Forte Energy NL
LSE : FTE

May 01, 2012 02:00 ET

Quarterly Activities & Cashflow Report March 2012

                                                                                                        
                                                                                          Forte Energy NL
                                                                                                         
                                                                                          ACN 009 087 852
                                                                                                        
30th April 2012
                                      Quarterly Report - March 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 1st Quarter to 31 March 2012


Overview

    *   JORC compliant resources increased by 30% during the quarter - from 28.5Mlbs U308 to 37Mlbs
        
    *   Further assay results and resource upgrade from assets in Guinea still to come
        
    *   Over 13,300m of exploration holes drilled during the quarter

        
Uranium Exploration - Mauritania (West Africa)
        
    *   A238 Inferred Resource increased to 23.4Mlbs from 14.9Mlbs at a cut-off grade of 100ppm U308
        
    *   A238NW anomaly located 800m to the north west of the A238 Main zone included in the resource and
        has added over 1.4Mlbs of uranium
        
    *   A238 remains open at depth and along strike and is currently undergoing further drilling
        
    *   Forte Energy's JORC compliant Resource Statement for A238 as at 5th April 2012 (100ppm U308 cut-
        off)
        
              ---------------------------------------------------------------------------------
              Area                  Resource      Tonnage          Grade         Contained U3O8
                                    Category        (Mt)        (ppm U3O8)           (Mlbs)
              ---------------------------------------------------------------------------------
              A238 Prospect         Inferred        42.8            233               22.0
              ---------------------------------------------------------------------------------
              A238NW                Inferred        2.4             266                1.4
              ---------------------------------------------------------------------------------
              A238 Total            Inferred        45.2            235               23.4
              ---------------------------------------------------------------------------------


Uranium Exploration - Guinea (West Africa)

     *  The Firawa drilling programme completed in February comprised 63 holes totalling 4,712m of which
        38 holes have been assayed.
     
     *  Notable intersections include:

                 -  FRW 200:  32m @ 359ppm U308 and 11m @ 246ppm U308
                 -  FRW 201:  17m @ 364ppm U308
                 -  FRW 203:   9m @ 402ppm U308
                 -  FRW 216:  16m @ 628ppm U308
                 -  FRW 217:  18m @ 334ppm U308
                     
     *  A follow-up programme of RC drilling at Bohoduo consisting of 17 holes totalling 1,277m was
        completed in February. The holes were drilled over a strike length of 8km and 9 of the holes have
        identified mineralisation from surface down to 80m, with assay results expected in May.


Corporate

On  26  April  the  Company announced the appointment of Mr James Leahy to the Board as  a  Non-Executive
Director. 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.


Progress

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

"The  first  quarter has been another period of excellent progress for Forte Energy, with  a  substantial
increase in its Mauritanian uranium resources. The Company looks forward to further advances this quarter
with  the  remaining assays from Guinea and a revised JORC resource calculation expected for  its  Firawa
project.   With over 37Mlbs of U308 identified to date, the Company is also making progress on  the  next
stage of monetising this growing resource base".

Republic of Mauritania, West Africa

                                                    
To view Figure 1: Mauritania Licences and Resources, please open the following link in a new window:
http://media3.marketwire.com/docs/forte_ukreg_0501_fig1.pdf

Following  the  completion of the first phase of the RC drilling programme at the A238  prospect  and  NW
anomaly and the receipt of chemical assay results from 33 holes and gamma survey results for 6 holes, CSA
Global (UK) Ltd (CSA) have completed a JORC compliant resource update.

                                                Table 1:
                           A238 JORC Compliant Resource Statement (April 2012)

---------------------------------------------------------------------------------------
Area                    Resource       Tonnage           Grade           Contained U3O8
                        Category        (Mt)           (ppm U3O8)            (Mlbs)
---------------------------------------------------------------------------------------
A238 Prospect           Inferred        42.8              233                 22.0
---------------------------------------------------------------------------------------
A238NW                  Inferred         2.4              266                 1.4
---------------------------------------------------------------------------------------
A238 Total              Inferred        45.2              235                 23.4
---------------------------------------------------------------------------------------

   Note: Figures have been rounded and are stated at a100ppm U308 cut off.


