Fortune Minerals Limited retains CIBC World Markets as financial advisor to pursue strategic alternatives for Mount Klappan anthracite coal project



    Issued Capital: 50,100,107

    LONDON, ON, July 2 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune"
or the "Company") announced today that it has engaged CIBC World Markets Inc.
("CIBC World Markets") to act as Fortune's financial advisor in pursuing
strategic alternatives for the advancement of the Company's world-class Mount
Klappan anthracite coal project. CIBC World Markets will assist Fortune in
identifying potential strategic partners and evaluating potential
transactions.
    Fortune's wholly-owned Mount Klappan anthracite coal project is located
in northwest British Columbia and straddles the B.C. Railway right-of-way
150 km northeast of the port of Stewart and 330 km northeast of the port of
Prince Rupert. The Lost Fox deposit at Mount Klappan has been assessed in a
positive feasibility study by Marston & Marston Inc. (Marston) in 2005, which
evaluated a number of production rate, coal price and transportation
alternative scenarios (see Fortune's news release, dated October 17, 2005).
Marston is currently updating the scenario for a 3 million tonne per year mine
and wash plant to produce a premium ultra-low volatile pulverized coal
injection (PCI) product for truck haulage to the port of Stewart and export to
overseas steel customers. This feasibility study update is expected to be
completed this month. The Company also continues to advance the environmental
assessment process and consultation with local communities.
    The Mount Klappan project contains very large resources of high quality
anthracite coal, a hard coal with the highest rank, carbon and energy content
and lowest moisture and volatile content of all coals. These unique properties
make anthracite suitable for a broad range of metallurgical and thermal
applications, including carbon filters, reductants for metallurgical
processing, blend coals for blast furnace coke replacement, and charge carbon,
sinter and PCI coal used in the manufacture of steel. Mount Klappan's
anthracite resources are identified in four distinct deposit areas referred to
as Lost Fox, Hobbit-Broatch, Summit and Nass. Collectively, these contain
Measured resources of 107.9 million tonnes, Indicated resources of 123 million
tonnes, plus 2.572 billion tonnes in the Inferred and Speculative classes (see
Fortune's news release dated June 22, 2004). The Proven and Probable reserves
contained in the Lost Fox deposit are 102 million in-situ tonnes. Richard
Marston, P.E., was the Qualified Person responsible for the resource and
reserve estimates in accordance with National Instrument 43-101.
    There can be no assurance that the engagement of a financial advisor will
result in a transaction or that any transaction will be made within any
specific time frame.

    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 to conclude a transaction with respect to the Mount
Klappan project, 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; Greg Taylor, Investor &
Public Relations, Tel: (905) 337-7673, Cell: (416) 605-5120, Fax: (905)
844-6532, gtaylor@fortuneminerals.com


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