Norasa

Property Description and Location

The Company’s flagship project is Norasa which includes the wholly owned Valencia project (ML 149) which has a 25 year mining licence and a 100% interest in the Namibplaas project (EPL 3638), which is located 7.5 km north east of Valencia. Both projects have NI 43-101 compliant uranium resources and reserves. The properties are located in the Republic of Namibia, located approximately 75 km south-west of the town of Usakos in central-west Namibia and together are known as the Norasa Uranium Project.

Valencia is situated on the farm “Valencia 122”, which is located approximately 75km north-east of the town of Swakopmund in central-west Namibia, covering an area of 735.6 ha and is registered in the name of Valencia Uranium (Pty) Ltd (“Valencia Uranium”). ML 149 was converted from EPL 1496 on June 23, 2008 and is valid for 25 years from date of issue by the Namibian Ministry of Mines and Energy (“MME”) and is renewable.

The entire Valencia mineral licence area is located on privately held farmland. As required by law, an agreement must be entered into between a mineral licence holder and the landowner to allow exploration activities. In order to progress a project to mine development, a compensation agreement is required to offset the effects of the operation. In April 2009, Valencia Uranium entered into a compensation agreement with the owner of the farm Valencia 122, in relation to Section 52 of the Minerals Act of 1992, granting Valencia Uranium unrestricted use of the land on and around ML 149 covering an area of 3,327 hectares. A similar agreement was reached with the owners of the neighboring 594 hectare farm “Bloemhof 109”, located to the south, for the construction of additional infrastructure and for primary access to the Valencia site.

These agreements facilitated planning for the necessary infrastructure required to support mining operations. This infrastructure has been approved by the MME as the operation’s accessory works and includes inter alia the main pit, waste dumps, tailings dump, pipeline, power lines, roads, process plant, explosive magazines, etc. The construction camp / operations village have also been approved. Environmental clearance was obtained for all operations relating to Valencia, although some amendments to the Valencia plan will be required to include the Valencia satellite pit and relocation of some of the mining infrastructure. All amendment issues will be covered in the updated EIA / EMP.

Namibplaas is located 4.5km northeast of the Valencia deposit on the farm “Namibplaas 93” with a total surface area of 1,269 ha. Forsys is actively engaged with the Ministry of Mines and Energy (MME) to renew its Exclusive Prospecting Licence (EPL 3638) for further pit optimization work at the Namibplaas site. This renewal is crucial for gathering the necessary data to secure a full Mining Licence (ML-251 in application) at Namibplaas.

Earlier in the year, Forsys successfully renewed its Environmental Clearance Certificate (ECC) from the Ministry of Environment, Forestry and Tourism This three-year ECC is vital for ensuring compliance with environmental regulations, allowing the Company to advance its development plans for the Norasa project. The ECC renewal process evaluated the Company’s environmental management practices, including waste management, emissions controls, biodiversity protection, and community engagement, among other factors.

The environmental studies for Namibplaas are underway, with baseline monitoring of groundwater, air quality, noise studies, archeology, flora & fauna and soils already completed. This work is being done as part of Norasa and is taking the form of an amendment to the original Valencia EIA/EMP, a process that has been approved by the Ministry of Environment and Tourism.

There are no historical environmental liabilities for either the Valencia or Namibplaas properties.

2024 Mineral Resource Estimate (MRE)

The Company has undertaken a comprehensive review and update of all of the parameters for a Mineral Resource Estimate (“MRE”) for the Norasa project using recent drill results together with the 2005-2011 previous MRE data. Confirmatory and geotechnical drilling, in conjunction with new survey information, including topographic surveys, down-the-hole optical televiewer surveys, trajectory surveys, and downhole gamma probe surveys, were used as inputs for mineral resource modelling. Re-interpretation of the previous database utilising all available data and modern estimation approaches has improved the definition of the MRE to more confidently support mine planning. This study, enhanced by an integrated and expanded drill program targeting existing and new land areas together with a robust work plan of optimisation process testing and modelling, will help reinforce the upside potential of the Norasa project.

Results have been reported from recent remodelling of previous (2005-2011) drilling and recent 2023 drilling results. The Mineral Resources are reported within US$120/lb U3O8 pit shells, with a cut-off grade of 40 ppm U3O8 for each of the deposits at Valencia Main and East, (“Valencia”), under Mining Licence (ML-149) and US$120/lb U3O8 at 40 ppm U3O8 cutoff at Namibplaas (“Namibplaas”) under EPL-3638. The MRE are summaried as follows: