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Fortune Minerals Pursuing Government Funding Opportunities for NICO Project Development

Fortune Minerals Limited

Responding to programs to support critical mineral supply chain resilience and security

LONDON, Ontario--BUSINESS WIRE--

Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (“Fortune” or the “Company”) (www.fortuneminerals.com) is pleased to announce that it has recently submitted applications to two government agencies with programs supporting domestic critical minerals development and supply chain diversification. Fortune and the Tłıchǫ Government are forming a joint venture for the development of an access road to the Company’s NICO cobalt-gold-bismuth-copper mine and concentrator in the Northwest Territories (“NWT”), and have applied to the Critical Minerals Infrastructure Fund ("CMIF") for up to $50 million of support to construct this spur road. Fortune has also responded to a U.S. Department of War (“DoW”) Defense Industrial Base Consortium (“DIBC”) Request for Project Proposals to address a gap in domestic bismuth production. NICO is the largest deposit of bismuth in the world with approximately 12% of global reserves and the Company’s planned hydrometallurgical facility in Alberta will produce 99.99% pure bismuth ingot and oxide products. The hydrometallurgical facility will also produce cobalt and copper critical mineral products as well as gold as a countercyclical co-product. If the government program applications are successful, there is good potential to materially reduce the capital requirements for the planned vertically integrated NICO development.

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The NICO deposit in the NWT is within Tłıchǫ territory, approximately 160 km northwest of the City of Yellowknife and 50 km north of the community of Whatì where the territorial highway system currently terminates. Fortune and the Tłıchǫ Government are forming a joint venture to pursue CMIF funding to construct the spur road to the Company’s planned mine and concentrator. Fortune and the Tłıchǫ Government will also evaluate the road's potential to provide an incremental extension of the all-season road toward the community of Gamètì, improving access, delivery of services and promoting future economic development in the central part of Tłıchǫ lands. The joint venture is a good example of government-to-government and industrial collaboration for the development of important legacy mine infrastructure for community benefit.

The DoW’s recent Request for Project Proposals prioritizes thirteen critical minerals for financial support to expand domestic processing capabilities, notably including bismuth, of which China currently controls approximately 90% of refined production and is restricting exports to western countries. The objective of this new DoW program is to incentivize the development of robust, resilient and secure domestic supply chains for the identified critical minerals that are essential for national security and defense. The DoW is seeking project proposals from DIBC members that address critical gaps in domestic production capacity and processing for which Fortune is well positioned with respect to bismuth. Fortune has already secured U.S. Government support to advance the NICO Project to a construction decision through a Defense Production Act (“DPA”) Title III award (see May 16, 2024 news release). The support from the U.S. Government was also partially matched with contribution funding from the Government of Canada through other Natural Resources Canada (“NRCan”) programs.

Access to critical minerals has become a focus for western countries vulnerable to supply chain disruption for the key raw materials needed by important industries for the energy transition, new technologies and defense. As a country with tremendous geological endowment, Canada is positioning itself to help bridge the gap in critical minerals supply and has entered into strategic partnerships with allied countries to invest in new mine and processing production. Western countries are investing in critical minerals development to reduce their dependence on the current sources of supply that are vulnerable due to geographic concentration of production, political instability, policy risks from foreign entities of concern, or poor environmental, social, and governance (“ESG”) practices that are not aligned with western democratic standards or values.

Fortune’s NICO cobalt-gold-bismuth-copper project (the “NICO Project”) is an advanced critical minerals development asset comprised of a planned open pit and underground mine and concentrator in the NWT and a dedicated hydrometallurgical facility in Alberta (the “Alberta Refinery”) where concentrates from the mine, and other feed sources, will be processed into value-added products. Development of the NICO Project would provide a vertically integrated North American supply of battery-grade cobalt sulphate, bismuth ingots and copper cement to provide a reliable domestic vertically integrated supply of three critical minerals with more than one million ounces of in-situ gold as a highly liquid and countercyclical co-product.

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 CMIF and the DoW DIBC; the formation and implementation of the joint venture between Fortune and the Tlicho Government; the construction of the spur road and any extension toward Gamètì; 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 CMIF, the DoW DIBC and other government programs may not be approved, 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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Contact details:

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