LONDON, ON, - Fortune Minerals Limited is pleased to announce that it has completed a private placement of 2,095,000 flow-through common shares to raise gross proceeds of $7,227,750 at a price of $3.45 per share. The issue was sold through a syndicate of dealers led by Desjardins Securities Inc. and also including TD Securities Inc. and Octagon Capital Corporation. The proceeds raised from this financing will primarily be used to fund work on the Company's 100% owned Mount Klappan anthracite coal deposits in northwest British Columbia and its 85% owned NICO gold-cobalt-bismuth deposit in the Northwest Territories. Mount Klappan was recently assessed in a positive full feasibility study. Fortune is currently completing additional environmental and engineering studies at Mount Klappan for the Environmental Assessment and permitting in progress. NICO is being assessed in a full feasibility study expected to be completed shortly. Fortune is also conducting a $9.5 million underground bulk sample program at NICO as well as additional environmental studies required to submit its application for an Environmental Assessment. As previously announced, Fortune has an agreement to purchase the Golden Giant mill at Hemlo, Ontario, which it plans to relocate to NICO upon receipt of applicable permits. (See Fortune News Release of December 8, 2005.) This purchase provides significant savings in projected capital costs in the development of NICO, which the Company is targeting for production late in 2009.

Fortune Minerals Limited 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, the NICO gold-cobalt-bismuth deposit, the Sue-Dianne copper-silver deposit and other base and precious metals exploration projects in the Northwest Territories. Fortune is the managing partner of Formosa Environmental Aggregates Ltd., an industrial mineral company developing the Greenock high calcium limestone quarry in Ontario. The Company is focussed on the assembly and development of high quality mineral resource projects that can generate strong returns for its shareholders.

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