Introduction

Forum Uranium has discovered a new rare earth element occurrence upon review of its uranium geochemical databases in Saskatchewan and Nunavut. Subsequent follow-up exploration during this past summer exploration season has resulted in the identification of alkaline intrusive rocks outcropping over a 10 km by 10 km area located 13 kilometres southeast of Areva's Kiggavik uranium deposit in Nunavut. 

The "Nutaaq" area (Inuktitut for "Something New") is 100% owned by Forum, subject to a 2% net smelter royalty to Nunavut Tunngavik Inc. 

Approximately 900 grab samples were collected over the Company's North Thelon Project during uranium exploration conducted by Forum in 2007 and 2008. Of the 255 samples collected in the Nutaaq area, 155 samples grade from 0.1% to 3.8% total rare earth oxides (TREO). These rare earth elements are accompanied by elevated levels of zirconium, niobium and tantalum. A selected list of rare earth assays is shown below in Table 1.

During the 2009 field season, further geological mapping and sampling at Nutaaq was conducted for geochemical, petrographic and mineralogical analysis to better determine the nature of the rare earth mineralization. Samples from this program have been sent to the Saskatchewan Research Council (SRC) for complete analysis of rare earth elements by SRC's Rare Element Analysis Package. The percentage distribution of light and heavy rare earth elements, as a percentage of total rare earth elements will be determined once these results are received by month end. Forum anticipates that further exploration for rare earth deposits on the property will be conducted as part of its uranium exploration program in 2010.

Table 1: Rare earth and rare metal oxide values (%) from selected Nutaaq area uranium prospecting samples. All values are derived from ICP-OES total digestion analysis.