Revenue Silver Mine Presentation May 2014 This document contains - PowerPoint PPT Presentation

Revenue Silver Mine Presentation May 2014

This document contains forward-looking information. This forward-looking information includes statements with respect to, among other things, the proposed acquisition of the 88% interest in the Revenue Silver Mine (the "RSM") not currently owned by the Company, the anticipated production from and economics of the RSM, including anticipated cash costs, cash flows, earnings and internal rate of return, the potential to produce copper at the RSM and the potential to expand resources and production at the RSM. Forward-looking information is based on the opinions and estimates of management as well as certain assumptions at the date the information is given (including, in respect of the forward- looking information contained in this press release, the assumptions set forth below under "Financial Model Assumptions"). However, such forward-looking information 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 risk that the Company may not be able to arrange the necessary financing to purchase the remaining interest in the RSM, the risk of cost overruns, the risk that future metal prices may be lower than anticipated, the risk that the Company may not be able to produce and sell copper from the RSM, the risk that the Company may be unable to expand resources or production at the RSM and other factors. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no responsibility to update or revise it to reflect new events or circumstances, except as required by law. 2

Corporate Information Share Performance $0.50 5,000 Daily Volume Listings: TSX (Canada): FT Closing Price $0.45 4,500 OTC QX (USA): FTMDF $0.40 4,000 Share Price $0.39 $0.35 3,500 Share Price (C$) Trading Volume (M) Shares Out – Basic 188.2 $0.30 3,000 Shares Out – Fully Diluted 199.7 $0.25 2,500 $0.20 2,000 Market Cap – Basic $64.0 $0.15 1,500 Working Capital (Q3 2013) $14.7 $0.10 1,000 Total Assets (Q3 2013) $159.3 $0.05 500 All amounts in M or CAD$M except per share amounts. $0.00 - May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 Analyst Coverage Ownership Dealer Date Rating Target Procon Resources Inc. 19% Killian Charles China Mining Resources Group Ltd. 10% June 28, 2013 Spec Buy $3.30 Industrial Alliance Securities Insiders 37% David Davidson July 24, 2013 Spec Buy $1.00 Paradigm Capital Michael Fowler July 22, 2013 Spec Buy $2.65 Loewen Ondaatje McCutcheon As of May 5, 2014 3

Fortune Minerals Limited  Canadian mineral development company  Headquartered in London, Ontario, Canada  Operating in mining friendly jurisdictions Acquisition of Revenue Silver Mine  Historical 14 million oz silver producer in southwest Colorado, U.S.A.  Producer in advanced stages of commissioning & ramping up to 400 tons / day Two late-stage projects  Arctos Anthracite Project, BC  Positive Feasibility Study  In BC Environmental Assessment process  NICO Gold-Cobalt-Bismuth-Copper Project, Northwest Territories (NT) & Saskatchewan (Sk):  Positive Feasibility & FEED Studies  EA approvals received for NT & Sk sites  Completing Permitting Process 4

 Staged transaction to acquire 100% of Revenue Silver Mine in southwest Colorado for up to US$ 64.4 million  US$ 13.6 million for a 12% interest already completed  Assume payments of US$ 4.5 million & 2% NSR  Fully permitted & constructed mine, mill & surface facilities currently ramping up to 400 tons /day  Fortune is the Operator during 90-day transition period  1 st concentrate March, 2014 – Contracts in place to process at Teck Resources Trail Smelter  Projected 13-yr life of mine average annual production of 1.78 million ozs of silver, plus gold, lead & zinc byproduct credits (~30% of revenues)  Revenue Mine Historical Mill & Current Site Low cost producer with projected C1 cash cost silver price of US$ 8.02oz & breakeven free cash flow silver price of US$ 12.42/oz – both net of byproducts  Robust cash flow with estimated average annual life of mine EBITDA of US$ 15.5M  Measured & Indicated Resources contain 16.3 million ozs silver & Inferred Resources contain 10.1 million ozs silver, excluding byproducts  Additional upside from broken ore in stopes & unexplored veins 5

