Fortune Minerals Purchases Additional Hemlo Assets



    Tenders Proposal for Salvage, Dismantling & Demolition of Golden Giant
    Mine Facilities

    TORONTO, March 25 /CNW/ - Fortune Minerals Limited (TSX-FT) is pleased to
announce that it has purchased additional assets at the Golden Giant Mine at
Hemlo, Ontario from Newmont Canada Ltd. (Newmont). This includes the Golden
Giant headframe, administration and link buildings with associated equipment,
the Cedar Creek pump station, and approximately 15 km of water and tailings
pipelines and related equipment. None of these assets were part of Fortune's
earlier purchase from Mindecom Industrial Constructors Limited and Newmont of
buildings, equipment and spare parts inventory that were purchased in 2006 for
$3.3 million (see News Release, dated August 31, 2006). Some of the acquired
buildings and all major equipment will be dismantled, refurbished and
relocated to Fortune's NICO cobalt-gold-bismuth project in the Northwest
Territories. This equipment will have a very material impact on reducing
capital costs for developing the NICO project.
    Consideration for this recent purchase is a nominal $1. Fortune will
assume the responsibility and costs for dismantling and removing these assets
from the Golden Giant Mine site. Fortune will also own all salvageable
equipment, metals and other materials recovered from the assets. Newmont has
also agreed to allow Fortune to store dismantled equipment from its collective
purchases at the Golden Giant Mine site until April 30, 2010, an extension
from the earlier September, 2009 deadline, in order to allow for more timely
winter road access to NICO.
    Fortune is also pleased to report that it has prepared a detailed Request
for Proposal (RFP) bid document to identify a suitable contractor to handle
the salvage, dismantling and demolition of buildings and equipment from the
Hemlo site. Fortune, which has already executed the required Notice of Work to
the Ontario Ministry of Labour to commence these activities, plans to award
the contract by the end of April. Fortune believes that, in addition to
providing a competitive proposal, the successful bidder will need to maximise
the use of skilled and unskilled labour from the local communities of
Manitouwadge, Marathon, White River, and the Pic Mobert and Pic River First
Nations.
    Fortune also has its own team working at the Golden Giant Mine site
preparing equipment inventories and salvaging some of the smaller assets for
relocation to NICO. Several of these employees may transfer to NICO for the
construction and mine operation phases of the proposed mine. Fortune has also
engaged a specialist contractor who has begun to recover significant amounts
of precious metals from the Golden Giant Mine equipment.
    Robin Goad, Fortune's President and CEO, noted, "In the period since we
reached our original agreement with Hemlo, we have discovered not only the
exceptional, hidden value of those original Golden Giant Mine assets, but also
that the site held additional buildings and equipment that will reduce our
construction costs and risks at NICO in a very material manner."
    NICO is located 160 km northwest of the City of Yellowknife, 22 km west
of the Snare hydro complex and 80 km north of the Tlicho community of Bechoko
and the highway to Edmonton. NICO has already been assessed in a positive full
feasibility study led by Micon International Ltd. (see News Release, dated
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. Fortune is also continuing to consult with local communities and the
Tlicho Government and has engaged in meaningful dialogue to negotiate and
secure access and impacts and benefits agreements with these communities.
Fortune is targeting production from NICO in late 2010 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
processing methods. Robin Goad, M.Sc., P.Geo. is the Qualified Person
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,
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: Robin Goad, President, Tel.: (519) 858-8188,
Fax: (519) 858-8155, info@fortuneminerals.com; Greg Taylor, Investor & Public
Relations, Tel: (905) 337-7673, Cell: (416) 605-5120, Fax: (905) 844-6532,
gtaylor@fortuneminerals.com; www.fortuneminerals.com


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