2009-11-06 11:32 ET - News Release

Mr. Robin Goad reports

FORTUNE MINERALS ANNOUNCES FILING OF PRELIMINARY SHORT FORM PROSPECTUS FOR PROPOSED PUBLIC OFFERING

Fortune Minerals Ltd. has filed a preliminary short-form prospectus in connection with an offering of up to 23,077,000 units at an offering price of 65 cents per unit for total gross proceeds of up to $15,000,050. This offering is undertaken as part of the company's overall financing plan in pursuit of its goal to become a specialty metals producer. Robin Goad, president and chief executive officer of Fortune, stated, "This financing is an important step in maintaining our proposed development timetable as it will allow us to aggressively pursue the permitting process related to our Nico project, undertake additional development activities and take full advantage of the acquisition of the Hemlo mill assets."

The units will be offered for purchase and sale, on a reasonable best-efforts basis, by a syndicate of agents led by Paradigm Capital Inc. and including CIBC World Markets Inc., Dundee Securities Corp., Jones, Gable & Company Ltd. and Loewen, Ondaatje, McCutcheon Ltd. Each unit will consist of one common share in the capital of the company and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder thereof to acquire one common share of Fortune at an exercise price of 80 cents per common share at any time up to 5 p.m. ET on the day that is 24 months following the closing date of the offering.

Fortune has granted to the agents an option, exercisable, in whole or in part, in the sole discretion of the agents, to purchase up to an additional 3,461,550 units for the purposes of covering overallotments, if any, and for market stabilization in connection with the offering.

The net proceeds of the offering will be used by Fortune principally to finance:

1. The permitting process associated with the Nico gold-cobalt-bismuth-copper project;
2. The costs associated with the development of the Nico hydrometallurgical facility to be located in Saskatchewan;
3. The transportation and refurbishment of the Hemlo mill assets and down payments on long lead equipment for the Nico project;
4. Other uses including costs associated with maintaining and joint venturing the Mount Klappan anthracite coal project, maintaining the company's interests in its other projects, as well as for administrative expenses, general corporate purposes and working capital.

The offering is subject to regulatory approval, including approval of the Toronto Stock Exchange, and is expected to close on or about Dec. 3, 2009.