Emerging Strategic Metal & Coal

P dFortune Minerals Limited ProducerFortune Minerals LimitedInvestor Presentation

April 2012TSX-FT

FORWARD-LOOKING INFORMATIONThis document contains certain forward-looking information. This forward-looking information includes, ormay 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 ofmineral properties, timing and cost for placing the Company’s mineral projects into production, costs ofproduction, 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-lookinginformation is based on the opinions and estimates of management at the date the information is given andinformation is based on the opinions and estimates of management at the date the information is given, andis subject to a variety of risks and uncertainties and other factors that could cause actual events or results todiffer materially from those projected in the forward-looking information. These factors include the inherentrisks involved in the exploration and development of mineral properties, uncertainties with respect to thereceipt or timing of required permits and regulatory approvals, the uncertainties involved in interpretingdrilling results and other geological data, fluctuating metal and coal prices, the possibility of project costdrilling results and other geological data, fluctuating metal and coal prices, the possibility of project costoverruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financingneeded in the future, uncertainties related to metal recoveries and other factors. Mineral resources that arenot mineral reserves do not have demonstrated economic viability. Inferred mineral resources areconsidered too speculative geologically to have economic considerations applied to them that would enablethem to be categorized as mineral reserves. There is no certainty that mineral resources will be convertedinto mineral reserves. Readers are cautioned to not place undue reliance on forward-looking informationbecause it is possible that predictions, forecasts, projections and other forms of forward-looking informationwill not be achieved by the Company. The forward-looking information contained herein is made as of thedate hereof and the Company assumes no responsibility to update them or revise it to reflect new events orcircumstances, except as required by law.

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C t

Listing: TSX-FTShare Price: $ 0.87Issued Shares: 117 1 millionCorporate

InformationIssued Shares: 117.1 millionFully Diluted: 123.5 millionMarket Cap: $101.9 millionWorking Capital: $ 27.5 million (Q4- 2011)Total Assets: $ 156.0 million (Q4-2011)

China Mining Resources Group Ltd. ~13%Manulife Global Management US ~ 9%*Officer & Director Holdings ~21% (includes China Mining)

OwnershipOfficer & Director Holdings ~21% (includes China Mining)

Analyst ReportsKillian Charles, Industrial Alliance Securities ($3.30 Target 01/31/12)

David Davidson, Paradigm Capital ($2.85 Target 07/15/11)

Michael Fowler, Loewen Ondaatje McCutcheon ($2.65 Target 12/16/11)

Share P f

3

Performance

As of April 5, 2012All values in C$ unless otherwise noted*Precision IR data at April 12, 2012

PROPERTY INTERESTSPROPERTY INTERESTS

4Canada Focus - Operating in mining friendly jurisdictionsCanada Focus - Operating in mining friendly jurisdictions

EMERGING PRODUCER OF GOLD, MET. COAL & SPECIALTY METALSKEY ASSETS

M t Kl A th it C l P j t B iti h C l bi (BC)Mount Klappan Anthracite Coal Project, British Columbia (BC)One of the world’s premier metallurgical coal development projectsJV partnership with South Korean steel producer POSCOCollaboration with CN Rail to extend railway infrastructure

fAccelerated development strategy with funding to construction in placeNICO Gold-Cobalt-Bismuth-Copper Project, Northwest Territories (NWT) & Saskatchewan

4 million equivalent gold ozs (1) - Significant gold & cobalt - Largest deposit of bismuth in worldMine & Concentrator planned in NWTVertically integrated metals processing plant planned near Saskatoon, Saskatchewan Potential future mill feed from Sue-Dianne Copper-Silver-Gold satellite deposit

Two development projects - Both: Positive definitive feasibility studies >$ 1.3 billion combined base case NPVSuccessfully test mined & pilot plant processedIn permittingDeloitte & Touche engaged to secure strategic partnersNew reserves & economics pending

5

p gEXPERIENCED BOARD & MANAGEMENT TEAM

Proven records in permitting construction & mine operations

(1) Using Metal Price Assumptions: US$ 900/oz Au, US$ 20/lb Co, US$ 10/lb Bi, US$ 2.75/ lb Cu

One of world’s largest undeveloped metallurgical coal deposits

MOUNT KLAPPAN ANTHRACITE COAL PROJECT

Advanced project with $ 87 million of work completed

Definitive Feasibility Study with robust economics

Railway development strategy to port of Prince Rupert - Allows for scalable expansion

World-class JV partner secured with POSCO - One of the world’s largest steel producers

Supply shortages of metallurgical coals with growing world consumption

Railway sub-grade links mine site with CN mainline & Ridley Terminals

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POSCO Canada (POSCAN) has acquired 20% interest in Mount Klappan. Highlights:

JOINT VENTURE WITH POSCO

Anticipated total payments & cash contributions of $ 181 million based on current capital cost estimates

