Mr. Jorge Ganoza reports

FORTUNA EXPANDS WEST AFRICAN PRESENCE, FORMS EXPLORATION ALLIANCE IN GUINEA WITH DESOTO RESOURCES

Fortuna Mining Corp. has executed a binding heads of agreement (HOA) with DeSoto Resources Ltd., an Australian-listed gold exploration company, to establish an exploration alliance and joint venture across the highly prospective Siguiri basin in Guinea.

New exploration front

Paul Weedon, senior vice-president of exploration at Fortuna, commented: "Guinea's Siguiri basin has demonstrated potential to host multimillion-ounce gold deposits in a country with a long mining history. This agreement with DeSoto provides Fortuna with an excellent entry into this highly prospective region, alongside a highly qualified and experienced team with a proven track record of discovery across West Africa."

Key agreement terms

• The binding HOA establishes an exploration alliance to apply for and acquire new permits in identified areas of interest.
• A new joint venture company (JVCo) will be formed, with a board of up to four directors, two from each party, with the majority partner holding a casting vote.
• Project generation phase: A 36-month period focused on identifying go projects, meaning significant discoveries warranting further development.
• Joint venture phase: Once a go project is agreed upon, JVCo will transition into a formal joint venture in which Fortuna will hold 70 per cent and DeSoto will hold 30 percent, and Fortuna will solely finance exploration until the later of:
  • Three years;
  • $12.5-million (U.S.) in cumulative expenditure across go projects.

About Fortuna Mining Corp.

Fortuna Mining is a Canadian precious metals mining company with three operating mines and a portfolio of exploration projects in Argentina, Ivory Coast, Mexico and Peru, as well as the Diamba Sud gold project in Senegal. Sustainability is at the core of the company's operations and stakeholder relationships. The company produces gold and silver while creating long-term shared value through efficient production, environmental stewardship and social responsibility.

We seek Safe Harbor.