Fortune Minerals Enters Into Convertible Securities Funding Agreement for up to C$10 Million With Lind Partners

Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (“Fortune” or the “Company”) (www.fortuneminerals.com) is pleased to announce that it has entered into a convertible securities agreement with Lind Global Fund II, LP, managed by The Lind Partners (together, “Lind”) for up to C$10,000,000. Fortune has received an initial C$1.25 million in exchange for the issuance of a first convertible security, and subject to the agreement of both parties, additional drawdowns can be made. Most of the proceeds from the first drawdown were used to make a C$1 million downpayment to JFSL Field Services ULC (“JFSL”) to extend the purchase option for the brownfield industrial site and buildings in Lamont County, Alberta on amended terms. Fortune plans to construct a hydrometallurgical refinery on this site (“Alberta Refinery”) to treat metal concentrates from the proposed NICO cobalt-gold-bismuth-copper mine and concentrator in the Northwest Territories (“NWT”) (collectively, the “NICO Project”) and other feed sources.

The first convertible security has a two-year term with a face value of C$1,600,000 secured by a lien against the Company’s assets. Lind will be entitled to incrementally convert the face value amount of the first convertible security over a 24-month period, subject to certain limits, at a conversion price equal to 80% of the five-day trailing volume weighted average price of Fortune’s shares (“VWAP”) prior to the date of conversion. Commencing 180 days after the shares issuable under the first convertible security become free trading, Fortune has the right to repurchase the first convertible security, subject to Lind’s option to convert up to one third of the face value into Fortune common shares prior to such repurchase at a conversion price equal to 80% of the 5-day VWAP. Lind will also receive a closing fee of $50,000 and 12,500,000 common share purchase warrants at an exercise price of $0.065 per common share for 60 months from the date of issuance after closing.

Fortune is also pleased to report that it has entered into an amended option agreement with JFSL to acquire its 77-acre site and 42,000 square feet of serviced shops and buildings located in Lamont County Alberta where the Company plans to construct and operate the Alberta Refinery. Fortune has completed option payments to JFSL, totalling C$1.4375 million to be applied against the C$5.5 million purchase price and can complete the acquisition by paying JFSL the balance of the purchase price by June 28, 2024. JFSL will also have the right to use the facilities for a period of 18 months following Fortune’s purchase of the facilities. In addition, JFSL‘s parent, “Worley Group” will have preferential rights to conduct certain engineering work for Fortune.