Forsys Metals
Investor
Presentation
Q2 2014
Marcel Hilmer, CEO
TSX: FSY | FSE: F2T | NSX: FSY
FORWARD-LOOKING STATEMENTS
Investor Presentation | Q2 2014 | Page 2
Some of the statements contained in the following mate...
Advancing
Africa’s
most compelling
uranium project
Investor Presentation | Q2 2014 | Page 3
Well positioned for positive uranium sector outlook
• The most advanced, well located
and licensed project in Namibia
• La...
Significant upside potential
Investor Presentation | Q2 2014 | Page 5
CAPITAL STRUCTURE
40.4%
53.5%
Insiders
Institutional...
Driven by demand for affordable and clean electricity
POSITIVE URANIUM FUNDAMENTALS
Investor Presentation | Q2 2014 | Page...
URANIUM RECOVERY
UNDERWAY
553
New
reactors to
be built or
under
construction
China India Russia U.S.A Saudi Arabia World T...
URANIUM SUPPLY CRISIS BREWING
• Annual U3O8 demand 180M lbs but current production supply 150M lbs
• Gap filled by declini...
PROVEN
URANIUM
JURISDICTION
• Pro-business, stable
democracy
• Fair and balanced tax code
• Metals: uranium, gold,
diamond...
35km from Rio Tinto’s Rossing Mine
NORASA | IDEAL LOCATION
SWAKOPMUND
ARANDIS
NORASA URANIUM PROJECT
RIO TINTO’S ROSSING M...
* Total Measured & Indicated Resources and Proven and Probable Reserves estimate at cut-off of 100ppm for Valencia and 160...
INFRASTRUCTURE: #1 IN AFRICA*
Water Supply
Power Supply
Roads
Buildings
• Short and medium term supply of water from Areva...
NORASA IN PERSPECTIVE
Future Global Producer
Investor Presentation | Q2 2014 | Page 13
6annual
production
in tonnes U3O8
D...
$245m
Post-tax NPV
$36.43/lb
Cash Costs3
Presentation | Q2 2014 | Page 14
COMPELLING ECONOMICS
1 Snowden, Valencia Uranium...
Progress through optimization and consolidation
Capital cost USD $392M
Plant throughput Mtpa 11.2
Production MLb/pa 5.0
Ca...
Permit Summary
Permit Issued By Status
Mining Licence (ML149) Ministry of Mines and Energy

Accessory Works Ministry of M...
NORASA PROJECT SCHEDULE
Areva Presentation | Q2 2014 | Page 17
Period
Q1 14
Q4 14
Q1 15
2015/16
Q2 15
Q3 16
Commence minin...
MANAGEMENT
An experienced team – successfully delivering projects on
time and within budget
Investor Presentation | Q2 201...
DIRECTORS
100+ years of experience in African mining
Martin R. Rowley
Independent Director &
Chairman
Graduated from the U...
VALUATION AGAINST PEERS
Current EV and expected sector recovery
provide attractive entry point
Average
$1.09/lb
EV/lb($)
I...
FORSYS
INVESTMENT
SUMMARY
Investor Presentation | Q2 2014 | Page 21
Poised to capitalize on uranium sector
recovery
Experi...
CONTACT
INFORMATION
Investor Presentation | Q2 2014 | Page 22
Australian Representative Office
Marcel Hilmer, CEO
18 Richa...
APPENDIX
RESOURCES & RESERVES
Presentation | Q2 2014 | Page 24
• Measured and Indicated Resources based on updated and released Est...
OPEN PIT DESIGNS
Presentation | Q2 2014 | Page 25
NamibplaasValencia Main & Satellite
Valencia pit design, isometric view ...