$ 30 million paid to Fortune, $20 million contributed directly to the JV

20% f t t l d l t & it l t $154 illi d t ti t20% of total development & capital costs - $154 million under current estimates

$ 17.2 million in additional payments at production

20% of operating costs for 20% of production in-kind for their own use

Fortune is Project Manager & is compensated for providing operational, technical & administrative support over life of mine

Secures world-class investor & strategic partner

Validates Mount Klappan as one of world’s premier metallurgical coal development projects -Validates Mount Klappan as one of world s premier metallurgical coal development projects Key future supplier to global steel industry

Accelerates project development - Upfront payment anticipated to provide 100% of funding to complete detailed engineering, permitting & stakeholder consultations for construction

Maintains significant upside for Fortune shareholders

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Maintains significant upside for Fortune shareholders

$601 million post-transaction levered after-tax NPV (8%) for Fortune’s 80% interest at $175 per tonne for PCI based on current reserves

World’s 3rd largest steel producer by crude steel production

ABOUT POSCO

Crude steel production of 35.4 million tonnes in 2010 - Sales for 12 months ended September 30, 2011, totalled US$ 67.0 billionGwangyang Works - Largest steel mill in world, 22 million tonnes capacityGlobal expansion plans towards goal of 50 million tonnes total crude steel productionp p g pLeading innovator in steel production – FinexHeadquartered in Seoul, South Korea Listed on Korea (KRX), New York, London & Tokyo Stock Exchanges

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Large license area in northwest BC (15 866 Ha)

STRATEGIC LOCATION & INFRASTRUCTURE

Large license area in northwest BC (15,866 Ha)

Close proximity to deep water shipping ports

Stewart Port (150km)

Ridl T i l i P i R t (330k )Ridley Terminals in Prince Rupert (330km)

Mine site straddles railway right-of-way

Track (CN) installed to 150km south of mine

R il d b d l l l iRailway road bed largely complete to mine

Road access from railway subgrade

Support of CN Rail for railway expansion

BC Government extending electrical grid to area

Project in Tahltan and Gitxsan Territories

BC Government sharing revenues with First Nations

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Nations

MOUNT KLAPPAN RESOURCES & RESERVESSignificant potential to upgrade & increase resources & new reserves (expected Q2 2012)

Mount Klappan Resources (million tonnes)(1)

Lost Fox deposit remains open for possible expansion

Additional coal seams identified below 300 meters & on adjacent lands

Area Measured (M) Indicated (I) M + I InferredLost Fox 107.9 109.5 217.4 91.5Hobbit-Broatch - 13.5 13.5 258.4Summit - - - 9.6Nass

Historical resources included 2.2 billion tonnes in the speculative class, however, speculative resources are no longerconsidered NI 43-101 compliant and such resources should not be considered current. (2)

L t F M t ll i l C l R ( illi t )(1)

Nass - - - -Total 107.9 123.0 230.9 359.5

Lost Fox Metallurgical Coal Reserves (million tonnes)(1)

Run – Of –Mine Coal Reserves 10% Ash Product ReservesMeasured Indicated Total In Situ Proven Probable Total Product

89.5 16.8 106.3 51.6 9.2 60.8

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(1) Richard Marston, PE is the Qualified Person as defined by NI 43-101(2) 2.8 billion tonne resource in all classes – estimates by Marston & Marston Inc. as of February 2007

ANTHRACITE PRODUCTS

Highest quality coal with very high carbon & energy contentHighest quality coal with very high carbon & energy content Anthracite only 1% of world coal reservesMetallurgical coal with diverse applications

Filter Media US$ ~ 1000 / tonneFilter Media US$ 1000 / tonneMetallurgical Reductants / charge carbon US$ ~ 300 / tonne Ultra-Low Vol. PCI US$ ~ 175-200 / tonneSinter US$ ~ 150-175 / tonne

Other products:

Other products: Blend coal with coking coal for making metallurgical cokeDirect coke replacementUrea fertilizers

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Heating & cooking briquettesPelletizingPremium thermal coal

Source: Company Information.

GROWING PCI DEMAND FROM STEEL PRODUCERS

Use of Pulverized Coal Injection (PCI) d th t f k(PCI) reduces the amount of coke required in steel production

Steelmakers around the world are expanding PCI use to reduce costscosts

Low-vol PCI typically priced at 70% to 80% of high quality hard coking coal

Mount Klappan PCI will achieve aMount Klappan PCI will achieve a higher price given its ultra-low volatile content

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Source: Macarthur Coal

DECREASING QUANTITIES OF ANTHRACITE AVAILABLE FOR EXPORTWorld 2009 anthracite production: ~ 565 million tonnes

China: 483 million tonnesChina: 483 million tonnesVietnam: 43 million tonnes – Reduced exports to utilize production domesticallyFew new high-quality deposits in mining friendly jurisdictions

