Fortune Minerals Limited

COMPANY DATA | INTRODUCTION |  PROJECT IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE

COMPANY DATA

INTRODUCTION

Fortune Minerals Limited is a diversified natural resource company with seven mineral deposits and a number of exploration projects, all located in Canada. The Company is currently focused particularly on the NICO gold-cobalt-bismuth deposit in the Northwest Territories and the Mount Klappan anthracite coal deposits in British Columbia. In addition, Fortune's assets include the Sue-Dianne copper-silver deposit and other base and precious metals exploration projects in the Northwest Territories. Fortune is also the managing partner of Formosa Environmental Aggregates Ltd., an industrial mineral company developing the Greenock high calcium limestone quarry in Ontario. Fortune Minerals is focused on the assembly and development of high quality mineral resource projects with the potential to generate strong returns for its shareholders.

PROJECT IN HAND

(1) NICO Gold-Cobalt-Bismuth Project, Northwest Territories

Fortune has recently delivered a Bankable Feasibility Study (BFS) on its 91% owned NICO gold-cobalt-bismuth project, which lies 160 km northwest of Yellowknife, Northwest Territories. This is a significant near-surface deposit containing an estimated 806,000 ounces of gold, 68 million pounds of cobalt and 76.5 million pounds of bismuth (making it one of the largest bismuth deposits in the world). The study, which was led by Micon International Limited and Met-Chem Canada Inc., was based on the assessment of a combined open pit and underground mine processing 4,000 tonnes of ore per day (1,460 tonnes per annum) in a plant constructed at the site to produce gold dore, cobalt cathode and a high-grade bismuth concentrate. The feasibility study uses the 2-year trailing average prices as base case for the contained metals (US$525/oz of gold, US$16.50/lb of cobalt & US$4.50/lb of bismuth) and an exchange rate of US$0.84:C$1.00).

Highlights of the Study

• Proven and Probable Reserves of 21.8 million tonnes, sufficient for a minimum 15-year mine life;

• Capital costs of C$215.2 million;

• Annual metal production of:

  • Gold: Average 69,000 oz in first 2 years; 24,000 oz in Years 3-15;

  • Cobalt: 3.25 million lbs as 99.8% cobalt cathode;

  • Bismuth: 3.23 million lbs contained in concentrate, averaging 45% bismuth;

  • In-situ reserves of 3.32 million equivalent oz of gold at base case prices;

• Economic results using base case metal price assumptions:

  • Pre-tax Internal Rate of Return (IRR) of 15.3%;

  • 8% discounted Net Present Value (NPV) of C$91.8 million;

  • Average production cash costs of US$7.05/lb for cobalt (net of by-product credits) or US$321/oz of equivalent gold ounces;

• Economic results using current metal prices:

  • Pre-tax IRR of 41.5%;

  • 8% discounted NPV of $484.4 million;

  • Average production cash cost of US$3.01/lb for cobalt (net of by-product credits) or US$252/oz of equivalent gold ounces;

• Already completed significant underground development and pilot plant testing; additional work planned in 2007;

• Golden Giant Mine (Hemlo, Ontario) processing facility purchased and ready for relocation to NICO.

(2) Mount Klappan Anthracite Coal Project, Northwest British Columbia

Fortune's 100% owned Mount Klappan anthracite coal project in northwest British Columbia contains one of the world's largest undeveloped resource of high rank anthracite coal. The four resource areas at Mount Klappan - Lost Fox, Hobbit-Broatch, Sumitt and Nass - contain resources totalling 107.9 million tonnes (Measured), 123 million tonnes (Indicated), and 2.572 billion tonnes (Inferred and Speculative). A recent Bankable Feasibility Study (BFS) of the Lost Fox deposit (an estimated 3.5% of the project resource) indicated very attractive rates of return for the development under a variety of production and coal price scenarios. The BFS verified the economics of 102 million tonnes of run-of-mine (ROM) coal reserves, producing 60 million product tonnes of high quality ultra-low volatile pulverized coal injection (PCI) coal for the overseas steel industry. Fortune is proceeding with an Environmental Assessment of the project and mine permitting, as well as collaborating on plans for a permanent, all-weather road to the site.

(3) Sue-Dianne Copper-Silver Project, Northwest Territories

Fortune owns a 100% interest in the Sue-Dianne copper-silver deposit in the Northwest Territories near the Company's NICO project. 24.5 million tonnes of near surface resources (open at depth), amenable to low cost open pit mining; upper 10 million tonnes part of the deposit contains higher grade material, averaging 1% copper. Metallurgical tests (SGS Lakefield Research Limited) indicate high recoveries possible for copper, silver and gold and a high value cathode copper product can be produced in the proposed NICO plant located 25 km south. With a planned new road, Sue-Dianne presents an excellent opportunity for incremental mill feed to extend the life of the NICO plant. New resource estimate (Micon International) in progress.

2007 Corporate Objectives

• Complete environmental assessment for Mount Klappan project's Lost Fox mine;

• Complete second phase of underground bulk sampling for NICO deposit;

• Complete pilot plant testing on 2006 bulk sample from NICO;

• Carry out EPCM to move Golden Giant facilities and conduct detailed engineering for NICO;

• Complete new resource estimate for the Sue-Dianne copper-silver deposit;

• Evaluate and execute financing alternatives to fund construction of the Lost Fox and NICO mines; and

• Expand investor base and improve liquidity of common shares.

MANAGEMENT

Fortune Minerals Limited has a well management team with experience in different areas.

