Emerging Strategic

Metal & Coal

ProducerFortune Minerals Limited

SASKATCHEWAN METAL PROCESSING

PLANT

February 2011

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FORWARD-LOOKING INFORMATION

This document contains certain 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 size and quality of the Company’s mineral resources, progress in development of

mineral properties, timing and cost for placing the Company’s mineral projects into production, costs of

production, amount and quality of metal products recoverable from the Company’s mineral resources,

demand and market outlook for metals and coal and future metal and 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, 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 metal and coal prices, the possibility of project cost

overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing

needed in the future, uncertainties related to metal recoveries 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. 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 them or revise it to reflect new events or

circumstances, except as required by law.

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Corporate

Information

Share

Performance

London, Ontario based mineral development company in transition to mid-tier producer

Listing: TSX-FT

Share Price: $ 1.66 (February 04 ,2011)

Issued Shares: 107 million

Fully Diluted: 127 million

Market Cap: $ 187 million

Total Assets: $ 127.6 million (Q3-2010)

China Mining Resources Group Ltd. ~16%

Manulife Global Management US ~ 11%

Officer & Director Holdings ~26% (includes China Mining)

As of January 12, 2011

All values in C$ unless otherwise noted

Analyst Reports

Ownership

David Davidson, Paradigm Capital

Michael Fowler, Loewen Ondaatje McCutcheon

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Small junior mining company

Experienced directors & management team

14 full time employees

Two large advanced stage projects Mount Klappan in BC

(anthracite coal)

NICO Project which includes the mine in the NWT and the Saskatchewan Metals Processing Plant (SMPP)

Who Is Fortune Minerals?

2/16/2011

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MASÌ CHO – THANK YOUThe NICO Project consists of:- Mine & mill in Tłįchǫ Territory

- Metal refinery near Saskatoon,

Saskatchewan

Emerging Strategic

Metal & Coal

Producer

NICO MINE

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LOCATION & INFRASTRUCTURE

City of Yellowknife (160 km SE)

5,140 Ha mining lease

Current access by winter road

New road planned to Behchokǫ & Hwy 3 135 km all-season road required for

concentrate transport & mine supply Fortune contributing to road

Railway terminus at Hay River -500 km south

Sue-Dianne Project 10 million tonne resource 24 km

north of NICO

Future NICO mill feed

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NICO GOLD-COBALT-BISMUTH-COPPER PROJECT SUMMARY

100% Ownership Mine & Concentrator in NWT $78 million work completed to date,

includes: $20 million test mining $6.5 million process pilot plants

2007 positive feasibility study & 2008 update

Golden Giant (Hemlo) buildings & equipment purchased & dismantled to reduce CAPEX

Environmental Assessment in progress in NWT

BNP Paribas engaged to arrange up to US$250 Million in project financing

Targeting production in late 2012

Test mining 2006/2007

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18 yr mine life at 4,650 tpd

Reserves: 31 million tonnes (Mt) Additional 6.5 Mt low grade to be

stockpiled for future processing

Primarily open pit mining Underground mining also in yrs 1&2 Early access to high grade improves

economics

Co-mingled waste rock & mill tailings Plant site Mill & flotation concentrator Power plant Camp & ancillary buildings

150 employees (250 during underground operations)

NICO MINE & CONCENTRATOR - NWT

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Refinery in Saskatchewan will process NICO concentrates

65,000 tonnes of concentrate per year (5 trucks/day) will be trucked from NICO to Hay River in bags

Concentrate bags will be shipped from Hay River to Saskatchewan on CN Railway

CONCENTRATE SHIPPING

Emerging Strategic

Metal & Coal

ProducerSASKATCHEWAN

METAL PROCESSING

PLANT (SMPP)

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Hydrometallurgical process plant will process NICO concentrates

Agreement to purchase lands 3 km from Langham

Located on CN Rail line Close to Trans-Canada Hwy Inexpensive power compared to NWT Close to natural gas, water and reagent

sources Pool of skilled chemical plant workers &

engineers

SASKATCHEWAN METALS PROCESSING PLANT (SMPP)

NICO

Saskatoon

CN Rail Canadian Route Map

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SMPP SITE LAYOUT – SOUTH SIDE

Flotation

Autoclave

Precipitation

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Reagents

Solid/Liquid Separation

Service Complex

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SMPP SITE LAYOUT – NORTH SIDE

Warming Shed

Cyanidation

Process Water, RO

Oxygen Plant

Bismuth Building

Cu SX/EW

Cooling Pond

Co EW

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SMPP PROCESSING1. Bulk concentrate processed by

secondary flotation to produce separate gold-bearing cobalt & bismuth concentrates

2. Bismuth concentrate processed by ferric chloride leach - then electro-winning to 99.5% cathode

3. Cyanidation of Bismuth residue for gold recovery

4. Pressure acid leach of cobalt concentrate in autoclave -cyanidation of residue for gold recovery

5. Copper recovered by solvent extraction & electro-winning to 99.99% cathode

6. Cobalt solution purified by ionic exchange & electro-winning to 99.8% cathode

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DIVERSIFIED EXPOSURE TO GOLD & SPECIALTY METALS Bismuth: Largest deposit in world – China principal source – supply concerns

World consumption: ~15,000T

Traditional markets – fusible alloys, cosmetics, chemicals, ointments, medicines,

lubricants, electronics & flame retardants

New markets – Super conductors, CD’S & auto anti-corrosion

Environmentally safe (non-toxic) replacement for lead in: solder (plumbing &

electronics), hot-dip galvanizing, plumbing brasses, ceramic glazes, ammunition,

radiation shielding, paint pigments & free cutting steel

MCP Group – LOI with World’s largest processor to purchase all production

Copper: By-product of cobalt processing

World Consumption: ~ 18 million T

Principal Markets: electronics / wire, pipe, brasses & other alloys, & coinage

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DIVERSIFIED EXPOSURE TO GOLD & SPECIALTY METALS

Gold: Largest source of revenue in first yr of operation – Counter cyclical hedge

Cobalt: Significant demand growth - Principal sources in politically unstable countries

World consumption: ~70,000T ~ 6% annual growth

Metallurgical markets: high strength alloys, cutting tools, cemented carbides & magnets

Chemical markets: lithium ion & nickel metal hydride batteries, catalysts, agriculture & pigments

Key growth areas: batteries for electronic devices & hybrid / electric vehicles, catalysts for petroleum refining, turbines

LME: Initiated trading in 2010 – Futures market

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Process Water

Overall process water requirement is 50 cubic metres(m3)/hour (183 GPM)

Would require 80 m3/hour (293 GPM) at start-upsWater will be drawn from the Dalmeny aquifer from two wells with a third in

reserve

Alternative Water Source Investigation

Study was completed to determine feasibility of using Town of Langham and/or Dalmeny treated sewage effluent as process water

Limitation was the high amount of chlorides in the treated sewage effluent

Chlorides would damage processing equipment

Consequently, only a small portion of the treated sewage effluent could be used and would have to be blended with water from the aquifer

Capital costs associated with pumping treated sewage effluent to the SMPP site combined with limitation on volume of water that could be used made option cost prohibitive

Fortune has left a portion of the land at the SMPP site available should other options become available

Process Water Requirements

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Fortune will be able to re-cycle process water within the facility

Chlorides will build up in the process water to a point where they will need to be discharged or the chlorides in the water will harm the equipment

TDS of solution will be 47,600 mg/L

Fortune will use a deep well injection system into the deep Manville saline aquifer (TDS 30,000-70,000 mg/l) for the chloride solution

Volume would 30 m3/hour

No other water discharge from the process plant to the environment will occur

Deep Well Injection of Chlorides

Emerging Strategic

Metal & Coal

ProducerENGINEERING STUDIES

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Test Pit Excavation

Excavated test pits to describe the soils encounteredGeotechnical field and laboratory tests.

Geotechnical Investigation for Foundations Analysis

Objective was to determine engineering design criteria for the design and construction of site building foundations;

Program included:

drilling and logging boreholes, Installing a standpipe piezometer to measure the shallow

groundwater elevation; Conducting soil resistivity testing; and, Conducting laboratory testing of soil samples

Geotechnical Investigation for Storage Facilities

Drilling and logging of boreholes; and,Geotechnical field and laboratory tests.

Geotechnical Investigations

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Hydrogeological (Groundwater) Field Studies

The groundwater studies provided information on the following:

Shallow hydrogeology (groundwater); Baseline conditions for the major aquifers

beneath the proposed site; and, Other hydrogeological baseline information in

support of the design of the SMPP and PRSF.

