Fortune Minerals completes purchase of minority interest in NICO project

    Issued Capital: 49,546,407

    LONDON, ON, Aug. 9 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune")
is pleased to announce that it has completed the purchase of the 8.0% minority
interest in the NICO cobalt-gold-bismuth deposit in the Northwest Territories
that was held by Candou Industries Inc. ("Candou") and the project is now
owned 100% by Fortune (see Fortune news release of May 29, 2007). Candou's
interest in the NICO project was 9.2% as at March 30, 2007 but was reduced to
8.0% during the last quarter for non-participation in recent programs. As part
of the same transaction, Fortune also transferred its interest in and
receivable from Formosa Environmental Aggregates Ltd. ("Formosa") to Candou.
Formosa is an industrial mineral company developing a high calcium limestone
quarry in Ontario.
    "This transaction provides Fortune with full ownership of NICO to
leverage this extremely valuable asset, which we are developing rapidly and
look forward to bringing into production in 2010," said Robin Goad, Fortune's
President and C.E.O. "At the same time, we are simplifying Fortune's corporate
structure to further enable us to focus on our two core assets, NICO and the
Mount Klappan anthracite coal project in northwest British Columbia."
    Pursuant to the agreement, Fortune issued to Candou 1,000,000 common
shares of Fortune and 100,000 common share purchase warrants exercisable at
$3.00 per share for a term of five years from the date of issuance. In
addition to the transfer of its 30% minority interest in Formosa to Candou,
the Company has also transferred its receivable from Formosa in the amount of
approximately $241,000, which reflects Fortune's pro-rata share of shareholder
advances to fund Formosa's expenses.
    Candou is a private company controlled by Fortune's Chairman, George
Doumet. The transaction was approved by the independent directors of Fortune,
subject to receipt of an opinion from Desjardins Securities Inc., that the
transaction is fair, from a financial point of view, to Fortune. Such opinion
has been delivered by Desjardins to the independent directors. As a result of
the transaction, George Doumet now beneficially owns or controls, directly and
indirectly, 4,356,324 shares of Fortune and 100,000 warrants.
    The NICO cobalt-gold-bismuth deposit is located 160km northwest of
Yellowknife, 22km west of the Snare hydro complex and 85km north of the
community of Behchoko and the highway to Edmonton, Alberta. The project has
already been assessed in a positive full feasibility study led by Micon
International Limited. Fortune is entering the permitting process to develop a
combined underground and open pit mine to produce cobalt cathode, gold doré
and bismuth bullion in a process plant to be constructed at the site. Phase 1
of underground test mining was completed at NICO in 2006 and a second
$10-million test mining program is underway to deepen the underground
workings. Approximately 250 tonnes of ore has been composited and will be used
in a large-scale pilot plant test planned for later this year at SGS Lakefield
Research Ltd. in Ontario. Notably, Fortune has also purchased the Golden Giant
mine buildings, equipment and approximately $2 million in spare parts
inventory from Newmont Canada at Hemlo, Ontario, which Fortune plans to
relocate to NICO.

    About Fortune Minerals

    Fortune Minerals is a diversified natural resource company with six
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
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,,; Greg Taylor, Investor &
Public Relations, Tel: (416) 605-5120, Fax: (905) 844-6532,

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