Fortune Bay fast tracks Goldfields after PEA, financing

Executive Summary

• Fortune Bay Corp. has completed an $8-million bought-deal financing and is accelerating development of the Goldfields project toward a prefeasibility study (PFS) targeted for 2026.
• The company released an updated Preliminary Economic Assessment (PEA) showing strong economics, including a $610-million after-tax NPV (5%) at a $2,600/oz gold price and a $1.25-billion NPV at a $3,650/oz spot price.
• Key technical work streams have been initiated, including waste rock characterization, metallurgical testwork, and high-resolution lidar surveys, with a combined development and exploration drilling program expected to begin in the coming weeks.

Key Details

• Financing: Completed an $8-million bought-deal financing.
• Updated PEA Economics (Base Case):
  • Gold Price: $2,600 (U.S.) per ounce.
  • After-tax NPV (5%): $610-million.
  • After-tax IRR: 44%.
  • Cumulative after-tax free cash flow: $914-million.
  • Mine Life: 14 years.
  • Initial Capital Cost: $301-million.
• Updated PEA Economics (High Price Scenario):
  • Gold Price: $3,650 (U.S.) per ounce (as of Sept. 19, 2025).
  • After-tax NPV (5%): $1.25-billion.
  • After-tax IRR: 74%.
  • Cumulative after-tax free cash flow: $1.82-billion.
• Resource Status: The updated PEA highlights a derisked mineral resource with 97% of ounces in the indicated category.
• Drilling Plans:
  • A comprehensive drilling program for the Box and Athona deposits is being optimized to support the PFS.
  • Program will integrate geotechnical study, metallurgical sampling, waste rock study, and groundwater investigations.
  • Project-development drilling will run in conjunction with exploration drilling to evaluate resource growth potential.
  • Drilling is expected to begin in the coming weeks; specific exploration drill targets to be announced shortly.
• Technical Studies:
  • Waste Rock Characterization: Analytical testing initiated at SGS Canada -- Lakefield laboratory (Ontario) for Acid Base Accounting, metal geochemistry, and shake flask extraction. Results will inform waste rock and water management plans.
  • Metallurgical Testwork: Ongoing at SGS Canada -- Lakefield laboratory on Box deposit samples to determine gold recovery via gravity and two-pass flotation. Results expected in early December 2025.
  • Topographic Survey: Fixed-wing airborne lidar survey completed in October 2025 by KBM Geomatics. Deliverables expected in November 2025.
• Permitting and Regulatory Engagement:
  • Aquatic Surveys: Completed September 2025 by Ecometrix Inc. Initial reporting expected December 2025; full reporting with lab analysis expected early 2026.
  • Terrestrial Surveys: Initiated August 2025 by Omnia Ecological Services. Follow-up field work completed October 2025. Initial reporting expected December 2025; work continues in 2026.
  • Community Consultation: Tour scheduled for late November 2025 in Uranium City, Fond du Lac, Black Lake, and Stony Rapids.
  • Regulatory Submission: Technical proposal to the Saskatchewan Ministry of Environment planned for Q1 2026, building on the provincially approved 2008 environmental impact statement for a 5,000-tonne-per-day open-pit operation.
• Technical Report: "Goldfields Project Updated NI 43-101 Technical Report & Preliminary Economic Assessment" dated Oct. 20, 2025, prepared by Kevin Murray, Scott C. Elfen, James Millard, Jonathan Cooper, Marc Schulte, Cliff Revering, and Ron Uken. Reviewed by Gareth Garlick, PGeo.

Notable Quotes

• "Goldfields stands out as a development-ready gold asset in a premier mining jurisdiction," stated Dale Verran, chief executive officer of Fortune Bay. "With robust updated PEA economics, a strong project foundation and now a fully funded advancement plan, we are positioned to unlock meaningful value on multiple fronts. As part of this, we are preparing to commence a drilling program in the coming weeks that will include both project development drilling to support the PFS and exploration drilling to evaluate resource growth potential. We expect to announce the specific exploration drill targets shortly."