Forsys Provides Update on Private Placement & Progress on the Norasa Feasibility Study

TORONTO, ONTARIO--(Marketwired - Oct. 9, 2014) - Forsys Metals Corp. (TSX:FSY)(FRANKFURT:F2T)(NAMIBIAN:FSY) ("Forsys" or the "Company") is pleased to announce that the terms of its previously announced (see August 8, 2014 news release) non-brokered private placement (the "Private Placement") have changed. The Company has received binding commitments from subscribers to purchase a total of 9,420,000 units of the Company ("Units") at $0.25 per Unit, for total gross proceeds of $2,355,000.

Each Unit will consist of one Class A Common Share ("Common Share") and one half of one Common Share purchase warrant. Each full warrant ("Warrant") will entitle its holder to acquire one new Common Share at a price of $0.35 for a period of two years from the date of closing of the Private Placement. Units issued will be subject to a four-month and one-day hold period from the date of closing.

The Leo Fund Managers group ("LFM"), the Company's principal shareholder, as well as certain Forsys officers and directors are participating in the Private Placement. As the board of directors of Forsys has approved the Private Placement, it is expected to close in October 2014, and such closing date may be less than 21 days following the date of filing the material change report to be filed by the Company in connection with the Private Placement.

The Toronto Stock Exchange has conditionally approved the listing of the Common Shares and the additional Common Shares issuable upon exercise of the Warrants subject to customary requirements.

"The imminent closing of our Private Placement will, in light of challenging market conditions, augment the progress we have made at Norasa as well as to our potential of becoming a low-cost uranium producer," said Marcel Hilmer, CEO, of Forsys Metals. "We are particularly pleased by the ongoing support demonstrated by LFM, our largest shareholder. Their investment demonstrates a continuing commitment to the Company specifically, and to the uranium industry in general."

Proceeds from the Private Placement will be used to fund the completion of the Company's previously announced Feasibility Study for the Norasa Uranium project in Namibia as well as for general working capital purposes. The Feasibility Study, which is being prepared by AMEC Australia Pty Ltd, is progressing as expected and within budget. Current activities include conducting a testwork and piloting campaign to confirm previously observed low reagent consumptions. In addition, previously conducted studies are being updated to incorporate flowsheet improvements identified in recent engineering cost studies. These improvements are expected to result in lower operating costs and reduced plant complexity.