SOURCE: FORTRESS FINANCIAL GROUP, INC.

August 14, 2008 12:31 ET

Fortress Financial Group, Inc. - Update on Outstanding Shares

Company Updates Its Stockholders on the Company's Outstanding Shares of Common Stock

NEW YORK, NY--(Marketwire - August 14, 2008) - Fortress Financial Group, Inc. (PINKSHEETS: FFGO) requested on August 11, 2008, that any stockholder who holds in excess of 50 million shares of this Company's Common Stock, fax proof of this stockholding to the Company.

Alan Santini, the CEO of Fortress Financial Group, Inc., undertook to publish these holdings and does so now. It must, however, be stressed that the Company cannot stand by these faxed statements from stockholders as absolute proof of their stockholdings.

This unprecedented step is being taken in an attempt to ascertain the extent of the short position in this Company's stock and we believe that this information is in the stockholders' best interests.

The calculations are as follows:

Outstanding Shares of Common Stock at August 14, 2008: 31,167,377,817*

* This is calculated after all of the Company's stock repurchases of both restricted and of "free trading" shares to date and included the stock repurchases on August 11, 2008.

This is broken down as follows:

Restricted shares of Common Stock: 6,958,118,608

"Free Trading" Shares of Common Stock: 24,209,259,209**

** Includes the 2,400,000,000 shares owned by the Company's CEO, Alan Santini, as filed on a Form 3.

Stockholders who faxed proof of their stockholdings on their brokerage statements have disclosed a holding in the amount of 3,313,520,026 shares of the Company's "free trading" Common Stock.

The Company has ascertained and proven that an amount of 25,040,779,934 shares of its "free trading" shares of Common Stock are accounted for. This will be explained in depth in a below-mentioned paragraph.

Based upon these calculations, the number of unaccounted for shares of the Company's "Free Trading" Common Stock is in the amount of 831,520,725 shares of the Company shares of Common Stock being short. If the stockholdings provided to the Company in the amount of 3,313,520,026 are added to this number, this leaves a short position in the amount of 4,145,040,751 shares of the Company's Common Stock. These calculations obviously exclude any shares not mentioned on this Announcement.

The Company is in possession of draft Form 13(g) Announcements from the below-mentioned stockholders. These stockholders intend to file full disclosure of their holdings with the SEC this week. The total amount of these "free trading" shares of this Company's Common Stock, held by these below-mentioned parties as at close of trade on August 13, 2008, are in the amount of 22,640,779,934.

The investors who have disclosed their stockholders to the Company and whom intend Filing Form 13(g) with the SEC are as follows:

Trident Asset Management Corp. - 2,857,500,000 (Increase in holding by
317,500,000 shares)
Vulture Equity Management, Inc. - 2,900,000,000
Ice Venture Capital Group, Inc. - 2,600,000,000
Shatner Investments Limited - 2,840,428,992 (Increase in holding by
254,040,000 shares)
Greenstoke Investments Limited - 2,760,000,000
Gulf of Ancud Limited - 2,747,500,000
GlobalStar Equities Corporation - 2,883,074,503
NE Group Limited - 3,052,276,439

Please note that any person filing a Form 13(g) has to disclose any additional purchases and sales of this Company's stock on an ongoing basis; in terms of the SEC rules and regulations. They have to disclose the date and price of any of the Company's shares, in which they have dealt. These filings will enable stockholders to monitor the status of the Company's "free float" very carefully and accurately.

The Company wishes to state very clearly that until these Form 13(g) filings have been made with the SEC, the Company cannot and will not guarantee that these stockholdings provided to the Company are 100% accurate.

An additional amount of 2,400,000,000 shares of the Company's shares of "free trading" Common Stock are held by Alan Santini, the CEO of the Company. A Form 3 has been filed with the SEC to this effect.

Alan Santini, the CEO of Fortress Financial Group, Inc., commented, "There is a definite short position in the market and he wished to extend his gratitude to those stockholders who took the time and effort to provide the Company with this information." Alan Santini added, "He was not prepared to speculate as to the actual size of this short position as it will be impossible to prove."

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:

    Investor Insights (Dick Granieri/Gordon Otter)
    Email : Email Contact
    Telephone : 1-800-530-3545

    Fortress Financial Group, Inc.
    Alan Santini
    Chief Executive Officer

    Email Contact

    Tel: (954) 840-6961