Fortune Bay Announces Plans for the Goldfields Project in H2 2020

HALIFAX, NS July 28, 2020 – Fortune Bay Corp. (TSXV:FOR) (“Fortune Bay” or the “Company”) is pleased to announce plans for the second half of 2020, focused on advancing the Goldfields Project (“Goldfields” or the “Project”) located in northern Saskatchewan. A location and infrastructure map for Goldfields is provided in Figure 1.

Plans for the Goldfields Project in the upcoming months include the following:

• Mineral resource modelling and estimation, with the objective of completing an updated mineral resource estimate before the end of Q1 2021 to verify the historical estimate (effective date October 6, 2011) and classify current mineral resources in accordance with National Instrument 43-101 (“NI 43-101”).
• Resource expansion and exploration drill planning, to design a drill program to expand the known mineral resources at the Box and Athona deposits.
• Project development review and planning, commencing with review and validation of the historical 2011 Pre-Feasibility Study (“2011 PFS”) to identify opportunities, risks and any potential data gaps in preparation for a future updated pre-feasibility study.

Dale Verran, CEO for Fortune Bay, commented, “We are pleased to commence the process of advancing the Goldfields Project. We have a unique opportunity to build value at Goldfields through further exploration and development work during an exciting time in the gold market. The Company is well poised to execute on its work plans with a strong technical team supported by management and our experienced Board.”

Mineral Resource Modelling and Estimation

Historical mineral resource estimates for the Project (effective date October 2011) include 1.03 million ounces of gold in measured and indicated mineral resources (20.9 million tonnes at 1.5 g/t Au) and 0.23 million ounces of gold in inferred mineral resources (4.6 million tonnes at 1.5 g/t Au).

• An updated mineral resource estimate is planned before the end of Q1 2021 to verify historical estimates and classify current mineral resources in accordance with NI 43-101. The schedule for completion of the updated estimate will be subject to the review and verification of historical data by an independent Qualified Person.
• Planned work involves generating updated geological and resource models through comprehensive review of historical drilling and assay data (currently in progress), as well as field-based review and relogging of selected historical drill cores (September and October 2020).

Resource Expansion and Exploration Drill Planning

Opportunity exists to expand the mineral resources on the Project. The gold mineralization at the Box and Athona deposits remains open, specifically at depth below the Box deposit where meaningful grades and thicknesses have been intersected outside the boundaries of the historical resource estimates. Key drill intersections below the Box mineral resource include 52.8 metres at 2.12 g/t Au, 55.0 metres at 1.97 g/t Au, and 66.6 metres at 1.39 g/t Au (see Figure 2).

• The development of updated geological and resource models (as detailed above), incorporating structural controls on mineralization, will support targeting for resource expansion at the Box and Athona deposits. 2
• Field work scheduled for early fall 2020 will also include the review of other known gold prospects on the property (specifically Frontier Lake, Golden Pond and Triangle – see Figure 3) and the development of future targeting strategies and exploration plans.

Project Development Review and Planning

The 2011 PFS includes open-pit proven and probable mineral reserves of 1.02 million ounces (22.3 million tonnes at 1.4 g/t Au).

• Review and validation of the 2011 PFS is planned for Q3 2020 and Q4 2020 to identify opportunities, risks and any data gaps in preparation for a future updated pre-feasibility study.
• The review will aim to identify focus areas for project optimization, that are envisaged to include various tradeoff studies, and the development of a project development work plan and schedule for 2021.

Approval of the Company’s deferred share unit plan (“DSU Plan”)

The Company is also pleased to announce that on June 25, 2020 at the Company’s Annual General and Special Meeting of Shareholders, the disinterested shareholders voted in favour of adopting the new DSU Plan as outlined in the Company’s Management Information Circular. The maximum number of common shares that may be issued under the DSU Plan is 500,000 shares.

