Mr. Troy Nazarewicz reports

FORTUNE MINERALS ANNOUNCES NEW CONVERTIBLE SECURITY AGREEMENT WITH THE LIND PARTNERS

Fortune Minerals Ltd. has entered into a new convertible security funding agreement with Lind Global Fund III LP, an entity managed by The Lind Partners, pursuant to which the company has agreed to draw down $3,155,000 in exchange for the issuance of a convertible security to Lind.

The proceeds from the issuance of the convertible security will be used for general working capital purposes, and to prepay and partially match the costs for government supported work programs currently under way for the vertically integrated NICO cobalt-gold-bismuth-copper critical minerals project (NICO project) (see news releases dated, May 16, 2024, and Dec. 5, 2023). Fortune is working closely with the government of Canada, the government of the United States and the government of Alberta to expand North American critical minerals production and enhance domestic supply chain resilience and security. The company has been awarded about $17-million (Canadian) of non-dilutive contribution funding from the U.S. Department of Defense through its Defense Production Act Title III program, Natural Resources Canada's Global Partnerships Initiative and Critical Minerals Research Development and Demonstration programs, and Alberta Innovates Clean Resource Intake program. These funds are helping advance the NICO project toward a construction decision and provide a reliable North American supply of cobalt sulphate, gold dore, bismuth ingots and copper cement enhancing domestic supply chains for three critical minerals with a highly liquid and countercyclical gold co-product to mitigate metal price volatility.

The convertible security will have a two-year term, with a face value of $3,774,000 and is secured by a lien against the company's mining assets. Lind will be entitled to incrementally convert the face value amount of the convertible security over a 24-month period, subject to certain limits, at a conversion price equal to 85 per cent of the five-day trailing volume weighted average price (VWAP) of Fortune's common shares prior to the date of conversion. Commencing 60 days following the date on which Lind advances the funds pursuant to the convertible security to the company, Fortune will have the right to repurchase the convertible security, subject to Lind's option to convert up to one-third of the face value into common shares prior to such repurchase at a conversion price equal to 85 per cent of the five-day VWAP. Lind will also receive a closing fee of $120,000 and 15,641,293 common share purchase warrants exercisable at an exercise price of 11.41 cents per common share for 60 months from the date of closing.

The Toronto Stock Exchange (the TSX) has provided conditional approval in respect of the issuance of the convertible security.

About Fortune Minerals Ltd.

Fortune is a Canadian mining company focused on developing the vertically integrated NICO cobalt-gold-bismuth-copper critical minerals project in Canada. The NICO project is a development-stage asset consisting of a planned mine and concentrator in the Northwest Territories and a dedicated hydrometallurgical facility in Alberta's Industrial Heartland Association north of Edmonton. Fortune also owns the Sue-Dianne copper-silver-gold satellite deposit located 25 kilometres north of the NICO deposit and is a potential future source of incremental mill feed to extend the life of the NICO mill and concentrator.

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