Introduction
The Costigan Lake Joint Venture property consists of a mineral lease covering 743 hectares of the margin of the Athabasca Basin, Saskatchewan. The property is strategically located 14 kilometres (km) southwest of the Cameco/Areva Key Lake Mine and Mill complex in the Athabasca Basin, northern Saskatchewan. The property adjoins Cameco's Cree-Zimmer Project (otherwise known as the Key Lake Property).

Forum Uranium Corp. is operator and 65% partner with NVI Mining Ltd. ("NVI"), a wholly-owned subsidiary of Breakwater Resources Ltd. ("Breakwater").

Geology
The Costigan Lake Joint Venture covers favorable basement rocks within the Mudjatik-Wollaston Tectonic Zone, a northeast trending structural zone on the eastern margin of the Basin along which the district's most productive uranium mines occur. Over 95% of known Canadian uranium deposits and all current uranium producing mines in Canada are located on this trend.

The Mudjatik-Wollaston Tectonic Zone is the NE trending high strain tectonic zone marking the boundary between the Archean gneisses and granitoids of the Mudjatik Domain to the west and Archean gneisses, metasediments, and pegmatite intrusions of the Wollaston domain to the east. Uranium mineralization on the Costigan Lake Project generally occurs within a Proterozoic, graphite-bearing suite of metapelite, pelite, calc-silicate and arkosic metasediments found within this high strain zone.

The Costigan Lake Project is targeting basement hosted, structurally and stratigraphically controlled uranium deposits such as Comeco's Millennium deposit (containing 47.2M lbs of U₃O₈ indicated and inferred) and the Eagle Point/Rabbit Lake deposit (containing 19.0M lbs of U₃O₈ proven and probable). These deposits generally contain structurally controlled veins, breccias and massive replacement-type mineralization. The Costigan Lake Property covers the southern end of the graphitic metapelite horizons that host the Key Lake uranium deposits which produced 200 million pounds of uranium grading 2.45% U₃O₈ from 1983 to 1997.

Historical Work
Historical work on the Costigan Lake Project including mapping, trenching, sampling, drilling and geophysics has outlined several mineralized zones on the property, including a 7.5 km long NNE trending conductor which contains a drill intersection of 0.088% U₃O₈ over 4.0 m (including 0.43% U₃O₈ over 0.36 m) in DDH CS 79-03 within an altered graphitic pelitic gneiss.

Hole COS-04, located approximately 50 m south of hole 79-03, intersected anomalous radioactivity interpreted as the same graphitic pelitic gneiss unit as in hole 79-03, grading 0.025% U3O8 over 0.2 m at a depth of 72.3 -- 72.5 m. Uranium mineralization with strong alteration in holes COS-03 and COS-05 was encountered in the footwall of the graphitic pelitic gneiss with visible secondary uranium minerals on fractures. The analysis from hole COS-03 graded up to 0.069 % U3O8 over 0.1 m at a depth of 114.6 -- 114.7 m and hole COS-05 graded up to 0.108 % U3O8 over 0.1m at a depth of 128-128.1 m depth.

2007 Drill Program
Forum completed two holes for a total of 342m during last quarter of 2007 to drill one fence of holes in the southern end of the property. No significant results were encountered and further drilling is required along this 7.5 km long conductor.