Production & Export of Anthracite in 2009In million mt

483

450

500

6.5

Import of Anthracite for Japanese MarketMillion mt

150

200

250

300

350

400Production Export

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

Source: EIA, Marubeni

Export / Production 55.8% 1.2% 58.4% 32.2%

4310

29246 6 9

0

50

100

Vietnam China Russia Others

1.5

2.0

2.5

Source: Marubeni (1990 – 2009 data), China Coal Resource Website (2010 data), Deloitte

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EMERGENCE OF CHINA AS NET COAL IMPORTERChina became a net coal importer of anthracite in 2004, coking coal in 2007, all coals in 2009

350 02002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Coal & Anthracite Net Imports by China In million mt

$300

$215

$291

200 0

250.0

300.0

350.0

Coal Total

Anthracite

Met Coal Price (US$/t)

103.4

145.8 167.7

31 9$47 $45

$58

$125 $115 $98

$129

50 0

100.0

150.0

200.0

(72.7)(83 6)

(68.3)(46.1)

(25.4)(2.1) (4.9)(3.9) (4.0)

1.4 7.1 17.5 23.2 13.3 31.1 22.2 31.9

(100 0)

(50.0)

-

50.0

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(83.6) (100.0) Source: China Coal Resource Website, Bloomberg

Global Met Coal Demand

SIGNIFICANT FUTURE MET COAL DEMAND GROWTH

Increasing demand for good qualityMillion mt

>500 million mt demand increase over the next decade with limited new production

t ti l

1,185

1,440

1,200

1,400

1,600 Increasing demand for good quality metallurgical coals

China’s growth ~10% per yr

Japan & South Korea are increasing anthracite imports –

potential

920

600

800

1,000

g pNew steel technologies - Lower emissions

Emerging economies are driving forces for future metallurgical coal demand

200

400

600 India’s growth ~8% per yr & -Crude steel production expected to increase from 72.8 million tonnes to 124 million tonnes by 2012 & 293 million tonnes by 2020

Source: Peabody Global Energy Analytics

-2010 2015 2020

2020

Brazilian crude steel production expected to increase from 26.5 million tonnes to 103 million tonnes by 2030

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Insufficient supply of metallurgical coals to meet forecast global demand

Railway transportation of coal provides lower operational risk over trucking – Allows for scalable expansion of production to take advantage of large resource base

RAILWAY UPGRADE & EXPANSION

CN Rail operates between Prince George & port of Prince Rupert & on Dease Lake Line to Minaret, 150 km south of Mount Klappan

Railway road bed largely constructed to mine site – Brownfield extension from Minaret

S & i i f il t i $ 317 8 illi it l t i l d d i 2010 DFSSurvey & engineering of railway extension - $ 317.8 million capital cost included in 2010 DFS

CN collaborating on railway upgrade & extension to Mount Klappan

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Existing railway right-of-way & road bed

Ice-free, deepwater port 36 hours closer to Asia than port of Vancouver

PORT OF PRINCE RUPERT

Ridley coal terminal a world-class coal & bulk materials handling facility

Capable of handling full Capesize vessels that reduces ocean freight

Currently handling ~70% of 16 Mtpa design capacity

Expansion to 24 Mtpa in progress – Potential to expand to 50 Mtpa

Opportunities for shared cargos & blending of coals with other metallurgical coal producers

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November 2010 update to 2005 & 2008 DFS

2010 DEFINITIVE FEASIBILITY STUDY

November 2010 update to 2005 & 2008 DFS

Based on railway transport of coal to Ridley Coal Terminal in Prince Rupert

Initial 3 Mtpa production from Lost Fox deposit open pit mine, wash plant & site infrastructure

60 8 Mt of product coal reserves – 20+ yrs production (only 3 6% of global resource)60.8 Mt of product coal reserves 20+ yrs production (only 3.6% of global resource)

Premium ultra-low volatile PCI product

Can diversify product mix to produce premium products (charge carbon) & sinter

Life of mine average Free On Board (FOB) vessel cash cost US$104 79/tonne (C$110 30/tonne)Life of mine average Free On Board (FOB) vessel cash cost US$104.79/tonne (C$110.30/tonne)

BASE CASEUltra-Low Volatile PCI

US$175 / tonne (C$1 = US$ 0.95)

Pre-Tax NPV (8%)In billions

$3.3 $3.8

$3.5 $4.0 $4.5

PRE-TAX AFTER TAX

IRR 25.4% 20.7%

NPV (8%) C$ 1,027.8 Million C$ 667.4 Million $0.5 $1.0

$1.6 $2.2

$2.7

$0.5$1.0 $1.5 $2.0 $2.5 $3.0

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Capital (Years 1-4) C$ 768.4 Million(includes railway capital)

$-$0.5

$150 / t $175 / t $200 / t $225 / t $250 / t $275 / t $300 / t

Rail transportation allows for higher annual production than 3 Mtpa

SIGNIFICANT UPSIDE POTENTIAL

DFS reserves only represents 3.6% of total resource – New reserves in preparation

Updated reserves in preparation for Lost Fox deposit that can support higher production rates.

Production can be expanded from adjacent Hobbit – Broatch depositProduction can be expanded from adjacent Hobbit – Broatch deposit

Current resource only identified to 300 meters – Additional coal seams identified at depth

Budget in place for additional drilling

3rd Party contribution to railway capital costs increases NPV3rd Party contribution to railway capital costs increases NPV

BC Government extending electrical grid & connection lowers power costs & enables use of lower cost mining equipment

Lease-to-purchase of mobile equipment fleet lowers upfront capital costs & increases IRR

One of world’s largest undeveloped deposits – Railway transportation solution provides scalable expansion potential

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provides scalable expansion potential

JV partner now secured & accelerated development program underway

ACCELERATED DEVELOPMENT STRATEGY

JV partner now secured & accelerated development program underway

Next steps include:

Update reserve estimate

Complete updated feasibility study on the Lost Fox MineComplete updated feasibility study on the Lost Fox Mine

Complete engineering on railway transportation with CN Rail

Continue community & stakeholder engagement

C l t i t l ittiComplete environmental permitting process

Conduct additional expansion drilling

Deloitte engaged to secure 2nd stage strategic partner

Mi i i i h j l lMinority equity investor at the project level

Provision of debt & equity tied to off-take

Expertise in coal end market with strong financial position

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Objective of announcing fully financed, permitted project at conclusion of currently planned programs

NICO GOLD-COBALT-BISMUTH-COPPER PROJECT100% Ownership – No 3rd party royaltiesO it & d d i & ill i N th t T it i (NT)Open pit & underground mine & mill in Northwest Territories (NT)

Saskatchewan Metals Processing Plant (SMPP) Vertically integrated hydrometallurgical facility to produce gold doré, cobalt sulphate or cathode, bismuth ingot & copper metal

$ 100 million work completed to date, includes:$ 20 million test mining$ 12 million metallurgy & process pilot plants

2007 iti f ibilit t d & 2008 d t2007 positive feasibility study & 2008 update 32.3% Pre-tax IRRPre-tax $ 361 million 8% NPVSignificant recent improvements not includedg p

31 Million tonne reserve – 4 Million eq gold ozs*

Golden Giant (Hemlo) buildings & equipment purchased & dismantled to reduce capital costsE i t l A t d d f i & SMPP itti

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Environmental Assessments advanced for mine & SMPP permitting

* Using Metal Price Assumptions: US$ 900/oz Au, US$ 20/lb Co, US$ 10/lb Bi, US$ 2.75/ lb CuTest mining 2006/2007

MINE LOCATION & INFRASTRUCTURE5,140 Ha lease in southern NT

Winter access roads

All-weather road planned by governments to Hwy (135 km)

$18 million in place for stage 1 –realignment, bridges & roadbed

Engineering & environmental work underway

450 km from railway at Hay River for transport of concentrates to SMPP

160 km from City of Yellowknife

50 km from Town of Whati

22 km from Snare Hydro

Tlicho First Nation

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Settled land claim

Co-operative Relationship Agreement

Hydrometallurgical plant to process bulk concentrate from NICO mine & mill to produce gold doré, cobalt sulphate or cathode, bismuth ingot & copper metal

SASKATCHEWAN METALS PROCESSING PLANT (SMPP)

High concentration ratio of ore (low mass pull) using simple flotation4,650 tonnes of ore / day reduced to only 180 tonnes of concentrate (3.8% sulphide fraction)Allows concentrate to be shipped to Saskatchewan for lower cost processing

Advantages to Saskatoon siteAdvantages to Saskatoon siteLocated on CN Rail line - Close to Trans Cda HwyInexpensive power (5.7 cents / kWh)Close to natural gas & reagent sourcesSkilled worker / engineer pool 85 employeesSkilled worker / engineer pool – 85 employees5 year tax holiday

SMPP capital cost ~ $200 million

NICO

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Saskatoon

CN Rail Canadian Route Map

DIVERSIFIED EXPOSURE TO GOLD & SPECIALTY METALS

Gold the most valuable component by value

Front end gold recovery - largest source of revenue in first year of operation

Value by Metal at Spot Prices

Copper2%

y p

Bismuth is second largest by value – Largest bismuth deposit world-wide

Gold35%Bismuth

33%

High purity cobalt metal (99.8%) or sulphatecommands premium price.

