SOURCE: FORTRESS FINANCIAL GROUP, INC.

August 11, 2008 10:20 ET

Fortress Financial Group, Inc. -- Statement by CEO

Company CEO Makes a Formal Statement to His Stockholders

NEW YORK, NY--(Marketwire - August 11, 2008) - Fortress Financial Group, Inc. (PINKSHEETS: FFGO) confirms that it has received a very large number of questions from stockholders on a wide range of issues. Alan Santini, the CEO of Fortress Financial Group, Inc. undertook to publish detailed responses to each and every question posed.

It would appear that the primary concerns of our stockholders are:

1) When will the Company declare the "Record Date" of the Extraordinary Dividend; and

2) Will the shares distributed in "Goldco" by the Company at the "Pay Date" of the Extraordinary Dividend be restricted and if so, for how long; and

3) That there is believed to be a large short position in the Company's stock and what is the Company going to do about this problem; and

4) When is the Company going to be up to date in its filings of Form 10-QSB and Form 10-KSB with the SEC?

A number of additional questions have been asked of the Company, all emanating from Internet Message Forums, and the Company does not for one second believe that these questions even warrant an answer on a Public Announcement.

The "Record Date" for the Extraordinary Dividend will be announced in late August of 2008 as promised. The Company is awaiting the exchange of its stock in both "South Copperstone" and in "Bouse" for its stock in Goldco. The "Record Date" of this Dividend is requiring co-ordination between a number of parties to ensure that no mistakes are made in the payment of this Dividend to stockholders of record as at the "Record Date."

The stock in Goldco will be restricted for a period of time as Goldco is required to file a Registration Statement with the SEC in respect of this stock. Alan Santini confirms that he is in discussions with the Management of Goldco to ensure a fair and equitable deal for both Goldco and for Fortress stockholders. The Management of Goldco is aware that this Extraordinary Dividend being paid by Fortress to its stockholders will bring many new stockholders to Goldco; and the Management of Goldco wishes to (a) ensure that these stockholders are kept satisfied and (b) to protect their stock price from being affected from many "wholesale dumping" of the shares in their Company being distributed by Fortress. Alan Santini is confident that a fair deal with be struck to protect the interests of all concerned.

The Company is very aware, based upon innumerable communications from stockholders that it is believed that a large short position exists in this Company's stock. At this time, the Company is in discussions with stockholders who hold large blocks of the Company's stock and undertakes to issue a Statement on this situation by no later than 12h30 EST today, August 11, 2008.

The Company is acutely aware that it is critical that its outstanding quarterly and annual filings be brought up to date with the SEC. The Company is, at this time, attempting to "fast track" this process with the assistance of its Corporate Counsel, Accountants and its Auditors. Stockholders will be advised should there be any delay in this process.

The Company is hoping to announce the appointment of Investor Relations firm within days in order to for all stockholder requests from information, whether they be by E Mail or by telephone, be dealt with immediately. There is a very good chance that this will be in place within the next few days.

Alan Santini, the CEO of Fortress Financial Group, Inc. "wishes to place on record that no less than 90% of the communications that he receives from stockholders relate to postings that stockholders have read on Internet Message Forums. There is absolutely no doubt that a number of parties are desperately trying to cause this Company and its stockholders great damage, all of which is both sickening and despicable." Alan Santini wishes to place on record "that this Company will, under his leadership, continue to honor its promises to its stockholders, be as open and transparent with stockholders as is permitted by law; and that should stockholders be concerned over what they read on these Message Boards, they should check the facts with himself; prior to acting on these postings." Alan Santini added "that he has remained detached from, and will not be drawn into, this murky world that exists on these Internet Message Boards, with these so called paid bashers and their barrage of personal attacks; and despite stockholder requests to the contrary, he will no longer discuss this issue with his stockholders in any further Announcements whatsoever."

Alan Santini added that "he was eternally grateful to the very many loyal stockholders who have been and continue to support both himself and the Company." Alan Santini promises all of these loyal and supportive stockholders that he will not fail these many people who have placed their faith, trust and money in this Company.

About Fortress Financial Group, Inc.

Fortress Financial Group, Inc. was primarily engaged in the issuing and marketing of prepaid debit card and related payment solution activities. Through the closure of the Trinity Mercantile Finance Group and the Mortgage Bank acquisitions, Fortress Financial Group, Inc. is now expediting its plans to become a broadly based Consumer Finance Group. The "Mortgage and Consumer Lending Divisions" will comprise the vast majority of the Group's earnings in the immediate to medium term.

The Company is utilizing is substantial Balance Sheet of circa US$100 million comprised of quoted and unquoted Gold Mining & Exploration stocks (This is after the payment of the Extraordinary Dividend of US$400 million to stockholders) to aggressively fund a large number of acquisitions in the consumer financial services sector, initially focused in the Mortgage Lending and Banking sectors.

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 a "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." 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 a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.

Contact Information

  • Contact:

    Fortress Financial Group, Inc.
    Alan Santini
    Chief Executive Officer

    Email Contact

    Tel: (954) 840-6961