Fortune Oil and Gas, Inc.

Fortune Oil and Gas, Inc.

August 23, 2011 15:45 ET

Alta Mining (FOGC): Potential of Company's Canada Expansion

HENDERSON, NEVADA--(Marketwire - Aug. 23, 2011) - Fortune Oil and Gas, Inc. (PINK SHEETS:FOGC) ( subsidiary Alta Mining advises its followers on the potential of the silver claims in BC, Canada, which the company currently pursues.

Company management decided to share some sober numbers wishing to explain a full potential of the silver mining possibilities at the company claims. These numbers may contain non 43-101 compliant technical information and are strictly theoretically structured for informational purposes only, which the company followers should appreciate:

The project area guarantees a lower cost of exploration and production, as it has a very good road infrastructure with good round-the-year accessibility. Further, due to past and present mining activities in the region company has access to conveniently located and experienced labor. On the top off it all, operating mill is conveniently located less than 50 km away from the property. This fact significantly lowers operational costs, not burning FOGC's finances on logistics necessary to conduct its mining projects, making company's operations cheaper and faster.

The reported showings of silver in the area of the Alta Mining claim in BC, Canada, show up to 80 ounces of silver per metric ton. Company based the following calculation on a sober and a very rough estimate of producing only 5 ounces of silver per metric ton.

The property location and the nearby mill offer the opportunity to process couple hundred metric tons of silver ore per day. Estimate of 5oz/ton (history shows that the Slocan area has high grade ore bodies giving far more than 5oz/ton) would set the daily silver production at about 1,000 oz/day at minimum. With the current price of silver, this property has a very feasible potential to comfortably produce $50,000/day in revenues. The convenience of the location would allow Alta Mining to extend seasonal mining operations and produce silver at the location for about 200 days/year, allowing the company to produce some $10 million in total annual revenues. Calculations are based on production predictions totalling around 200 tons of ore daily. Along the main production of silver, mines also produce zinc and lead as a secondary product. The revenues from production of these secondary metals are usually sufficient to cover the whole of silver mining production expenses.

The company advises that these are just rough estimates based on the location's historical productions, and not on the actual property surveys that are yet to be executed, however, the management believes that geological and structural features of the previously explored areas seemed to indicate that the mineralized zones could be much more extensive over already known silver bearing systems. The company plans to continue to work on gaining a prominent position in the area and provide benefits for their shareholders.

More updates on both subsidiaries to follow shortly.

Safe Harbor Statement

Information in this news release may contain statements about future expectations, plans, prospects or performance of Fortune Oil & Gas, Inc., that constitute forward-looking statements for purposes of the Safe Harbor Provisions under the Private Securities Litigation Reform Act of 1995. The words or phrases "can be," "expects," "may affect," "believed," "estimate," "project" and similar words and phrases are intended to identify such forward-looking statements. Fortune Oil & Gas, Inc. cautions you that any forward-looking information provided by or on behalf of Fortune Oil & Gas, Inc. is not a guarantee of future performance. None of the information in this press release constitutes or is intended as an offer to sell securities or investment advice of any kind. Fortune Oil & Gas, Inc.'s actual results may differ materially from those anticipated in such forward-looking statements as a result of various important factors, some of which are beyond Fortune Oil & Gas, Inc.'s control. In addition to those discussed in Fortune Oil & Gas, Inc.'s press releases, public filings, and statements by Fortune Oil & Gas, Inc.'s management, including, but not limited to, Fortune Oil & Gas, Inc.'s estimate of the sufficiency of its existing capital resources, Fortune Oil & Gas, Inc.'s ability to raise additional capital to fund future operations, Fortune Oil & Gas, Inc.'s ability to repay its existing indebtedness, the uncertainties involved in estimating market opportunities, and in identifying contracts which match Fortune Oil & Gas, Inc.'s capability to be awarded contracts. All such forward-looking statements are current only as of the date on which such statements were made. Fortune Oil & Gas, Inc. does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

SOURCE Fortune Oil & Gas, Inc.

Contact Information