Posco, a major South Korean steelmaker, is to take a 20% stake in Mt Klappan, with an offtake agreement.

Posco and Fortune intend to form a Joint Venture to exploit the Mt. Klappan deposit, Fortune will retain 80% and Posco 20%

They will concentrate on the Lost Fox deposit, which has an estimated 3.6% of the total resource, or 106million tons

From the ZNews Release

'with robust economics from a Definitive Feasibility Study3 ("DFS") on the Lost Fox deposit with Run-of-Mine Coal Reserves of 106.3 million, representing only 3.6% of the total resources (See Fortune News Release, dated November 4, 2010);

$1.03 billion pre-tax NPV (8%) and 25.4% IRR from Lost Fox DFS at a base case price of US$175 / tonne of 10% ash Ultra-Low Volatile Pulverized Coal Injection ("PCI") product;

3 million tonnes per annum planned initial production rate;

Expansion potential via the mining of additional resources in the Lost Fox deposit and the adjacent Hobbit Broach, Nass and Summit deposits;

Canadian National Railway ("CN") collaboration to extend railway infrastructure to the mine site, providing a scalable transportation solution to the port of Prince Rupert;

Reduced shipping times to Asia by exporting the coal products through the port of Prince Rupert, positioning Mount Klappan as a key supplier to the overseas steel industry;

Ability to use Ridley Terminals to load efficient Capesize vessels for ocean transport, and potentially share cargos and blend with other western Canadian coal producers;

Advanced stage project with $86 million of work already competed.

Mr. Robin Goad, President and CEO of Fortune, commented, "We are extremely proud that Mount Klappan has attracted a world-class organization like POSCO as a major investor and strategic partner. This transaction will allow for accelerated development of the Project and is anticipated to provide 100% of required funding to complete more detailed engineering and design studies as well as permitting and stakeholder consultations. It is anticipated that Fortune will not be required to contribute any further funding until permitting is complete and prior to the commencement of construction. Additionally, our post-transaction levered after-tax NPV (8%) of Fortune's 80% share of Mount Klappan is estimated at $601 million at a $175 per tonne PCI price, and represents only a fraction of the total resource."