NI 43-101 Technical Report*
Investor Presentation | Q2 2014 | Page 26
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Forsys Metals IR Presentation

  1. 1. Forsys Metals Investor Presentation Q2 2014 Marcel Hilmer, CEO TSX: FSY | FSE: F2T | NSX: FSY
  2. 2. FORWARD-LOOKING STATEMENTS Investor Presentation | Q2 2014 | Page 2 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 differ materially from expected results. Readers must rely on their own evaluation of these uncertainties. This presentation uses the terms, “Measured Resources,” “Indicated Resources” and “Inferred Resources.” The Company advises investors that although these classification terms are recognized and required by Canadian regulations (National Instrument 43-101—Standards of Disclosure for Mineral Projects “NI43-101”), they are not recognized by the U.S. Securities and Exchange Commission. Investors are also cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted to Mineral Reserves. Investors are also cautioned that “Inferred Resources” have a great amount of uncertainty to their existence and economic feasibility. Additional information identifying the Company’s risks and uncertainties is contained in its filings available at www.sedar.com. NI 43-101 and Qualified Persons Mr. Martin Hirsch, M.Sc in Geology and a member of the British IMMM, Chief Geologist for Forsys Metals Corp., is the designated Qualified Person responsible for the Company’s exploration programs. He is familiar with the methods for Quality Assurance and Quality Control specifically applicable to uranium. Mr Hirsch has sufficient experience that is relevant to the style and mineralization, type of deposit and the use of radiometrics in resource estimates as well as to the activity he is undertaking to qualify as a Qualified Person under NI 43-101. Mr. Dag Kullmann, M.Sc. Mining Engineering from the University of Alberta, a Fellow of the Southern African Institute of Mining and Metallurgy (SAIMM), Engineering Manager for Forsys, is the designated QP responsible for the reporting of Mineral Reserves. Mr. Kullmann has sufficient experience in the assessment and application of modifying factors required for the determination of reserves for open pit operations to qualify as a QP under NI 43-101.
  3. 3. Advancing Africa’s most compelling uranium project Investor Presentation | Q2 2014 | Page 3
  4. 4. Well positioned for positive uranium sector outlook • The most advanced, well located and licensed project in Namibia • Large compliant Resources and Reserves • 2014 Pre-feasibility confirms compelling economics • Production scheduled in 2016 Investor Presentation | Q2 2014 | Page 4 OUR CORE FOCUS | NORASA
  5. 5. Significant upside potential Investor Presentation | Q2 2014 | Page 5 CAPITAL STRUCTURE 40.4% 53.5% Insiders Institutional Retail 6.1% Forsys Metals Shareholder Base Cash* $2.6 M Share Price** $0. 55 12 months range $0.32 -$0.80 Avg. daily volume 3 Mth’s 21.8 K Market Cap (diluted) CAD $62.3 M Shares Outstanding* 109.8 M Options* 2.5 M Fully Diluted* 112.3 M * As of December 31, 2013 ** As of March 25, 2014
  6. 6. Driven by demand for affordable and clean electricity POSITIVE URANIUM FUNDAMENTALS Investor Presentation | Q2 2014 | Page 6 30% nuclear power • Global power consumption to grow 4% every year to 2020+ • 30 nuclear power countries expanding capacity • 45 nuclear-free countries looking to add nuclear power • Driven by rising fossil fuel costs and harmful emissions growth in by 2020* *Global Data, 2013
