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Emerging Strategic Metal & Coal Producer Fortune Minerals Limited Investor Presentation  January 2012 TSX-FT
[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Corporate Information Share Performance ,[object Object],[object Object],[object Object],As of January 11, 2012 All values in C$ unless otherwise noted Analyst Reports Ownership ,[object Object],[object Object]
Canada Focus - Operating in mining friendly jurisdictions ,[object Object],PROPERTY INTERESTS Canada Focus - Operating in mining friendly jurisdictions
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],MOUNT KLAPPAN ANTHRACITE COAL PROJECT Railway sub-grade links mine site with CN mainline & Ridley Terminals
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],JOINT VENTURE WITH POSCO
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],ABOUT POSCO
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],STRATEGIC LOCATION & INFRASTRUCTURE
[object Object],[object Object],[object Object],[object Object],MOUNT KLAPPAN RESOURCES & RESERVES (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 ,[object Object],[object Object],[object Object],Area Measured Indicated Demonstrated Inferred Lost Fox 107.9 109.5 217.4 91.5 Hobbit-Broatch - 13.5 13.5 258.4 Summit - - - 9.6 Nass - - - - Total 107.9 123.0 230.9 359.5 Run – Of –Mine Coal Reserves 10% Ash Product Reserves Measured Indicated Total In Situ Proven Probable Total Product 89.5 16.8 106.3 51.6 9.2 60.8
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Company Information.
GROWING PCI DEMAND FROM STEEL PRODUCERS ,[object Object],[object Object],[object Object],[object Object],Source: Macarthur Coal
EMERGENCE OF CHINA AS NET COAL IMPORTER Source: China Coal Resource Website, Deloitte Coal & Anthracite Net Imports by China  In million mt ,[object Object],[object Object],[object Object],[object Object],[object Object]
SIGNIFICANT FUTURE MET COAL DEMAND GROWTH Global Met Coal Demand Million mt Source: Peabody Global Energy Analytics >500 million mt demand increase over the next decade with limited new production potential ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Insufficient supply of metallurgical coals to meet forecast global demand
[object Object],[object Object],[object Object],[object Object],[object Object],RAILWAY UPGRADE & EXPANSION Existing railway right-of-way & road bed
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],PORT OF PRINCE RUPERT
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2010 DEFINITIVE FEASIBILITY STUDY  ,[object Object],[object Object],BASE CASE Ultra-Low Volatile PCI US$175 / tonne (C$1 = US$ 0.95) PRE-TAX AFTER TAX IRR 25.4% 20.7% NPV (8%) C$ 1,027.8 Million C$ 667.4 Million Capital (Years 1-4) C$ 768.4 Million (includes railway capital)
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],SIGNIFICANT UPSIDE POTENTIAL One of world’s largest undeveloped deposits, railway extension to mine site allows for large, scalable project that can be expanded to 6 Mtpa +
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],ACCELERATED DEVELOPMENT STRATEGY
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],NICO GOLD-COBALT-BISMUTH-COPPER PROJECT Test mining 2006/2007
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],MINE LOCATION & INFRASTRUCTURE
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],NICO Saskatoon CN Rail Canadian Route Map
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Value by Metal at Spot Prices
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Historical & Forecast Gold Price  Source: Bloomberg; Energy & Metals Consensus Forecasts, Oct 2012
COBALT – ROBUST MARKET WITH INCREASING DEMAND World cobalt production (in tonnes) Wide application of industrial usage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source:  USGS Industry Survey  Source: Cobalt Development Institute
BISMUTH – ENVIRONMENTAL FRIENDLY WITH GROWTH POTENTIAL Bismuth prices continue to increase World reserves (in tonnes) Growing number of applications Bismuth Prices 3 Years    ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source:  MetalPrice.com Source:  USGS Industry Survey 2010 Source:  USGS Industry Survey
NICO MINERAL RESERVES (TO BE UPDATED SHORTLY)  Reserve estimate by P&E Mining Consultants Inc., Eugene Puritch, P.Eng. & Fred Brown, CPG PrSciNat, Qualified Persons as defined by NI-43-101 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 Probable 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 Contained Metal 907,000 ounces 82 million pounds 109 million pounds 27 million pounds
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2010 DRILL PROGRAM
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2008 DEFINITIVE FEASIBILITY STUDY (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
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],POST-DEFINITIVE FEASIBILITY STUDY IMPROVEMENTS
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],RESULTS OF NICO PROJECT IMPROVEMENTS
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],DEVELOPMENT STRATEGY
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2012 TARGETED MILESTONES
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 & exploration experience  David Knight,  BA, LLB Secretary, Director Partner, Macleod Dixon 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 – former Executive Vice President & COO, New Gold 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 Management Julian 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 Bill Shepard Project Manager Logistics Manager Mining Engineer – 40+ yrs engineering & managerial experience 15 yrs experience in procurement and logistics Dr. Richard Schryer,  PhD Adam Jean,  HBA, CA Director  Regulatory & Environmental Affairs Controller Aquatic Scientist –20+ yrs experience in mine permitting & environmental assessments Chartered Accountant previously with Ernst & Young James Mucklow,  MESc, PEng Keith Lee,  BSc Manager Env.& Community  Senior Process Engineer Geological Engineer – 20+ yrs geological & environmental experience  25 yrs operations, engineering & mineral processing experience
Emerging Strategic Metal & Coal Producer For further information, please contact: Robin Goad, President & Chief Executive Officer Troy Nazarewicz, Investor Relations Manager 140 Fullarton Street, Suite 1902 London, Ontario, Canada N6A 5P2 Tel. (519) 858-8188 Fax. (519) 858-8155 E-mail. tnazarewicz @fortuneminerals.com Website. www.fortuneminerals.com TSX-FT

