Fortune Minerals Limited · TSX:FT

Fortune Minerals — Investor Presentation (April 2014)

44 slides from Fortune Minerals's investor presentation, April 2014

1. Slide 1: Investor Presentation April 2014

   Investor Presentation April 2014

2. Slide 2: 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

3. Slide 3: Corporate Information and Share Performance

   Corporate Information Share Performance Listings: TSX (Canada): FT $0.50 Daily Volume 5,000 $0.45 Closing Price 4,500 OTC QX (USA): FTMDF $0.40 4,000 Trading Volume (M) Share Price $0.39 $0.35 3,500 Share Price (C$) Shares Out – Basic 150.5 $0.30 3,000 Shares Out – Fully Diluted 160.4 $0.25 2,500 Ma

4. Slide 4: Fortune Minerals Limited: Two late-stage projects

   Fortune Minerals Limited  Canadian mineral development company  Headquartered in London, Ontario, Canada  Canada Focus - operating in mining friendly jurisdictions Two late-stage projects  Arctos Anthracite Project, BC  Positive Feasibility Study  In BC Environmental Assessment (EA) process 

5. Slide 5: NICO gold-cobalt-bismuth-copper project highlights

    Significant deposit of gold, cobalt & bismuth co-products & by- product copper  Positioned to be one of the largest & lowest cost suppliers of cobalt sulphate to the rapidly expanding battery sector  Very advanced project with $110 million already invested – Including pilot plants & test mining

6. Slide 6: Strategic investment by Procon Resources

   June 27, 2013 - Strategic (19.4%) investment of C$11.7 million by Procon Resources Inc. (Procon)  Procon is controlled subsidiary of China CAMCE Engineering Co., Ltd.  Procon acquired interest in Fortune as 1st stage investment for proposed project financing to develop NICO project  Long-term str

7. Slide 7: Proven flow sheet to produce high value products

    Proven flow sheet to produce high value products:  Gold: Doré Bars  Cobalt: Sulphate Heptahydrate (~20.9% Co) – Potential to diversify production with cathode, Carbonate, Oxide, Chloride & Nitrate  Bismuth: ingot (>99.995% Bi), needles (>99.995% Bi) & Oxide (89.7% Bi)  Copper: Cement (~90% Cu)

8. Slide 8: 10-Yr Historical Gold Price

   10-Yr Historical Gold Price $1,800 $1,669  Gold price increased in the past decade $1,574 $1,600  While mine supply remains relatively flat, $1,398 $1,400 future demand continues to grow: $1,211  Growing physical demand from Asia & $1,200 central banks $1,000 $873 $873  Investment demand based o

9. Slide 9: Cobalt Consumption by End Use

    Wide chemical & metallurgical market applications in batteries, high strength alloys, cutting tools, magnets, catalysts & pigments Cobalt Consumption by End Use 2013  High purity cobalt is used in aerospace applications Battery Chemicals 4% 3% 7% (42%) 7%  Cobalt sulphate & oxide used in lithium

10. Slide 10: Cobalt demand from electric vehicle batteries

     Cobalt critical for manufacturing batteries used in electric vehicles*, computers, cell phones & other electronic devices – Battery usage 42% of cobalt demand with growth of ~20% per year  Nickel metal hydride car batteries contain ~4 kg of cobalt  Lithium-ion car batteries contain 2 to 6 kg of

11. Slide 11: Tesla lithium-ion battery plant

     Tesla plans to build $5 billion lithium-ion battery plant in U.S.  Anticipated to produce 500,000 lithium-ion batteries by 2020 – more than were produced globally in 2013  Model S uses Nickel Cobalt Aluminum (NCA) cathode chemistry from Panasonic (contains ~9% cobalt)  Tesla preference for Nort

12. Slide 12: World market for refined cobalt

     World market for refined cobalt ~85,000 tonnes in 2013, excluding some secondary processing & scrap  Vast majority of cobalt sourced from regions that are politically unstable or prone to export restrictions  Congo (DRC) currently accounts for 61% of global supply  China has the largest refinin

13. Slide 13: Bismuth applications

     Traditional uses in low temperature & fusible alloys, cosmetics, chemicals, fire retardants & sprinkler systems  New markets focus on non-toxic, environmentally safe replacement for lead in plumbing & electronic solders, brass, steel & aluminum, ceramic glazes, hot dip galvanizing, pigments & aut

14. Slide 14: World bismuth production and reserves

     World market ~15,000 tonnes per year  China is the principal source of bismuth (240,000 tonne reserve), accounting for 60% of world reserves, but 80% of world production  China closed 20% of its production due to environmental & mine safety issues – Policies to restrict exports  NICO contains o

