  then
transported  to  the  laboratory facilities in Monrovia, Liberia, where multi  element  ICP  assays  were
conducted. From the 63 holes, representative samples were selected from a total of 38 holes, of which  17
were mineralised.

Updated Resource Estimate

CSA  Global  (UK)  Ltd compiled a Mineral Resource update incorporating the results from  the  historical
drilling completed in 2007 and 2009 as well as results from the recent drilling campaign.

Using  the  results  for  the bulk density determination from the Pycnometer and Archimedean  methods,  a
weighted average of 97 measurements was used to assign an average bulk density of 3.0t/m3 to the  Mineral
Resource update to estimate inferred resource tonnage.

The  updated  resource  model incorporating the historical drilling, recent  RC  drilling  programme  and
revised  bulk  density of 3.0t/m3 has resulted in an Inferred resource of 30.3Mt at an average  grade  of
295ppm U3O8 containing 19.5Mlbs U3O8 at a cut-off grade of 100ppm U3O8.


To view Figure 6: Firawa Resource - 2012, please open the link in a new window:

http://media3.marketwire.com/docs/801FORTE8.jpg


                       Table1: Firawa JORC Compliant Resource Statement (July 2012)
------------------------------------------------------------------------------------------
Area                       Resource       Tonnage           Grade          Contained U3O8
                           Category         (Mt)          (ppm U3O8)           (Mlbs)
------------------------------------------------------------------------------------------
Firawa Project             Inferred         30.3             295                19.5
------------------------------------------------------------------------------------------
Firawa Project Total       Inferred         30.3             295                19.5
------------------------------------------------------------------------------------------

   Note: Figures have been rounded and are stated at a100ppm U3O8 cut off.
                                                    
Bohoduo

Two  drilling  programmes have been completed at the Bohoduo Project. The first  drilling  programme  was
carried  out by AMCO Drilling Ltd in May 2008 and consisted of 15 RC holes totalling 1,000m. All  of  the
holes  were  inclined at 50 degrees. The drilling targets were focused on a 700m long uranium anomaly identified
by  ground  studies conducted by Davy McKee in the 1980's and interpretation of a combination of  further
ground works conducted by Forte Energy and airborne geophysical data.

In  the  2008 drilling campaign, 11 profiles were drilled over 800m at 100m centres; this was reduced  to
50m  where  good  scintillometer readings were recorded from the RC chip  samples.  8  holes  intersected
mineralisation from surface down to 96m, the best of which were BHD 003: 12m at 336ppm U308 from 6m below
surface and BHD 017: 24m at 506ppm U308 from 1m below surface.

To view Figure 7: Bohoduo RC drill hole locations, please open the link in a new window:


http://media3.marketwire.com/docs/801FORTE9.jpg

In  February 2012 a second drilling programme at Bohoduo was completed by AMCO Drilling Ltd with 17 holes
drilled  totalling  1,277m. Two holes were drilled 200m to the west and 15 holes  to  the  east  on  200m
profiles.  All  of the holes were inclined at 500 and 7 of the 17 holes were sampled and assayed.  Sample
preparation was completed by ALS Global in Guinea and then transported to Monrovia for assaying.

Two  holes, BHD 020 and BHD 026 were drilled 200m to the east of the area drilled in the first  campaign;
the  holes were drilled to 50m and 60m respectively and intersected no mineralisation. A further 10 holes
were  drilled  300m  to the west of the mineralised zone identified in the first RC  campaign,  targeting
anomalous areas identified in field studies and the airborne surveys.

Notable intersections from the recent RC drilling include:

- FRW 200: 14m @ 447ppm U3O8 and 47m @ 348ppm U3O8
- FRW 201: 24m @ 311ppm U3O8
- FRW 202:  9m @ 539ppm U3O8 and 4m @ 445ppm U3O8
- FRW 203: 12m @ 351ppm U3O8
- FRW 216:  6m @ 324ppm U3O8 and 21m @ 528ppm U3O8
- FRW 217: 21m @ 326ppm U3O8
- FRW 232: 21m @ 414ppm U3O8

Average U308 grades based on a cut-off grade of 200ppm U308 and a maximum dilution interval of 2m.

Six holes BHD 023, 024, 025, 027, 028 and 030 drilled at 200m centres to the west identified intermittent
narrow  mineralisation  from surface down to 106m, the best of which was BHD 028  which  assayed  11m  at
345ppm U308 from 49m and 5m at 420ppm U308 from 69m. Another hole, BHD 031, was drilled over 300m to  the
east and identified intermittent narrow mineralisation between 66m and 86m.