Cobalt 30%

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Gold – 907,000 oz @ $1651/ozCobalt – 82 Mlbs @ $16.00/lb

Bismuth – 109 Mlbs @ $13.25/lbCopper – 27 Mlbs @ $3.35/lb

Prices as at Oct 24, 2011

GOLD – COUNTER CYCLICAL HEDGE

Gold price increased consistently in past 9 years, especially after recent economic downturn

Historical & Forecast Gold Price

$1,591

$1,900

$1 600

$1,800

$2,000

While mine supply remains relatively flat, future demand continues to grow:

Growing physical demand from Asia & Central banks$873 $873

$1,211

$1,000

$1,200

$1,400

$1,600

Asia & Central banks

Growing investment demand based on currency protection & safe haven status$310

$363 $410 $445

$604 $697

$873 $873

$400

$600

$800

Provides a flexible financing opportunity$-

$200

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Source: Bloomberg; Energy & Metals Consensus Forecasts, Oct 2012

COBALT – ROBUST MARKET WITH INCREASING DEMAND

World cobalt production (in tonnes) Wide application of industrial usageWorld cobalt production (in tonnes) Wide application of industrial usage

51%

30%

40%

50%

60%

27%

7%

6%

5%4% Batteries (27%)

Superalloy (19%)

Hard Materials (13%)

Colours (10%)

12%7% 7% 5% 5% 4% 3% 2% 2% 2%

0%

10%

20%

30%

19%

13%

10%

9%Catalysts (9%)

Magnets (7%)

Hardfacing & Other Alloys (6%)

Tyre Adhesives, Soaps, Driers (5%)

Feedstuffs (4%)

• Vast majority of cobalt sourced from regions that are politically unstable or prone to export restrictions C (DRC) tl t f 51% f l b l

• 80,000 t market with demand growing by ~10% / year• Wide metallurgical & chemical market applications in:• Congo (DRC) currently accounts for 51% of global

supply • China has the largest refining capacity (43% in 2010)

but limited mine supply• LME initiated futures market trading for cobalt in

Wide metallurgical & chemical market applications in: batteries, high strength alloys, cutting tools, catalysts, etc.

• Largest growth is in lithium ion & nickel metal hydride batteries for electronic devices & hybrid/electric vehicles

• High purity cobalt (99.8%) used in aerospace applications

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g2010, resulting in a more liquid market

• NICO will be a reliable North American producer

• Cobalt sulphate (21%) used for batteries

Source: USGS Industry Survey Source: Cobalt Development Institute

BISMUTH – ENVIRONMENTAL FRIENDLY WITH GROWTH POTENTIALBismuth prices continue to increaseWorld reserves (in tonnes)Growing number of applications

240,000

150,000

200,000

250,000

300,000

Metallurgical additives, 27%

Alloys, solders and others, 8%

11,000 10,000 10,000 5,000 5,000

39,000 48,661

-

50,000

100,000

Chemicals and pharmaceuticals,

65%

• Bismuth prices have risen, supported by steady demand & constrained supply

• World market ~ 20,000 tonnes per year

• China is the principal source of bismuth & has total reserves of 240Kt, accounting for 80% of world reserves

• Traditionally used in fusible alloys, cosmetics, chemicals etc.

• New markets focus on super conductors, CDs & auto anti-corrosion materials accounting for 80% of world reserves

• China has closed 20% of its production due to environmental concerns

• NICO contains over 48Kt of bismuth, equivalent to 15% of world reserves & the world’s largest deposit

materials

• Environmentally safe replacement for lead in plumbing & electronic solders, brass, ceramic glazes, free cutting steel, hot dip galvanizing & paint pigments

• Global framework to eliminate lead could

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increase bismuth consumption by 25%

• European legislation to eliminate lead in electronics

Source: Asian Metal, Metal BulletinSource: USGS Industry Survey 2010Source: USGS Industry Survey

NICO MINERAL RESERVES (TO BE UPDATED SHORTLY)

Underground Mineral Reserves Tonnes Au (g/t) Co (%) Bi (%) Cu (%)Underground Mineral Reserves Tonnes Au (g/t) Co (%) Bi (%) Cu (%)Proven 1,403,000 2.23 0.16 0.22 0.04

Probable 767,000 2.92 0.17 0.19 0.03

Total 2,170,000 2.47 0.16 0.21 0.03

Open Pit Mineral Reserves Tonnes Au (g/t) Co (%) Bi (%) Cu (%)Proven 15,019,000 0.85 0.12 0.16 0.04

P b bl 13 797 000 0 71 0 12 0 15 0 03Probable 13,797,000 0.71 0.12 0.15 0.03

Total 28,816,000 0.79 0.12 0.15 0.04

Combined Mineral Reserves Tonnes Au (g/t) Co (%) Bi (%) Cu (%)Proven 16,422,000 0.97 0.12 0.16 0.04

Probable 14,564,000 0.83 0.12 0.15 0.03

Total 30,986,000 0.91 0.12 0.16 0.04

28Reserve estimate by P&E Mining Consultants Inc., Eugene Puritch, P.Eng. & Fred Brown, CPG PrSciNat, Qualified Persons as defined by NI-43-101

Contained Metal 907,000 ounces

82 million pounds

109 million pounds

27 million pounds

2010 DRILL PROGRAM

38 holes drilled in 2010Drilling successfully expanded deposit & intersected high-grade gold intervals

