Corporate Presentation July 2010 Primary Listing TSX: FSY Website - - PowerPoint PPT Presentation

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Corporate Presentation July 2010 Primary Listing TSX: FSY Website - - PowerPoint PPT Presentation

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Corporate Presentation July 2010 Primary Listing TSX: FSY Website www.forsysmetals.com 1 Cautionary Note Concerning Forward Looking Statements Cautionary Note Concerning Forward Looking Statements Some of the statements contained in

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Primary Listing – TSX: FSY Website – www.forsysmetals.com

Corporate Presentation

July 2010

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SLIDE 2

Cautionary Note Concerning Forward Looking Statements Cautionary Note Concerning Forward Looking Statements

Some of the statements contained in the following material are forward looking statements and not statement of facts. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently available. Forward looking statements are subject to various risks, uncertainties and other factors that could cause actual results to

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This presentation comprises inputs from independent consulting firms as well as Company management.

Note: all dollar amounts in US dollars unless otherwise indicated various risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Readers must rely on their own evaluation of these uncertainties.

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SLIDE 3

Corporate Profile Corporate Profile

Management

  • Martin Rowley

Chairman

  • Marcel Hilmer

CEO

  • Craig Bamford

CFO

Market Details

  • Ordinary Shares

79.4MM

Share Price Performance

Last 6 Months C$ Volume (000’s)

600 800 5 6

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  • Options

8.1MM

  • Market Capitalization C$208MM
  • Debt

nil

  • Cash

C$15.4MM as of 30 June 2010

  • TSX Code

FSY

  • Frankfurt Exchange

F2T

  • Namibian Exchange

FSY

200 400 2 3 4

Jan-10 Feb-10 Mar-10 Mar-10 Apr-10 May-10 Jun-10

V P

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SLIDE 4

Company Overview Company Overview

  • Exploration and development Company in the business of advancing

projects in Namibia

  • 100% ownership of the Valencia Project, one of the worlds premier

undeveloped uranium projects

  • 70% interest in Namibplaas uranium exploration license

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  • Other assets in the portfolio include Ondundu Gold Deposit and

Omaruru Gold Project

  • Publicly Traded on Toronto Stock Exchange (TSX), Namibian Stock

Exchange (NSE) & Deutsche Börse

  • Management with extensive African mining experience
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Key Investment Highlights Key Investment Highlights

Attractive Sector Dynamics Future World Class Asset Expansion Potential with Gold Upside

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Fully Permitted Project Ready to Launch Ideally Located with Infrastructure Issues Addressed Experienced Management

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Attractive Sector Dynamics Attractive Sector Dynamics

Global Uranium Supply/Demand Balance

000s lbs U3O8 000s lbs U3O8

25,000 50,000 75,000 200,000 250,000 300,000 350,000

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Source: World Nuclear Association

  • 100,000
  • 75,000
  • 50,000
  • 25,000

2003A 2004A 2005A 2006A 2007A 2008A 2009E 2010E 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 50,000 100,000 150,000 200,000 Net Balance World Supply World Requirements

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Valencia Asset Overview Valencia Asset Overview

  • Proven Uranium Mining Environment

– Rössing (largest opencast U mine contributing 8% world supply) – Paladin - Langer Heinrich (first new U start-up in 25 Yrs)

  • Recently completed Addendum to the Snowden Technical Report confirmed a large and

growing reserve & resource base – 77.2 MMlbs of resources and 60.5 MMlbs of reserves of U3O8 metal 25 Year Mining License

What Sets Valencia Apart

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  • 25 Year Mining License

– deploying proven conventional mining methods with EIA/EMP approvals obtained

  • No Betafile with Low Marble Content
  • Infrastructure Addressed

– Coastal desalination plant completed – Transmission line construction commenced – Construction of access road began completed in Q2 2010

  • One of only two fully permitted development uranium mine in Namibia
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A Future World Class Asset A Future World Class Asset

Top 10 Global Uranium Producers

MMlbs U3O8

3.9 3.7 3.6 2.6 12.0 9.1 7.8 7.5 4.7 3.9 2 4 6 8 10 12 14 Ranger (ERA) Olympic Dam (BHPB) Rössing (Rio Tinto) Krazbokamensk (ARMZ) Arlit (AREVA/ Rabbit Lake (Cameco) Valencia (Forsys)— Langer Heinrich (Paladin) Akouta (AREVA/State Akdala (Uranium

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State of Niger) Full Production (2013)

  • f Niger)

One)

Cash Cost Profile

(US$/lb)

29 35 45 33 34 34 34 34 10 20 30 40 50 2012 2013 2014 2015 2016 2017 2018 2027 Source: Company Information Source: WNA, 2007 data updated by ProStra Consulting

