July 2nd

Fortune Minerals Limited retains CIBC World Markets as financial advisor to pursue strategic alternatives for Mount Klappan anthracite coal project

Fortune Minerals Limited (TSX-FT) (\"Fortune\" or the \"Company\") announced today that it has engaged CIBC World Markets Inc. (\"CIBC World Markets\") to act as Fortune\'s financial advisor in pursuing strategic alternatives for the advancement of the Company\'s world-class Mount Klappan anthracite coal project. CIBC World Markets will assist Fortune in identifying potential strategic partners and evaluating potential transactions.

Fortune\'s wholly-owned Mount Klappan anthracite coal project is located in northwest British Columbia and straddles the B.C. Railway right-of-way 150 km northeast of the port of Stewart and 330 km northeast of the port of Prince Rupert. The Lost Fox deposit at Mount Klappan has been assessed in a positive feasibility study by Marston & Marston Inc. (Marston) in 2005, which evaluated a number of production rate, coal price and transportation alternative scenarios (see Fortune\'s news release, dated October 17, 2005). Marston is currently updating the scenario for a 3 million tonne per year mine and wash plant to produce a premium ultra-low volatile pulverized coal injection (PCI) product for truck haulage to the port of Stewart and export to overseas steel customers. This feasibility study update is expected to be completed this month. The Company also continues to advance the environmental assessment process and consultation with local communities.

The Mount Klappan project contains very large resources of high quality anthracite coal, a hard coal with the highest rank, carbon and energy content and lowest moisture and volatile content of all coals. These unique properties make anthracite suitable for a broad range of metallurgical and thermal applications, including carbon filters, reductants for metallurgical processing, blend coals for blast furnace coke replacement, and charge carbon, sinter and PCI coal used in the manufacture of steel. Mount Klappan\'s anthracite resources are identified in four distinct deposit areas referred to as Lost Fox, Hobbit-Broatch, Summit and Nass. Collectively, these contain Measured resources of 107.9 million tonnes, Indicated resources of 123 million tonnes, plus 2.572 billion tonnes in the Inferred and Speculative classes (see Fortune\'s news release dated June 22, 2004). The Proven and Probable reserves contained in the Lost Fox deposit are 102 million in-situ tonnes. Richard Marston, P.E., was the Qualified Person responsible for the resource and reserve estimates in accordance with National Instrument 43-101.

There can be no assurance that the engagement of a financial advisor will result in a transaction or that any transaction will be made within any specific time frame.

About Fortune Minerals

Fortune Minerals is a diversified natural resource company with several mineral deposits and a number of exploration projects, all located in Canada. They include the Mount Klappan anthracite coal deposits in British Columbia, and the NICO cobalt-gold-bismuth deposit, the Sue-Dianne copper-silver deposit and other base and precious metals exploration projects in the Northwest Territories. Fortune Minerals is focussed on outstanding performance and growth of shareholder value through assembly and development of high quality mineral resource projects.

This press release contains 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, demand and market outlook for metals and future metal 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, the uncertainty of being able to conclude a transaction with respect to the Mount Klappan project, 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 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 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. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

SOURCE: Fortune Minerals Limited

Fortune Minerals Limited, Robin Goad, President, Tel.: (519) 858-8188, Fax: (519) 858-8155, This email address is being protected from spambots. You need JavaScript enabled to view it., www.fortuneminerals.com; Greg Taylor, Investor & Public Relations, Tel: (905) 337-7673, Cell: (416) 605-5120, Fax: (905) 844-6532, This email address is being protected from spambots. You need JavaScript enabled to view it.