                                                    

To view Figure 2: A238 and NW Holes used in resource compilation, please open the following link in a new window:
http://media3.marketwire.com/docs/forte_ukreg_0501_fig2.pdf

The  resource  model  has identified a main zone of mineralisation over a strike length  of  1.75km  with
mineralisation  extending  down to over 250m from surface with widths of  over  60m  within  50m  of  the
surface.  The  latest model indicates a significant increase in the total tonnes of ore of  over  18.7Mt;
however  the grades have dropped from an average grade of 256ppm U3O8 to 233ppm U3O8. The slight drop  in
grade is due to:

    a)  Additional resource tonnage incorporated into the model from northerly extensions of the main
        zone. Drilling results from this area have returned lower grades than those within the main zone;
    b)  Refinement  of the geological model which forms the basis for interpreting the  geometry  of
        mineralised zones. In 2011 near vertical mineralised zones of mixed higher and lower grades  were
        interpreted. In 2012 a refined interpretation of shallow dipping higher grade zones has constrained
        higher grade data which has resulted in a lowering of grade within the resource volume that falls outside
        of these zones and which makes up a significant proportion of the resource volume.

The  Company  believes the refined interpretation is more robust than that used in  2011  and  additional
drilling will target extensions to these higher-grade zones.

The latest interpretation suggests both sub-vertical shear related mineralisation, together with possible
high  grade  mineralisation controlled by 20-350 west dipping zones developed between  the  sub  parallel
bounding  structures  (See  Figure 3). Grade interpretation and limited surficial  structural  data  also
suggest  rolling to shallow northerly plunging shoots and lenses of uranium mineralisation over a  strike
length  of 1.5km in the main zone (See Figure 4). This mineralisation is open, particularly to the  south
where thin alluvial cover has masked any radiometric surface expression.



To view Figure 3: A238 Main Zone - Section L52, please open the following link in a new window:
http://media3.marketwire.com/docs/forte_ukreg_0501_fig3.pdf

To view Figure 4: A238 Main Zone Long Section, please open the following link in a new window:
http://media3.marketwire.com/docs/forte_ukreg_0501_fig4.pdf

From a mining perspective the high grade wide sections near to surface over a strike length of 1.75km  is
likely  to result in low strip ratios in the early stages of a mining operation. The model has identified
that 46% of the inferred mineral resources in the main zone are between surface and 150m vertical depth.

In addition to the A238 main zone, the April resource model also includes the A238NW anomaly, which was a
small  surface outcrop situated 800m to the North West of A238. A total of 21 holes were drilled  in  the
238NW  anomaly  of which 16 holes were sampled and assayed. The results indicate a zone of mineralisation
trending north west - south east shallow dipping to the west from surface down to over 150m in depth.

Interpretation of the resource model has identified a number of areas in the main zone where  the  recent
drilling  programme has not been drilled deep enough to intersect the north plunging  shoots  of  uranium
mineralisation. A small campaign is now being planned to drill these areas in May.

The current drilling at site is concentrated on the area between the main zone and the North West anomaly
and will then switch to the south of the main zone testing the potential extensions of the mineralisation
to the south under the thin alluvial cover.

In  addition  to  the A238 deposit, preliminary exploration work by Forte Energy has identified  numerous
other  prospects on its extensive Mauritanian tenement package that covers the main regional shear  zones
that  Forte  Energy  believes  are  prospective  for mineralisation.  These  other  prospects  are  being
prioritised for follow up exploration and drill testing to assess their resource potential.

Environmental  base line and social impact studies have been completed on the 286 Leglaya licence,  which
covers the A238 prospect, by Mauritanian Consulting and Contracting, which will provide the basis for the
pre-feasibility studies.

