Fortune’s near-surface NICO project, near Yellowknife in Canada’s Northwest Territories, is an Olympic Dam-style IOCG deposit. The project encompasses 5,140 hectares of contiguous mining leases and contains a 4.8 million-equivalent-ounce gold reserve within a much larger resource that could expand the reserve base during periods of high metal prices. Very large geophysical anomalies identified on the property, together with numerous mineral showings, give this project tremendous additional exploration potential. The Company has set a target date of late-2010 for this 100%-owned project to begin production.
       In addition to the obvious value of the gold in NICO’s ore, there is an active and growing market for its cobalt output as well. Cobalt`s high-strength and magnetic properties make it in increasing demand for metallurgical applications, including high strength alloys, cutting tools, cemented carbides and magnets. Chemical markets are also growing rapidly, particularly for lithium ion and nickel-metal hydride rechargeable batteries used in portable computers, cellular phones and other electronic devices, as well as for the proliferating number of hybrid-electric cars. In 2007, the cobalt market consumed 65,000 tonnes, double the consumption of eight years ago. Consumption is expected to grow to 120,000 tonnes in the next few years, particularly as a result of its new applications and Asian economic growth such as in China and India.
       Bismuth consumption has also been growing by about 15% annually, primarily because it is similar physically to lead but is nontoxic. Thus, it is in increasing use in lead-free solders for plumbing and electronics, paint pigments, brass, ammunition, radiation shielding, hot-dip galvanizing, ceramic glazes and free-cutting steel. Further, bismuth’s antibacterial properties make it suitable for a number of pharmaceutical, medicinal (e.g. Pepto-Bismol™), and cosmetic applications. It is also being used in super conductors and coatings to control overheating of semi-conductors and compact discs. A market for NICO’s bismuth output appears guaranteed as MCP Metal Specialties Inc., one of the world’s largest manufacturers of bismuth based products, has agreed to buy all of Fortune’s bismuth production.
       A 2007 BFS on the NICO deposit calls for both underground and open pit mining and a processing plant to produce gold doré, cobalt cathode and bismuth metal. The study, led by Micon International Limited and Met-Chem Canada Inc., shows very attractive economics that are significantly enhanced based on current prices. Average open pit mining costs are estimated at C$2.59 per tonne of rock moved combined with underground operating costs of C$34.02 per tonne.
       While the project is accessible by a government winter road, Fortune is working with the Tlicho First Nation and the governments of the Northwest Territories and Canada to build an all-weather road better connecting NICO, these communities and the Snare hydroelectric facility, 22 kilometers to the west.
       Environmental assessment, permitting and engineering activities for the mine are underway, including the construction of a camp to accommodate a workforce of nearly 300, improved site infrastructure and construction of a processing plant. In 2005, the Company purchased the Golden Giant Mine mill and surface facilities at Hemlo, Ontario from Newmont in order to significantly reduce projected capital costs. A Fortune team is now preparing the plant for relocation to the NICO site, and preparing to sell several million dollars worth of excess high value materials, equipment and significant amounts of gold, silver and other valuable metals that are contained in certain equipment at the mine.

       Fortune’s 150-square-kilometer Mount Klappan anthracite coal project is located near rail and port facilities in northwest British Columbia. Anthracite coal is a “hard coal” with the highest carbon and energy content, as well as the lowest moisture and volatile content of all coals. Only 1% of world coal reserves are anthracite grade, with about 400 million tonnes being produced annually. Anthracite’s unique properties make it suitable for use in a broad range of premium metallurgical, thermal, water purification and composite materials applications, as well as in the processing of steel, aluminum and titanium, and for coal-to-oil liquefaction. Anthracite coal is also preferred for new “clean coal” technologies for power generation to reduce greenhouse gas emissions.
       Mount Klappan contains resources of 107.9 million tonnes measured, 123 million tonnes indicated, and 2.572 billion tonnes in the inferred and speculative classes, making it one of the largest known unexploited anthracite resources in the world. Fortune is at once preparing to bring the project into production at a rate of at least 3 million tonnes per year and seeking a significant joint venture partner to bring this massive project into production at a higher rate, within the same time frame as the NICO development.
       Mount Klappan`s resources are so vast that a bankable feasibility study conducted for just the Lost Fox deposit, one of four resource areas at the project, found very attractive rates of return under a variety of production and coal price scenarios, including one verifying the economics of producing 60 million tonnes of high quality ultra-low volatile PCI coal for the overseas steel industry.
       Fortune is further advancing the project through a number of environmental assessment, community relations and infrastructure development activities, all aimed at optimising the project’s prospects and economics.

       Fortune`s wholly-owned Sue-Dianne copper-silver deposit in the Northwest Territories contains 24.5 million tonnes of near-surface resources amenable to low cost open pit mining with a low strip ratio. It lies just 25 kilometers north of NICO and close to the Snare hydro complex.
       The upper 10 million tonne portion of the deposit contains higher grade material, averaging 1% copper. Mineralization is open at depth. Metallurgical tests indicate high recoveries can be achieved for copper, silver and gold in a concentrate produced from conventional crushing and grinding followed by simple flotation. A high value cathode copper product could also be produced at NICO, presenting an excellent opportunity for incremental mill feed to extend the life of the NICO plant.

       Fortune Minerals has a highly-experienced management team with stellar individual track records. The Company’s Chairman, George Doumet has founded a number of industrial companies, including Federal White Cement Ltd., where he is President and CEO. Fortune’s President and CEO, Robin Goad, is a professional geologist with over 25 years of experience in mining and exploration. Other top company executives have extensive experience in the mining sector, financing, and mine permitting and have worked for such industry heavyweights as BHP Billiton, Golder Associates, Miramar Mining and IAMGOLD Corporation.
       The Company recently completed a $28-million financing, and its stock has strong institutional support. With an impressive portfolio of strategic metals properties with two high-quality, advanced stage projects with targeted production starting in less than three years, Fortune Minerals offers an enticing scenario for investors – significant leverage to current metals prices and the potential for real, near-term revenues.
       “Fortune`s market capitalization barely touches the asset value of one of our top projects, let alone their cumulative worth,” says President and CEO Robin Goad. “As we approach our production goals and obtain a development partner for Mount Klappan, that should change significantly as we have the clear potential to generate strong returns for its shareholders.”