Emerging Strategic Metal & Coal

ProducerFortune Minerals LimitedInvestor Presentation

December 2010TSX-FT

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FORWARD-LOOKING INFORMATIONThis document contains certain forward-looking information. This forward-looking information includes, ormay 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 ofmineral properties, timing and cost for placing the Company’s mineral projects into production, costs ofproduction, amount and quality of metal products recoverable from the Company’s mineral resources,demand and market outlook for metals and coal and future metal and coal prices. Forward-lookinginformation is based on the opinions and estimates of management at the date the information is given, andis subject to a variety of risks and uncertainties and other factors that could cause actual events or results todiffer materially from those projected in the forward-looking information. These factors include the inherentrisks involved in the exploration and development of mineral properties, uncertainties with respect to thereceipt or timing of required permits and regulatory approvals, the uncertainties involved in interpretingdrilling results and other geological data, fluctuating metal and coal prices, the possibility of project costoverruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financingneeded in the future, uncertainties related to metal recoveries and other factors. Mineral resources that arenot mineral reserves do not have demonstrated economic viability. Inferred mineral resources areconsidered too speculative geologically to have economic considerations applied to them that would enablethem to be categorized as mineral reserves. There is no certainty that mineral resources will be convertedinto mineral reserves. Readers are cautioned to not place undue reliance on forward-looking informationbecause it is possible that predictions, forecasts, projections and other forms of forward-looking informationwill not be achieved by the Company. The forward-looking information contained herein is made as of thedate hereof and the Company assumes no responsibility to update them or revise it to reflect new events orcircumstances, except as required by law.

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FORTUNE MINERALS INVESTMENT HIGHLIGHTS 2 development stage projects in permitting stage:

NICO Gold-Cobalt-Bismuth-Copper Project, NWT & Saskatchewan 4 million equivalent gold ozs, significant cobalt & largest deposit of bismuth in world

Mount Klappan Anthracite Coal Project, British Columbia 2.8 billion tonnes metallurgical coal - One of world’s largest undeveloped deposits

NICO & Mount Klappan, both have: Positive definitive feasibility studies - >$ 1.3 billion NPV’s Successfully test mined – Deposit geometries & grades confirmed Successfully pilot plant processed – Production of high value products confirmed All commodities have significant demand growth

New Mount Klappan definitive feasibility study based on rail transport of coal to port Golden Giant Mine mill purchased & dismantled to reduce NICO CAPEX Sue-Dianne Copper-Silver-Gold deposit, 25 km north of NICO – Future mill feed Experienced board & management team Pursuing partnering options at project level to finance projects

Deloitte & Touche engaged to identify strategic partner for Mount Klappan BNP Paribas engaged to arrange US$ 250 million NICO project financing

Production of specialty metals & coal with minimal equity dilution

4Canada Focus - Operating in mining friendly jurisdictions

PROPERTY INTERESTSPROPERTY INTERESTS

Canada Focus - Operating in mining friendly jurisdictions

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CorporateInformation

Share Performance

Listing: TSX-FT Share Price: ~$ 1.30 Issued Shares: 105.8 million Fully Diluted: 126.9 million Market Cap: ~$ 135 million Working Capital: $ 8.7 million (Q3- 2010) Total Assets: $ 127.6 million (Q3-2010)

China Mining Resources Group Ltd. ~16% Manulife Global Management US ~ 11% Officer & Director Holdings ~26% (includies China Mining)

As of December 6 2010All values in C$ unless otherwise noted

Analyst Reports

Ownership

David Davidson, Paradigm Capital Michael Fowler, Loewen Ondaatje McCutcheon

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100% owned by Fortune Minerals

2.8 billion tonne resource – One of world’s largest undeveloped deposits of metallurgical coal

Definitive Feasibility Study demonstrates robust economics

Very well understood geology, with test mining & processing compete

New rail transportation development strategy - Simplifies project – Facilitates scalable expansion

Near term production potential – Low risk permitting – Environmental Assessment initiated

Supply shortages of metallurgical coals – Growing world consumption

Railway sub-grade links mine site with CN mainline & Ridley Terminals

MOUNT KLAPPAN ANTHRACITE COAL PROJECT HIGHLIGHTS

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Large license area in northwest B.C. (15,866 Ha)

Close proximity to deep water shipping ports

Stewart Port (150km)

Ridley Terminals in Prince Rupert (330km)

