Conditional approval received for funding to support NICO Project Access Road construction

LONDON, Ontario -- (Business Wire)

Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (“Fortune” or the “Company”) (www.fortuneminerals.com), is pleased to announce that its joint venture with the Tłıchǫ Government has received conditional approval from the Government of Canada for up to $50 million to support construction of the NICO project access road (“NPAR”) in the Northwest Territories (“NWT”). Natural Resources Canada (“NRCan”)’s First and Last Mile Fund (“FLMF”) will reimburse 75% of the costs up to $50 million for construction of the 51-kilometre NPAR across Tłıchǫ private lands, connecting the NICO cobalt-gold-bismuth-copper mine to the NWT highway system near the community of Whatì. The NPAR will be used for mine construction and operations, including transportation of metal concentrates to a dedicated hydrometallurgical facility in Alberta (collectively, “the NICO Project”) for processing to value-added products needed for the energy transition, new technologies and defence. The $50 million award will help mitigate capital cost escalation for the vertically integrated development as the Company advances the NICO Project toward a construction decision.

Fortune and the Tłıchǫ Government will also evaluate the NPAR's potential to provide an incremental extension of the all-season road toward Gamètì for community benefit, to lower the cost of living, and enable future economic development in the central part of Tłıchǫ lands. The Tłıchǫ Government will also receive $200,000 from the FLMF to support community engagement and completion of a Traditional Knowledge study for the NPAR.

“Canada is ready to build the infrastructure that unlocks our full critical minerals potential. Through the First and Last Mile Fund, we are investing in projects like the NICO access road to strengthen northern supply chains, create good jobs, and move minerals from resource to market—Made in Canada, for Canadians. This investment also reflects our commitment to working in partnership with Indigenous governments, including the Tłıchǫ Government, to deliver lasting economic opportunities and community benefits,” stated The Honourable Tim Hodgson, Minister of Energy and Natural Resources

“The Northwest Territories has tremendous geological endowment with the potential to develop virtually any mineral commodity - but also suffers from an acute infrastructure deficit that raises the bar for economic viability. This funding from the Government of Canada helps level the playing field. Development of the NICO Project will provide a domestic process solution for cobalt, bismuth and copper to address critical mineral supply chain vulnerabilities, and gold. We are grateful to receive this investment from the federal government, while also working with our Tłıchǫ Government partners to improve the infrastructure on Tłıchǫ lands for the benefit of its citizens,” said Robin Goad, President of Fortune Minerals Limited.

The NICO deposit is located in Tłıchǫ territory, approximately 160 kilometres northwest of the city of Yellowknife and 50 kilometres north of Whatì. Concentrates from the mine will be transported by truck and rail to the hydrometallurgical facility in Lamont County, Alberta for processing to cobalt sulphate, gold doré, bismuth ingots and oxide, and copper cement. The NICO Project is a development asset that Fortune has already invested more than $150 million to advance toward a construction decision. When it is built the NICO Project will produce three metals identified on North American and European Union critical minerals lists, plus 1.1 million ounces of in-situ gold. Fortune is also receiving financial support through NRCan’s Global Partnerships Initiative, the U.S. Department of War’s Defense Production Act Tittle III program, and Alberta Innovates’ Clean Resources Continuous Intake Program to complete the work needed to advance the NICO Project to a Financial Investment Decision. The Company has also received a term loan from Prosper NWT to help complete the acquisition of the Alberta Refinery site.

Canada is positioning to help bridge the gap in critical minerals supply with strategic partnerships with allied countries and by investing in new mines and mineral processing. Western countries need to reduce their dependence on the current sources of supply that are vulnerable to disruption from geographic concentration of production, political instability, and/or policy risks from foreign entities of concern. Development of the NICO Project will provide a vertically integrated domestic supply of three critical minerals, of which cobalt and bismuth are particularly at risk.

The disclosure of scientific and technical information contained in this news release has been approved by Robin Goad, M.Sc., P.Geo., President and Chief Executive Officer of Fortune and Alex Mezei, M.Sc., P.Eng. Fortune’s Chief Metallurgist, who are “Qualified Persons” under National Instrument 43-101.

About Fortune Minerals

Fortune is a Canadian mining and mineral processing company focused on developing the NICO cobalt-gold-bismuth-copper project in the Northwest Territories and Alberta. Fortune also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 km north of the NICO deposit and is a potential future source of incremental feed to extend the life of the NICO concentrator.

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This press release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities legislation, including National Instrument 51-102 – Continuous Disclosure Obligations. This forward-looking information includes statements with respect to, among other things, the construction of the proposed Alberta Refinery and the Company’s plans to develop the NICO Project; the submission, evaluation and outcome of the Company’s applications to the FLMF; the completion and implementation of the joint venture between Fortune and the Tlicho Government; the construction of the spur road and any extension toward Gameti; the potential to materially reduce capital requirements for the NICO Project; the anticipated production capacity, product mix and purity of the Alberta Refinery; the potential future development of the Sue-Dianne Property as incremental feed; and the future supply, demand and pricing for cobalt, bismuth, gold, copper and other metals to be produced at the NICO Project. Forward-looking information is based on the opinions and estimates of management, as well as certain assumptions, at the date the information is given (including, in respect of the forward-looking information contained in this press release, assumptions regarding: the Company’s ability to complete construction of the Alberta Refinery; the Company’s ability to arrange the necessary financing to continue operations and develop the NICO Project; the receipt of all necessary regulatory approvals, government funding awards and Indigenous and community support for the construction and operation of the NICO Project, the Alberta Refinery and the spur road, and the timing thereof; the time required to construct the NICO Project; and the economic environment in which the Company will operate in the future, including the price of gold, cobalt, bismuth and other by-product metals, anticipated costs and the volumes of metals to be produced at the NICO Project). However, such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the risks related to the new Mineral Reserves, Mine Plan and production schedule for the NICO Project; the Company may not be able to finance and develop the NICO Project on favourable terms or at all; the Company’s applications to the FLMF and other government programs may not be completed, in whole or in part, or on the anticipated timeline; uncertainties with respect to the receipt or timing of required permits, approvals and agreements for the development of the NICO Project, including the Alberta Refinery and the spur road; the construction of the NICO Project may take longer or cost more than anticipated; the Company may not be able to secure offtake agreements for the metals to be produced at the NICO Project; the Sue-Dianne Property may not be developed to the point where it can provide mill feed to the NICO Project; the inherent risks involved in the exploration and development of mineral properties and in the mining industry in general; the market for products that use cobalt or bismuth may not grow to the extent anticipated; the future supply of cobalt and bismuth may not be as limited as anticipated; the risk of decreases in the market prices of cobalt, bismuth and other metals to be produced by the NICO Project; changes in geopolitical conditions, including changes in trade restrictions or export controls affecting the supply of critical minerals; discrepancies between actual and estimated Mineral Resources or between actual and estimated metallurgical recoveries; uncertainties associated with estimating Mineral Resources and Reserves and the risk that, even if such Mineral Resources prove accurate, such Mineral Resources may not be converted into Mineral Reserves once economic conditions are applied; the Company’s production of cobalt, bismuth and other metals may be less than anticipated; and other operational and development risks, market risks and regulatory risks. Readers are cautioned not to place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no obligation to update or revise it to reflect new events or circumstances, except as required by law.

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Contacts:

For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com

Source: Fortune Minerals Limited