51.3m averaging 2.2 g/t Au & 0.11% Co, g g g & % ,including 3m averaging 15.59 g/t Au, 0.46% Co, 0.05% Bi & 0.20% Cu8.00m averaging 4.74 g/t Au & 0.16% Bi, including 1m grading 35 g/t Auincluding 1m grading 35 g/t Au3.38m averaging 11.59 g/t Au, 0.37% Co, 0.16% Bi & 0.14% Cu, including 1.67m averaging 20.04 g/t Au, 0.36% Co 0 24% Bi & 0 13% CuCo, 0.24% Bi & 0.13% Cu5.00m averaging 4.84 g/t Au, including 2.5m averaging 9.21 g/t Au20.1m averaging 0.38% Co & 0.37% Bi

29

New Mineral Reserve estimates pending

UNDERGROUND TEST MINING & PILOT PLANTS

Mining conditions geometry & grades forMining conditions, geometry & grades for deposit confirmed

Environmental impacts assessed

Portal, decline ramp & 2 mine levels t bli h d ith til ti i t festablished with ventilation raise to surface

~$ 20 million pre-production development completed

Large sample collected for $ 8 million pilotLarge sample collected for $ 8 million pilot plant tests

Proved process flow sheet

Verified production of high value metal productsproducts

Increase in metal recoveries over feasibility study

Tangible demonstration of successful project

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g p jto governments & communities

Reduced project risk

GOLDEN GIANT MINE (HEMLO) MILL, ONTARIO

Buildings, equipment & spare parts acquired from Newmont Canadau d gs, equ p e & spa e pa s acqu ed o e o Ca adaRelocation to NICO for significant reduction in capital costs & project riskNo environmental liability for Hemlo siteDismantling & removal completed for net cash cost of ~$ 19 millionD t ti f j t ti b d t & h d lDemonstration of project execution on budget & schedule

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Micon, Met-Chem, Golder, SGS Lakefield & metallurgical & engineering experts

2008 DEFINITIVE FEASIBILITY STUDYMicon, Met Chem, Golder, SGS Lakefield & metallurgical & engineering experts Results:

Pre-tax IRR 32.3%Pre-tax C$361 million 8% NPVPre production capital cost C$230 millionPre-production capital cost C$230 millionCash Cost US$1.41/lb Co (1)(2)

Cash Cost US $259/oz Au equivalent (2)

April 2008 metal price sensitivity increases IRR to 97.2% & NPV (8%) to $1.5 billion(3)

St d td t dStudy now outdatedNew reserves & operational improvements not includedCapital costs will be significantly higher

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(1) Net of credits for gold and bismuth sales

(2) Base Case metal prices of US$750/oz Au, US$20/lb Co, US$10/lb Bi and US$/C$ 0.97

(3) April 2008 metal prices of US$900/oz Au, US$50/lb Co, US$16/lb Bi and US$/C$ 0.97

43% increase in reserves to 31 Mt – 18 Yr mine life - Excludes results of 2010 drilling

POST-DEFINITIVE FEASIBILITY STUDY IMPROVEMENTS

16% production rate increase to 4,650 tpdMore efficient mine plan - Eliminated underground backfillingIdentification of low strip starter pit – Eliminates pre-strippingCo disposal of waste rock & tails Reduces dam structures & reclamation costsCo-disposal of waste rock & tails – Reduces dam structures & reclamation costsCommodity price assumptions higher for gold & bismuthImproved recoveries from pilot plant:

Gold 56-85%, Averages 76%, gCobalt 84%Bismuth 73%Copper 58% - Not previously included

Higher value end products: Cobalt 21% cobalt sulphate option – Lower capital & operating costs - PremiumBismuth 99.9% ingot – Feasibility study assumed concentrateCopper Copper metal – Not included in feasibility study

Hydrometallurgical process plant relocated to Saskatoon

33

Hydrometallurgical process plant relocated to SaskatoonLower OPEX (~$7 million per yr) – Mitigates capital cost increase (~$30 million)

Higher forecast annual metal production

RESULTS OF NICO PROJECT IMPROVEMENTS

Higher forecast annual metal production

Gold yrs 1 & 2 of mine life ~70,000 ozs, yrs 3-18 ~35,000 ozs

Cobalt ~ 3.4 million lbs (1,550 tonnes)

( )Bismuth ~ 3.65 million lbs (1,650 tonnes)

Copper ~ 770,000 lbs (350 tonnes)

Cost ~$ 56 / tonne, ~$ 90 million / yr

Revenue ~$ 100 / tonne, ~$ 180 million / yr

Capital costs expected to be ~$400 million

Updated economics pending receipt of Front End Engineering & Design (FEED) Study by p p g p g g g ( ) y yJacobs Engineering & other engineering Co.’s

34

NICO FINAL PRODUCTS

Cobalt CarbonateCo 50-51 %Ni 0.005 %Ni 0.005 %Ca 0.018 %Mg <0.005 %Cu 0.005 %Cobalt Cathode Metal