Close proximity to Asian markets

Port of Prince Rupert 36 hours closer to Asian ports than other West Coast ports

Mine site straddles railway right-of-way

Track (CN) installed to 150km south of mine

Railway road bed largely complete to mine

Road access from railway subgrade

Feasibility study for railway expansion completed

Support of CN Railway

B.C. Government now revenue sharing with First Nations groups

STRATEGIC LOCATION & INFRASTRUCTURE

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Mount Klappan Resources (million tonnes)(1) (3)

Lost Fox Metallurgical Coal Reserves (million tonnes)(2) (3)

(1) 2.8 billion tonne resource in all classes - estimates by Marston & Marston Inc. as of February 2007(2) 9.7 Bcm / tonne finished product strip ratio at 1.5 million tonne per year.(3) Richard Marston, PE is the Qualified Person as defined by NI 43-101

Area Measured Indicated Demonstrated Inferred SpeculativeLost Fox 107.9 109.5 217.4 91.5 749.6 Hobbit-Broatch - 13.5 13.5 258.4 753.0 Summit - - - 9.6 508.9 Nass - - - - 201.5 Total 107.9 123.0 230.9 359.5 2,213.0

In Situ Coal Reserves Measured Indicated Total In Situ

85.6 16.1 101.7

10% Ash Product ReservesProven Probable Total Product

51.6 9.2 60.8

MOUNT KLAPPAN RESOURCES & RESERVES

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ANTHRACITE PRODUCTS & USE

Highest quality coal with very high carbon & energy content Anthracite only 1% of world coal reserves Metallurgical coal with diverse applications

Other products: Blend coal with coking coal for making metallurgical coke Direct coke replacement Heating & cooking briquettes Binder for iron ore pellets

Source: Company Information.

Filter Media US$ 350 / tonne Metallurgical Reductants / charge carbon US$ 350 / tonne Ultra-Low Vol. PCI US$ 175 / tonne Sinter US$ 150 / tonne Power Generation US$ 125 / tonne

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World anthracite production: ~ 565 million tonnes

China: 483 million tonnes – a net importer of anthracite

Vietnam: 43 million tonnes – reduced exports with plans to utilize all production domestically

Few new high-quality deposits in mining friendly jurisdictions

Increasing demand from end markets for good quality metallurgical coals

China became a net coal importer in 2009, coking coal in 2007 & anthracite in 2004

Japan & South Korea imports increased in 2010 after financial crisis in 2009

Other emerging economies will also be the driving forces for future met. coal demand

Indian crude steel production expected to increase from 72.8 million tonnes to 124 million tonnes by 2010 & 293 million tonnes by 2020

Brazilian crude steel production expected to increase from 26.5 million tonnes to 103 million tonnes by 2030

An insufficient supply of met. coals to meet anticipated further global demand

VERY ATTRACTIVE MARKET DYNAMICS FOR ANTHRACITE / PCI

PCI produced from Mount Klappan will be very high-quality & priced at the upper range of PCI prices

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November 2010 DFS update to 2005 & 2008 DFS

Based on railway transport of coal from mine to Ridley Coal Terminal in Prince Rupert

Initial production from Lost Fox deposit open pit mine, wash plant & site infrastructure

60.8 Mt of product coal reserves – 20+ yrs production (only 3.6% of global resource)

Production of 3 Mtpa clean coal

Premium ultra-low volatile PCI product

Can diversify product mix to produce premium products (charge carbon) & sinter

2010 DEFINITIVE FEASIBILITY STUDY (DFS) – OVERVIEW

BASE CASEUltra-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

Pre-Tax NPV (8%)In billions

$0.5 $1.0

$1.6 $2.2

$2.7 $3.3

$3.8

$-$0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5

$150 / t $175 / t $200 / t $225 / t $250 / t $275 / t $300 / t

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EXISTING & PROPOSED RAIL TRANSPORTATION CN Main Line (green) extends between Prince George & Prince Rupert CN operates on the red shaded part of Dease Lake Line - $ 175 million upgrade for unit trains Orange shaded part of Dease Lake Line – track removed 2 years ago Blue shaded part of Dease Lake Line has railway roadbed already constructed Bright green 22 km part of Dease Lake Line – Requires construction of roadbed & 3 bridges Cost of 150 km extension to Mount Klappan estimated at $ 142.8 million – Total $ 317.8 million

Existing railway right-of-way & road bed

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Ice-free, deepwater port capable of handling full Capesize vessels ~US$ 10/tonne reduction in ocean freight

