31st October 2014

Quarterly Report - September 2014

Forte Energy NL ("Forte" or "the Company") (ASX/AIM: FTE) is an emerging international uranium company focused on the exploration and development of a portfolio of uranium assets in the Slovak Republic, Europe, and the Republics of Mauritania and Guinea, West Africa.

Highlights of 3rd Quarter to 30th September 2014

Definitive Joint Venture agreement with European Uranium Resources Ltd ("European Uranium") executed 31 July 2014 whereby Forte may earn a 50% interest in the Slovak uranium projects of European Uranium for a total expenditure of CAD$4,000,000 over 10 years

Shareholder approved placement completed post quarter end with 271 million shares and 135 million options issued for total consideration of more than A$1.5m before costs

Restructuring of financing facilities with Darwin Strategic Limited

Forte to acquire a 50% interest in NI 43-101 compliant estimated mineral resources of 57.6Mlbs contained U3O8 (100% basis), to significantly boost Forte's uranium resources

The Company continues talks with other parties with respect to further potential transactions

Continued focus on expenditure reduction

Forte's existing U3O8 JORC resources (all at a 100ppm cut-off) (Forte holds

100% of the projects):

* A238NW Anomaly included in the A238 Inferred Resources

** Mineral resource estimates for the Company's Joint Venture interests in the Slovak Republic are not included in the above resource table as they are not presently compliant with the JORC Code.

Progress

Commenting on the quarter, Mark Reilly, Managing Director of Forte, said:

"With revised funding arrangements in place, and having paid the CAD$500,000 cash consideration post quarter end for the Slovak joint venture, Forte is working closely with European Uranium to finalise works programmes and looks forward to updating the market in due course."

Slovak Uranium Joint Venture

On 16 June 2014, Forte announced a Joint Venture Agreement with European Uranium Resources Ltd ("European Uranium"), whereby Forte may earn a 50% interest in the Slovak uranium projects of European Uranium for a total expenditure of CAD$4,000,000 over 10 years. A definitive joint venture agreement was subsequently executed by both parties on 31 July 2014 and payment of the initial CAD$500,000 cash consideration was completed on 1 October 2014.
Forte's interest is held through ownership of 50% of the shares in European Uranium's Slovak subsidiaries, Ludovika Energy and Ludovika Mining, which hold the mineral licenses comprising the Kuriskova and Novoveska Huta uranium projects. Forte must sole fund a minimum of CAD$350,000 a year on the Ludovika entities over the next ten years to maintain its 50% interest with the first year's expenditure of CAD$350,000 being an obligation.
Forte is working closely with European Uranium to develop and agree a works programme for the first year. Both companies look forward to updating shareholders on the works programme and development strategy when finalised.

About European Uranium's assets

European Uranium has two project areas in Slovakia, namely Kuriskova and Novoveska Huta, of which Kuriskova is the most advanced. The projects are held in two wholly owned subsidiaries of European Uranium that are registered in the Slovak Republic.
The Kuriskova project consists of 32 square kilometres of mineral licenses situated approximately 10 km northwest of the city of Kosice, a regional industrial centre in East- Central Slovakia.
The summary results of a preliminary feasibility study prepared for Kuriskova released in
January 2012 are as follows:
- IRR 30.8%
- 1.9 year payback on CAPEX of $US 225m
- NPV $US 276m at 8% discount
- Base case price $US 68/lb U3O8
- First 4 year operating costs $US 16.68/lb U3O8
- Life of Mine operating costs $US 22.98/lb U3O8
The Novoveska Huta uranium deposit is located at the western end of the Carpathian uranium belt, about 50 kilometres northwest of Kuriskova and near the town of Spisska Nova Ves. The deposit consists of a mining license over one square kilometre and a surrounding fifteen square kilometre exploration license.

European Uranium Slovakian U3O8 NI 43-101 mineral resource estimates (100%) ***

** Kuriskova calculated at 500ppmU cut-off, Novoveska Huta at 600ppmU cut-off

*** These mineral resource estimates are reported in this announcement as "foreign estimates under

ASX Listing Rule 5.10

The foreign estimates are not reported in accordance with the JORC Code.

A competent person has not yet undertaken sufficient work to classify the foreign estimates as mineral resources or ore reserves in accordance with the JORC Code.

