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1 6 February 2012 Australian Securities Exchange Exchange Centre 20 Bridge Street Sydney NSW 2000 SIGNIFICANT MAIDEN JORC COMPLIANT RESOURCE FOR EUCLA WEST MINERAL SANDS PROJECT Forge Resources Ltd (ASX:FRG, Forge ) is pleased to announce a significant maiden JORC compliant heavy mineral (HM) resource estimate of 470 million 4.6 % HM (21.5 million tonnes of contained HM) for the McLaren Heavy Mineral Sand Deposit within the Eulca West Mineral Sand Project tenements, located in the Eucla Basin, Western Australia. Geological resource estimation specialists Hellman and Schofield Pty Ltd have completed the resource estimate, which applies a 2.0% HM cutoff grade, a bulk density of 1.8, and is categorized as an Inferred Resource and reported according to the JORC Code and Guidelines. This is an excellent result and has exceeded Company expectations of scale and grade. Significantly the data indicates that potential additions to the resource can be achieved with both infill and extensional drilling, which is scheduled for the March 2012 quarter. Table 1. McLaren Deposit Heavy Mineral Inferred Resource Estimates HM Cut-off Grade (%) Material Tonnes (Mt) HM Grade (%) In Situ HM Tonnes ,500, ,800, ,500, ,400,000 A total of sixty composite drill samples from the McLaren Deposit have been submitted for detailed mineralogy to determine the mineral suite within the resource and enable geological domaining with consideration to particle size and mineral characterisation. Following this analysis, mineral quality 1

analysis, bulk sample test work and a detailed assessment of the deposits full economic potential are anticipated.

Applying a uniform upper limit of 30% Fines reduces the average Fines content to 25.4% and results in the following reduction in Resource Estimates.

McLaren Heavy Mineral Inferred Resource Estimate with an upper limit of 30% Fines. HM Cut-off Grade (%) Material Tonnes (Mt) HM Grade (%) In Situ HM Tonnes Fines minus 45 micron (%) 2.0 200 4.

2 analysis, bulk sample test work and a detailed assessment of the deposits full economic potential are anticipated. The average Fines (less than 45 Microns) content for the full resource at a 2% cut-off grade, as shown in Table 1 above, is 31%. Applying a uniform upper limit of 30% Fines reduces the average Fines content to 25.4% and results in the following reduction in Resource Estimates. The appropriate upper limit for Fines will be determined in the fullness of time and will be dependent on the different economics drivers of a mineral sands project. Table 2. McLaren Heavy Mineral Inferred Resource Estimate with an upper limit of 30% Fines. HM Cut-off Grade (%) Material Tonnes (Mt) HM Grade (%) In Situ HM Tonnes Fines minus 45 micron (%) ,000, ,800, ,100, ,700, Note: The tables above show the relevant cut-off grade sensitivity to the resource estimation and a bulk density of 1.8. Mt = million tonnes Eucla West Project Details Located in the Eucla Basin, the Eucla West Project consists of three contiguous granted exploration licences located approximately 45km west of the Balladonia roadhouse, on the Eyre Highway in Western Australia. The Project was proven to host significant heavy mineral sand (HMS) occurrences in 2009 as a result of wide spaced reconnaissance drilling. Figure 3.The Eucla West Mineral Sand Project Location 2

As previously announced (ASX announcement 29 September 2011) Forge agreed to enter into a Farm in agreement whereby Forge has the right to earn 50.1% of the project by spending $2.

3 As previously announced (ASX announcement 29 September 2011) Forge agreed to enter into a Farm in agreement whereby Forge has the right to earn 50.1% of the project by spending $2.0 million within two years. Forge may either elect to earn a further 28.9% (total 80%) by spending a further $4.0 million over a further three year period, or acquire the project outright with a payment of $7.5 million and the grant of a 1.5% gross sales royalty. Should Forge earn-in to 80%, Forge then has the right to acquire the project outright for a payment of $5 million and the grant of a 1.0% gross sales royalty. Since that time a subsequent programme of 212 NQ aircore drill holes has been completed to define the deposit (ASX announcement 16 th December 2011). The maiden JORC compliant McLaren Heavy Mineral Deposit Resource is now defined at a 500 meter by 200 meter drill spacing over approx. 6 km strike length, and significantly the deposit is at, or near, surface and remains open to further extensions to the north. The deposit is contained within three contiguous tenements (E69/2386, E69/2388 and E69/2436), which cover an area of approximately 218 square kilometers. Work continues to focus on resource development with further refinements to the model based on results of detailed mineralogy test work. These results are expected in the coming weeks. The remaining tenement area is underexplored and has the potential for additional new discoveries that could be included into the overall development strategy. Exploration is focused on the identification of high value heavy mineral concentrations within high priority targets defined by newly acquired geophysical data sets. Figure 1: This image shows a 3D oblique view (looking toward the north east) of the McLaren Block Model over the Digital Elevation Model. Grid dimensions are 2.5km by 2.5km. 3