World Class coal & bulk materials handling facility with 16 Mtpa capacity

Serviced by Provincial highway & CN Rail Main Line

Significant capacity: Currently only handling ~50% of design capacity

36 hours closer to Asian ports than port of Vancouver

Opportunities for shared cargos & blending with other metallurgical coals

RIDLEY COAL TERMINAL IN PRINCE RUPERT

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DFS reserves only represents 3.6% of total resource

Simultaneous development of the Hobbit Broatch deposit or more rapid mining of the Lost Fox deposit would produce improved economics

Rail transportation allows for higher annual production than 3 Mtpa

Current resource only identified to 300 meters – Additional coal seams identified at depth

Increased resource potential – Marston has recommended a 4 phase drilling program

BC Government is extending the electrical grid & connection would lower power costs & enable use of lower cost mining equipment

Lease to purchase of mobile equipment fleet would result in lower upfront Capex & increased IRR

Project finance debt & off-take / trade financing expected to enhance IRR

SIGNIFIANT UPSIDE POTENTIAL BEYOND 2010 DFS

A total resource of 2.8 billion tonnes, rail directly to the mine site, & no port capacity issues allows for a very large, scalable project – potentially 6 Mtpa +

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One of world’s largest undeveloped deposits with 2.8 billion tonne resource

Robust economics – DFS shows pre-tax NPV of $1 billion & IRR of 25.4% mining just 3.6% of total resource

Updated DFS with railway development option recently completed – Simpler & scalable transportation with superior port option

Project scalable beyond 3 Mtpa – potential for 6 Mtpa + & improved economics

Low risk permitting – Government support, no impacted fish habitats & rail subgrade is already in place

Significant work already competed - $86 million spent

Test mining & processing compete

Engineering largely complete

Environmental work very advanced

Near-term production potential

Deloitte & Touche engaged to help Fortune identify financial partner to help develop project

Confidentiality agreements executed with tier 1 companies

Expect shortlist of bidders in New Year

RECAP OF MOUNT KLAPPAN INVESTMENT CASE

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NICO GOLD-COBALT-BISMUTH-COPPER PROJECT HIGHLIGHTS 100% Ownership – No 3rd party royalties Mine & mill in NWT

Open pit & underground mine & concentrator Saskatchewan Metals Processing Plant (SMPP)

Vertically integrated hydrometallurgical facility to produce gold doré, cobalt & copper cathodes & bismuth cathode or ingot

$ 92 million work completed to date, includes: $ 20 million test mining $ 7 million process pilot plants Aboriginal participation in all site programs

2007 positive feasibility study & 2008 update 32.3% Pre-tax IRR Pre-tax $ 361 million 8% NPV Significant recent improvements not included

31 Million tonne reserve – 4 Million eq gold ozs Golden Giant (Hemlo) buildings & equipment

purchased & dismantled to reduce CAPEX Environmental Assessments in progress for mine &

SMPP permittingTest mining 2006/2007

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MINE LOCATION & INFRASTRUCTURE

5,140 Ha lease in southern NWT

Winter access roads

New all-weather road planned by governments to Hwy (135 km)

$18 million in place for stage 1 –realignment, bridges & roadbed

Engineering & environmental work underway

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

22 km from Snare Hydro

Settled land claim with Tlicho Government

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NICO MINERAL RESERVESUnderground 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

Reserve estimate by P&E Mining Consultants Inc., Eugene Puritch, P.Eng. & Fred Brown, CPG PrSciNat, Qualified Persons as defined by NI-43-101

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

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DIVERSIFIED EXPOSURE TO GOLD & SPECIALTY METALS Gold: Largest source of revenue in first yr of operation – Counter cyclical hedge

Cobalt: Significant demand growth - Principal sources in politically unstable countries World consumption: ~70,000T ~ 6% annual growth Metallurgical markets: high strength alloys, cutting tools, cemented carbides &

magnets Chemical markets: lithium ion & nickel metal hydride batteries, catalysts,

agriculture & pigments Key growth areas: batteries for electronic devices & hybrid / electric vehicles,

catalysts for petroleum refining, turbines LME: Initiated trading in 2010 – Futures market

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DIVERSIFIED EXPOSURE TO GOLD & SPECIALTY METALS Bismuth: Largest deposit in world – China principal source – supply concerns

