Fortune Minerals announces substantial completion of Golden Giant Mine dismantling and demolition

    Issued Capital: 64,890,857

    LONDON, ON, Aug. 12 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune
Minerals" or the "Company") is pleased to provide an update of the dismantling
and demolition of the Golden Giant Mine at Hemlo, Ontario for the relocation
of certain buildings and equipment to the Company's NICO
gold-cobalt-bismuth-copper mine development in the Northwest Territories. The
dismantling and demolition of the Golden Giant Mine facilities is
substantially complete and valuable equipment is being stored at the site
under an amended agreement with Newmont Canada Limited ("Newmont") pending
receipt of permits for NICO. The buildings and equipment salvaged from Golden
Giant will have a material impact on reducing the capital costs for the NICO
    Fortune Minerals acquired certain Golden Giant Mine buildings, equipment
and an inventory of spare parts from Newmont and Mindecom Industrial
Constructors Limited ("Mindecom") in 2006 after the mine closed, and the
remainder of the buildings from Newmont in 2008. Valuable assets salvaged from
the mine for use at NICO include buildings, grinding mills, the crushing
plant, flotation cells, compressors, boilers, generator, conveyors, pumps,
motors, overhead cranes, transformers, assay laboratory, and electrical switch
gear. Fortune Minerals is pleased to announce that it has entered into an
amending agreement with Newmont that will allow the Company to maintain the
service complex building and store its assets at the Hemlo site until
required, but no later than April 1, 2011.
    Fortune Minerals has generated significant cash proceeds from the sale of
gold recovered from residues and other materials collected during cleanup of
the Golden Giant Mine assets. Approximately 135 tonnes of high-grade materials
were processed or, are awaiting settlement at refineries in Canada and the
United States. The Company also sold approximately 8,200 tonnes of recyclable
scrap steel, copper and other metals from the mill, head frame and other
buildings that were demolished at the Hemlo site. Additional funds were
generated from the sale of surplus equipment and buildings, including a jaw
crusher, the paste fill plant and building, cold storage buildings, furnaces,
office and other small equipment that were not required at NICO.
    Fortune Minerals contracted Tri-Venture FE&C Canada Ltd. ("Tri-Venture")
as the primary contractor for the dismantling and demolition of the Golden
Giant Mine assets. The scope of work was reduced as allowable under the
contract after it was determined that certain Golden Giant Mine assets would
no longer be required at NICO, including portions of the mill building that
was demolished, and the paste fill plant, which was sold. The Company and
Tri-Venture have had disagreements over amounts chargeable under the contract.
The Company has received a Statement of Claim with respect to an action
commenced by Tri-Venture against Fortune Minerals and Newmont. Tri-Venture
alleges that it is still owed approximately $2.9 million for services provided
under its contract with Fortune Minerals. The Company believes that such claim
is not supported by the facts and is considerably in excess of the amount
actually owed. Fortune Minerals intends to vigorously defend the claim.
    Fortune Minerals is in the permitting process to develop a combined open
pit and underground mine to feed a conventional crushing, grinding and
flotation mill, and related infrastructure at NICO. The project is located 160
km northwest of the City of Yellowknife, 50 km north of the Tlicho community
of Whati, and 80 km north of the highway to Edmonton, Alberta. The Company
plans to produce a bulk flotation concentrate at the NICO site for transport
to the rail head at Hay River, Northwest Territories and delivery to a
refinery the Company will construct in southern Canada. NICO is a vertically
integrated project to produce high value metal products, including gold doré,
cobalt and bismuth cathode and copper.

    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 gold-cobalt-bismuth-copper deposit, the Sue-Dianne copper-silver
deposit and other base and precious metals exploration projects in the
Northwest Territories. Fortune Minerals owns the buildings and equipment from
the Golden Giant Mine at Hemlo, Ontario, which have been dismantled for
relocation to NICO. Fortune Minerals is focused 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 outcome of the legal action commenced by Tri-Venture.
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 uncertainty in the outcome of
litigation and other factors. 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
- or - Lindsay Simmons, IR Coordinator,, Tel.: (519)
858-8188, Fax: (519) 858-8155,; Renmark Financial
Communications: Dan Symons,; Barbara Komorowski,; Media Contacts: François Trépanier,; Vanessa Napoli,,
Tel: (514) 939-3989, Fax: (514) 939-3717

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