Fortune Minerals Receives Nico Project Interim Land Use Permit

LONDON, ON - Fortune Minerals Limited reported that the Wek Aezhoi Land and Water Board has approved a Staging (Interim) Land Use Permit for the NICO gold-cobalt-bismuth-copper mine in the Northwest Territories (NT). This Staging Land Use Permit allows Fortune to conduct land-based early works at the NICO mine, including staging of equipment and site preparation activities prior to the issuance of the full mine permits anticipated to be received mid-year. Subject to receipt of financing and the full mine permits, the Company will be well positioned to commence construction of the mine and concentrator.

Dr. Rick Schryer , Director of Regulatory and Environmental Affairs for Fortune commented, "This interim land use permit is needed should the Company wish to stage equipment and to conduct early site preparation to facilitate full construction after the final mine permits have been received. This is an additional milestone towards Fortune's goal of developing the NICO mine, which together with planned legacy road and power infrastructure, will contribute positively to local communities and the economy of the Northwest Territories.”

Fortune continues to work with Deloitte Corporate Finance Inc. to complete project financing agreements for the NICO Project. The Company already announced a strategic investment by Procon Resources Inc. in 2013 to provide interim financing to advance work on the project, and negotiations are ongoing to secure final project financing for the development.

Fortune is also pleased to support the Northwest Territories Power System Plan announced recently by the Government of the Northwest Territories. The objectives of this plan are to improve electrical affordability and reliability to NT communities, industry and new mineral developments, while also creating jobs, and achieving energy self-sufficiency.

With surplus power now forecast to be available from a consolidated NT electrical grid, Fortune has been working with the Northwest Territories Power Corporation (NTPC) to connect the NICO Project into the Snare / Yellowknife grid, which is located approximately 22 km from the proposed mine site. The Company has already received attractive indicative pricing from NTPC and is working cooperatively with them on a connection study that will allow Fortune to enter into a long-term contract with firm power rates.

NICO is positioned to become a reliable Canadian-based producer of gold, cobalt and bismuth co-products with a minor copper by-product.  Mining will be conducted primarily by open pit methods with underground ores also contributing mill feed during the first two years from the existing underground workings that were established from previous test mining programs. The ores will be processed in a concentrator at the site, using simple flotation to produce a bulk concentrate for shipment to a refinery and additional processing to high value metal products. More than $110 million of work has already been invested to advance the project, including completion of Front-End Engineering and Design and feasibility studies, underground test mining, and pilot plant tests to verify the process methods and products the Company plans to produce. NICO is located 50 km north of the Tlicho community of Whati and 160 km northwest of the City of Yellowknife.