World consumption: ~15,000T Traditional markets – fusible alloys, cosmetics, chemicals, ointments, medicines,

lubricants, electronics & flame retardants New markets – Super conductors, CD’S & auto anti-corrosion Environmentally safe (non-toxic) replacement for lead in: solder (plumbing &

electronics), hot-dip galvanizing, plumbing brasses, ceramic glazes, ammunition, radiation shielding, paint pigments & free cutting steel

MCP Group – LOI with World’s largest processor to purchase all production Copper: By-product of cobalt processing

World Consumption: ~ 18 million T Principal Markets: electronics / wire, pipe, brasses & other alloys, & coinage

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UNDERGROUND TEST MINING & PILOT PLANT PROCESSING

Mining conditions, geometry & grades for deposit confirmed

Environmental impacts assessed

Portal, decline ramp & 2 mine levels established with ventilation raise to surface

~$20 million pre-production development completed

Large sample collected for $7 million pilot plant tests

Proved process flow sheet

Verified production of higher value metal products

Increase in metal recoveries over feasibility study

Tangible demonstration of successful project to governments & communities

Reduced project risk

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GOLDEN GIANT MINE (HEMLO) MILL, ONTARIO Buildings, equipment & spare parts acquired from Newmont Canada Relocation to NICO for significant reduction in CAPEX & project risk No environmental liability for Hemlo site Dismantling & removal completed for net cash cost of ~$18 million

Includes ~$3.5 million in revenue from sale of surplus equipment, gold & scrap Demonstration of project execution on budget & schedule

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Micon, Met-Chem, Golder, SGS Lakefield & metallurgical & engineering experts Open pit mine with underground mining contribution in yrs 1 & 2

Maximize gold recovery & high grades during initial production Simple flotation to produce high value concentrate

High concentration ratio – 3.8% sulphide fraction contains the valuable metals Vertically integrated hydrometallurgical plant to produce high value metal products Results:

Pre-tax IRR 32.3% Pre-tax C$361 million 8% NPV Pre-production CAPEX C$213 million Cash Cost US$1.41/lb Co (1)(2)

Cash Cost US $259/oz Au equivalent (2)

April 2008 metal price sensitivity increases IRR to 97.2% & NPV (8%) to $1.5 billion(3)

Significant recent project improvements not included in feasibility study results

2008 DEFINITIVE FEASIBILITY STUDY (DFS) UPDATE

(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

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43% increase in reserves to 31 Mt – 18 Yr mine life - Excludes results of 2010 drilling 16% production rate increase to 4,650 tpd New more efficient mine plan - Eliminated underground backfilling – More underground mill feed Identification of low strip starter pit – Eliminates pre-stripping Co-disposal of waste rock & tails – Reduces dam structures & reclamation costs Commodity price assumptions higher:

Gold US$ 900/oz Cobalt US$ 20/lb Bismuth US$ 10/lb Copper US$ 2.75/lb

Improved recoveries from pilot plant: Gold 56-84%, Averages 72% - Confirmed Cobalt 83% - Formerly 81% Bismuth 70% - Formerly 58% Copper 52% - Now included

Higher value metal products: Gold Doré Cobalt 99.8% cathode Bismuth 99.5% cathode or 99.9% ingot – Feasibility study assumed concentrate Copper 99.99% cathode – Not included in feasibility study

Hydrometallurgical process plant relocated to Saskatoon Lower OPEX (~$7 million/yr) – Mitigates CAPEX increase (~$30 million)

POST-DEFINITIVE FEASIBILITY STUDY IMPROVEMENTS

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Hydrometallurgical plant to process NICO concentrates to high value metal products

Agreement to purchase lands near Saskatoon Located on CN Rail line Close to Trans-Canada Hwy Inexpensive power (5.7 cents/kWh) Close to natural gas & water Close to reagent sources Skilled worker / engineer pool – 85 employees

High concentration ratio of NICO ores produces only 180 tonnes of concentrate / day for delivery to SMPP

SMPP CAPEX ~ $225 million

SASKATCHEWAN METAL PROCESSING PLANT (SMPP)

NICO

Saskatoon

CN Rail Canadian Route Map

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2010 NICO DRILL PROGRAM 37 new drill holes completed in 2010 to extend deposit & better delineate limits

Particular emphasis on extending gold-rich central core to depth Drilling very successful in expanding deposit & intersecting high-grade gold intervals:.

