Dear Fellow Shareholders,

The Management of your Company set out clear objectives to Shareholders in 2011, with the goal of advancing and de-risking our key asset, the 100% Foran-owned McIlvenna Bay base metal deposit, located in east-central Saskatchewan, Canada. The near-term objectives we embarked on are to:

• Recommence exploration and related activities at McIlvenna Bay, which will form the basis of a Preliminary Economic Assessment for the deposit, including:
  • Adding a resource for the copper-rich mineralization to the existing zinc-rich resource,
  • Conducting feasibility-level engineering work, including hydrogeological, geotechnical and geochemical studies,
  • Initiating new metallurgical studies to verify and build on historic results,
  • Completing an infill drill program which will be used to update the 2006 zinc-rich resource using current metal price forecasts,
  • Testing the potential to grow the deposit in several directions, and
  • Initiating environmental baseline studies.
• Introduce Foran's new management team to local stakeholders and open a dialogue with respect to plans, objectives and expectations going forward.
• On the investor relations front, broaden our shareholder base and increase trading volumes by marketing Foran to the public, analysts and investment community.

I am pleased to update you on our progress to date on these objectives.

The spring 2011 drill program successfully demonstrated that the Copper Stockwork Zone, which lies adjacent to the previously defined zinc-rich massive sulphide resource, is a continuous, robust zone of mineralization. The first comprehensive, independent resource meeting the parameters of National Instrument 43-101 for the Copper Stockwork Zone was released in November, 2011. This significant new resource almost doubled the overall tonnage at McIlvenna Bay. The deposit now stands at over 12 million tonnes indicated and almost 10 million tonnes inferred, with excellent zinc and copper grades. McIlvenna Bay is now confirmed as a major Canadian base metal deposit, located just 65 kilometres from a major mining centre at Flin Flon, Manitoba.

Also underway are the geotechnical, geochemical and hydrogeological studies being conducted by Golder Associates, a global consultancy focused on the resource sector. This important work is being conducted to Feasibility Study levels to form the basis for future mine design.

In addition to use in resource definition, drilling over the last year provided material for metallurgical testwork from the main mineralized zones at McIlvenna Bay. Samples were submitted to the laboratory in early 2012 and we anticipate a complete metallurgical report on the first stage of this work in the coming months. Further metallurgical testwork will continue through 2012 to achieve results at a level that can be used at the feasibility stage.

Foran has hired two Saskatchewan companies to work with us on our environmental studies, ASKI Resource Management & Environmental Services Inc. (ASKI) and Canada North Environmental Services (CanNorth). ASKI, an environmental consulting group owned and operated by the Peter Ballantyne Cree Nation, is managing our overall environmental program. CanNorth, a 100% aboriginal-owned, multi-disciplinary environmental consulting firm, is conducting baseline studies. This work includes a twelve month program to study the flora, fauna and hydrology that commenced in early 2012. We are very pleased to have both groups working with us at McIlvenna Bay.

Stakeholder meetings with Chief Darrell McCallum of the Peter Ballantyne Cree Nation were held in early 2011, prior to Foran's new management group initiating work at McIlvenna Bay. Since that time, Foran has met with residents of the Peter Ballantyne Cree Nation at Deschambault Lake to present our plans to advance McIlvenna Bay, receive feedback and to discuss the community's expectations. We will continue these presentations and discussions as we move forward at McIlvenna Bay.

Our toughest endeavour over the last year has been raising Foran's profile in the investment community. The recent investment climate for the junior exploration and development sector has been extremely challenging. Investors have seen the value of many of their shareholdings decrease, often resulting in a move to low-risk, and therefore low-reward, investments. Although, like many of our peers, Foran's share price has declined, our liquidity has increased as we have begun to market the company. As we go to press, we now have mining analyst coverage from two investment houses, both with buy recommendations and twelve month share price targets in the $1.20 to $1.50 range. We continue to introduce Foran and McIlvenna Bay to analysts and expect to continue to add to our coverage in the coming months.

What differentiates Foran from many of its peers is simple: it is our people and our project. Foran's experienced management team enthusiastically believes that McIlvenna Bay will be a commercial base metal producer in the near future and are working diligently towards that goal. Our project advantages include a large, robust deposit in McIlvenna Bay, a safe, low-risk jurisdiction, and location, close to a major mining centre and all the infrastructure that comes with that.

Last, but not least, Foran has a solid shareholder base that believes this is a management team that can create value for shareholders, first by moving the McIlvenna Bay deposit to production, and second by looking outward to explore our extensive and highly prospective landholdings around the deposit, with the objective of making additional discoveries. We sincerely thank our fellow shareholders for their continued support and hope that at this time next year our dedication to the Company is reflected in an improved share price.

Sincerely,


Patrick Soares
President and CEO

Forward-Looking Statements

This letter contains forward-looking statements. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.