Fortune Minerals provides Nico Project Update

    Underground Test Mining & Environmental Programs Proceeding as Planned

    Issued Capital: 38,996,407

    LONDON, ON, June 21 /CNW/ - Fortune Minerals Limited (TSX-FT) is pleased
to provide an update of its 2007 test mining and environmental programs for
its NICO cobalt-gold-bismuth deposit in the Northwest Territories. Fortune is
conducting a second $10-million phase of test mining program to deepen the
underground workings following its 2006 bulk sampling program. This latest
test-work is assessing the mining conditions and continuity of grade in the
gold-rich, higher-grade, lower parts of the NICO deposit, approximately 200
metres beneath the surface. KeTe Whii - Procon, a joint-venture between Procon
Mining and Tunnelling of Burnaby, British Columbia and the Tlicho, Yellowknife
and Lutsel K'e Dene First Nations, are conducting this work under contract.
    The 2007 program began in February when approximately 50 truckloads of
fuel, explosives and bulk supplies were hauled to the site over the winter
road. Approximately 200 tonnes of ore from the 2006 program was also
backhauled to Yellowknife for trucking to SGS Lakefield Research Ltd. in
Ontario and pilot plant testing planned for later this year. A new trailer
camp has also been established to accommodate the mine workers and support
future mine construction.
    The decline ramp and underground workings established during the 2006
program were dewatered and mining commenced in March with a 20-metre extension
of the existing cross-cut in ore within the central part of the NICO deposit.
The main haulage ramp is being extended another 325 metres to access the ore
in the lower part of the deposit. As of mid-June, almost half of this work had
been completed. Approximately 300 metres of lateral development work will be
done to cross-cut the Lower Zone of the deposit after the ramp reaches its
ultimate depth. In addition, a 193-metre raise is being driven to surface for
ventilation and emergency access and about half of this work has been
completed to date. Fortune expects to complete this program in September.
    Additional environmental surveys are also being conducted to support the
environmental assessment and permitting of the NICO mine. A corridor route is
being studied to establish a connection to the power grid at the Snare hydro
complex 22 km east of the proposed mine. These studies include soils and
vegetation mapping, archaeology and wildlife surveys. Additional hydrology,
noise, wildlife and aquatic biology studies as well as First Nation
Traditional Knowledge studies are also being done to supplement the existing
baseline information that has been collected in the area of the proposed mine
since 1998.
    NICO's planned development has been assessed in a positive full
feasibility study that showed an attractive rate of return using base case
metal price assumptions (2-year trailing average prices) and very attractive
economics at January 2007 prices when the study was completed (see News
Release, dated January 17, 2007). Since the release of this feasibility study,
prices for gold, cobalt and bismuth have continued to increase and are now
quoted at approximately US$ 650/ounce, US$ 27.50/lb, and US$ 20/lb,
respectively. These represent an increase in price over the base case used in
the feasibility study of approximately 24%, 67% and 344%, respectively and are
due to increasing demand for these metals and constrained supply. Fortune has
already purchased the Golden Giant mill and surface facilities at Hemlo,
Ontario for dismantling and relocation to NICO, which is located 160 km
northwest of the City of Yellowknife and 80 km north of Behchoko and the
highway to Edmonton, Alberta.
    Fortune's development plans for NICO involve a combination of underground
and open pit mining with processing at the site to produce gold doré, cobalt
cathode (99.8% purity) and bismuth bullion or cement. Upon completion of the
2007 test mining program, most of the underground development will have been
completed to support future underground mining operations after receipt of the
requisite permits. Robin Goad, P.Geo., is the Qualified Person responsible for
this release for the purposes of National Instrument 43-101.

    About Fortune Minerals
    Fortune Minerals is a diversified natural resource company with seven
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: 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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