Fortune Minerals Limited

Fortune Minerals Limited

July 11, 2007 09:59 ET

Fortune Minerals Announces Pricing of Proposed Public Offering

LONDON, ONTARIO--(Marketwire - July 11, 2007) -


Fortune Minerals Limited (TSX:FT) is pleased to announce that in connection with the proposed public offering of units of Fortune (the "Offering") previously announced on July 10, 2007, it has entered into an agency agreement with a syndicate of agents led by CIBC World Markets Inc. and including Desjardins Securities Inc. and Canaccord Capital Corporation (collectively, the "Agents") pursuant to which the Agents have agreed to offer for sale, on a reasonable best efforts basis, 8,350,000 units at an offering price of $3.00 per unit for aggregate gross proceeds of $25,050,000. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to acquire one common share of Fortune at an exercise price of $3.75 per common share at any time up to 5:00 p.m. (Toronto time) on the day that is 24 months following the closing date of the Offering. Fortune intends to file an amended and restated preliminary short form prospectus today to reflect the proposed pricing and size of the Offering.

Fortune has granted to the Agents an option, exercisable in whole or in part at the sole discretion of the Agents until 30 days after the closing date of the Offering, enabling them to offer for sale up to an additional 1,200,000 common shares and an additional 600,000 common share purchase warrants for the purposes of covering over-allotments, if any, and for market stabilization in connection with the Offering.

The net proceeds of the Offering will be used principally by Fortune to fund the further exploration, engineering and development of the NICO cobalt-gold-bismuth project in the Northwest Territories, and for environmental work, engineering and permitting activities at the Mount Klappan coal project in northwest British Columbia. The remaining net proceeds will be added to working capital and used for general corporate purposes.

The Offering is subject to regulatory approval, including approval of the Toronto Stock Exchange, and is expected to close on or about July 26, 2007.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

About Fortune Minerals

Fortune Minerals is a diversified natural resource company with seven mineral deposits and a number of exploration projects, all located in Canada. They include the Mount Klappan anthracite coal deposits in British Columbia, and the NICO cobalt-gold-bismuth deposit, the Sue-Dianne copper-silver deposit and other base and precious metals exploration projects in the Northwest Territories. Fortune Minerals is focused on outstanding performance and growth of shareholder value through assembly and development of high quality mineral resource projects.

Issued Capital: 38,996,407

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