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Potential for an Expanded Production Profile Potential for an Expanded Production Profile

Production Profile

MMlbs / year

3 4 5

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Source: Company Information 1 2 2012 2013 2014 2015 2016 2017 2018 2027 Base case Expanded case

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Large Resource Base Large Resource Base

Summary of Valencia Uranium Mineral Resources and Reserves

Category Ore (MMt) Grade U3O8 (ppm) U3O8 Metal (MMlbs)

Resources at U3O8 Cut-Off 60ppm

Measured 21.0 161 7.4 Indicated 219.6 144 69.8 10 Total Measured and Indicated 240.7 146 77.2 Inferred 30.0 144 9.5

Reserves

Proven 19.6 168 7.2 Probable 156.1 155 53.3 Total 175.7 156 60.5

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Fully Permitted Project Ready to Launch Fully Permitted Project Ready to Launch

Valencia Permit Summary

Permit Issued By Environmental Clearance —Valencia Village Ministry of Environment and Tourism

  • Accessory Works

Ministry of Mines and Energy

  • Mining Licence

Ministry of Mines and Energy

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Environmental Clearance Ministry of Environment and Tourism

  • Desalination

Ministry of Agriculture, Water and Forestry

  • Petroleum Consumer Installation

Ministry of Mines and Energy

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SLIDE 12

Ideally Located with Infrastructure Ideally Located with Infrastructure

Areva

Valencia Uranium Mine

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Rio Tinto Paladin

Valencia Uranium Mine

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SLIDE 13

Current State of Infrastructure Current State of Infrastructure

  • Water Supply

– The desalination plant with participation of national bulk water utility NamWater will supply Valencia during operation – Water supply for construction phase will require a temporary 31 km pipeline and is under design

  • Power Supply

– 30 km of transmission line and substation upgrade necessary

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– 30 km of transmission line and substation upgrade necessary – Cost is equally shared between Company and national power utility NamPower

  • Roads

– 26 km of new access road linking mine to highway complete in Q2 2010 – Internal service roads have already been constructed

  • Buildings

– Central office and admin complex will be constructed – Semi-permanent camp will be established 8 km from plant

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A Focused and Experienced Management A Focused and Experienced Management

  • Forsys benefits from a strong management team with a deep understanding of

the mining sector and African business environment

  • Key executives have extensive experience working in African in developing and
  • perating successful mining ventures

– Chairman Martin Rowley, co-founder of First Quantum Minerals – CEO Marcel Hilmer, former business development executive with First

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Quantum, 25 years of executive management experience – CFO Craig Bamford, previously CFO for Denison Energy, 25 years experience in the uranium industry

  • Clear strategic vision of creating value for shareholders through

development/operation of projects in Africa

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Strategic Review Process Strategic Review Process

  • On 14 October, 2009, Forsys hired Morgan Stanley & Co. Limited (“Morgan

Stanley”) as its exclusive financial advisor with the aim of undertaking a strategic and financial review of the Company

  • The Company reports that negotiations with the interested parties have not, to

date, resulted in any formal agreement being reached. The Company and Morgan Stanley are continuing open discussions with selected parties, which may or may not result in a transaction being concluded.

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  • The Company’s Board and senior management, with the assistance of Morgan

Stanley, continue to focus on maximizing the value of the Company’s wholly-

  • wned Valencia Uranium Project (“Valencia”) in order to fully realize its potential

value for the Company.

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Other Projects Other Projects

  • Namibplaas Uranium Project

– 70% Forsys owned since 2006, 30% owned by Gold Enterprises – Located 7.5 km northeast of Valencia Uranium deposit in the Erongo Region – Land access agreement granted in April 2008 – Second phase of drilling commencing in Q3 2010 and sampling campaign is in progress

  • Ondundu Gold Deposits

– 100% Forsys owned – Located in the Erongo Region, Namibia – Open pittable shallow dipping stratiform deposit

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– Open pittable shallow dipping stratiform deposit – Historical resource of approximately 500 Koz of gold (4.5 MMt at 3.387 g/t) – Exploration and resource definition project joint venture with Angus Mining commenced

  • Omaruru Gold Project

– 100% Forsys owned – Located in the Damara Belt, Namibia – Historical production from the Epako mine located on the property – Six airborne structural targets identified having potential to host Navachab style mineralisation

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Key Investment Highlights Key Investment Highlights

Attractive Sector Dynamics Future World Class Asset Expansion Potential with Gold Upside

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Fully Permitted Project Ready to Launch Ideally Located with Infrastructure Issues Addressed Experienced Management