Mr. Mark Frewin reports

FORSYS REACHES AGREEMENT TO PURCHASE FARM NAMIBPLAAS PORTION-1 ON EXCLUSIVE PROSPECTING LICENCE (EPL-3638)

Forsys Metals Corp.'s wholly owned subsidiary Valencia Uranium Pty. Ltd. has finalized an agreement with Namibplaas Guestfarm and Tours Pty. Ltd. for the purchase of portion 1 of farm Namibplaas No. 93 at the company's Norasa uranium project (1).

The property hosts the Namibplaas uranium deposit under exclusive prospecting licence (EPL-3638). The purchase of this property is the final outcome of lengthy negotiations for the economic terms for access rights with the previous farm owner.

EPL-3638 covers a total surface area of 1,266 hectares with approximately 93 per cent (1,179 hectares) located on the property, which measures approximately 6,700 hectares.

EPL-3638 is situated fewer than three kilometres to the northeast of the Valencia deposit (ML-149) and is reached by a newly constructed industrial grade road from the B2 highway to the Valencia project site followed by a track suitable for four-by-four vehicles.

For detailed information on the recent updated mineral resource estimate for Norasa, please refer to the company's news release dated May 14, 2024. Planning is under way for diamond and reverse circulation drilling designed to expand and upgrade the resource within the Namibplaas main deposit and from adjacent targets.

The company has also applied for additional exclusive prospecting ground, EPL-10501 and EPL-8633. Approximately 237 hectares (42 per cent) of the EPL-10501 application area and 239 hectares (5 per cent) of EPL-9865 are also located on the property.

(1) The Norasa uranium project is wholly owned by the company's 100-per-cent subsidiary Valencia Uranium and comprises the Valencia uranium deposits (held under ML-149) and the Namibplaas uranium deposit (under EPL-3638), located in the Erongo region of Namibia.

On farm Valencia No. 122, ML-149, the company's interest including its planned access works area for the mine's infrastructure is covered by an exclusive use contract over approximately 3,346 hectares. The contract with this landowner is valid for the duration of ML-149, which extends until 2033.

Key terms of the land purchase agreement

Under the terms of the agreement, Valencia Uranium will pay the farm owner an aggregate amount of $24-million (Namibian) (approximately $1,282,000 (U.S.)). An initial payment of $7-million (Namibian) (approximately $374,000 (U.S.)) will be made once all conditions have been met, with the remaining $17-million (Namibian) (approximately $908,000 (U.S.)) payable in monthly instalments over a 10-year period, accruing interest at Namibia's prime lending rate (2) plus 2 per cent per annum from the date of title transfer following regulatory approval. The signing of the agreement was Dec. 17, 2024.

The transaction remains subject to the receipt of all regulatory approvals, including, without limitation, the approval of the Ministry of Agriculture and the Ministry of Lands and Resettlement.

Mark Frewin, Forsys's chief executive officer, commented: "The acquisition of farm Namibplaas, portion 1, means that the company now has unfettered access to the Namibplaas licence area, adding significant value and flexibility to our mine development strategy. The plan is to prioritize a drill program on Namibplaas as soon as possible and continue to expand and upgrade the total uranium resources to support the overall Norasa mine development."

(2) 10.75 per cent per Bank of Namibia.

About Forsys Metals Corp.

Forsys is an emerging uranium developer focused on advancing its wholly owned Norasa uranium project, located in the politically and uranium friendly jurisdiction of Namibia, Africa. The Norasa uranium project is composed of the Valencia uranium deposit (ML-149) and the nearby Namibplaas uranium deposit (EPL-3638).

We seek Safe Harbor.