Fortress Financial Group, Inc.

June 16, 2010 09:20 ET

Fortress Financial Group, Inc. -- New Substantial Stockholder

Company Advised of a New Stockholder Now Holding in Excess of 21% of the Company's Shares of Common Stock

LAS VEGAS, NV--(Marketwire - June 16, 2010) -  Fortress Financial Group, Inc. (PINKSHEETS: FFGO) was formally advised late yesterday that an Investment Company has now acquired in excess of 5% of the Company's shares of Common Stock, requiring them to file a Schedule 13-D disclosing their beneficial ownership.

At this point the Company has been able to verify that this Investment Company:

  • Already holds in excess of 16 Billion "free trading" and unrestricted shares of the Company's Common Stock. This will place their holding in excess of 21% of our outstanding shares of Common Stock.
  • Will be holding their shares of the Company's Common Stock in Stock Certificate form and not in the DTC system.

We are unclear as to this Investment Company's intentions at this time but we have become aware that they have made offers to purchase shares of the Company's Common Stock from identifiable holders of large blocks of shares of the Company's Common Stock.

It is unclear at the moment as to what price per share they have paid to acquire these shares and as to whether or not they intend to increase their stockholding in the Company; and if so, by how much. Once they have filed a Schedule 13-D, the exact size of their immediate stockholding in the Company; will become clearer.

The Company holds an interest in two Gold Properties, namely "Bouse" and "South Copperstone." The Company has made it clear that these interests are to be sold and the proceeds distributed to its stockholders. The Company provided "pricing guidelines," namely no less than US$0.003 per share of Common Stock at a Gold price of US$1,050/oz. At this time with the price of Gold trading in excess of US$1,235/oz, this pricing guideline will have increased proportionately. The Company's shares of Common Stock trade at a massive discount to these stated "pricing guidelines."

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually," "projected" or "guidelines." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors and other risks identified in filings made by such company with the SEC.

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