  7. 7. URANIUM RECOVERY UNDERWAY 553 New reactors to be built or under construction China India Russia U.S.A Saudi Arabia World Total* Under Construction 28 6 10 5 0 70 Planned 58 18 31 7 0 173 Proposed 118 39 18 15 16 310 Total 204 63 59 27 16 553 Operable 20 21 33 100 0 434 Growth led by emerging countries without domestic supply Presentation | Q2 2014 | Page 7 *WNA Q2 2014
  8. 8. URANIUM SUPPLY CRISIS BREWING • Annual U3O8 demand 180M lbs but current production supply 150M lbs • Gap filled by declining secondary sources, e.g. concluded HEU agreement between U.S.A and Russia • Strong fundamentals support $65 - $70/lb long-term analyst price forecasts * Graph Dundee Capital Markets – Q2 2014 Presentation | Q2 2014 | Page 8
  9. 9. PROVEN URANIUM JURISDICTION • Pro-business, stable democracy • Fair and balanced tax code • Metals: uranium, gold, diamonds, zinc, copper and lead 5th largest global producer of uranium GDP derived from mining 11.5% Investor Presentation | Q2 2014 | Page 9 NAMIBIA
  10. 10. 35km from Rio Tinto’s Rossing Mine NORASA | IDEAL LOCATION SWAKOPMUND ARANDIS NORASA URANIUM PROJECT RIO TINTO’S ROSSING MINE PALADIN’S LANGER HEINRICH MINE Mine Sites Towns NAMIBIA N AREVA’S TREKKOPJE MINE Investor Presentation | Q2 2014 | Page 10
  11. 11. * Total Measured & Indicated Resources and Proven and Probable Reserves estimate at cut-off of 100ppm for Valencia and 160ppm for Namibplaas – October 2013 and Q2 2014. Resources include Reserves • Consolidation of 3 zones: Valencia Main / Satellite Pit & Namibplaas • Estimated Inferred Resource: 50Mt grading 198ppm for 22Mlbs of U3O8 • Open pit environment NORASA | WORLD CLASS U3O8 Reserves Total P&P: Grade: Presentation | Q2 2014 | Page 11 Resources Total M&I: 103 Mlbs* Grade: 197 ppm 79 Mlbs* 202 ppm
  12. 12. INFRASTRUCTURE: #1 IN AFRICA* Water Supply Power Supply Roads Buildings • Short and medium term supply of water from Areva’s desalination plant • NamWater’s own desalination plant to provide long term requirements of up to 20 million cubic metres per annum • Namibia signed electricity import agreement with Mozambique in 2013 for 122MW • NamPower to construct its own 800MW gas power station in co-operation with Zambian power company • 26 km of new access road linking Valencia mine to highway completed in mid 2010. Some internal service roads have also been constructed • Semi-permanent village will be established 8 km from process plant Investor Presentation | Q2 2014 | Page 12 * Fraser Institute Report 2012/13
  13. 13. NORASA IN PERSPECTIVE Future Global Producer Investor Presentation | Q2 2014 | Page 13 6annual production in tonnes U3O8 Data from the World Nuclear Association and Forsys NI 43-101 Technical Report March 27, 2014 Top 7520 3386 3146 3065 2661 2305 2289 2135 2011 1955
  14. 14. $245m Post-tax NPV $36.43/lb Cash Costs3 Presentation | Q2 2014 | Page 14 COMPELLING ECONOMICS 1 Snowden, Valencia Uranium (Pty) Ltd: Addendum to June 2009 Technical Report; Project No 696 dated January 2010 2 Compliant NI 43-101 Technical Report released on March 27, 2014 based on Q1 2014 upgraded reserves estimate 3. Cash costs for the first 5 years of operation. LoM in 2010 is $37.76 and for 2014 is $38.20 20101 $410m Post-tax NPV $34.76/lb Cash Costs3 20142
  15. 15. Progress through optimization and consolidation Capital cost USD $392M Plant throughput Mtpa 11.2 Production MLb/pa 5.0 Cash costs - 5 Yrs - LoM $/lb $34.76 $38.20 Average grade ppm 202 Recoveries % 89.1 Revenue (LoM) USD $4.4B EBITDA $1.8B IRR % 36.0 NPV (discount rate 8%) USD $410M * 2014 NI 43-101 Technical Report released on March 27, 2014 and available for download on www.sedar.com. See also Appendix and News Release: March 27, 2014 for details Investor Presentation | Q2 2014 | Page 15 NORASA | 2014 Technical Report*
