Fortress Minerals Corp.
TSX VENTURE : FST

Fortress Minerals Corp.

September 10, 2010 12:33 ET

Fortress Completes Sale of Svetloye Gold Project in Eastern Russia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2010) - Fortress Minerals Corp. (TSX VENTURE:FST) (the "Corporation" or "Fortress") is pleased to announce that further to its new release of August 4, 2010, the share purchase agreement (the "SPA") with Castalian Trading Ltd. (the "Share Purchaser"), a party to a letter of intent with Polymetal (PMTL.MM) (PMTLq.L) ("Polymetal") to purchase the Svetloye gold deposit, has been completed. Pursuant to the SPA, the Share Purchaser purchased all of the issued shares of two of the Corporation's Cypriot subsidiaries which in turn own 100% of the participatory interest in the Corporation's Russian subsidiary, PD RUS, LLC ("PD RUS"), which holds the Svetloye License (mining and exploration) located in Khabarovsk Krai within the Russian Federation. As part of the SPA transaction (the "Sale Transaction"), intercompany debt was assigned or transferred, as applicable, to Polymetal ESOP Limited, a 100% owned subsidiary of Polymetal. In relation to the Sale Transaction the Corporation received in aggregate consideration in sum of US$9.25 million in cash.

There was no finder's fees payable on the Sale Transaction. The Corporation plans to use the proceeds realized from the Sale Transaction to pursue other opportunities, extinguish unsecured debt and for general working capital.

FORWARD-LOOKING INFORMATION

This Circular may contain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Corporation's exploration and development of its properties, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described in the Corporation's periodic filings with the British Columbia Securities Commission and those associated with the proposed Sale Transaction as described herein. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Corporation does not intend to update this information and disclaims any legal liability to the contrary.

On behalf of the Board of Directors,

Ron Hochstein, Chairman

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Fortress Minerals Corp.
    Sophia Shane
    Corporate Development
    604-689-7842
    or
    Fortress Minerals Corp.
    Ryan Torvik
    Chief Financial Officer
    604-689-7842
    www.fortressminerals.com