Forum Signs MOU With Nunavut Tunngavik Incorporated

Forum Signs MOU With Nunavut Tunngavik Incorporated for Exploration of Inuit Owned Land Nearby Areva's Kiggavik Uranium Deposit, Nunavut
FORUM URANIUM CORP ORD
FDCFF | 12/2/2008 1:00:52 PM

VANCOUVER, BRITISH COLUMBIA, Dec 2, 2008 (Marketwire via COMTEX News Network) -- Forum Uranium Corp. (TSX VENTURE:FDC) is pleased to announce that it has entered into a Memorandum of Understanding (MOU) with Nunavut Tunngavik Incorporated (NTI) to earn a 100% interest in all minerals on 27,344 hectares of the northern half of Inuit Owned Land (IOL) parcel BL-21, located 20 kilometres east of Areva's 148 million pound Kiggavik uranium mine development project and 60 kilometres west of the Hamlet of Baker Lake, Nunavut (See: www.forumuranium.com/i/maps/North-Thelon-Project-Map2.jpg). Areva is currently conducting a feasibility study on the Kiggavik project.

Rick Mazur, President & CEO of Forum Uranium states, "Forum has been exploring in the Kiggavik area for two years now and has identified a major structure with associated uranium occurrences that extends onto IOL Parcel BL-21 where grades up to 0.52% have been discovered. This structure is parallel to the trend that hosts the Kiggavik deposits to the west. Our work has concluded that there is significant potential for more ore bodies to be discovered in an area where there already is a world class deposit like Kiggavik. Our partnership with NTI adds an important dimension to our commitment to uranium exploration in Nunavut."
 
"I am happy that we have signed this MOU with Forum Uranium Corp.," said James Eetoolook, 1st Vice President of Nunavut Tunngavik Incorporated, "Forum Uranium is a good partner, well situated in the Thelon Sedimentary Basin, with a strong team and record of managing good exploration programs."

IOL Parcel BL-21

This parcel of Inuit-owned surface and subsurface land is situated along an east-west belt of favourable rocks (meta-sediments) that host the Kiggavik deposits (Kiggavik, End and Andrew Lake deposits) between Forum's ground optioned from Agnico-Eagle Mines Limited on the west, Forum's ground optioned from Tanqueray Resources Ltd. on the east, and south of 100% owned Forum ground. Several historical outcrop occurrences of uranium occur in BL-21, with grades of up to 0.52% U3O8.

An apparent resistivity survey (Fugro) conducted in the spring of 2008 over Forum ground has revealed several N070 degrees structures and a major north-east structure that continues onto the IOL package. The north-east (N045 degrees) structure is of particular importance as it is parallel to the Kiggavik trend and has several uranium showings associated with it. The intersection of these structures, in combination with the metasediments, produces a similar geological setting to that which hosts the Kiggavik deposits.

Preliminary plans for 2009 are to cover this structure with ground gravity grids and till sampling. Targets generated by these surveys will be followed up by a diamond drill program, which will include further testing of Forum's Tarzan area that lies on the south end of the Kiggavik trend.

Terms of the Memorandum of Understanding

1. Forum will pay a $500 signing bonus and commit to the execution of an Exploration Agreement within 90 days.

2. Upon signing of the Exploration Agreement, Forum will pay $0.50 per hectare as an annual rental fee for the first year, complete an initial exploration program of compilation of historical data, geological mapping and an airborne geophysical survey to a minimum of $4.00 per hectare in the first year and issue 1 million shares of the Company within six months. Shares issued will be released for trading over a 24 month period.

3. Forum will pay annual rental fees and minimum annual exploration work requirements during the term of this agreement as per NTI schedule.

4. Forum will conduct additional exploration of prospecting, mapping ground
geophysics and 2,500 metres of diamond drilling within 5 years. Forum will charge a 10% Operators Fee to the project account (5% on contracts over $100,000).

5. Upon completion of a National Instrument 43-101 measured resource of 10 million pounds U3O8 or 100 million pounds U3O8, Forum will pay a $1 million and $5 million cash bonus respectively. Upon completion of a National Instrument 43-101 measured resource of 500,000 ounces of gold or 5 million ounces of gold, Forum will pay a $1 million and $5 million cash bonus respectively. Within 30 days of production, Forum will pay a $1 million cash bonus. Advance royalty payments of $50,000 annually will be payable upon meeting these milestones.

6. Forum shall grant a 2% Net Smelter Return (NSR) Royalty to NTI on Forum's 100%- owned Tarzan and Nutaaq properties. Forum has the right to purchase l% of this NSR Royalty from each of these properties for $1 million each.

7. As a consequence of the land claims settlement between NTI and the Government of Canada, IOL Parcel BL-21 is not subject to royalties to the Crown. Instead, NTI will receive a 12% Net profits Royalty, limited to 75% of gross revenues. The value of any uranium component of the gross revenues shall be 130% of the actual value of uranium.

8. Upon completion of a Feasibility Study that recommends production, NTI will have the election to either form a joint venture and hold a 20% participating interest or, be granted a 7.5% Net Profits Royalty that will be calculated in the same manner as the 12% Net Profits Royalty with the exception that gross revenues shall include the actual value received from any uranium component.

The MOU is subject to regulatory approval.

About Forum Uranium

Forum Uranium Corp. is a Canadian-based energy company with a focus on the acquisition, exploration and development of Canadian uranium projects in the Athabasca Basin, Saskatchewan and the Thelon Basin, Nunavut. Forum has assembled a highly experienced team of exploration professionals with a track record of mine discoveries for unconformity-style uranium deposits in Canada. The Company has a strategy to discover near surface uranium deposits nearby existing infrastructure by exploring on its 100% owned properties and through strategic partnerships and joint ventures.

ON BEHALF OF THE BOARD
Richard J. Mazur, P.Geo., President & CEO
SOURCE: Forum Uranium Corp.
Forum Uranium Corp. Rick Mazur President & CEO (604) 630-1585 Forum Uranium
Corp. Mark Prosser Corporate Communications (604) 638-3947 (604) 662-8429 (FAX)
Email: info@forumuranium.com Website: www.forumuranium.com
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