ANSTO Minerals, Sydney, Australia are currently conducting a number of standard leach tests, supported by
mineralogical examination to determine the conditions required to extract uranium from the A238 prospect.


Republic of Guinea, West Africa

   
To view Figure 5: Guinea Licences, please open the following link in a new window:
http://media3.marketwire.com/docs/forte_ukreg_0501_fig5.pdf

Firawa

The RC drilling program at the Firawa Project was completed in February with a total of 63 holes drilled,
totalling  4,712m. The programme included 14 holes in the central section, which had not been  accessible
previously, 24 holes to the east and 25 holes to the west to test the potential extensions along strike.

   
To view Figure 6: Firawa RC Drill hole locations, please open the following link in a new window:
http://media3.marketwire.com/docs/forte_ukreg_0501_fig6.pdf

Assay  results have been received from the first 16 holes drilled, predominantly in the central area  and
are summarised below in table 1.

Table 2: Summary of Firawa Assay Results

--------------------------------------------------------------------------------------------------------
Hole Id        East         North       Inclination       From        To        Interval       Average
              WGS84         WGS84        (Degrees)        (m)         (m)          (m)        U308 (ppm)
--------------------------------------------------------------------------------------------------------
FRW200        411450       1017880           50            14         26            1            485
                                                           27         28            1            265
                                                           30         31            1            248
                                                           36         68           32            359
                                                           70         83           13            347
                                                           88         89            1            262
--------------------------------------------------------------------------------------------------------
FRW201        411550       1017910           50            10         11            1            207
                                                           12         13            1            245
                                                           14         15            1            202
                                                           17         34           17            364
                                                           76         78            2            265
                                                           80         81            1            254
--------------------------------------------------------------------------------------------------------
FRW202        411600       1017950           50            10         11            1            247
                                                           13         14            1            316
                                                           26         34            8            585
                                                           48         50            2            332
                                                           60         62            2            413
                                                           71         75            4            445
                                                           83         84            1            265
                                                           89         92            3            419
--------------------------------------------------------------------------------------------------------
FRW203        411700       1017975           50            26         27            1            255
                                                           29         38            9            402
                                                           58         61            3            346
                                                           62         63            1            331
--------------------------------------------------------------------------------------------------------
FRW204        411800       1018025           50            48         54            6            292
                                                           56         57            1            322
--------------------------------------------------------------------------------------------------------
FRW205        411900       1018025                         7           8            1            205
                                                          121         127           6            480
--------------------------------------------------------------------------------------------------------
FRW207        412310       1018000           50            35         36            1            461
                                                           59         60            1            206
--------------------------------------------------------------------------------------------------------
FRW209        412200       1018060           50            26         27            1            213
                                                           51         52            1            250
                                                           54         55            1            203
                                                           58         59            1            236
--------------------------------------------------------------------------------------------------------
FRW213        413700       1018150           50            5          13            8            347
--------------------------------------------------------------------------------------------------------
FRW216        411600       1017955           80            32         37            5            357
                                                           41         42            1            461
                                                           43         46            3            461
                                                           47         49            2            322
                                                           51         52            1            221
                                                           62         78           16            628
                                                           79         80            1            232
                                                           81         83            2            303
--------------------------------------------------------------------------------------------------------
FRW217        411550       1017930           50            26         44           18            334
--------------------------------------------------------------------------------------------------------

The  assay  results  from the 8 holes drilled in the central area have confirmed the  continuity  of  the
mineralisation over 1km. The two holes FFW 202 and 203 have both confirmed mineralisation  to  the  north
east of the central area with intermittent mineralisation from 10m below surface down to 92m.

Encouraging  assay  results were found in hole FRW 213, approximately 1.5km to the east  of  the  central
area, where mineralisation was identified from 5m below surface down to 13m, grading 8m at 347ppm U308.

