Fortune Minerals applauds Saskatchewan Government announcement

Issued Capital: 94,779,407

LONDON , ON, Dec. 8 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune Minerals" or the "Company") applauds the Government of Saskatchewan's December 3, 2009 announcement of several new tax incentives to attract new business to the province. Fortune Minerals anticipates one of the incentives announced, the introduction of a five-year Corporate Income Tax incentive for corporations that process minerals imported into the province, will directly benefit the Company. Fortune Minerals recently announced the decision to locate its metallurgical process plant for the NICO project in Saskatchewan and, once in production, this tax incentive, if fully enacted into law, has the potential to enhance the economics of processing metal concentrates in Saskatchewan. During the search for a suitable location for a processing facility, the Company received support from Enterprise Saskatchewan and the Saskatoon Regional Economic Development Authority in locating land in Saskatchewan. Fortune Minerals is further encouraged by the Government of Saskatchewan becoming a strong proponent of the project with support and recognition the Company's substantial investment to be made and the positive impact it will have in Saskatchewan and local communities.

The following is an excerpt from the news release issued on December 3, 2009 by Enterprise Saskatchewan:

    
    Saskatchewan encourages value-added mineral processing
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The Government of Saskatchewan has announced the introduction of a

five-year Corporate Income Tax incentive for corporations that process

minerals imported into the province to the prime metal stage, which has

the potential for a range of positive economic effects.

"Our Government is committed to enhancing Saskatchewan's capacity to add

value from natural resources," Enterprise Saskatchewan Minister Ken

Cheveldayoff said. "For the province at large, this incentive will mean

beneficial short-term economic activity and significant long-term gain,

while an increase in corporate presence will serve to further raise our

national and international presence and impact."

"This change will significantly enhance the attractiveness of refining

imported minerals in our province," Cheveldayoff said. "We hope to

attract quality, high-paying jobs to Saskatchewan as a result. We believe

this type of targeted tax incentive holds great potential for encouraging

economic growth in our province, and simply adds to the overall

attractiveness and competitiveness of our business climate - which is

already considerable."

Legislation to implement the five-year Corporate Income Tax incentive

will be tabled in the spring 2010 session of the Legislature."

The proposed Saskatoon area site includes access to the main line of the Canadian National Railway, which can accommodate a rail spur for delivery of concentrates from the mine, supplies from vendors and metal products sold to customers in industrial centres in North America or points of export. The property is in close proximity to the Trans-Canada Highway and other services including power, natural gas, and water supply. Saskatoon is the fastest growing city in Canada and the commercial centre for the province of Saskatchewan. "With a diversified economy, a highly skilled work force and respected post-secondary institutions, Saskatoon can accommodate everything that is required to construct and operate this process plant," said Fortune Minerals President, Robin Goad .

Fortune Minerals has determined that relocating its processing facility to Saskatoon produces positive net impacts for the entire NICO development for the benefit of all stakeholders. The Saskatoon plant is expected to employ 85 people over a 15 to 20 year period based on the anticipated life of the NICO deposit alone. It may also provide the Company with an opportunity to source materials from other projects for custom processing and also to participate in the metals recycling business. Undertaking such business activities would provide for a sustainable project extending beyond the anticipated life of the NICO mine. Investment in the plant is estimated at $150 million and construction is anticipated to commence upon receipt of the NICO mine permits and project financing.

About Fortune Minerals

Fortune Minerals is a diversified natural resource company with several 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 gold-cobalt-bismuth-copper deposit, the Sue-Dianne copper-silver deposit and other base and precious metals exploration projects in the Northwest Territories. Fortune Minerals owns the buildings and equipment from the Golden Giant Mine at Hemlo, Ontario, which have been dismantled for relocation to NICO. Fortune Minerals is focused on outstanding performance and growth of shareholder value through assembly and development of high quality mineral resource projects.

This press release contains forward-looking information. This forward-looking information includes statements with respect to, among other things, the proposed purchase and development of the site for the Company's metallurgical processing facility, anticipated levels of employment at such facility, planned production from the Company's NICO project and the proposed implementation of corporate income tax incentives by the Saskatchewan government. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and 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 inherent risks involved in the exploration and development of mineral properties, uncertainties with respect to the receipt or timing of required permits for the development of the NICO project and the Saskatchewan metallurgical processing facility, the possibility of delays in the commencement of production from the NICO project and construction of the process facility, uncertainties related to the implementation of the proposed tax incentives and other factors. Readers are cautioned to not 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 responsibility to update or revise it to reflect new events or circumstances, except as required by law.

For further information: Fortune Minerals Limited, Robin Goad, President - or - Lindsay Simmons, IR Coordinator, [email protected], Tel.: [phone], Fax: [phone], www.fortuneminerals.com; Renmark Financial Communications, Dan Symons: [email protected] - or - Barbara Komorowski: [email protected]; Media Contact, Valerie Lacasse: [email protected], Tel: [phone], Fax: [phone], www.renmarkfinancial.com