Co >99 8%

Cobalt Sulphate (heptahydrate)

Co >99.8%

Co 21 %Ni <0.003 %Fe <0.001 % Cu <0 001 %

35

Cu <0.001 %Zn <0.001 %

Bismuth IngotBi >99.9%

Reliable North American source of supply of critical specialty metals

ADVANTAGES OF NICO PROJECT

Reliable North American source of supply of critical specialty metals

Diversified product mix reduces exposure to metal price volatility

Cobalt supply coupled with world’s largest bismuth deposit

Strong leverage to gold Counter cyclical hedge Financing optionsStrong leverage to gold – Counter-cyclical hedge – Financing options

Low operating cost net of co-products

Vertical Integration – Fortune controls process from mine to product reducing risk of third party metal supplier or custom processorsmetal supplier or custom processors

Sulphide cobalt source

Lower capital & operating costs compared to laterites

High concentration ratio allows transport to low cost processing environmentHigh concentration ratio allows transport to low cost processing environment

Exothermic reaction in autoclave reduces energy consumption & generates its own acid

SMPP flowsheet allows for flexible & diversified product mix

36

New reserve estimates pending – Focus on expansion of gold

DEVELOPMENT STRATEGY

New reserve estimates pending Focus on expansion of gold

FEED studies nearly complete – Currently reviewing draft

Revised capital & operating costs & financial model

Environmental Assessments advanced for mine & SMPP permittingEnvironmental Assessments advanced for mine & SMPP permitting

Public Hearing Stage in NT – Targeting recommendation to Minister in 2012

Targeting receipt of permits in Saskatchewan in 2012 for SMPP

E diExpanding management team

Production targeted in 2014Deloitte engaged to secure strategic partner - Ideal partner:

Minority equity investor at the project levelMinority equity investor at the project level

Ability to arrange & guarantee project finance facility

Expertise in cobalt or specialty metal end markets/off-take partner

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Committed to an accelerated development plan

Mount Klappan2012 TARGETED MILESTONES

Revised Project Description submission to BC EAO (Q2)New reserves (Q2)Revised economics (Q2)MOU with CN Rail (Q2)MOU with Gitxsan BC First Nation (Q2)Second stage strategic partner(s) and project financing

NICONICONew reserve estimates (Q2)Revised economics (Q2)Initiate Tlicho Participation Agreement (PA) Negotiations (Q4)SMPP permits (Q4)Initiate discussions with the Wek'èezhìi Land and Water Board to advance EA process (Q4)Closure of Public Registry in the DAR Review process (Q4)St t i t ( ) d j t fi i

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Strategic partner(s) and project financing

CorporateOTC QX Listing (Q2)

DirectorsMahendra Naik, B Comm, CA Chairman, Director CFO Fundeco - Founding director & former CFO, IAMGOLD

George Doumet, MSc, MBA Honorary Chairman, Director Chemical Engineer – President & CEO, Federal White Cement

Robin Goad, MSc, PGeo President & CEO, Director Geologist - 30 yrs mining & exploration experience

David Knight, BA, LLB Secretary, Director Partner, Norton Rose specializing in securities & mining law

James Excell, BASc Director Metallurgical Engineer – 35 yrs mining experience BHP-Billiton

William Breukelman, BASc, MBA, PEng Director Chemical Engineer – Chairman, Gedex

James Currie, BSc (Hons), PEng Director Mining Engineer – COO, Kimber Resources

The Honorable Carl L. Clouter

Shou Wu (Grant) Chen, MSc, MBA

Director

Director

Commercial pilot - former owner of charter airline in NWT

Geologist – Deputy Chairman & CEO, China Mining Resources Group

ManagementJulian Kemp, BBA, CA VP Finance & CFO Chartered Accountant – 20+ yrs mining financial experience

Thomas Rinaldi, BSc VP Operations Mining Engineer – 30 yrs engineering & operations experience

Michael De Carlo, BSc, BBA Project Manager Mining Engineer – 40+ yrs engineering & managerial experience

Bill Shepard Logistics Manager 15 yrs experience in procurement and logisticsDr. Richard Schryer, PhD

Adam Jean, HBA, CA

Director Regulatory & Environmental AffairsController

Aquatic Scientist –20+ yrs experience in mine permitting & environmental assessmentsChartered Accountant previously with Ernst & Young

James Mucklow MESc PEng Manager Env & Community Geological Engineer 20+ yrs geological & environmental experience

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James Mucklow, MESc, PEng

Keith Lee, BSc

Carl Kottmeier, MBA, Peng

Joon Kim, MASc, PEng

Manager Env.& Community

Senior Process Engineer

Project Manager

Mine Planning Engineer

Geological Engineer – 20+ yrs geological & environmental experience

25 yrs operations, engineering & mineral processing experience

Mining Engineer – 24 yrs engineering & operations experience

Mining Engineer – 10+ years operations and engineering experience

APPENDIX ARecent Coal M&A Metrics

Asset Buyer Stake

Resources

(mt) Reserves

(mt)

