Forsys Announces Non-Brokered Private Placement and Achieves Cost Reduction Targets for 2016 and 2017

TORONTO, ONTARIO--(Marketwired - Aug. 15, 2016) - Forsys Metals Corp. (TSX:FSY)(FRANKFURT:F2T)(NAMIBIAN:FSY) ("Forsys" or the "Company") is pleased to announce that it has received commitments to raise $540,000 in gross proceeds and that excellent progress has been made in further reducing the fixed cost base across the organisation.

Non-Brokered Private Placement

The Company has received commitments to raise C$540,000 in gross proceeds by way of a non-brokered private placement of 10.8m units ("the Units") in the Company at a subscription price of $0.05 per Unit.

Each Unit will consist of one Class A Common Share ("Common Share") and one half of one Common Share purchase warrant that entitles the holder to acquire a new Common Share in Forsys at a price of $0.07 for a period of two years from the date of issue.

Proceeds from the private placement will be used to fund the Norasa Uranium project in Namibia, as well as for general working capital purposes.

Forsys has received a firm commitment from Leonardo Global Trading Ltd ("Leo"), the Company's largest shareholder, whereby Leo will subscribe for 8.8m Units. The Offering is expected to close on or about August 31, 2016. All securities issued through the private placement will be subject to a four-month and one-day hold period from the date of the closing. Completion of the private placement is subject to customary approvals and conditions. Finders' fees may be payable on all or a portion of the non-brokered placement.

Cost Reduction Targets

The actual and projected cash costs from 2014 to end of 2017 are summarised in the following table:

Company Cash Flows - Actual and Estimates
		2014			2015				2016				2017
CAD$M		Actual			Actual				Actual /Estimated				Estimated
General and Administration		$	1.3		$	1.3			$	0.9			$	0.5
Namibia Overhead		$	1.1		$	0.7			$	0.2			$	0.1
		$	2.4		$	2.0			$	1.1			$	0.6
Percentage Reduction from 2014						-15	%			-52	%			-76	%

Marcel Hilmer, Chief Executive Officer of Forsys commented, "The drawn-out recessed uranium market has necessitated significant cost reductions. However, the Company remains confident that the long term fundamentals remain in place for global nuclear power that will result in a material recovery in the price of uranium."