March 17, 2008 12:06 ET

Fortress Financial Group, Inc. - Effect of Current Gold Price

Company's Asset Value Reaches a New All Time High on the Back of Rising Gold Price

NEW YORK, NY--(Marketwire - March 17, 2008) - Fortress Financial Group, Inc. (PINKSHEETS: FFGO) confirms that the ever rising price of Gold, today reaching its highest ever trading level in history, has resulted in the Company's portfolio of quoted and unquoted Gold Mining interests being revalued in excess of US$1.4 billion.

This has resulted in the Company's Net Asset Value per share being valued at 2.7c, compared to its current trading price of US$0.0001 per share.

The Company confirms that it is aggressively pursuing its stated strategy of becoming a broadly based consumer finance products group, and is at this time, in negotiations with a significant number of parties which we expect to lead to the closure of several substantial acquisitions shortly.

The Company announced that it had secured an initial "Non Recourse" Loan facility in the amount of US$5 million to fund acquisitions. This was secured against a very small portion of the Company's stockholding in Hunt Gold Corporation. It is expected that the Company will extend these borrowing significantly in the immediate term.

The Company is at this time, very aware that the ever rising price of Gold has placed it in an enormously strong position insofar as it has the ability to either raise significant amounts of cash through a dilution of its quoted Gold Holdings or to significantly extend its borrowings, in order to acquire solid, cash generative companies, with sustainable earnings streams. The reduction in interest rates coupled with the ever rising price of Gold makes these "Non Recourse" borrowings, the Company's preferred option at this time.

The Company's Management is of the opinion that should it successfully acquire a large amount of companies that are (a) well established (b) synergistic (c) cash generative and (d) have a solid sustainable track record of earnings; this will result in the creation of a significant Group of Companies operating in the consumer financial products sector. It is expected that this will result in the narrowing of the huge gap between the Company's Net Asset Value per Share compared its current trading price in the market.

The Company's stockholding in quoted Hunt Gold Corporation is valued at circa US$1 billion at its current share price. The Company conservatively valued its interests in the "Bouse" and "South Copperstone" Gold Projects at circa US$400million.

The Company is in the final stages of exchanging its stockholdings in both the "Bouse" and "South Copperstone" Gold Projects for stock in a USA quoted Gold Mining & Exploration Company. The Company intends to retain these shares as a portfolio investment and as collateral for substantial loans to fund acquisitions in due course.

Mr. Alan Santini, the Chief Executive Officer of Fortress Financial Group, Inc., said that "he was aware that with the Company trading a massive discount to its underlying value, it was an incentive to consider distributing a portion of the Company's stock portfolio to stockholders in the form of a Special Dividend. He has not ruled out such an action at this time and that a decision would be made in the next few months." Alan Santini added that "the Company's growth plans were being expedited through the size of its Balance Sheet and that leverage it afforded the Company, which should result in the creation of substantial group of companies in the consumer finance sector, in a relatively short period of time." In short Alan Santini concluded that the strength of the Company's Balance Sheet afforded it enormous "firepower" in respect of a large number of acquisitions in the immediate term.

About Fortress Financial Group, Inc.

Fortress Financial Group, Inc. is primarily engaged in the issuing and marketing of prepaid debit and credit card and related payment solution activities. It has just announced the acquisition of Moneyworx, Inc., a reseller of MasterCard prepaid USA Domestic and International Prepaid Debit Cards. Fortress Financial Group, Inc. will be launching its own label "Fortress" International Debit Card in the second quarter of 2008.

The Company operates through Fortress Card Solutions, Inc. and Moneyworx, Inc. The Company will be shortly be establishing an office in Nassau, Bahamas, primarily to service our High Net Worth "offshore" cardholder base.

The Company is utilizing is substantial Balance Sheet to aggressively fund a large number of acquisitions in the consumer financial services sector.

Fortress Financial Group, Inc. (formerly Great West Gold, Inc.) was a gold mining exploration stage company, engaged in the acquisition and exploration of mining properties in the United States. The Company retained these Gold Mining Exploration interests as portfolio assets. The Company holds circa 48% of the outstanding stock in Hunt Gold Corporation as an investment.

The Company retains its interest in the "South Copperstone" and "Bouse" Gold Mining Exploration properties, at this time. These two remaining interests will be exchanged for shares of Common Stock in a USA Gold Mining & Exploration Company, in the immediate term.

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" 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