TORONTO, ONTARIO--(Marketwired - Feb. 15, 2017) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Fortune Minerals Limited (TSX:FT)(OTCQX:FTMDF) ("Fortune" or the "Company") is pleased to announce that it has entered
into an agreement with Cormark Securities Inc. (the "Underwriters"), which has agreed to purchase, on a bought deal basis, 20
million units of Fortune (the "Units") at a purchase price of $0.25 per Unit (the "Offering Price"), for aggregate gross proceeds
in the amount of approximately $5 million (the "Offering"). Each Unit will consist of one common share of Fortune (a "Unit
Share") and one half of one common share purchase warrant (each whole purchase warrant a "Warrant"), each Warrant being
exercisable to acquire one common share of Fortune at a purchase price of $0.35 for a period of 24 months following the closing
date.
In addition, the Company has granted the Underwriters an option to purchase additional Units at the Offering Price to raise
additional gross proceeds of up to 15% of the Offering, for a period of 30 days after and including the Closing Date to cover
over-allotments, if any, and for market stabilization purposes.
The offering is scheduled to close on or about March 8, 2017. Closing is subject to certain conditions including, but not
limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities
regulatory authorities.
The net proceeds from the offering will be used to fund an updated feasibility study for the NICO Cobalt-Gold-Bismuth-Copper
project and for general corporate purposes.
This press release shall not constitute an offer to sell or solicitation of an offer to buy nor shall there be any
sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities
will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the
United States absent registration or applicable exemption from the registration requirements.
About NICO:
The NICO deposit contains Proven and Probable Mineral Reserves totaling more than 33 million tonnes that will support a
21-year mine life at a planned mill throughput rate of 4,650 metric tonnes of ore per day. Approximately 180 wet tonnes per day
of bulk concentrate will be produced by flotation in the mill containing the recoverable metals and will be trucked from the site
on the new road to the rail head at Hay River for railway delivery to the refinery in Saskatchewan and downstream processing to
value-added metals and chemicals. Life of mine average annual production is projected to be 41,300 ounces of gold, 1,615 tonnes
of cobalt contained in a battery grade cobalt sulphate, 1,750 tonnes of bismuth contained in metal ingots and oxide powder, and
265 tonnes of copper.
The disclosure of scientific and technical information contained in this news release has been approved by Robin Goad, M.Sc.,
P.Geo., President and Chief Executive Officer of Fortune, who is a "Qualified Person" under National Instrument 43-101. The
technical report on the feasibility study referred to above, entitled "Technical Report on the Feasibility Study for the
NICO-Gold-Cobalt-Bismuth-Copper Project, Northwest Territories, Canada", dated April 2, 2014 and prepared by Micon International
Limited, from which certain information in this press release has been extracted, has been filed on SEDAR and is available under
the Company's profile at www.sedar.com.
About Fortune Minerals
Fortune is a Canadian development stage mining company focused on advancing the vertically integrated NICO
gold-cobalt-bismuth-copper project in the Northwest Territories and a related refinery the Company plans to construct in
Saskatchewan. Fortune also owns the Sue-Dianne copper-silver-gold deposit located 25 km north of NICO and a potential future
source of incremental mill feed to extend the life of the NICO mill. The Company also maintains the right to repurchase the
Arctos anthracite coal deposits in northwest British Columbia that were recently purchased by a provincial Crown corporation.
This press release contains forward-looking information and forward-looking statements within the meaning of applicable
securities legislation. This forward-looking information includes statements with respect to, among other things, the Company's
plans to develop the NICO project (including the Company's plans to secure off-take agreements and project financing to start
construction), estimated future production, anticipated growth in the demand for cobalt, anticipated constraints on the supply of
cobalt and plans for the construction of an all-season road needed for operations at the NICO Project. Forward-looking
information is based on the opinions and estimates of management as well as certain assumptions at the date the information is
given (including, in respect of the forward-looking information contained in this press release, assumptions regarding the
Company's ability to arrange the necessary financing to continue operations and develop the NICO project, growth in the demand
for cobalt, restrictions on the supply of cobalt and the proposed construction of the all-season road, the economic environment
in which the Company will operate in the future, including the price of gold, cobalt and other by-product metals, anticipated
costs and the volumes of metals to be produced at the NICO Project). However, such forward-looking information is subject to a
variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those
projected in the forward-looking information. These factors include the risks that the Company may not be able to finance and
develop NICO on favourable terms or at all, the market for rechargeable batteries and the use of stationary storage cells may not
grow to the extent anticipated, the future supply of cobalt may not be as limited as anticipated, the Company's production of
cobalt and other metals may be less than anticipated and other operational and development risks, market risks and regulatory
risks. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions,
forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking
information contained herein is made as of the date hereof and the Company assumes no responsibility to update or revise it to
reflect new events or circumstances, except as required by law.