Further assay results are expected in May from the remaining 22 sampled holes at Firawa and the 9 sampled
holes  at Bohoduo. During this period CSA Global consultants will be upgrading the Firawa resource  model
and are scheduled to complete the revised JORC resource calculation by the end of the second quarter. The
current resource at Firawa is 17.7Mt @ 296ppm U3O8 for 11.6Mlbs contained U3O8 (100ppm cut off).


Bohoduo

The  Company has two licences covering an area of over 338km2 at Bohoduo, which is situated approximately
120km north east of Firawa.

The  results of the field studies, conducted by the Company, coupled with the airborne geophysical  data,
indicate a 12 km long extension of the anomaly to the east.


To view Figure 7: Bohoduo RC Drill hole locations, please open the following link in a new window:
http://media3.marketwire.com/docs/forte_ukreg_0501_fig7.pdf

The  Company completed 17 RC holes at Bohoduo totalling 1,277m over a strike length of 8km. This  follows
up  the  initial core drilling programme of 15 holes in 2008. A total of 9 holes in the current programme
intersected  mineralisation  from  surface down to 80m, with the  mineralisation  confirmed  by  elevated
scintillometer  readings on the RC chip samples. Of significant interest is the area immediately  to  the
east  of  the  previous drilling where mineralisation was identified in 9 holes, with RC 030 intersecting
mineralisation from surface down to 120m. This extends the previously identified mineralised zone to over
3 km strike length.


Corporate

On  26  April  the  Company announced the appointment of Mr James Leahy to the Board as  a  Non-Executive
Director. 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.

As  a  founding partner of the natural resources team at Mirabaud Securities, one of the leading UK based
stockbroking  firms, Mr. Leahy has advised a number of natural resource focused funds in the  UK,  raised
more than US$2 billion in equity for resource companies and participated in over 30 IPO's.

The  Company  also  advised  that Lady Barbara Judge and Mr. Bosse Gustafsson have  resigned  from  their
positions  as directors. They will continue to be involved with the Company as external consultants.  The
Company  is grateful for the significant contributions they have provided over the years and look forward
to continuing to receive their valuable advice going forward.


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

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

Stuart Laing
RFC Corporate Finance 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 64.2Mt @ 262ppm U3O8for 37.0Mlbs contained U3O8  (100ppm
cut-off).

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

Forte Energy U3O8 JORC resources (all at a 100ppm cut-off):
        ---------------------------------------------------------------------------------
        Project                 Resource          M tonnes        ppm U3O8      Contained
                                Category                                        U3O8 Mlbs
        ---------------------------------------------------------------------------------
        A238*                   Inferred              45.2             235           23.4
                                ---------------------------------------------------------
                                   Total              45.2             235           23.4
        ---------------------------------------------------------------------------------
        Bir En Nar             Indicated              0.55             886            1.0
                                ---------------------------------------------------------
                                Inferred              0.78             575            1.0
                                ---------------------------------------------------------
                                   Total              1.33             704            2.0
        ---------------------------------------------------------------------------------
        Firawa                  Inferred              17.7             296           11.6
                                ---------------------------------------------------------
                                   Total              17.7             296           11.6
        ---------------------------------------------------------------------------------
        Total                  Indicated               0.5             886            1.0
                                ---------------------------------------------------------
                                Inferred              63.7             256           36.0
                                ---------------------------------------------------------
                                   Total              64.2             262           37.0
        ---------------------------------------------------------------------------------
*       A238NW Anomaly included in the A238 Inferred Resources
    
Forte  Energy's  strategy is to target high grade uranium ore bodies and build a low cost  West  African-
focused  uranium  producer.  The Company is quoted on the Australian Stock Exchange (ASX:  FTE)  and  AIM
market of the London Stock Exchange (AIM: FTE). For more information, visit www.forteenergy.com.au


