Fortune Minerals Announces Government Funding to Advance the NICO Critical Minerals Asset in Canada

Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (“Fortune” or the “Company”) (www.fortuneminerals.com) is pleased to announce that it has secured government funding of up to $887,170 to support metallurgical test work for its 100% owned vertically integrated NICO cobalt-gold-bismuth-copper project in Canada (“NICO Project”). The NICO Project is an advanced development stage Critical Minerals asset comprised of a planned open pit and underground mine and concentrator in the Northwest Territories and related hydrometallurgical refinery in Alberta (the “Alberta Refinery”). The proposed Alberta Refinery would process concentrates from a future mine at the NICO Project and other sources to produce cobalt sulphate, gold doré, bismuth ingots and copper. Development of the NICO Project would provide a vertically integrated Canadian supply for three Critical Minerals needed for the energy transition with North American supply chain transparency and Environmental Social Governance (“ESG”) values, as well as compliance with the U.S. Inflation Reduction Act.

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The Government of Canada has agreed to provide funding contributions of up to $714,500 against the costs of Fortune’s planned cobalt sulphate process pilot and other metallurgical test work through the Federal government’s Critical Minerals Research, Development and Demonstration Program. The Government of Alberta, through Alberta Innovates, has also conditionally approved additional funding contributions of up to $172,670 toward the budgeted program costs pursuant to its Clean Resources Continuous Intake Program. The funds will be used to support a mini-pilot at SGS Canada Ltd. to confirm certain process design criteria and improvements to the NICO Project metallurgical processes. The program will also provide samples of concentrate that could be used in future tests with material sourced under the previously announced Rio Tinto process collaboration (see the Company's news release dated September 29, 2023).

Loan Extensions:

Fortune is also pleased to announce that it has entered into agreements with the holders of its outstanding Debentures originally issued in 2015, a term loan received in 2021 and a bridge loan of $110,000 advanced in October 2023 (collectively, the “Debt”), extending the respective maturity dates of the Debt until December 31, 2024. The aggregate amount of Debt being extended is $9,396,399.18 and carries interest rates of 10% compounding monthly, and 9% compounding annually for the debenture and term loans, respectively.