Mark Reilly
Managing Director
For further information contact:

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

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

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

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

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

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 76.8Mt @ 266ppm U3O8for 44.9Mlbs 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 (19.5Mlb 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              0.5              886                           1.0
                             --------------------------------------------------------------------------
                              Inferred              0.8              575                           1.0
-------------------------------------------------------------------------------------------------------
Firawa                        Inferred             30.3              295                          19.5
-------------------------------------------------------------------------------------------------------
Total                        Indicated              0.5              886                           1.0
                             --------------------------------------------------------------------------
                              Inferred             76.3              262                          43.9
                             --------------------------------------------------------------------------
                                 Total             76.8              266                          44.9
-------------------------------------------------------------------------------------------------------

        * 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 Resources at the A238 prospect in  Mauritania
and  at Firawa in Guinea is based on information compiled by Mr. Bosse Gustafsson of Forte Energy NL  and
Mr Galen White BSc (Hons) FGS, FAUSIMM, Managing Director and Principal Geologist of CSA Global (UK) ltd.

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.

Mr.  Gustafsson, 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. White and Coffey Mining  on
behalf of Mr. Inwood 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 June 2012

                                                            -----------------------------------
                                                            Current quarter       Year to date
Cash flows related to operating activities                       A$'000           (12 months)
                                                                                     A$'000
                                                            -----------------------------------
1.1       Receipts from product sales and related debtors              -                   -
1.2       Payments for  (a)  exploration and evaluation          (1,524)             (6,528)
               (b)  development                                        -                   -
               (c)  production                                         -                   -
               (d)  administration                                 (671)             (2,650)
1.3       Dividends received                                           -                   -
1.4       Interest  and  other items of a  similar  nature                                  
          received                                                    23                 445
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                               (2,172)             (8,733)
-----------------------------------------------------------------------------------------------
                                                                                                 
          Cash flows related to investing activities                    
1.8       Payment for purchases of:                                                         
               (a) prospects                                           -                   -
               (b) equity investments                                  -                   -
               (c) other fixed assets                                (2)                (30)
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                                   (2)                (30)
                                                            -----------------------------------
1.13      Total   operating  and  investing   cash   flows       (2,174)             (8,763)
          (carried forward)
-----------------------------------------------------------------------------------------------


Consolidated statement of cash flows
-----------------------------------------------------------------------------------------------
1.13      Total   operating  and  investing   cash   flows       (2,174)             (8,763)
          (brought  forward)
-----------------------------------------------------------------------------------------------

          Cash flows related to financing activities                                        
1.14      Proceeds from issues of shares, options, etc.            1,808               1,808
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                                 1,808               1,808
-----------------------------------------------------------------------------------------------
                                                                                            
          Net increase (decrease) in cash held                     (366)             (6,955)
          
1.20      Cash at beginning of quarter/year to date                2,128               8,717
1.21      Exchange rate adjustments to item 1.20                       1                   1
                                                            -----------------------------------
1.22      Cash at end of quarter                                   1,763               1,763
-----------------------------------------------------------------------------------------------

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                   185
        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                                                     800
                                                                                   --------
4.2     Development                                                                      -
                                                                                   --------
4.3     Production                                                                       -
                                                                                   --------
4.4     Administration                                                                 450
-------------------------------------------------------------------------------------------
        Total                                                                        1,250
-------------------------------------------------------------------------------------------

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                               1,663                          628
                                                       ------------------------------------------
5.2     Deposits at call                                         100                        1,500
                                                       ------------------------------------------
5.3     Bank overdraft                                             -                            -
                                                       ------------------------------------------
5.4     Other (provide details)                                    -                            -
-------------------------------------------------------------------------------------------------
        Total: cash at end of quarter (item 1.22)              1,763                        2,128
-------------------------------------------------------------------------------------------------

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                                                        
        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
dates.

                                       -----------------------------------------------------------
                                       Total number    Number quoted    Issue price    Amount paid
                                                                       per security         up per
                                                                       (see note 3)       security
                                                                            (cents)   (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          793,914,311      793,914,311                              
                                        2,250,000                -             25              1
                                       -----------------------------------------------------------
7.4     Changes during quarter                                                                  
        (a) Increases through          98,325,000       98,325,000     1.95 cents     1.95 cents
        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
                                       -----------------------------------------------------------
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:   31  July 2012.
                                 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