forsys metals ir presentation

Forsys Metals Investor

Presentation Q2 2014

Marcel Hilmer, CEO

TSX: FSY | FSE: F2T | NSX: FSY

FORWARD-LOOKING STATEMENTS

Investor Presentation | Q2 2014 |

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.

http://www.sedar.com/

Advancing

Africa’s

most compelling

uranium project


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


OUR CORE FOCUS | NORASA

Significant upside potential


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

Driven by demand for affordable and clean electricity

POSITIVE URANIUM FUNDAMENTALS


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

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 | *WNA Q2 2014

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 |

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%


NAMIBIA

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


* 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:


Resources Total M&I: 103 Mlbs* Grade: 197 ppm

79 Mlbs* 202 ppm

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 | * Fraser Institute Report 2012/13

NORASA IN PERSPECTIVE

Future Global Producer


6 annual

production in tonnes U

3O

8

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

$245m Post-tax NPV

$36.43/lb Cash Costs3


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

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


NORASA | 2014 Technical Report*

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


VALENCIA ZONE | FULLY PERMITTED

NORASA PROJECT SCHEDULE

Areva Presentation | Q2 2014 |

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

infrastructure5 Development expenditure

Commence construction of the Norasa

Uranium Project5 Requires completion of the DFS and funding

Definitive Feasibility Study for

consolidated Norasa Project35

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

MANAGEMENT

An experienced team – successfully delivering projects on

time and within budget


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.

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


VALUATION AGAINST PEERS

Current EV and expected sector recovery

provide attractive entry point

Average

$1.09/lb

EV

/lb

($)


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

FORSYS

INVESTMENT

SUMMARY


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

CONTACT

INFORMATION


Australian Representative Office

Marcel Hilmer, CEO

18 Richardson Street

West Perth WA 6005

+61 (0) 8 9426 6400

[email protected]

Namibian Operations

Dag Kullmann, General Manager

1st Floor, Makarios Centre

Cottage Avenue

Swakopmund

+264 (0) 64 402 772

[email protected]

Canadian IR and Corporate Services

Joe Racanelli, VP, TMX Equicom

31 Adelaide Street East

Toronto, Ontario M5C 2K3

+1 416-815-0700 ext. 243

[email protected]

www.forsysmetals.com

mailto:[email protected]



APPENDIX

RESOURCES & RESERVES


• 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

OPEN PIT DESIGNS


Namibplaas Valencia 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)

NI 43-101 Technical Report*


-

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

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

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

forsys metals ir presentation

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