The groundwater information will:

Help develop the predictions in the EIS; Be used to simulate Fortune’s use of the

aquifer in relation to other third-party users; and,

Provide instrumentation that can be used for long-term monitoring of the PRSF and groundwater production in the vicinity of the site.

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26 boreholes were drilled at 21 locations; including 5 piezometer stack locations (2 at each location);

5 deep boreholes were drilled to provide stratigraphic information;

21 shallow auger holes were drilled for both geotechnical and hydrogeological purposes;

5 piezometers were installed in the Upper Floral Aquifer and 11 were installed at the oxidized/unoxidized Floral Formation till contact;

The piezometers were used to acquire baseline groundwater;

A 10-inch diameter groundwater production well was installed in the Dalmeny Aquifer at a depth of approximately 45.7 m (150 ft);

Conducted a step-drawdown pumping test and a 24-hour constant-rate pumping test;

Drawdown and recovery at the production well(s) and the specified observation well(s) were monitored; and,

The results of this pump test were used to model the potential impact of Fortune’s water withdrawal on the Dalmeny aquifer.

Groundwater Investigations

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Approximately 158,000 tonnes/year of process residue;

Cells 1-8 will provide 18 years of residue storage capacity;

Each cell will hold between 2 and 2.5 years of residue;

The design allows for an additional 7 years of storage capacity if Fortune should elect to expand the facility;

The level of containment proposed for the PRSF meets or exceeds that in place for any other containment facility in Saskatchewan and will virtually eliminates the potential for leachate migration; and,

The primary mineral constituents of the residue are projected to be: Gypsum (CaSO4 2H2O) – 53% of total;

Scorodite (FeAsO4 2H2O) – 45% of total; and,

Actinolite (K,Na)Ca2(Mg,Fe)5Si8O22(OH)2 – 2% of total.

Process Residue Storage Facility (Storage)

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Process Residue Storage Facility (Design)

A ‘dry tomb’ approach will provide long-term storage of the residue

Each cell will: be constructed above the groundwater table and be capped with a ‘store

and release’ engineered cover system when full; consist of a 4.65 m deep excavation and 2 m high containment dyke; have a dual containment liner;

The primary liner is a composite liner consisting of a geomembrane and approximately 0.65 m compacted soil liner;

have a leak detection provided by a geocomposite material installed beneath the primary liner;

have a secondary liner provided by approximately 0.2 m of a compacted soil liner under the geocomposite material;

There is approximately 11 m of low conductivity till between the base of the PRSF and the Dalmeny Aquifer; and,

Surface and sub-surface water quality will be monitored during operation of the PRSF

Emerging Strategic

Metal & Coal

ProducerENVIRONMENTAL

STUDIES AND IMPACT

ASSESSMENTS

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Fortune is currently compiling the Environmental Impact Statement (EIS) for submission to Saskatchewan Ministry of Environment (SE): Draft Project Specific Guidelines (PSG’s) have been issued

for public comment and are available at the following website: www.environment.gov.sk.ca (Programs and Services/ Environmental Assessment/ Notices/ Section 10-2010-064);

Deadline for public comments is February 23rd, 2011; Comments or concerns can also be brought forward to SE,

Fortune staff or their consultant for consideration in the EIS; Project is also subject to a re-zoning process for the RM of

Corman Park; Permits for the project are expected later this year; and, Initiation of construction activities will depend on the timing

of permits and the NICO mine schedule.

Environmental Impact Statement

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Environmental Studies

Baseline environmental studies of the site and surrounding area were completed in the spring, summer, and fall of 2010 and included:

Water quality (surface and groundwater);

Air quality (dust fall collection);

Hydrology;

Noise (baseline noise levels);

Soils characteristics;

Heritage Resource Impact Assessment (HRIA); and,

Biological assessment (e.g. vegetation including rare plants, wildlife, wetlands, birds).

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Water quality samples were taken from both surface water and groundwater sources

Routine water chemistry (total alkalinity, bicarbonate, hydroxide, carbonate, chloride, pH, conductivity, nitrate-N, nitrite-N, ion balance, total dissolved solids (TDS), hardness, calcium, potassium, magnesium, sodium, and sulphate);

Trace metals (Ag, Al, As, B, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, Hg, Pb, Mg, Mn, Mo, Na, Ni, Sb,Se, Sr, Ti, Tl, Sn, U, V, Zn);

Hydrocarbon testing for BTEX (Benzene, Toluene, Ethylbenzene, and Xylene).

