Valencia Uranium Deposits

Project Location

Erongo Region, Republic of Namibia

Project Highlights

• Deposit located 35 km along geological strike to Rössing (Rio Tinto Group) and 40 km north of Langer Heinrich (Paladin Resources)
• Deposit has not been fully delineated and additional areas are being explored

Geological Model Similar to Rössing Mine

• Top 5 global producer
• Production accounts for 7.5% of world supply
• > 140 M lbs produced since mine opened in 1976
• $400million capital expenditure announced to extend mine life by 12 years (source: rossing.com)

Valencia Resources/Technical Report

May 2009 NI 43-101 Technical Report prepared by Snowden Mining Industry Consultants (Pty) Limited describes the Valencia mineral reserve and mineral resource as follows:

Summary of Valencia Uranium Mineral Resource , November, 2009

Category Cut-off U3O8 (ppm) Tonnes (M) Grade U3O8 (ppm) U3O8 Metal (Mlbs) Measured 60 24.3 151 8.1 Indicated 60 245.9 124 67.4 Total Measured and Indicated 60 270.3 127 75.5 Inferred 60 32.0 126 8.4 Measured Indicated 100 100 18.6 140.2 172 158 7 48.9 Total Measured and Indicated 100 158.8 160 55.9 Inferred 100 15.3 163 5.5

Summary of Valencia Uranium Deposit Mineral Resources, estimated at the anticipated SMU scale, as at November, 2009

Category* Cut-off U3O8 (ppm) Tonnes (M) Grade U3O8 (ppm) U3O8 Metal (Mlbs) Measured 60 21.0 161 7.4 Indicated 60 219.6 144 69.8 Total Measured and Indicated 60 240.7 146 77.2 Inferred 60 30.0 144 9.5 Measured Indicated 100 100 13.8 130.0 203 190 6.2 54.3 Total Measured and Indicated 100 143.8 191 60.5 Inferred 100 17.6 190 7.4 * 50th percentile of 100 simulations based on metal content

Valencia Uranium Deposit Technical Report  November, 2009  

Project Summary

Historical work on the project was conducted by Goldfields Namibia between 1973 and 1977 which included borehole drilling, chemical analysis, radiometric sorting tests on bulk ore samples in 1979 followed by two preliminary feasibility studies in 1981 and 1989. Due to low uranium prices at the time, Goldfield concluded the project was uneconomical.

The Valencia Uranium Deposit is 100% owned by Forsys. Snowden Mining Industry Consultants in Johannesburg, South Africa, was retained to undertake a review of the available geological information, complete a Mineral Resources estimate, produce a resource statement and write a technical report to National Instrument 43-101 standards.  The report was dated May 2009 and delivered to the Company. The report also delivered an initial pit design, identified waste and tailings disposal areas, site layout plan, access routes and proposed initial extractive solutions.

Since the delivery of the Pre-Feasibility Report, Valencia has made significant progress towards achieving production in next couple of years. In August 2007, the Company hired Dr. Roger Laine as Chief Geologist of Forsys, in order to oversee the geological and exploration programs of all of the Company’s uranium properties, including the Valencia project.

As announced in our news release dated August 21, 2008, the Company received our Mining Licence No. 149 for the Valencia project. Granting of the Mining Licence is the most significant milestone in the development of Valencia, and is only the second Licence to be granted within the last few decades in Namibia