Fortune Minerals Ltd (C:FT)
Shares Issued 94,779,407
Last Close 12/7/2009 $0.67
Tuesday December 08 2009 - News Release

Mr. Robin Goad reports

FORTUNE MINERALS APPLAUDS SASKATCHEWAN GOVERNMENT ANNOUNCEMENT

Fortune Minerals Ltd. applauds the government of Saskatchewan's Dec. 3, 2009, announcement of several new tax incentives to attract new business to the province. Fortune Minerals anticipates one of the incentives announced, the introduction of a five-year corporate income tax incentive for corporations that process minerals imported into the province, will directly benefit the company. Fortune Minerals recently announced the decision to locate its metallurgical process plant for the Nico project in Saskatchewan and, once in production, this tax incentive, if fully enacted into law, has the potential to enhance the economics of processing metal concentrates in Saskatchewan. During the search for a suitable location for a processing facility, the company received support from Enterprise Saskatchewan and the Saskatoon Regional Economic Development Authority in locating land in Saskatchewan. Fortune Minerals is further encouraged by the government of Saskatchewan becoming a strong proponent of the project with support and recognition the company's substantial investment to be made and the positive impact it will have in Saskatchewan and local communities.

Below is an excerpt from the news release issued on Dec. 3, 2009, by Enterprise Saskatchewan.

Saskatchewan encourages value-added mineral processing

The government of Saskatchewan has announced the introduction of a five-year corporate income tax incentive for corporations that process minerals imported into the province to the prime metal stage, which has the potential for a range of positive economic effects.

"Our government is committed to enhancing Saskatchewan's capacity to add value from natural resources," Enterprise Saskatchewan Minister Ken Cheveldayoff said. "For the province at large, this incentive will mean beneficial short-term economic activity and significant long-term gain, while an increase in corporate presence will serve to further raise our national and international presence and impact.

"This change will significantly enhance the attractiveness of refining imported minerals in our province," Mr. Cheveldayoff said. "We hope to attract quality, high-paying jobs to Saskatchewan as a result. We believe this type of targeted tax incentive holds great potential for encouraging economic growth in our province, and simply adds to the overall attractiveness and competitiveness of our business climate -- which is already considerable."

Legislation to implement the five-year corporate income tax incentive will be tabled in the spring 2010 session.

The proposed Saskatoon area site includes access to the main line of the Canadian National Railway, which can accommodate a rail spur for delivery of concentrates from the mine, supplies from vendors and metal products sold to customers in industrial centres in North America or points of export. The property is in close proximity to the Trans-Canada Highway and other services including power, natural gas and water supply. Saskatoon is the fastest growing city in Canada and the commercial centre for the province of Saskatchewan.

"With a diversified economy, a highly skilled work force and respected postsecondary institutions, Saskatoon can accommodate everything that is required to construct and operate this process plant," said Fortune Minerals president Robin Goad.

Fortune Minerals has determined that relocating its processing facility to Saskatoon produces positive net impacts for the entire Nico development for the benefit of all stakeholders. The Saskatoon plant is expected to employ 85 people over a 15-year to 20-year period based on the anticipated life of the Nico deposit alone. It may also provide the company with an opportunity to source materials from other projects for custom processing and also to participate in the metals recycling business. Undertaking such business activities would provide for a sustainable project extending beyond the anticipated life of the Nico mine. Investment in the plant is estimated at $150-million and construction is anticipated to commence upon receipt of the Nico mine permits and project financing.