 Mill & concentrator throughput being expanded from 300 to 400 tons / day or 134,000 tons / yr  Production of silver, gold, lead & zinc  Lead & Zinc concentrates to be sold under contract to Teck Resources smelter in Trail, B.C.  Gravity gold sold to Johnson Matthey  Potential to produce copper concentrate for sale to Asia to increase revenues payments  Potential to negotiate recovery of other metals Gold, Zinc, Mining and production Annual Average 10.04% 2.41% Lead, Silver 1.78 million oz. 12.02% Lead 5.29 million lb Silver, Zinc 1.33 million lb 75.53% Gold 3,251 oz. Plant feed, ore (dry-basis) 134,000 tons Revenue by Metal Type 6

 Project Pre-tax 6% discounted NPV of US$ 121 M  Average cash cost of US$8.02/oz Life of Mine (LOM) while at full capacity  Breakeven free cash flow silver price of US$ 12.42 – Includes OPEX, royalty & capital costs  Projected average annual EBITDA of US$ 15.5 M/yr , US$ 202M LOM Average Annual Cash Cost* Cash Cost per Ag Eq Oz Mining $ 10,909,654 25 Cash cost per AgEq/oz 18.63 18.98 19.67 20.29 20.89 Milling $ 4,919,254 20 17.5 17.26 Surface $ 3,880,847 15 11.72 12.98 Other $ 4,437,873 10 10 8.1 8.02 Total Cash Costs $ 24,147,628 5 Revenue of By-Products $ 9,882,606 0 Net Cash Costs $ 14,265,022 Silver Production 1,778,892 Operation Cash Cost per Ag Oz $ 8.02 *Average over the life of the mine at full production Source: Company reports Source: Metals Economics Group 7

 Project financial model prepared using discounted cash flows  Metal price assumptions include: US$ 21.50 / oz Ag, US$ 1.00 / lb Pb, US$ 1.00 / lb Zn, US$ 1350 / oz gold & no revenue for copper  2% NSR capped at US$ 9 million paid from cash flow  Additional capital of US$ 5.75 million for mine & plant improvements paid from cash flow  Sustaining capital of US$ 5.5 million paid from cash flow  Reduction of resource by 15% for pillars & additional external dilution applied to SRK Consulting resources of 25% for Virginius Vein & 20% for Yellow Rose  Overhead & operating costs developed from mine experience  Mill recoveries & costs based on metallurgical studies  Smelter returns from existing contracts 8

 Southwest Colorado, U.S.A., 11 km south of town of Ouray (pop. 1,000), 58 km from town of Montrose (pop. 19,000) & 490 km southwest of Denver  Mine has strong community support  Extensive history of underground mining in area dating back to 19 th century  Warehouse facilities in Ouray to service mine & stage workers to site Ouray, Colorado 9

 Total land package of 147 claims, totalling 1,079.9 acres, including 110 patented claims, totalling 736.89 acres  Apex down-dip right of ownership Ouray, Colorado 10

 Compact mine, plant, tailings & site services layout  Excellent infrastructure near highway with county maintained road to mine site  Connection to Colorado electrical grid with excess capacity to allow for growth  Mine access from horizontal tracked & serviced portal & tunnel  Most mine equipment electric to reduce compressor & ventilation requirements  Underground mill & flotation concentrator  External crushing plant for waste rock provided to County  Tails filtered & dry stacked in permitted area with capacity for 600,000 tons or 1 st 6 yrs of production & plan for expansion Revenue Mine – Surface Infrastructure 11

 Site includes office / dry, warehouse & surface shop facilities  Underground shop for mine  External crusher for waste rock sold to county Shop Underground shop Dry Electrics Tails Filter Portal 12

 Decentralized model to manage operations  Currently ~90 employees & most senior positions filled  Full production will require ~100+ employees locally sourced from workers laid off in November Site Manager Safety and Finance and Admin Surface and Mine Manager Mill Manager Environmental Manager Services Manager Manager Mine Milling Safety Engineering Accounting Maintenance Production Development Training Planning Payroll Logistics and Transport Mine Concentrate Production Human Quality Environment Resources Site Buildings Mine Capital Metallurgy AP and AR Surface Utilities TBD • Mill Capital Land Management IS and IT • Exploration Warehouse • Community Procurement Surface Capital 13 Legal