It is uncertain that, following evaluation and/or further exploration work, it will be possible to report these estimates as mineral resources or ore reserves in accordance with the JORC Code.

ASX Listing Rule 5.12 specifies that additional information must be provided to the market in any

announcement containing foreign estimates. Forte has previously provided that information in the

Accompanying Notes in its announcement of 4 April 2014.

Exploration

Forte is one of the largest uranium exploration licence holders in Mauritania, with ten
100%-owned licences, covering over 7,000 km² in the vicinity of Bir Moghrein in the North
West, close to the border with Western Sahara. To date, exploration by Forte has identified a large number of potential uranium prospects. In particular, previous drilling at
the A238 Prospect has identified an inferred resource of 23.4Mlbs U3O8 (45.2M tonnes @
235ppm U3O8, 100ppm cut-off).
Forte also holds two 100%-owned uranium exploration licences in Guinea, West Africa, comprising the Firawa project. This project consists of two licences, totalling 286km2, which are located approximately 25km to the east of Kissidougou. The Firawa project has an inferred resource of 19.5Mlbs U3O8 (30.3M tonnes @ 295ppm U3O8, 100ppm cut-off).
No significant exploration works were carried out in Mauritania or Guinea during the quarter with the Company focussing instead on acquisition activities and preserving its capital.

Corporate

During the quarter, Forte has continued to focus on corporate and acquisition activities. The Company has maintained its strict cost control focus to minimise overheads and optimise its working capital.
The Company notes some positive signals emerging in the uranium market recently, with the spot price for uranium currently above US$36 per pound after dropping to US$28 per pound earlier this year. Also, in Japan this week, the city assembly of Satsumasendai voted to restart reactors one and two at the Sendai nuclear power plant, which are expected to resume operations early in 2015. Forte remains confident in the compelling medium to long term supply/demand fundamentals, which indicate a sizeable supply

shortfall in coming years. Following the European Uranium Joint Venture agreement, Forte's expanded portfolio of uranium interests should enhance the Company's prospects to capitalise on the strong long term fundamentals of the uranium market.
In light of the above and notwithstanding the completion of its joint venture agreement with European Uranium, the Company continues talks with other parties in respect to further acquisitions.
Approval for a share placement and a Share Purchase Plan ("SPP") was received at a
General Meeting of shareholders on 30 July 2014. The placement was completed on 14
October 2014 with the issue of 271,157,428 shares at 0.56 cents per share for total consideration of more than A$1.5m before costs, and included one free Placement
Warrant for each two shares subscribed for. The Placement Warrants have an exercise
price of £0.005 (approximately A$0.0093) each and an expiry period of two years. Shareholders also approved the issue of 164.062.500 Loan Note Warrants to Darwin with a 5-year expiry and an exercise price of 0.4 pence per share.
In addition to the above placement On 14 October 2014 the Company announced that it had secured additional funding for working capital following renegotiation of its financing arrangements with Darwin Strategic Limited ("Darwin"). As a result of these negotiations:
Both parties agreed to the early expiration of the £10 million discretionary financing facility announced on 15 February 2013;
Darwin agreed to extend the maturity date of its existing £437,500 convertible loan to 9 January 2016;
Both parties entered into a new £500,000 Controlled Equity Offering Agreement
(Performance Swap); and
As part of the Controlled Equity Offering, Darwin is to receive 60,692,308 warrants with an exercise price of £0.0032 and five year expiry period.
The Company's efforts to proceed with a SPP have been hampered by the minimum pricing restrictions under the ASX Listing Rules and recent volatility in share prices. The minimum price is determined with reference to the average trading price on ASX, however, the majority of the Company's shares are traded on AIM which has generally been trading at a discount to the ASX price. The Company is committed to offering a SPP to its shareholders and looks forward to announcing a replacement plan when market conditions permit.
Completion of the placement and the new Darwin funding agreement that were completed after the end of the quarter has improved the Company's cash position. The Company is also in the process of realising its GRIT shares to raise additional funds which would enable the company to be fully funded for its work programmes.
Mark Reilly
Managing Director

For further information contact: Mark Reilly, Managing Director

Forte Energy NL Tel: +61 (0) 8 9322 4071

Oliver Morse / Trinity McIntyre

RFC Ambrian Ltd Tel: +61 (0) 8 9480 2500 (AIM Nominated Adviser to the Company)