  16. 16. Permit Summary Permit Issued By Status Mining Licence (ML149) Ministry of Mines and Energy  Accessory Works Ministry of Mines and Energy  Environmental Clearance —Valencia Village Ministry of Environment and Tourism  Environmental Clearance Ministry of Environment and Tourism  Petroleum Consumer Installation Ministry of Mines and Energy  Desalination Ministry of Agriculture, Water & Forestry  Investor Presentation | Q2 2014 | Page 16 VALENCIA ZONE | FULLY PERMITTED
  17. 17. NORASA PROJECT SCHEDULE Areva Presentation | Q2 2014 | Page 17 Period Q1 14 Q4 14 Q1 15 2015/16 Q2 15 Q3 16 Commence mining 0 ROM pad and stockpiles Commence commercial production 0 Scheduled to commence ramp-up in Q4 2015 with a six month period before achieving full commercial production Release NI 43-101 Technical Report on Norasa Reserves Statement 100 Completed to pre-feasibility level and confirmed strong economics. Complete plant, site and service infrastructure 5 Development expenditure Commence construction of the Norasa Uranium Project 5 Requires completion of the DFS and funding Definitive Feasibility Study for consolidated Norasa Project 35 The DFS will utilize the updated reserves, Engineering Cost Study and previous TR's to deliver a definitive report on the project Objective % Completed Notes
  18. 18. MANAGEMENT An experienced team – successfully delivering projects on time and within budget Investor Presentation | Q2 2014 | Page 18 Marcel Hilmer CEO & Exec. Director 30 years of senior management experience with global public and private organizations, specifically with international mergers and acquisitions in Africa, Europe, Asia and Australia. A long standing fellow of the Institute of Chartered Accountants in Australia. Previously, with First Quantum Minerals Limited as a business development executive. Rowen Colman CFO A Chartered Accountant with over 25 years of successful senior financial management experience in various global industries and holds a Bachelor Degree in Commerce from the University of NSW, Australia. Previously, was the Development Director for a major sovereign wealth fund in the Middle East and guided the fund from start-up to a global powerhouse. Mark Frewin VP Legal Affairs & Director Was a partner at the international law firm of McCarthy Tétrault, and based in their London England office. Focuses on energy and in particular mining and metals. Has participated in numerous international mine financings including several for companies which do business in Africa. Mr. Frewin is also a director of the Company and of IC Potash.has been a director of Caledonian Consultancy Kimited since June 2013 and a director of Giyani Gold Corp. since June 2012. Dag Kullmann General Manager & Project Engineer A Mining Engineer (M.Sc. University of Alberta, Canada, 1989) with over 20 years of experience in the precious, base metals, diamonds, coal and uranium mining industry throughout Africa and within Asia and Europe. Acted as Qualified Person for several large and small mining companies for the completion of reserve reporting and listing documentation for the JSE, AIM, ASX and TSX. Martin Hirsch Chief Geologist An experienced and professionally registered Geologist with a Master’s Degree in Geology from the Johan Wolfgang-Goethe University in Frankfurt A.M, Germany. Has more than 20 years of mining industry experience in opencast mining and exploration project management in uranium and diamonds. Previously with Rio Tinto’s Rössing Uranium Mineas Chief Geologist and Areva Resources Namibia.