15. Slide 15: NICO Mine & Concentrator and Saskatchewan Metals Processing Plant

    NICO Mine & Concentrator - NWT  Large gold-cobalt-bismuth-copper deposit  160 km from City of Yellowknife  450 km from railway at Hay River  High concentration ratio with flotation to reduce 4,650 tonnes of ore per day to 180 wet tonnes of concentrate  Allows shipping to Saskatchewan for lower

16. Slide 16: NICO project location and access

     5,140 Ha lease in southern NT  Winter access roads  All-weather road planned by governments to highway (135 km)  Engineering & environmental work being completed  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

17. Slide 17: NICO Mineral Reserves

    Tonnes Au Co Bi Cu Underground Mineral Reserves (Thousands) (g/t) (%) (%) (%) Proven 282 4.93 0.14 0.27 0.03 Probable 295 5.00 0.07 0.07 0.01 Total 577 4.96 0.10 0.17 0.02 Tonnes Au Co Bi Cu Open Pit Mineral Reserves (Thousands) (g/t) (%) (%) (%) Proven 20,453 0.92 0.11 0.15 0.04 Probable 12,047 1.0

18. Slide 18: Risk mitigation

    Risk mitigation  Test mining completed to confirm deposit geometry & grades  ~$20 million pre-production development completed by Procon with 2 km of decline ramp, 2 mine levels & ventilation raise to surface  Large samples collected for pilot plant testing  Piloting completed to confirm process

19. Slide 19: Positive Feasibility Study with strong economics

    Positive Feasibility Study with strong economics Feasibility Study Highlights – Base Case  Vertically integrated project consisting of open pit Mine type Open pit with underground in 2nd year & underground mine, mill & hydrometallurgical refinery Open pit: conventional truck & loader Mining method

20. Slide 20: Average Annual Revenues by Metal

    NICO will be reliable Canadian-based producer of strategic metals 100 Average Annual Revenues by Metal - Base Case 90 80 $76 70 $63 60 $55 C$M 50 40 30 20 10 $2 0 Cobalt Sulphate Gold Bismuth Copper Annual Production 3,560,400 lbs 41,360 oz 3,824,400 lbs 582,500 lbs Metals Contained % of Revenue 39%

21. Slide 21: Opportunity to strengthen project economics

    Significant opportunity exists to strengthen project economics  Exploit additional potential for new resources from known showings & geophysical anomalies  Develop nearby Sue-Dianne copper-silver-gold deposit  Extend mine life for 3+ years with stockpiled sub-economic material  Procurement of me

22. Slide 22: Progressing through final stages of permitting process

    Progressing through final stages of permitting process  Environmental Assessments completed for mine & SMPP  Mine & mill approved by Federal Minister & Tlicho Government  SMPP approved by Saskatchewan Government Advanced relationships with Aboriginal groups  Signed Co-operative Relationship Agre

23. Slide 23: Proposed Development Timeline

    Proposed Development Timeline – Assumes access to full financing 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SMPP fully permitted NICO fully permitted Financing Engineering & procurement Construction Commissioning Commercial operations 23

24. Slide 24: Arctos: premier late-stage met coal project

    One of the world’s premier, late stage met coal projects – poised to make final steps to production  Joint venture with POSCO - Committed partner & leading steel player  Advanced major metallurgical coal project in Western Canada  Over $110 million of work completed over 30+ years  Updated Feasi

25. Slide 25: Strategic partnership with POSCO

     Validation of Arctos with strategic partnership with POSCO – One of the world’s largest steel companies  Among top 200 global companies - US$ 58 billon revenue - US$ 25 billion market capitalization  Lead innovator in global steel industry  Raw materials investment for vertical integration  PO

26. Slide 26: Arctos high rank anthracite coal

    Arctos is one of the largest & most advanced Canadian projects of high rank anthracite coal  Highest quality metallurgical coal with very high carbon & energy content  Represents only 1% of world coal reserves Metallurgical coal with diverse applications  Metallurgical Reductants / charge carbon

27. Slide 27: Arctos ultra low volatile PCI products

    Arctos will produce ultra low volatile PCI & other unique products that will command price premium Properties Charge Carbon PCI Sinter / Thermal (adb) Product Product Product Fixed Carbon (%) 84.8 82.6 77.5 Ash (%) 8 10 15 Volatiles (%) 6.4 6.5 6.2 Sulphur (%) 0.5 0.5 0.5 Residual Moisture (%) 0.9 0

28. Slide 28: Anthracite helps the steel industry manage costs

    Anthracite helps the steel industry manage costs  Steelmakers expanding Pulverized Coal Injection (PCI)  Arctos coal will also have diverse usage in other to reduce costs & improve margins metallurgical processes  PCI reduces amount of coke in blast furnace  Sinter feed (coke made from coking co

29. Slide 29: Supply constraints for anthracite

    Supply constraints due to declining exports & lack of new supply  China: 547 million tonnes – Net importer since 2004  Vietnam: 44.5 million tonnes – Reducing exports to 5% of production by 2015 to utilize production domestically  Few new high-quality deposits in mining friendly jurisdictions Sup

