FORTUNE OIL SHARES RISE AFTER INCREASED INVESTMENT IN ARMENIAN IRON ORE MINES

PanARMENIAN.Net
June 15, 2011 – 14:00 AMT

PanARMENIAN.Net – Fortune Oil saw its shares rise after it announced
it had increased its investment in Armenian iron ore mines,
StockMarketWire reported.

In January, Fortune took a 35% equity interest in Bounty Resource
Armenia, a company which controls three iron ore mines in Armenia, for
$24m with an option to increase this holding to 50% for an additional
investment of $16m.

Fortune says it has successfully amended the option agreement to
allow it to increase its equity interest from 35% to 65% for the same
original consideration of $16m.

Prior to exercising the option, Fortune Oil’s effective equity interest
in the three Armenian mines is 33% which after option exercise
increases to 51%. The option exercise consideration of $16 million
will be financed from the company’s existing cash reserves.