Fortune Minerals engages Deloitte as Mount Klappan anthracite metallurgical
coal project financial advisor

Issued Capital: 94,779,407

LONDON, ON, June 30 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune" or the "Company") announced today that it has engaged Deloitte & Touche Corporate Finance Canada Inc. ("Deloitte") to act as Fortune's financial advisor in pursuing strategic alternatives for the advancement of the Company's world-class Mount Klappan anthracite metallurgical coal project in northwest British Columbia ("B.C."), Canada. Deloitte will assist Fortune in identifying potential strategic partners and evaluating potential transactions.

Fortune's wholly-owned Mount Klappan project contains very large resources and reserves of premium anthracite coal straddling the B.C. Railway right-of-way, 150 km northeast of the port of Stewart and 330 km northeast of the port of Prince Rupert. Both of these Pacific Ocean ports provide access to the global steel industry and are particularly well located to service growing demand for metallurgical coal in Asia.

Mount Klappan has already been assessed in a positive definitive feasibility study in 2008 by Marston & Marston Inc. (Marston), a St. Louis-based firm that, together with its Calgary subsidiary, provides engineering and other services to the coal and oil sands industries (see Fortune news release, dated August 7, 2008). This study assessed transportation infrastructure, an open pit mine, and wash plant that would produce 3 million tonnes per year of premium ultra-low volatile pulverized coal injection ("PCI") products for export to overseas steel customers. The Mount Klappan anthracite coal project is currently in the B.C. Environmental Assessment process.

    
                 Mount Klappan 2008 Feasibility Study Results

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                                  BASE CASE
    ULTRA-LOW VOLATILE PCI - US$175/TONNE (Yrs. 1-5) US$150/TONNE (Yrs. 5-20)
       Canadian : US dollar exchange rate - C$ 1.03 = US$ 1
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                                            PRE-TAX                AFTER TAX
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    IRR                                       28.9%                    21.5%
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    NPV (8% DISCOUNT)              C$ 702.7 MILLION         C$ 376.4 MILLION
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    CAPITAL (1ST 3 YEARS)                         C$ 617.2 MILLION
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                           COAL PRICE SENSITIVITY
       Canadian : US dollar exchange rate - C$ 1.03 = US$ 1
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    COAL PRICE                              PRE-TAX  AFTER TAX     AFTER TAX
    US$ / TONNE           PRE-TAX IRR      (8%) NPV        IRR      (8%) NPV
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    US$ 200                     43.8%    C$ 1,600 M      34.0%         957 M
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    US$ 225                     55.0%    C$ 2,161 M      42.4%    C$ 1,319 M
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    US$ 250                     65.7%    C$ 2,711 M      50.4%    C$ 1,673 M
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    US$ 275                     76.2%    C$ 3,266 M      58.4%    C$ 2,031 M
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    US$ 300                     86.6%    C$ 3,818 M      66.1%    C4 2,387 M
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Anthracite is the highest rank coal with the highest carbon and energy content and the lowest volatile (gas) content of all coals. These unique properties make anthracite ideal for use in a broad range of products, including reductants used in metallurgical processing, blend coals for blast furnace coke replacement, charge carbon for electric-arc steel manufacturing, sinter and PCI used in the manufacture of steel, and carbon filters for water purification. The Mount Klappan project is comprised of four separate deposit areas referred to as the Lost Fox, Hobbit-Broatch, Summit and Nass deposits, and collectively, these contain Measured Resources of 107.9 million tonnes, Indicated Resources of 123 million tonnes, plus 2.572 billion tonnes in the Inferred and Speculative classes (see Fortune's news release dated June 22, 2004). The Proven and Probable In-Situ Reserves contained in the Lost Fox deposit are 102 million tonnes, producing 61 million PCI product tonnes to support a minimum 20-year mine life in the initial open pit at this deposit. Richard Marston, P.E., is the Qualified Person responsible for the resource and reserve estimates and the definitive feasibility study in accordance with National Instrument 43-101.

For additional information on the Mount Klappan Mineral Resources and Reserves, and feasibility studies, please see the information posted for the Company on the SEDAR website at www.sedar.com.

Fortune President Robin Goad stated "we are very pleased to be working with Deloitte on this important advisory mandate for this significant asset. We considered a large field of prospective candidates for this engagement and Deloitte was selected because of their demonstrated knowledge and experience working with leading coal producers and buyers, their strong Canadian-based mining advisory team, and because they have one of the largest Mergers and Acquisitions ("M&A") franchises with offices throughout the globe, including a strong presence in the critical Asian markets."

Jeremy South, Deloitte's Financial Advisory Global Mining Leader commented "Our team of Mining M&A professionals in Canada, Australia and Asia will work closely with Fortune's management team to achieve its goal of accelerating the development of the Mount Klappan Project via securing a strategic financing partner."

About Deloitte

Deloitte offers M&A advice to companies participating in transactions across the globe. With over 3,000 M&A Advisory professionals, Deloitte has one of the largest M&A practices in the world. It has an extensive presence in Asia Pacific - with over 900 M&A professionals based in this region. Deloitte is also a leading global provider of professional services to the mining sector with extensive experience advising on middle market transactions, and a number of active engagements in the coal and steel segments - including advising on completed cross-border mining deals with a combined value of over $2 billion over the past 12 months. The core service team working with Fortune will be based in Deloitte's Global Mining Centers of Excellence in Vancouver, Beijing, Mumbai and Perth; also drawing on experienced professionals from other Deloitte Mining Centres in Toronto, Singapore, Sydney, Moscow, Johannesburg, and Sao Paulo.

About Fortune Minerals:

Fortune Minerals is a diversified resource company with several mineral deposits and a number of exploration projects, all located in Canada. The Company is focused on the development of its NICO gold-cobalt-bismuth-copper deposit in the Northwest Territories and its metals processing plant in Saskatchewan. 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 also owns the Mount Klappan anthracite coal deposits in British Columbia, and the, the Sue-Dianne copper-silver deposit and other exploration projects in the Northwest Territories. 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, or may be based upon, estimates, forecasts, and statements as to management's expectations with respect to, among other things, the prospects for a strategic transaction on the Mount Klappan coal project, the size and quality of the Company's mineral resources, demand and market outlook for coal and future coal prices. 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, the uncertainty of being able to conclude a transaction with respect to the Mount Klappan project, uncertainties with respect to the receipt or timing of required permits and regulatory approvals, the uncertainties involved in interpreting drilling results and other geological data, fluctuating coal prices and other factors. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information 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: Barbara Komorowski, [email protected], or Christine Stewart, [email protected]; Media Contact: Guy Hurd, [email protected], Montreal Tel: [phone], Toronto Tel. [phone], Montreal Fax: [phone], Toronto Fax. [phone], www.renmarkfinancial.com