Forte Energy NL

Suite 3, Level 3

1292 Hay Street

West Perth WA 6005

Ph: +61 (0)8 9322 4071

Fax: +61 (0)8 9322 4073

Email: [email protected]

Web: www.forteenergy.com.au

INTERESTS IN MINING TENEMENTS

Forte held the following interests in mining tenements at the end of the Quarter:

LOCATION TENEMENT NAME/PROJECT TENEMENT NUMBER

INTEREST

Republic of
Guinea
Kissidougou (Firawa) Kissidougou (Firawa)
XP 110
XP 130
100%
100%
Republic of
Mauritania
Steilet Zednes
D' Adem Essder Rhall Amane Tisram
Gleibat Ten Ebdar
Legleya
Hassi Baida
Ouissuat
Bir Ould Ben Nassar
Nord Tmeimichat Rhall Amane
XP 281
XP 282
XP 283
XP 284
XP 285
XP 286
XP 948
XP 949
XP 1173
XP 1588
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

NOTE: XP = Exploration Permit

There were no tenements acquired or disposed of during the Quarter and no changes in the beneficial interests held by the Company.

About Forte Energy

Forte Energy is an Australian-based minerals company focused on the exploration and development of uranium and associated bi-products in Mauritania and Guinea in West Africa. The Company has an extensive pipeline of assets and total JORC resources of
76.8Mt @ 266ppm U₃O₈for 44.9Mlbs contained U₃O₈ (100ppm cut-off).
Its flagship assets are the A238 prospect (23.4Mlbs U₃O₈) and the Bir En Nar project
(2.06Mlbs U₃O₈) in Mauritania, and the Firawa Project in Guinea (19.5Mlb U₃O₈).
Forte Energy U₃O₈ JORC resources (all at a 100ppm cut-off) (Forte holds 100% of these
projects):

* A238NW Anomaly included in the A238 Inferred Resources
The Company is quoted on the Australian Securities Exchange (ASX: FTE) and AIM market of the London Stock Exchange (AIM: FTE). For more information, visit www.forteenergy.com.au

Note:

The information in this report that relates to the reporting of Mineral Resources is based on information compiled or reviewed by Mr. Galen White, who is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr White is the Principal Geologist of CSA Global (UK) Ltd. CSA Global have an on-going role as geological consultants to Forte Energy NL. Mr. White 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'. Mr. White consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to the reporting of foreign mineral resource estimates is provided under ASX listing rule 5.12 and is an accurate representation of the available data and studies for the Kuriskova and Novoveska Huta uranium deposits and is based on information reviewed by Mr Dorian (Dusty) Nicol. Mr Nicol is President and CEO of European Uranium Resources Ltd. Mr Nicol is a Fellow of the AusIMM, a Registered Member of the SME, a Certified Professional Geologist, a Registered Geologist in the state of Wyoming, USA and is a Qualified Person under NI 43-101.

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

FORTE ENERGY NL

ABN Quarter ended ("current quarter")

59 009 087 852 30 September 2014

Cash flows related to operating activities

1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration and evaluation

(b) development

(c) production

(d) administration

1.3 Dividends received

1.4 Interest and other items of a similar nature received

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Other (provide details if material)

Net Operating Cash Flows

Consolidated statement of cash flows

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

Current quarter

$A'000

Aggregate amount of payments to the parties included in item 1.2 54

Aggregate amount of loans to the parties included in item 1.10 0

Explanation necessary for an understanding of the transactions

Salaries and rental of office premises

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Nil

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Nil

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities

3.2 Credit standby arrangements

Estimated cash outflows for next quarter

4.1 Exploration and evaluation

4.2 Development

4.3 Production

4.4 Administration

*Total cash outflows for the next quarter are greater than the cash balance at the end of the current quarter as the Company expects to receive cash from sale of its remaining shares in Global Resources Investment Trust plc (GRIT) and from its Darwin Controlled Equity Offering financing facility.

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed

6.2 Interests in mining tenements acquired or increased

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

7.12 Unsecured notes

(totals only)

Compliance statement

1 This statement has been prepared under accounting policies, which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2 This statement does give a true and fair view of the matters disclosed.

Notes

1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent, which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB

1026: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.