Directors & Management

William A. Breukelman, M.B.A., B.A.Sc., P.Eng., Mississauga, Ontario. (Director)
Mr. Breukelman has owned, founded and funded numerous businesses in the high tech field, with particular interests in information systems and imaging. Mr. Breukelman co-owned and later chaired IMAX Corporation from 1970 to 1995 and helped grow IMAX into a multinational entertainment company with production, distribution and theatre operations in 18 countries. Today, Mr. Breukelman is the Chairman and Principal of Business Arts Inc., a high tech incubation and investment firm which funds and co-develops companies such as MDS SCIEX, Arius3D, and GEDEX.

The Honorable Carl L. Clouter, Gander, Newfoundland. (Director)
Mr. Clouter is a commercial pilot who owns a charter airline service in the Northwest Territories. Mr. Clouter has been active in mineral exploration and prospecting carried out in conjunction with more than 35 years of flying throughout remote areas of Canada.

George M. Doumet, M.Sc., MBA, Vancouver, B.C. (Chairman of the Board)
Mr. Doumet is a chemical and nuclear engineer who has founded and owns a number of industrial companies in Canada and internationally. He is President of Federal White Cement Ltd., a specialty cement manufacturer and a principal in other businesses involved in the mining, production, marketing and distribution of specialty building products, chemicals and industrial minerals.

James D. Excell, B.A.Sc., Kelowna, B.C. (Director)
Mr. Excell is President and CEO of North American Palladium Inc., a mining company involved in the production of platinum group metals, nickel and copper. Mr. Excell is also a director of Diamondex Resources Ltd. and the Prospectors and Developers Association of Canada.

Robin E. Goad, M.Sc., P.Geo., Arva, Ontario. (President, CEO & Director)
Mr. Goad is the President and CEO of Fortune Minerals Limited and its coal, metal and aggregates subsidiaries. He is a geologist with more than 25 years of experience in the mining and exploration industries. Mr. Goad previously worked for major mining companies including Noranda and Teck, and as a consultant for junior resource companies and government in Canada and internationally. He co-founded Fortune Minerals in 1988. Mr. Goad also serves as a director of Ursa Major Minerals Incorporated and previously served as President and/or Director of other TSX listed mineral exploration companies.

David A. Knight, B.A., LL.B., Oakville, Ontario. (Director & Corporate Secretary)
Mr. Knight is a partner with Macleod Dixon LLP, Barristers and Solicitors, a major Canadian law firm, with extensive experience in the resource sector. Prior to January 2006, he was a lawyer with another national Canadian firm.

Mahendra Naik, B.Comm., C.A., Unionville, Ontario. (Director)
Mr. Naik is a Chartered Accountant and was one of the founding directors and key executives in starting IAMGOLD Corporation, a TSX and NYSE listed gold mining company. Mr. Naik currently is the Chief Financial Officer of Fundeco Inc., a private investment company.

Julian Kemp, B.B.A., C.A., (Vice President Finance & CFO)
Mr. Kemp is a Chartered Accountant and holds a Bachelor of Business Administration degree from Wilfrid Laurier University. He has 16 years of experience in the mining industry, including serving in senior financial management roles with several North American junior mining companies with production of gold and coal, and positions with engineering and mining contracting companies.

Garett MacDonald, MBA, B.Eng., P.Eng., (Engineering Manager)
Mr. MacDonald is a professional engineer with a Bachelor of Engineering (Mining) degree from Laurentian University and a Master degree in Business Administration from the Richard Ivey School of Business. Mr. MacDonald has more than 10 years of experience in engineering and mine operations, including positions with Suncor Energy at its oil sands operations in Fort McMurray, Alberta and Placer Dome at its Campbell and Dome gold mines in Ontario.

NEWS UPDATE

On May 29, 2007, Fortune Minerals Ltd. announced that it has reached an agreement in principle with Candou Industries Inc. to purchase its 9.2% minority interest in the NICO cobalt-gold-bismuth project in Northwest Territories not held by Fortune. As part of this same transaction, Fortune would also transfer its 30%minority interest in Formosa Environmental Aggregates Ltd. to Federal White Cement Ltd. Formosa is an industrial mineral company developing a high-calcium-limestone quarry in Ontario.

"In additional to providing Fortune with a 100% interest in NICO, this transaction will simplify Fortune's corporate structure and allow the Company to focus on its two core assets, NICO and the Mount Klappan anthracite coal deposits in northwest British Columbia," said Robin Goad, Fortune's President and Chief Executive Officer.

On May 1, 2007, Fortune Minerals Limited reported that it has successfully completed metallurgical testwork which produced an upgraded bismuth bullion (metal) product from concentrate at the NICO cobalt-gold-bismuth project in the Northwest Territories. This latest metallurgical testwork indicates preliminary results that a 94% bismuth metal product can now be produced at the site with recoveries in excess of 95% of the bismuth contained in concentrate.

On March 31, 2007, Fortune Minerals Limited provided its 2007 first quarter report ended Mary 31, 2007. Fortune's primary source of revenue is investment income. Interest and other income declined to $109,340 for the three months period ending March 31, 2007 compared to $139,502 for the same period in 2006. The Company's net loss for the quarter ended March 31, 2007 was $29,624 or $nil per share compared to the net loss of $145,666 or $nil per share in the same period in the prior year. Exploration and development expenditures incurred by Fortune on its properties during the three month period ending March 31, 2007 were $3,458,088.

On March 27, 2007, Fortune Minerals Limited announced that it has started a second $10-million program of underground test mining at its 91% owned NICO gold-cobalt-bismuth deposit in the Northwest Territories. The 2007 test mining program will assess the mining conditions and continuity of grade in the gold-rich, higher-grade, lower parts of the NICO deposit, approximately 200 metres beneath the surface.

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