Fortune Minerals Limited raises $4.25 million from initial tranche of private placement


    Issued Capital: 64,028,827

    LONDON, ON, May 21 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune"
or the "Company") is pleased to announce that it has issued 8,425,000 units at
$0.50 per unit and 53,750 flow-through shares at $0.70 per share under two
non-brokered private placements to raise gross proceeds of $4,250,125. Each
unit consists of one common share and one-half of one common share purchase
warrant. Each whole warrant entitles the holder to purchase one common share
for $0.80 on or before September 2, 2010. Fortune expects to close a second,
smaller and final tranche under both private placements on or about June 1,
    The net proceeds of the offerings will be used: (i) to fund environmental
testing, permitting activities, engineering and other development work for the
NICO gold-cobalt-bismuth-copper project in the Northwest Territories; (ii) for
completion of the dismantling and demolition of the Golden Giant Mine
buildings and process facilities at Hemlo, Ontario, and storage of salvaged
assets for subsequent relocation to NICO upon receipt of mine permits; and
(iii) for working capital and general corporate purposes.
    The securities being offered have not, nor will they be registered under
the United States Securities Act of 1933, as amended, and may not be offered
or sold within the United States or to, or for the account or benefit of, U.S.
persons. This release does not constitute an offer for sale of securities in
the United States.

    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, anticipated future financing. 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 uncertainties relating to the availability and timing of such
financing 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, Account Manager, or Rea Unson, Junior
Account Manager, Tel. (514) 939-3989, Fax. (514) 939-3717,,

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