Reserves + Resources

(mt) Price ($mln) Price/Resources

($/tonne) Location Status Mineral Type Mine Type DateSouthGobi CHALCO 60% 281 176 457 $926 $3.38 Mongolia Operational Met/Thermal Open Pit Apr-12Grande Cache Winsway 100% 164 137 301 $1,000 $3.32 Canada Operational Met/Thermal Open Pit/Underground Oct-11Coal & Allied Peabody/Arcelor 100% 1,982 1,102 3,084 $10,800 $3.50 Australia Operational Met/Thermal Open Pit Aug-11MacArthur Coal Peabody/Arcelor 100% 654 181 834 $4,794 $5.75 Australia Operational PCI Open Pit Jul-11Western Coal Walter Energy 100% 257 190 446 $3,235 $7.25 Canada/US/UK Operational Met/Thermal Open Pit/Underground Nov-10Prodeco Glencore 100% 250 250 $2,009 $8.04 Columbia Operational Thermal Open Pit Mar-10Cumberland Coal Massey Energy 100% 416 416 $960 $2.31 United States Operational Thermal/Met Underground Mar-10Minas Moatize Beacon Hill 49% 33 33 $35 $2.16 Mozambique Operational Thermal/Met Open Pit May-10Raven Crest Mining Xinergy 95% 17 17 $40 $2.48 United States Operational Thermal Open Pit Mar-10Centennial Coal Ltd Banpu 100% 1,930 419 2,349 $2,232 $0.95 Australia Operational Thermal/Met Open Pit/Underground Jul-10West Virginia Coal Cliff Natural Resources 100% 119 119 $757 $6.36 Australia Operational Thermal/Met Open Pit/Underground Jul-10

Average $4.14

Xstrata - Peace River Coalfield JX Nippon Oil & Energy Corp 25% 422 - 422 $435 $4.12 Canada Planned/Announced Met Underground Mar-12Sukunka (Peace River Coalfield) Xstrata 100% 236 - 236 $500 $2.12 Canada Planned/Announced Met Underground Mar-12Lossan (Peace River Coalfield) Xstrata 100% 186 - 186 $40 $0.22 Canada Planned/Announced Met Underground Oct-11Maules Creek J-Power 10% 317 362 679 $359 $5.29 Mozambique/South Africa Under Construction Met Open Pit Oct-11First Coal (Peace River Coalfield) Xstrata 100% - - - $147 na Canada Planned/Announced Met Underground Jul-11Reversdale Rio Tinto 100% 8,040 326 8,366 $3,822 $0.46 Mozambique/South Africa Under Construction Met Open Pit Dec-10Vele Coal of Africa Limited 26% 720 720 $16 $0.09 South Africa Under Construction Thermal Open Pit/Underground Feb-10Maruwai Coal Complex PT Adaro Energy TBK 25% 774 774 $335 $1.73 Indonesia Under Construction Thermal/Met Open Pit/Underground Mar-10Maules Creek Aston Resources 100% 610 610 $429 $0.70 Australia Planned/Announced Thermal/Met/PCI Open Pit Feb-10Delta Mining Consolidated Limited Sable Mining Africa Limited 28% 200 200 $25 $0.45 South Africa/Botswana Planned/Announced Thermal/Met Open Pit/Underground Apr-10Zambeze Coal Deposit Wuhan Iron and Steel Corporation 40% 9,045 9,045 $800 $0.22 Mozambique Planned/Announced Thermal/Met Open Pit Jun-10Belvedere Coal Deposit Vale SA 25% 2,475 2,475 $92 $0.15 Australia Planned/Announced Met Underground Jun-10Collingswood Coal Deposit KEPCO/POSCO/Cockatoo 51% 115 115 $158 $2.69 Australia Planned/Announced Thermal/Met/PCI Open Pit Jul-10Bylong/Sutton Forest KEPCO/POSCO/Cockatoo 100% 732 732 $360 $0.49 Australia Planned/Announced Thermal Underground Jul-10Galilee mine Adani Enterprises 100% 7,800 7,800 $2,700 $0.35 Australia Planned/Announced Thermal Open Pit Aug-10Middlemount Gloucester Coal 28% 1,930 57 1,987 $406 $0.74 Australia Under Construction Met Open Pit Aug-10

40

p g

Source: Company reports and CIBC World Markets Inc.

Notes

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Notes

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Notes

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Emerging Strategic Metal & Coal

P d

For further information, please contact:Troy Nazarewicz, Investor Relations Manager

148 Fullarton Street, Suite 1600ProducerLondon, Ontario, Canada

N6A 5P3Tel. (519) 858-8188Fax. (519) 858-8155

E il t i @f t i lE-mail. tnazarewicz @fortuneminerals.comWebsite. www.fortuneminerals.com

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