4 Figure 2: A schematic cross section (located by the red line in Figure 1.) of the McLaren Deposit showing mineralisation at or near surface and a high-grade central zone interpreted to represent a near shore beach zone where high value heavy minerals could be deposited in significant concentrations. Resource Estimation Methodology Vertical NQ aircore drilling has been completed on a 500 metre by 200 metre drill spacing of the resource area. All samples have been collected via a rotary splitter as 1.5 metre intervals and geologically logged and submitted for heavy mineral assay. A selection of samples from within the main zone have also been collected as bulk samples and stored for future test work. Planned drill collar locations have been set out using a Garmin handheld GPS and actual collar position have been surveyed using a differential GPS by professional survey contractor CARDNO Spectrum Surveys. Geological modeling has identified specific domains that have been selected for detail mineralogy test work. The results of the 60 composite samples will provide the mineral suite and grain size distribution data required to target and further delineate those areas of high value. Grade Estimation A three dimensional solid defining mineralisation was constructed based on a consideration of geology, drill hole spacing, topography and drill hole grades. A zone defined by nominal 2-3% heavy mineral (HM) concentration was clearly delineated and recognised from section to section. HM estimates were controlled by the solid and do not extend more than approximately 350m beyond drill holes in a N-S direction and approximately 100m in an E-W direction. Ordinary Kriging based on 1.5m length samples was used to estimate HM grades and percentage of slimes into a block model with dimensions 50x100x3 metres. A minimum of 10 and a maximum of 32 data points were used to define Inferred Resources with a maximum search distance of 450x450x9 metres. Inspection of modeled grades in juxtaposition with data suggests that this estimation approach is suitable for the classification of Inferred. Approximately 65% of the estimates result from a smaller search of 300x300x6 metres. An alternative model using 1.5m levels was also constructed with results virtually identical to the 3m level model. An additional model using alternative software gave results within 10% of the quoted estimates. 4

5 For further information please contact Mr. Nicholas Curtis, Chairman, or Dr. Matthew James, Managing Director, on Competent person s statement: The information in this announcement that relates to exploration, mineral resources or ore reserves is based on information compiled by Mr. Paul Benson (B.Sc.) who is a Geological Consultant employed by Forge Resources and Wild Side (WA) Pty Ltd and a member of the AusIMM. Mr. Benson has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a competent person as described by the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Benson consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. The information used in preparing this announcement has been reviewed by Mr Graham Lee, FAusIMM(CP) who is an independent consulting geologist with more than 35 years experience in the evaluation and processing of mineral sand resources. Mr Lee has experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Lee consents to the inclusion in the report of the matters based on his information in the form and context in which they appear. Mr Lee is a Director of Graham Lee and Associates Pty. Ltd., mining and geological consultants. The information in this announcement that relates to estimation of mineral resources is based on information compiled by or under the supervision of Dr Phillip Hellman, FAIG, who is an independent consultant to Forge. Dr Hellman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Hellman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. He is Managing Director of Hellman & Schofield Pty Ltd. In relation to the quoted estimates, H&S note that the density of 1.8 is not based on measurements. Assay and geological data used has been supplied by Forge and are accepted in good faith and assumed by H&S to be representative and accurate. About Forge Resources Ltd: Forge was established in 2009 as a resource and energy exploration company. The Company s primary objective is to build a resource and energy company at a time when the global demand for resources and energy is high. Forge in conjunction with its Joint Venture partners is advancing the exploration and development of its prospective gold and base metal projects located in New South Wales, Australia projects and in accordance with its charter will also seek to acquire or participate in additional resource and energy projects in Australia and overseas. ASX Codes:FRG, FRGO Issued Capital: Ordinary Shares: 31,577,667 Options (Exp 7/14, Ex $0.20): 19,855,905 Options (Exp 6/15, Ex $0.67): 600,000 Options (Exp 12/15, Ex $0.54): 4,500,000 Performance Shares: 24,000,000 Principal Place of Business Level 24, 56 Pitt Street Sydney NSW Directors Mr. Nicholas Curtis: Chairman Dr. Matthew James: Managing Director Mr. Emmanuel Correia: Non Exec Director Mr. Harold Wang: Non Exec Director Company Secretary Mr Shane Hartwig 5

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