PAH (Polycyclic Aromatic Hydrocarbons);

PCB’s; and,

Coliforms (total and fecal).

Water Quality Sampling

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Objective was to collect baseline background chemistry from existing users within a 3.2 km radius around the site;

Fortune staff visited and interviewed 31 3rd party well owners in April and June 2010;

Water samples from each well were submitted to an Accredited Saskatchewan Laboratory for testing as well as trip, field and duplicate samples

Water quality parameters tested were the same as the surface and groundwater sampling program

Results were sent to the individual well owners

Some parameters exceeded drinking water guidelines (e.g. uranium, selenium and TDS).

Third Party Water Well Baseline Study

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SMPP Water Withdrawal From Aquifer

Pump test showed a long-term production rate of 121 GPM

To meet SMPP water demand of 183 GPM, a well array will be used (2 actives wells and 1 back-up)

A conservative 3D groundwater flow model was used to determine the short and long-term impact of SMPP aquifer water use

The model simulated water production from all major users including the town of Langham at its maximum licensed pumping rate

A maximum drawdown rate of 15.7 m is predicted at the end of the project within the site boundary

Langham water supply will not be affected

Nearby wells may see up to a 3.5 m drop in well water levels under worst case conditions

Fortune Minerals would mitigate wells that become unproductive

By 2049, all third party wells will recover to 2 m or less of the simulated 2011 condition

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Air Quality Modeling Results

The estimated concentrations of PM2.5 and all metals including Cobalt beyond the property boundary are lower than the regulatory ambient air objectives;

Dominant Green House Gases (GHG) from the proposed facility include CO2, water vapour, and NOX;

The GHG emission rates and the corresponding concentrations from the facility are not expected to have a significant impact on regional and global scales;

The proposed mitigative measures include bag houses, demisters, and scrubbers with single and double stages; and,

Cumulative effects are negligible since no major industrial developments that emit significant air emissions are situated within a 10 km radius from the proposed facility.

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Noise Modeling Results

The results of the noise modeling indicate that the Permissible Sound Level is slightly exceeded at two of the receptor locations (R2 and R4);

However, further noise monitoring will not be completed at this time, since actual noise levels are expected to be lower than those predicted here due to the conservative nature of the model; and,

Further monitoring may be conducted if any mitigation measures are required.

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Process Residue Storage Facility (Closure)

Cells will be capped with an engineered cover once filled;

The cover over the cells will greatly reduce dust generation;

A vegetated store and release cover with a capillary barrier should greatly reduce the amount of water and oxygen entering the storage cell.

Run-off from the PRSF will be collected by perimeter ditches and diverted to a pond where it can be monitored.

The low profile of the PRSF (2 m containment dykes) will facilitate return of the site to agricultural or recreational use.

Continued monitoring of the storage cells will be required to ensure no contaminants are escaping the facility.

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Employment

Approximately 85 people will be employed in the following areas:

Processing Plant Metallurgists Foreman Operators

Analytical Group Chemists Technicians

Power and Maintenance Services Superintendent Engineers Various trades (e.g. welder, millwright, pipefitter, carpenter, etc.) Technicians

Administration Managers Accountants Purchasing and Stores

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Expanded production from NICO (Sue-Dianne deposit)

Custom processing of ores & concentrates from other projects Central location with rail access for receiving concentrates &

delivery of products Sophisticated hydrometallurgical process plant for processing

unique & refractory ores

Expansion into recycling business Process technology allows for re-processing of cobalt &

bismuth residues & other processed materials Strategic location in central Canada allows for receiving

materials from North American industrial heartland CN Rail access allows for receiving of recyclable materials &

delivery of products

FUTURE OPPORTUNITIES FOR SMPP

Emerging Strategic Metal & Coal Producer

For further information, please contact:

Pat Moloney, Manager Human Resources

140 Fullarton Street, Suite 1902

London, Ontario, Canada

N6A 5P2

Tel. (519) 858-8188

Fax. (519) 858-8155

E-mail. info@fortuneminerals.com

Website. www.fortuneminerals.com

TSX-FT