NI 43-101 Technical Report Preliminary Economic Assessment The Revenue Mine Sneffels, Colorado Effective Date: April 18, 2014 Report Date: July 23, 2014 Report Prepared for Fortune Minerals Limited 148 Fullarton Street, Suite 1600 London, Ontario N6A 5P3 Canada . Report Prepared by SRK Consulting (U.S.), Inc. 7175 West Jefferson Avenue, Suite 3000 Lakewood, CO 80235 SRK Project Number 457700.030 Signed by Qualified Persons: Dorinda Bair, BSc Geology, CPG, Principal Consultant (Geology) James M. Beck, Bsc Mining Engineering, PE, SRK Associate Consultant (Environmental) Mark K Jorgensen, BSc Chemical Engineering, SRK Associate Consultant (Metallurgy) Joanna Poeck, BEng Mining, Senior Consultant (Mining Engineer) Reviewed by: Bret Swanson, BEng Mining, Principal Consultant (Mining Engineer) SRK Consulting (U.S.), Inc. Preliminary Economic Assessment – The Revenue Mine Page ii Table of Contents Table of Contents .............................................................................................................. ii 1 Summary ....................................................................................................................... 1 1.1 Property Description............................................................................................................................ 1 1.2 Ownership ........................................................................................................................................... 1 1.3 Geology and Mineralization ................................................................................................................ 2 1.4 Status of Exploration, Development and Operations .......................................................................... 2 1.5 Mineral Resource Estimate ................................................................................................................. 3 1.6 Preliminary Economic Assessment Results ....................................................................................... 4 1.6.1 Underground Mining ................................................................................................................ 4 1.6.2 Processing and Metallurgy ...................................................................................................... 5 1.6.3 Geotechnical and Tailings ....................................................................................................... 6 1.6.4 Infrastructure ........................................................................................................................... 6 1.6.5 Environmental and Permitting ................................................................................................. 6 1.6.6 Capital Costs ........................................................................................................................... 7 1.6.7 Operating Costs ...................................................................................................................... 7 1.6.8 Indicative Economic Results ................................................................................................... 8 1.7 Conclusions ......................................................................................................................................... 8 2 Introduction .................................................................................................................. 9 2.1 Terms of Reference and Purpose of the Report ................................................................................. 9 2.2 Qualifications of Consultants (SRK) .................................................................................................... 9 2.3 Details of Inspection .......................................................................................................................... 10 2.4 Sources of Information ...................................................................................................................... 11 2.5 Effective Date .................................................................................................................................... 11 2.6 Units of Measure ............................................................................................................................... 11 3 Reliance on Other Experts ........................................................................................ 12 4 Property Description, Location and Access ............................................................ 13 4.1 Property Location .............................................................................................................................. 13 4.2 Mineral Titles ..................................................................................................................................... 14 4.2.1 Nature and Extent of Issuer’s Interest ................................................................................... 17 4.3 Royalties, Agreements and Encumbrances ...................................................................................... 17 4.4 Environmental Liabilities and Permitting ........................................................................................... 18 4.4.1 Environmental Liabilities........................................................................................................ 18 4.4.2 Required Permits and Status ................................................................................................ 18 4.5 Other Significant Factors and Risks .................................................................................................. 19 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ........ 20 DB/MLM FortuneMinerals_Revenue_PEA_457700.030_014_SH July 23, 2014 SRK Consulting (U.S.), Inc. Preliminary Economic Assessment – The Revenue Mine Page iii 5.1 Topography, Elevation and Vegetation ............................................................................................. 20 5.2 Accessibility and Transportation to the Property .............................................................................. 21 5.3 Climate and Length of Operating Season ......................................................................................... 21 5.4 Sufficiency of Surface Rights ............................................................................................................ 22 5.5 Infrastructure Availability and Sources.............................................................................................. 22 5.5.1 Power .................................................................................................................................... 22 5.5.2 Water ..................................................................................................................................... 22 5.5.3 Mining Personnel ................................................................................................................... 23 5.5.4 Tailings Storage Areas .......................................................................................................... 23 5.5.5 Waste Disposal Areas ........................................................................................................... 23 5.5.6 Processing Plant Site ............................................................................................................ 23 6 History ......................................................................................................................... 24 6.1 Historical Production ......................................................................................................................... 29 6.2 Historical Resource Estimate ............................................................................................................ 29 7 Geological Setting and Mineralization ..................................................................... 31 7.1 Regional Geologic Setting ................................................................................................................ 31 7.1.1 Revenue Area Geologic Setting ............................................................................................ 31 7.2 Local Geology ................................................................................................................................... 32 7.2.1 Stratigraphy ........................................................................................................................... 34 7.2.2 Dikes ...................................................................................................................................... 36 7.2.3 Structure ................................................................................................................................ 37 7.2.4 Mineralization ........................................................................................................................ 39 7.2.5 Alteration ............................................................................................................................... 39 7.2.6 Mineralogy of the Mineralization in the Virginius, Terrible and Yellow Rose Veins .............. 40 7.2.7 Project Vein Systems ............................................................................................................ 41 7.2.8 Other Important Veins within the Project Area ...................................................................... 44 8 Deposit Type .............................................................................................................