Note:
The  information in this report that relates to Exploration Results is based on information  compiled  by
Mr.  Bosse  Gustafsson, who is a Member of the European Federation of Geologists, a 'Recognised  Overseas
Professional  Organisation' ('ROPO') included in a list promulgated by the ASX  from  time  to  time.  Mr
Gustafsson  is  a  full  time  Technical Director of Forte Energy NL and is responsible  for  exploration
activities  in Mauritania and Guinea. Mr. Gustafsson has sufficient experience which is relevant  to  the
style  of  mineralisation  and  type of deposit under consideration and  to  the  activity  which  he  is
undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for
Reporting  of  Exploration Results, Mineral Resources and Ore Reserves'. Mr. Gustafsson consents  to  the
inclusion  in  this report of the matters based on his information in the form and context  in  which  it
appears.

The information in this report that relates to the Mineral Resource at the A238 prospect in Mauritania is
based  on  information compiled by Mr. Bosse Gustafsson of Forte Energy NL and Mr Galen White BSc  (Hons)
FGS, FAUSIMM, Principal Geologist of CSA Global Inc (UK).

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

The  information  in  this report that relates to the Mineral Resource at Firawa in Guinea  is  based  on
information compiled by Mr. Bosse Gustafsson of Forte Energy NL and Mr. Doug Corley BSc (Hons) MAIG, R.P.
Geo  (Mining) of Coffey Mining Ltd. Mr. Gustafsson, Mr. Corley, Mr. Inwood and Mr. White have  sufficient
experience  which is relevant to the style of mineralisation and type of deposit under consideration  and
to  the  activity  which they have undertaken to qualify as a Competent Person as  defined  in  the  2004
Edition  of  the  "Australasian  Code for Reporting of Exploration Results,  Mineral  Resources  and  Ore
Reserves".  Mr.  Gustafsson, Mr. Corley and Mr. White consent to the inclusion  in  this  report  of  the
matters based on their information in the form and context in which it appears.






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                                                   31 March 2012

                                                            Current quarter       Year to date
Cash flows related to operating activities                       A$'000            (9 months)
                                                                                     A$'000
1.1       Receipts from product sales and related debtors              -                   -
1.2       Payments for  (a)  exploration and evaluation          (2,248)             (5,004)
               (b)  development                                        -                   -
               (c)  production                                         -                   -
               (d)  administration                                 (458)             (1,979)
1.3       Dividends received                                           -                   -
1.4       Interest  and  other items of a  similar  nature                                  
          received                                                    55                 422
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                               (2,651)             (6,561)
                                                                                            
          Cash flows related to investing activities                    
1.8       Payment for purchases of:                                                         
               (a) prospects                                           -                   -
               (b) equity investments                                  -                   -
               (c) other fixed assets                                (2)                (28)
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)                (28)
1.13      Total   operating  and  investing   cash   flows       (2,653)             (6,589)
          (carried forward)


Consolidated statement of cash flows

1.13      Total   operating  and  investing   cash   flows       (2,653)             (6,589)
          (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                   (2,653)             (6,589)
          
1.20      Cash at beginning of quarter/year to date                4,782               8,717
1.21      Exchange rate adjustments to item 1.20                     (1)                   -

1.22      Cash at end of quarter                                   2,128               2,128
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              208
        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                                                     900

4.2     Development                                                                      -

4.3     Production                                                                       -

4.4     Administration                                                                 450

          Total                                                                      1,350

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                                 628                  1,782

5.2     Deposits at call                                       1,500                  3,000

5.3     Bank overdraft                                             -                      -

5.4     Other (provide details)                                    -                      -

        Total: cash at end of quarter (item 1.22)              2,128                  4,782

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  1588           Uranium exploration     0%             100%
        tenements    acquired                 permit covering 1000                   
        or increased                          km2 in the Republic                    
                                              of Mauritania                          
                                                                                     
                               1173           Uranium exploration     0%             100%
                                              permit covering 375                    
                                              km2 in the Republic
                                              of Mauritania
                                              
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
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 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.




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  • Forte Energy NL