Issued Capital: 64,890,857

LONDON, ON, Aug. 12 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune Minerals" or the "Company") is pleased to provide an update of the dismantling and demolition of the Golden Giant Mine at Hemlo, Ontario for the relocation of certain buildings and equipment to the Company's NICO gold-cobalt-bismuth-copper mine development in the Northwest Territories. The dismantling and demolition of the Golden Giant Mine facilities is substantially complete and valuable equipment is being stored at the site under an amended agreement with Newmont Canada Limited ("Newmont") pending receipt of permits for NICO. The buildings and equipment salvaged from Golden Giant will have a material impact on reducing the capital costs for the NICO development.

Fortune Minerals acquired certain Golden Giant Mine buildings, equipment and an inventory of spare parts from Newmont and Mindecom Industrial Constructors Limited ("Mindecom") in 2006 after the mine closed, and the remainder of the buildings from Newmont in 2008. Valuable assets salvaged from the mine for use at NICO include buildings, grinding mills, the crushing plant, flotation cells, compressors, boilers, generator, conveyors, pumps, motors, overhead cranes, transformers, assay laboratory, and electrical switch gear. Fortune Minerals is pleased to announce that it has entered into an amending agreement with Newmont that will allow the Company to maintain the service complex building and store its assets at the Hemlo site until required, but no later than April 1, 2011.

Fortune Minerals has generated significant cash proceeds from the sale of gold recovered from residues and other materials collected during cleanup of the Golden Giant Mine assets. Approximately 135 tonnes of high-grade materials were processed or, are awaiting settlement at refineries in Canada and the United States. The Company also sold approximately 8,200 tonnes of recyclable scrap steel, copper and other metals from the mill, head frame and other buildings that were demolished at the Hemlo site. Additional funds were generated from the sale of surplus equipment and buildings, including a jaw crusher, the paste fill plant and building, cold storage buildings, furnaces, office and other small equipment that were not required at NICO.

Fortune Minerals contracted Tri-Venture FE&C Canada Ltd. ("Tri-Venture") as the primary contractor for the dismantling and demolition of the Golden Giant Mine assets. The scope of work was reduced as allowable under the contract after it was determined that certain Golden Giant Mine assets would no longer be required at NICO, including portions of the mill building that was demolished, and the paste fill plant, which was sold.