30. Slide 30: China net imports of coal and anthracite

    China became net coal importer of anthracite in 2004, coking coal in 2007 & all coals in 2009 Coal & Anthracite Net Imports by China 600 $400 Coal Net Imports (Mt) Anthracite Net Imports (Mt) 500 $300 Hard Coking Coal Price (US$/t) $291 $300 400 $215 $209 Hard Coking Coal Price (US$/t) $200 $160 300

31. Slide 31: China key consumer with growing emerging market demand

    China will remain key consumer with growing demand from other emerging markets  China’s demand for metallurgical coal expected to grow 83% from 2012 to 2018 representing 24% of seaborne metallurgical coal market  Urbanization of India, Africa & other emerging markets from 2015 to 2045 could equal

32. Slide 32: Arctos resources and reserves

     M&I at 230mt - Small fraction of total global resource  Lost Fox deposit remains open for possible expansion - additional coal seams  Historical Resources include 2bn + tonnes in the Speculative class (1) Historical Arctos Global Resources (million tonnes) (1) Area Measured Indicated M&I Inferre

33. Slide 33: Arctos Feasibility Study completed October 2012

     Feasibility Study completed October 2012 based on rail transport to port & diesel power supply  Initial 3 Mtpa production from Lost Fox deposit open pit mine, wash plant & site infrastructure  69.2 Mt of product coal reserves – 25+ years production  Premium ultra-low volatile PCI product  Life

34. Slide 34: Railway road bed and extension

     Railway road bed largely constructed to mine site by BC Government  Project economics supports 150 km brownfield extension from Minaret  Environmental Assessment on railway extension underway as part of mine development  MOU in negotiation with CN to operate railway  Other parties interested i

35. Slide 35: Railway permit approval requirements

     Railway permit approval requirements established with BC & Federal Governments  Permits will be completed in parallel with mine permits – Similar to resource road  New section of rail included in project Environmental Assessment  BC Government officials will authorize rail bed for Arctos’ priva

36. Slide 36: Ridley Coal Terminal

    Ridley Coal Terminal a world class coal & bulk materials handling facility  Port currently has ~5 Mtpa capacity available  Ice-free, deep water port 30 hours closer to Asia than Port of Vancouver to reduce ocean freight  Capable of handling full Capesize vessels up to 250,000 dwt  16 Mtpa design

37. Slide 37: What's new: government discussions

    What’s new:  Federal & BC Governments harmonized EA substitution process  Schedule, costs & milestones established with BC Government to better understand permitting completion timeframe  Ongoing dialogue with BC Government to communicate strategies  Rail approval requirements established with F

38. Slide 38: Gitxsan and Tahltan Nations relationships

    Gitxsan Nation Supportive  Continued excellent relationship with Gitxsan  MOU & Access Agreements signed with Gitxsan Chiefs  Annual presentations at Gitxsan Summit  Gitxsan Community Liaisons hired  Traditional Use & Knowledge studies underway Tahltan Nation – Government Leading  Fortune supp

39. Slide 39: What's New: environmental assessment progress

    What’s New:  EA process continues to advance  2013 summer field season:  Additional drilling (17 holes) (+2 partial) to collect samples for environmental studies & product quality  Field work ongoing in support of Environmental Assessment for power line, rail & mine site  Mine plan adjusted for

40. Slide 40: Next steps

     Next steps include:  Complete permitting activities  Continue Tahltan, Gitxsan & stakeholder engagement  Advance rail engineering & permitting - Establish agreements with rail operator  Secure port capacity  Secure low cost power for the site with extension of electrical grid  Conduct additi

41. Slide 41: Arctos Milestones to Production

    Initial Mine Closure and Reclamation Engineering & Economic Studies Production Operation Exploration Concept Mineral Resource Construction Mineral Reserve Early Exploration Target Testing MINE PEA PFS FS Arctos 3 – 6 Years 6 – 7 Years 0.5 – 2 Years 5 – 25 Years Arctos Milestones to Production Baseli

42. Slide 42: Two advanced Canadian development assets

     Two advanced Canadian development assets  One of world’s premier metallurgical coal developments, significant gold, cobalt & 12% of global bismuth reserves  $220 million combined expenditures  Positive Feasibility Studies, test mined, pilot plant processed  EA’s completed for NICO Mine & SMPP

43. Slide 43: Directors and Management

    Directors Mahendra 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 & explo

44. Slide 44: Fortune Minerals contact information

    ee FORTUNE \ | y) ) MINERALS LIMITED Z, Join Fortune’s email list TSX:FT / OTC QX: FTMDF 148 Fulllarton Street, Suite 1600, London, Ontario, Canada N6A 5P3 Troy Nazarewicz, Investor Relations Manager info@fortuneminerals.com | 519-858-8188 | fortuneminerals.com

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