About Goldfields

The 100% owned Goldfields Project is the Company’s most advanced asset located in northern Saskatchewan, approximately 13 kilometres from Uranium City, for which a historical Pre-Feasibility Study (“2011 PFS”) was completed in October 2011 in accordance with NI 43-101. The 2011 PFS envisaged open-pit mining of the Box and Athona gold deposits, located two kilometres apart, over 13 years with estimated gold recoveries of 91% and 89% respectively, processed at a shared mill facility with a capacity of 5,000 tonnes per day. Economic highlights from the 2011 PFS include an NPV (at a 5% discount rate) of CAD$144.3 million (pre-tax) and a 19.6% IRR (pretax) using a base case of CAD$1,250/oz of gold (exchange rate CAD = 0.96 USD). Total capital costs were estimated at CAD$159.2 million including a 13.7% contingency. Mineral reserve and mineral resource estimates for the 2011 PFS (Box and Athona deposits) included; 1.02 million ounces of gold (22.3 million tonnes at 1.4 g/t Au) in proven and probable reserves, 1.03 million ounces of gold (20.9 million tonnes at 1.5 g/t Au) in measured and indicated resources (included in the proven and probable reserves), and 0.23 million ounces of gold (4.6 million tonnes at 1.5 g/t Au) in inferred resources. The Project is endowed with established infrastructure including existing roads, powerline, and nearby facilities and an airport at Uranium City. Saskatchewan is the top ranked jurisdiction for mining in Canada according to the Fraser Institute Annual Survey of Mining Companies (2019), Investment Attractiveness Index. The Project has a history of gold production (64,000 oz Au produced between 1935 to 1942), numerous exploration drilling campaigns (~80,000 metres of drilling in ~675 drill holes) and various mining studies (including a 1995 Feasibility Study for the Box deposit that was not prepared in accordance with NI 43-101). The Box open-pit mine and mill development is permitted having received Ministerial approval under the Environmental Assessment Act in May 2008. The 9,500 hectare Goldfields property presents numerous exploration opportunities, including the potential to expand the Box and Athona deposits and discover additional resources at several other gold prospects and occurrences.

About Fortune Bay

Fortune Bay Corp. (TSXV:FOR) is a gold-focused exploration and development company with 100% ownership in two high-quality advanced gold projects in Canada, Saskatchewan (Goldfields Project) and Mexico, Chiapas (Ixhuatán Project), both with exploration and development potential. The Company has a goal of building a midtier gold exploration and development Company through the advancement of its existing projects and the strategic acquisition of new projects to create a pipeline of growth opportunities. The Company’s corporate strategy is driven by a Board and Management team with a proven track record of discovery, project development and value 3 creation. Further information on Fortune Bay and its assets can be found on the Company’s website at www.fortunebaycorp.com or by contacting us as info@fortunebaycorp.com or by telephone at 902-334-1919.

Qualified Person

The technical and scientific information in this news release has been reviewed and approved by Dale Verran, M.Sc., P.Geo., Chief Executive Officer of the Company, who is a Qualified Person as defined by NI 43-101. Mr. Verran is an employee of Fortune Bay and is not independent of the Company under NI 43-101.

On behalf of Fortune Bay Corp.

”Dale Verran”
Chief Executive Officer
902-334-1919

Cautionary StatementRegarding Forward-Looking Information
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. 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.

Cautionary Note Regarding Historical Mineral Resource and Mineral Reserve Estimates
A Pre-Feasibility Study (the “2011 PFS Technical Report”), with an effective date of October 6, 2011, was completed for the Goldfields Project by March Consulting Associates Inc. in cooperation with Wardrop (now Tetra Tech), Dan Mackie Associates (DMA) and EHA Engineering Ltd. The mineral resources and mineral reserves were classified according to the CIM Standards on Mineral Resources and Reserves: Definitions and Guidelines, November 2005 (“CIM 2005”) and incorporated, by reference, into National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The 2011 PFS Technical Report was issued to Brigus Gold Corp. (“Brigus”), and subsequently re-issued to successor company, Fortune Bay on March 13, 2014. The full 2011 PFS Technical Report is filed on SEDAR (www.sedar.com) under Brigus’s issuer profile. The reader is cautioned that a Qualified Person has not done sufficient work to classify the mineral resources and mineral reserves stated in the 2011 PFS Technical Report as current resources and reserves. Fortune Bay is not treating this historical estimate as current mineral resources or reserves. While this estimate was prepared in accordance with NI 43-101 and CIM 2005 in effect at the time, there is no guarantee that it would be consistent with current standards and it should not be regarded as such. Fortune Bay has not undertaken any independent verification of the data upon which the historical estimates are based. The historical estimate is considered relevant to assess the mineralization and economic potential of the property.

Figure 1: Goldfields Project infrastructure and location map.

Figure 2: Highlight gold intersections outside of the Box historical mineral resource estimate.

Figure 3: Structural map of the Goldfields property showing gold deposits, prospects and occurrences.