First Quarter 2021

Dear Shareholders,

The first quarter of 2021 saw the delivery of a couple of key objectives for our flagship Goldfields project, which included the start-up of our Phase 1 drilling program and the completion of a new mineral resource estimate.

We encourage you to read this quarterly update in conjunction with our material news items, provided in our news releases, and our quarterly financial statements and MD&A. This update does contain Forward-Looking Statements so please refer to the Company’s Cautionary Note appended below.

The Phase 1 drilling program for Goldfields, expected to comprise approximately 5,000 metres in 15 holes, is focused on resource expansion at the Athona and Box deposits through step-out drilling where higher gold grades remain open. Drilling commenced on March 16 at Athona South to capitalize on winter conditions, as one of the targeted areas can be more efficiently drill tested from lake ice than from on-land collar positions. We expect to complete six to eight drill holes at Athona South before moving the drill rig across to the Box targets at Zone A and Zone B. The planned drill collars at Box are land-based which will allow for drilling to continue into the spring (should drier ground conditions allow), or otherwise in early summer following a short spring break.

The Company has contracted Team Drilling (“Team”) for the program, an established and highly regarded Saskatchewanbased drilling company. In addition to Team’s proven track-record, the company is part-owned by Athabasca Basin Development, an investment company owned by First Nation communities located in northern Saskatchewan. The engagement with Team aligns with Fortune Bay’s commitment to maximize benefits from the project for local communities.

I was on site with our technical team last week and was very pleased with the operation from a health & safety, logistical and technical perspective. We have outfitted a new core processing facility in Uranium City in one of the Company’s storage buildings using existing building materials stored on site by the previous operator. Detailed logging, photography and core sampling is being carried out in this facility in accordance with industry best-practices. Dispatch of samples to Saskatoon for gold assay has recently been initiated and we are looking forward to reporting gold assays over the coming weeks.

Last year we committed to providing a new mineral resource estimate for Goldfields before the end of Q1 2021. This was delivered on schedule (announced March 22) and Goldfields now has ‘current’ mineral resources in accordance with NI 43-101. The new estimate confirmed almost one million Indicated ounces of open-pit constrained gold using a geologically representative estimation approach driven by known controls on mineralization. A significant amount of work, in both the office and field, went into preparing the estimate which included verification of the vast historical data set, the development of new detailed geological and mineralization models for both deposits, and a comprehensive estimation process. An important feature of the estimate is that it reconciles to within 1% of historical mine production at the Box deposit, providing substantial confidence in the estimate and a solid foundation on which to advance the project. Our team, along with external consultants, are currently undertaking an internal scoping exercise of the new mineral resource models to evaluate opportunities for a potential new Pre-Feasibility Study or Preliminary Economic Assessment.

During the first quarter we also ramped-up our investor relations and marketing activities, designed to increase visibility for the Company during a time when we expect increased news flow from the Goldfields Project. Virtual conferences attended included Mines & Money Connect and PDAC, and we are looking forward to sharing our story further at the Mines & Money Online Roadshow in May.

Please feel free to get in touch with us should you have any questions, by email info@fortunebaycorp.com or telephone +1 902 334 1919. Also please do not forget to subscribe on our website and follow us on Facebook, Twitter and/or LinkedIn to ensure you catch all the Fortune Bay action – including photographs from our ongoing drilling program at Goldfields.

Yours sincerely,

Dale Verran
Chief Executive Officer

Cautionary Note: Forward Looking Statements

Information set forth in this update ‘From the CEO’s Desk’ contains forward-looking statements that are based on assumptions as of the date of this presentation. These statements reflect management's current estimates, beliefs, intentions, and expectations. They are not guarantees of future performance. Fortune Bay Corp. (“Fortune Bay” or the “Company”) cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, many of which are beyond Fortune Bay's control. Such factors include, among other things: risks and uncertainties relating to metal prices, changes in planned work resulting from weather, logistical, technical or other factors, the possibility that results of work will not fulfill expectations and realize the perceived potential of Fortune Bay's mineral properties, uncertainties involved in the interpretation of drilling results and other tests, the possibility that required permits may not be obtained in a timely manner or at all, risk of accidents, equipment breakdowns or other unanticipated difficulties or interruptions, the possibility of cost overruns or unanticipated expenses in work programs, the risk of environmental contamination or damage resulting from the exploration operations, the need to comply with environmental and governmental regulations and the lack of availability of necessary capital, which may not be available to Fortune Bay acceptable to it, or at all. Fortune Bay is subject to the specific risks inherent in the mining business as well as general economic and business conditions. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions, and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Fortune Bay undertakes no obligation to publicly update or revise forward-looking information. Fortune Bay does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. For more information on Fortune Bay, readers should refer to Fortune Bay's website at www.fortunebaycorp.com.