51.3m averaging 2.2 g/t Au & 0.11% Co, including 3m averaging 15.59 g/t Au, 0.46% Co, 0.05% Bi & 0.20% Cu in NICO 10-300;

8.00m averaging 4.74 g/t Au & 0.16% Bi, including 1m grading 35 g/t Au in NICO 10-325; 3.38m averaging 11.59 g/t Au, 0.37% Co, 0.16% Bi & 0.14% Cu, including 1.67m averaging 20.04

g/t Au, 0.36% Co, 0.24% Bi & 0.13% Cu in NICO 10-324; 5.00m averaging 4.84 g/t Au, including 2.5m averaging 9.21 g/t Au in NICO 10-327; 20.1m averaging 0.38% Co & 0.37% Bi in NICO 10-292

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Average Annual Metal Production: Gold: yrs 1&2 of mine life: ~66,400 ozs, yrs 3-18 of mine life: ~31,500 ozs Cobalt: ~3.4 million lbs (1,550 tonnes) Bismuth: ~ 3.65 million lbs (1,650 tonnes) Copper: ~ 770,000 lbs (350 tonnes)

Average revenue: ~$100/T, $170 million/yr Revenues higher in early years of production

Average cost: ~$60/T, $102 million/yr Improvements increase project revenues – CAPEX will be higher Front End Engineering & Design Studies by Aker Solutions & other engineering companies

Revised capital & operating costs Q1 2011 BNP Paribas engaged to arrange US$ 250 million for project financing

Indicative term sheet with 70:30 debt equity split Environmental Assessments for mine & SMPP in progress for permitting Production targeted in 2013 Examining options for Fortune’s contribution to project financing

Off-take relationships, minority partners, gold or cobalt sales, equity

CURRENT STATUS OF NICO PROJECT

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STRATEGY FOR SHAREHOLDER VALUE RECOGNITION Market Capitalization: ~$ 135 Million:

undervalues 2 major projects with feasibility NPV’s collectively > $ 1.3 Billion, $ 8.7 million working capital & ~$ 40 million(1) in Hemlo equipment

Joint venture Mount Klappan with strategic partner: Deloitte engaged to find development partner Simplifies corporate focus, values project, resolves financing challenges & brings financial

& marketing expertise Permitting initiated for potential production in 2014

Development of NICO: BNP Paribas engaged to arrange US$ 250 million project debt facility Indicative term sheet 70:30 debt to equity with credit for capital already spent Options for 30% equity share - Strategic minority partner, equity, forward metal sales In permitting for planned production in 2013

JV Strategy minimizes future equity dilution Investor recognition of Fortune’s world class Canadian development assets with minimal

equity dilution

(1) Company estimate of value to NICO Project

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DirectorsGeorge Doumet, MSc, MBA Chairman, Director Chemical Engineer – President & CEO, Federal White Cement

Robin Goad, MSc, Pgeo President & CEO, Director Geologist - 29 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

Mahendra Naik, B Comm, CA Director CFO Fundeco - Founding director & former CFO, IAMGOLD

James Currie, BSc (Hons), PEng Director Mining Engineer – 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

ManagementJulian Kemp, BBA, CA VP Finance & CFO Chartered Accountant – 22 yrs mining financial experience

Thomas Rinaldi, BSc VP Operations Mining Engineer – 27+ yrs engineering & operations experience

Michael Samuels, BEng

Jared Orynik, BSc, PEng

Director Technical Services

Senior Metallurgist

Chemical Engineer – 15+ yrs experience in mineral process industry

Metallurgical Engineer – 7 yrs experience with Teck

Dr. Richard Schryer, PhD

Adam Jean, HBA, CA

Director Regulatory & Environmental AffairsController

Aquatic Scientist – 21 yrs experience in mine permitting & environmental assessmentsChartered Accountant previously with Ernst & Young

James Mucklow, MESc, PEng

Pat Moloney, BSc, Bed

Manager Env.& Community

Manager Human Resources

Geological Engineer – 21 yrs geological & environmental experience

12 yrs human resources experience

Emerging Strategic Metal & Coal

ProducerFor further information, please contact:

Robin Goad, President & Chief Executive OfficerLindsay Simmons, Investor Relations Coordinator

140 Fullarton Street, Suite 1902London, Ontario, Canada

N6A 5P2Tel. (519) 858-8188Fax. (519) 858-8155

E-mail. info@fortuneminerals.comWebsite. www.fortuneminerals.com

TSX-FT