  19. 19. DIRECTORS 100+ years of experience in African mining Martin R. Rowley Independent Director & Chairman Graduated from the University of Western Australia with a Bachelor of Commerce degree in 1975. He worked as executive assistant to the Board of Directors of a large Australian public company from 1980 to 1984. He then established his own resource consulting and investment company and was involved as a shareholder, Director and Chairman of a number of Australian public resource companies before co-founding First Quantum Minerals Ltd in 1997. Since November 2013 he has been a non-executive Chairman of Galaxy Resources Limited Thomas Allen Independent Director A counsel to Norton Ross Canada LLP, an international law firm, and has extensive experience advising numerous corporations on corporate affairs, corporate governance, corporate financings and reorganizations. Paul Matysek Independent Director Served as President and Chief Executive Officer of Lithium One Inc. and Nevada Copper Corp. Has over 35 years of exploration and development experience and has been involved in raising over $200 million for various exploration and development projects since 1999. Has been CEO of Goldrock Mines Corp since November 2012. Claudio Cornini Independent Director Founder and current Executive Director of Cornhill and Harvest Ltd. (C&H). Since 2008, C&H has focused on providing small cap and larger private companies with investment, corporate finance and M&A advisory services Prior to this, between 2004 – 2008, He served as Chairman of AAA Bank in Milan, Italy and concurrently, from 2007 to early 2008, he was in charge of the Network Desk at ABN AMRO in Italy. Marcel Hilmer & Mark Frewin Details on previous management slide Investor Presentation | Q2 2014 | Page 19
  20. 20. VALUATION AGAINST PEERS Current EV and expected sector recovery provide attractive entry point Average $1.09/lb EV/lb($) Investor Presentation | Q2 2014 | Page 20 3.5 1.6 1.2 0.8 0.8 0.6 0.3 0.2 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 DML.T KIV.V UEX.T LAM.T MGA.T FSY.T DYL.AX BAN.T
  21. 21. FORSYS INVESTMENT SUMMARY Investor Presentation | Q2 2014 | Page 21 Poised to capitalize on uranium sector recovery Experienced management team Consolidated project in mining friendly jurisdiction Pre-feasibility with large Resource and Reserves - strong economics and a low cost environment Advancing towards production Fully permitted with excellent infrastructure
  22. 22. CONTACT INFORMATION Investor Presentation | Q2 2014 | Page 22 Australian Representative Office Marcel Hilmer, CEO 18 Richardson Street West Perth WA 6005 +61 (0) 8 9426 6400 info@forsysmetals.com Namibian Operations Dag Kullmann, General Manager 1st Floor, Makarios Centre Cottage Avenue Swakopmund +264 (0) 64 402 772 kullmann@forsysmetals.com Canadian IR and Corporate Services Joe Racanelli, VP, TMX Equicom 31 Adelaide Street East Toronto, Ontario M5C 2K3 +1 416-815-0700 ext. 243 jracanelli@tmxequicom.com www.forsysmetals.com
  23. 23. APPENDIX
  24. 24. RESOURCES & RESERVES Presentation | Q2 2014 | Page 24 • Measured and Indicated Resources based on updated and released Estimate of Resources – 7 October 2013. Resources include Reserves. • Reserves based on updated and released Estimate of Reserves – February 2014 Category Cut-Off Grades Tonnes [M] U3O8 [ppm] U308 [mlb] Measured + Indicated Resources Val 60ppm: Nam 100ppm 447 153 150 Val 100ppm: Nam 160ppm 237 197 103 Val 140ppm: Nam 200ppm 125 248 68 Inferred Resources Val 60ppm: Nam 100ppm 105 156 36 Val 100ppm: Nam 160ppm 50 198 22 Val 140ppm: Nam 200ppm 18 269 10 Proven and Probable Reserves Val 100ppm: Nam 160ppm 174 202 79
  25. 25. OPEN PIT DESIGNS Presentation | Q2 2014 | Page 25 NamibplaasValencia Main & Satellite Valencia pit design, isometric view with the higher grade resource blocks within the pits. Mining licence boundary shown in red. (view NNE) Namibplaas pit design, isometric view with the higher grade resource blocks within the pit. (view N)
  26. 26. NI 43-101 Technical Report* Investor Presentation | Q2 2014 | Page 26 - 50 100 150 200 250 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Uranium MLbs Head Grade * 2014 NI 43-101 Technical Report released on March 27, 2014 and available for download on www.sedar.com. See also Appendix and News Release: March 27, 2014 for details Planned Annual Uranium Production
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