Fortune Minerals Ltd. is providing an update of continuing winter programs for its Nico gold-cobalt-bismuth-copper deposit in the Northwest Territories (NWT) and its proposed Saskatchewan metals processing plant (SMPP) near Saskatoon. Fortune Minerals plans to become a vertically integrated metal producer. The company will mine and process ores at the Nico site in the NWT and produce a bulk concentrate for delivery to its proposed SMPP for refining to high value metal products, including gold-dore, and cobalt, bismuth and copper cathodes. Nico is undergoing an environmental assessment to permit the mine and concentrator in the NWT, and a concurrent permitting process for the SMPP in Saskatchewan. Field programs are being conducted at both sites to support permitting and planned construction activities, and optimize the project for production targeted in late 2012.

Nico Mine Site Field Programs:

The Nico gold-cobalt-bismuth-copper deposit is located in the southern part of the NWT, 160 km northwest of the City of Yellowknife and 50 km north of the community of Whati. Fortune Minerals contracted Tlicho Logistics to extend the Government winter road used to supply local communities to the Nico mine site. This ice road has been completed and Tlicho Logistics is now transporting fuel and other bulk supplies to the project to support the company's winter and summer field programs.

Foraco Drilling Ltd. has been contracted to conduct additional geotechnical drilling at the mine to support continuing engineering and the construction of the mill, mine buildings and airstrip. This work, together with engineering of the roads and plant site, is being supervised by EBA Engineering Consultants Ltd. Additional geotechnical drilling is also being conducted in the proposed impoundment area for management of co-mingled waste rock and mill tailings. Monitoring holes are also being installed to collect groundwater samples for base line characterization and to monitor seepage during mine operations. Golder Associates Ltd. is conducting the engineering work for the tailings and waste rock management area as well as the environmental work for the Nico mine site. Condemnation holes are being drilled beneath the proposed waste rock and tailings impoundment area to ensure that no potential unidentified open pit mineable ores are sterilized by the construction of these facilities.

Fortune Minerals is pleased to announce that it will conduct a significant additional drilling program this summer, currently estimated at 7,000 metres in 43 holes. The main objectives for this program are to extend the known mineral reserves for the deposit and provide better definition of the perimeter of the orebody for detailed mine operations and production scheduling. Notably, the company believes there is good potential to expand the gold-rich zones of the deposit where they remain open for possible expansion at depth. The Nico deposit currently has Proven and Probable Mineral Reserves totaling 31 million tonnes containing 907,000 ounces gold, 82 million pounds of cobalt, 109 million pounds of bismuth and 27 million pounds of copper (See Fortune Minerals News Release, dated January 14, 2010 and the table below). The identification of additional reserves could extend the life of the mine beyond the currently contemplated 18 years and also has the potential to increase the gold reserves above 1 million ounces. The Nico deposit contains 4 million equivalent gold ounces with the conversion of the value of the contained cobalt, bismuth and copper at the metal price assumptions used in the reserve estimates.