Fortune Minerals awards contract for Hemlo Mill dismantling, equipment salvage & demolition



    Preparing for relocation to NICO

    Issued Capital: 50,100,107

    LONDON, ON, July 15 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune"
or the "Company") announced today that it has selected Tri-Venture FE&C
Limited (Tri-Venture FE&C) as the primary contractor to conduct the
dismantling of buildings, equipment salvage, and demolition of surplus
facilities at the Golden Giant Mine at Hemlo, Ontario. The Golden Giant mine
is located adjacent to the Trans Canada Highway approximately 50 kilometres
east of Marathon. The mine buildings, equipment and spare parts inventory were
purchased from Newmont Canada Limited (Newmont) and Mindecom Industrial
Constructors Limited (Mindecom) in 2006 and 2008 for the purposes of
relocating selected components to the Company's NICO cobalt-gold-bismuth
project in the Northwest Territories. The purchase is expected to materially
reduce capital costs for the proposed mine and notably, Fortune is not
responsible for environmental liabilities at the Hemlo site, except to remove
the assets it has purchased before April 30, 2010 (see Fortune Minerals news
releases, dated August 31, 2006 and March 25, 2008).
    Tri-Venture FE&C is a company owned jointly by Tri-Venture Construction
Ltd. of Airdrie, Alberta and Federal Engineers and Constructors Ltd. of
Richland, Washington, U.S.A. that specialize in demolition and
decommissioning, asset salvage and disposal, and environmental remediation of
large-scale projects. Tri-Venture FE&C will conduct the dismantling of
selected buildings and removal of large equipment, including the crushing and
grinding plant, float cells, cranes, conveyors, electrical equipment and
motors, as well as smaller equipment that has not already been salvaged by
Fortune's own team of employees. Tri-Venture FE&C will also conduct the
demolition of surplus buildings such as the headframe and administration
complex that are not required for re-use at NICO. Valuable materials,
including structural and stainless steel, copper and aluminum will be
collected, sorted and shipped for sale as scrap. Scrap metals are currently
selling at historic high prices making this an important source of revenue
from the project. Tri-Venture FE&C is scheduled to commence work on July 15,
2008, with completion of the project on or before December 31, 2009.
Approximately 70% of the workforce will be hired from local communities
between Sault Saint Marie and Thunder Bay, as well from the Pic Mobert and Pic
River First Nations.
    Fortune has had its own team of employees working at the Golden Giant
Mine site preparing equipment parts inventories and smaller assets for
relocation to NICO or sale on the used equipment market. Fortune has also
entered into agreements with two different companies in order to collect
materials from the Hemlo assets for recovery of contained precious metals. The
sale of these metals are expected to provide another important source of
revenue from the project that will be ongoing concurrently with the
dismantling.
    Fortune's 100% owned NICO cobalt-gold-bismuth project is located 160km
northwest of the City of Yellowknife, 22km west of the Snare hydro complex and
80km north of the Tlicho community of Behchoko and the highway to Edmonton.
NICO has already been assessed in a positive definitive feasibility study led
by Micon International Ltd. (see Fortune Minerals news releases, dated May 8,
2008 and January 16, 2007). Fortune has submitted its "land use" and "water
license" applications to the Wek' èezhi' Land and Water Board to permit the
proposed mine. Front End Engineering Design for the mine is ongoing under the
direction of Aker Metals, a division of Aker Solutions Canada Inc. Based on
anticipated time to complete the permitting, Fortune is targeting production
in 2011 to produce cobalt cathode, gold doré and bismuth over a minimum
15-year mine life using a combination of open pit and underground mining and
hydrometallurgical process methods at a plant constructed at the site. Robin
Goad, M.Sc., P.Geo., President and James Currie, B.Sc. (Hons.), P.Eng., Vice
President Operations are the Qualified Persons responsible for this release
under National Instrument 43-101.

    About Fortune Minerals

    Fortune Minerals is a diversified natural resource company with several
mineral deposits and a number of exploration projects, all located in Canada.
They include the Mount Klappan anthracite coal deposits in British Columbia,
and the NICO cobalt-gold-bismuth deposit, the Sue-Dianne copper-silver deposit
and other base and precious metals exploration projects in the Northwest
Territories. Fortune Minerals is focussed on outstanding performance and
growth of shareholder value through assembly and development of high quality
mineral resource projects.

    This press release contains forward-looking information. This
forward-looking information includes, or may be based upon, estimates,
forecasts, and statements as to management's expectations with respect to,
among other things, the size and quality of the Company's mineral resources,
progress in development of mineral properties, demand and market outlook for
metals and future metal prices. Forward-looking information is based on the
opinions and estimates of management at the date the information is given, and
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 inherent risks
involved in the exploration and development of mineral properties, the
uncertainty of being able realize anticipated revenues from the sale of scrap
metals and other materials from the Hemlo site, uncertainties with respect to
the receipt or timing of required permits and regulatory approvals, the
uncertainties involved in interpreting drilling results and other geological
data, fluctuating metal prices, the possibility of project cost overruns or
unanticipated costs and expenses, uncertainties relating to the availability
and costs of financing needed in the future and other factors. Mineral
resources that are not mineral reserves do not have demonstrated economic
viability. Inferred mineral resources are considered too speculative
geologically to have economic considerations applied to them that would enable
them to be categorized as mineral reserves. There is no certainty that mineral
resources will be converted into mineral reserves. The forward-looking
information contained herein is given as of the date hereof and the Company
assumes no responsibility to update or revise such information to reflect new
events or circumstances, except as required by law.





For further information:

For further information: Fortune Minerals Limited, Robin Goad,
President, Tel.: (519) 858-8188, Fax: (519) 858-8155,
info@fortuneminerals.com, www.fortuneminerals.com


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