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Fortune shares drop 50 per cent
Follows comments about difficulty securing capital

Karen K. Ho
Northern News Services
Monday, June 29, 2015

WHATI/LAC LA MARTRE
Mining and development company Fortune Minerals saw its stock plunge by almost 50 per cent after stating that there are no guarantees it can secure additional working capital.

NNSL photo/graphic

Fortune Minerals' director of regulatory and environmental affairs, Dr. Rick Schryer, collects cattails at NICO for the development of a demonstration wetland for water treatment in summer, 2013. Company president Robin Goad said the project is still a high priority, but project financing is still being arranged. - photo courtesy of Fortune Minerals

"We're in a bear market that is in excess of 1,000 days, commodity prices are low, capital markets are poor," president Robin Goad told News/North. "It's not an easy market to be financing anything let alone a major development."

The company is currently developing the NICO Gold-Cobalt-Bismuth-Copper Project, comprised of a proposed mine and mill near

Whati.

Fortune intends for NICO to produce a bulk concentrate for shipment to a refinery in Saskatchewan where it will be processed for high value metal and chemical products.

"We continue to work on the NICO project, it's a high priority for us," Goad said on the phone from London, Ont. "We're still trying to secure project financing and we're still waiting for definitive a announcement from the Government of the Northwest Territories on a road to access the site."

However, in its June 25 news release, Fortune cites low commodity prices and delays in achieving commercial production at its silver mine, Revenue, in Colorado resulting in a strain on its cash resources.

"Additional financing will be required in the near-term and Fortune is in discussions with its lenders and potential investors to secure additional working capital. There can be no assurance, however, that such discussions will be successful."

The day after the company held its annual general meeting, more than 750,000 shares were traded on June 24. On that day, the stock fell from 8 cents a share to 5.5 cents a share, a drop of 2.5 cents or 31.25 per cent. The next day, shares closed at 4.5 cents per share, falling another one cent or 18.8 per cent. In total, it fell 50 per cent for that time period.

Fortune also owns the Sue-Dianne Copper-Silver-Gold Deposit located 24 kilometres north of NICO, and the Salkeld Lake property located south of Great Slave Lake.

As for the future of the NICO project, Goad simply said, "Nothing has changed, we continue to look for financing, we continue to look for certainty on the road."

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