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Investor Presentation

  • 1. Emerging Strategic Metal & Coal Producer Fortune Minerals Limited Investor Presentation January 2012 TSX-FT
  • 2.
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  • 26.
  • 27. NICO MINERAL RESERVES (TO BE UPDATED SHORTLY) Reserve estimate by P&E Mining Consultants Inc., Eugene Puritch, P.Eng. & Fred Brown, CPG PrSciNat, Qualified Persons as defined by NI-43-101 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 Probable 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 Contained Metal 907,000 ounces 82 million pounds 109 million pounds 27 million pounds
  • 28.
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  • 32.
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  • 34.
  • 35.
  • 36. 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 & exploration experience David Knight, BA, LLB Secretary, Director Partner, Macleod Dixon 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 – former Executive Vice President & COO, New Gold 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 Management Julian 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 Bill Shepard Project Manager Logistics Manager Mining Engineer – 40+ yrs engineering & managerial experience 15 yrs experience in procurement and logistics Dr. Richard Schryer, PhD Adam Jean, HBA, CA Director Regulatory & Environmental Affairs Controller Aquatic Scientist –20+ yrs experience in mine permitting & environmental assessments Chartered Accountant previously with Ernst & Young James Mucklow, MESc, PEng Keith Lee, BSc Manager Env.& Community Senior Process Engineer Geological Engineer – 20+ yrs geological & environmental experience 25 yrs operations, engineering & mineral processing experience
  • 37. Emerging Strategic Metal & Coal Producer For further information, please contact: Robin Goad, President & Chief Executive Officer Troy Nazarewicz, Investor Relations Manager 140 Fullarton Street, Suite 1902 London, Ontario, Canada N6A 5P2 Tel. (519) 858-8188 Fax. (519) 858-8155 E-mail. tnazarewicz @fortuneminerals.com Website. www.fortuneminerals.com TSX-FT

Editor's Notes

  1. Larger 57 million tonne resource For 10 and 20 $ NSR cutoff