Fortune Bay Corp: Additional High Grade Gold Step-Outs; Upside at Goldfields Remains

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On April 21, Fortune Bay Corp (FOR) released the latest set of assay results from winter 2026 drilling from around the Box Deposit, located on the wholly-owned Goldfields Project in northern Saskatchewan. As part of the winter 2026 drilling program, Fortune Bay completed two large step-out holes, B26-350 and B26-349, to test the down-dip and southern extents of the mineralizing system below the Box deposit and more broadly, to evaluate the potential of the Goldfields Syncline.

Drill hole B26-350 was designed as a large 135m step-out hole and represents the furthest down-dip hole drilled at Box to date. The hole successfully confirmed the continuation of strong gold mineralization at depth within the Box Mine Granite (BMG), returning 3.7 g/t Au over 21.0m, including 9.9 g/t Au over 7.0m, with mineralization remaining wide open. This high-grade intersection is located approximately 140m outside of the current open-pit constrained MRE and 140m down-plunge of Zone A that includes drill intersections of 18.05 g/t over 6.0m and 8.35 g/t Au over 9.0m. 

Drill hole B26-349, the second step-out was completed approximately 80m along strike from B26-350 and 140m down-dip of previous drilling to test the southern extent of the system. The hole returned multiple mineralized intervals within the BMG, including high-grade intervals of 6.46 g/t Au over 1.0m and 6.21 g/t Au over 1.0m. These results further support the strength and continuity of the Box mineralizing system and highlight the potential for additional resource growth in the area.

All three of the initial Box holes (B25-346, B25-347 and B25-348 - announced on March 3) and the two subsequent large step-out holes announced yesterday (B26-349 and B26-350), successfully intersected the mineralized BMG at or near the depths predicted by the geological model. Observed mineralization characteristics, including quartz vein orientation, thickness, and vein density, are consistent with those documented elsewhere within the deposit, demonstrating strong continuity of the mineralizing system. The Box Deposit remains a key target for mineral resource growth at Goldfields, particularly below the limits of the current pit-constrained Mineral Resource Estimate (MRE).

Current exploration drilling at Box is oriented toward the east at moderate dips in order to intersect the structural zones at the highest possible angle, closest to true thickness, while also maximizing internal coverage of the BMG in each hole. The two large step-out holes were drilled at dips of -66 to -68º to maintain a high angle of intersection with the structural zones. The higher gold grades at the Box Deposit are typically associated with discrete north-south trending structural zones exhibiting increased quartz vein intensity. These higher-grade zones, which extend below the base of the Updated Preliminary Economic Assessment open pit, present attractive targets for follow-up delineation drilling aimed at expanding mineral resources.

ASSAY RESULTS FROM TEN ADDITIONAL DRILL HOLES STILL EXPECTED

With a total of 15 drill holes encompassing 3,701 total meters, the winter 2026 drilling program is now officially completed. Assay results have now been received for all five drill holes completed at the Box deposit, results are still pending for the seven holes drilled at Golden Pond (578 assays) and three holes drilled at Frontier (135 assays).

GOLDFIELDS MINERAL RESOURCE ESTIMATE    

The primary host lithologies to the mineralization are the Box (BMG) and Athona (AMG) granites, the modelled volumes also represent the main resource domains bounded by relatively unmineralized footwall and hanging wall lithological domains. To further constrain the mineralization within the BMG and AMG domains, a vein system model was generated within each of the granite domains. The latest NI43-101 compliant Mineral Resource Estimate models (replacing the MRE with an effective date of October 31, 2022) included a total of 838 boreholes, of which 494 are located within the Box deposit and 344 within the Athona deposit. Gold grades were interpolated into the block models using ordinary kriging (OK) for all granite and vein-set domains within the Box and Athona deposits. Grade estimation for each domain was conducted using multiple passes, with successively expanding search criteria in subsequent estimation passes.

HISTORICAL GOLD PRODUCTION

Gold was first discovered on the Goldfields Project in 1934 with Cominco subsequently acquiring the discovery by staking claims. Between 1934-1942, both the Box and Athona deposits were explored and delineated with surface and underground drilling. Horizontally oriented underground core drilling was carried out to intersect gold-bearing quartz veins and crosscuts were driven at each shaft station and along certain underground drill holes to check analytical results. Stope and mill development continued during a period between 1936-1938. Production from underground operations began in June 1939 at 450 tpd, with capacity ramping up to a maximum

VALUATION & CONCLUSION

We continue to value Goldfields using a base case, LT gold price of $4,000 per ounce. Factoring in a partial future equity financing (post-PFS provided a positive FID), we derive a 12-month price objective of C$2.35 per share (maintained) by applying a 0.15x NAV8% multiple. Given the most recent close (April 21), shares of Fortune Bay currently trade at a 0.04x P/NAV multiple. As mentioned, Fortune Bay also trades at an attractive EV $40 per ounce multiple – well below the peer group. Acknowledging the acute sensitivities to the LT gold price (below), our price objective equates to upside of +267% from the most recent close.

We are excited with Fortune Bay’s prospects this year and note that 2026 will be the first year in which the company should potentially re-rate to being viewed as a pure-play gold company with an advanced project working towards PFS completion by ~year-end. Recall that in previous years, the company was considered as a uranium exploration company focused primarily on the Murmac uranium project. We expect material news flow to trickle out from the winter drill program at Goldfields. With a PFS expected to be competed by year-end or Q1/2027, as the story becomes more familiar to the market, we would expect this company to re-rate to similar valuation metrics as seen with the North American Peer group. For additional details, refer to our February 3, 2026 initiation of coverage report.

NEAR-TERM TIMELINE & POTENTIAL CATALYSTS

• Additional drill results from Goldfields.

• Details for a Summer program.

• Metallurgical and Geotech results over the course of the year.

• Goldfields PFS details leading up to an actual study scheduled for year-end or Q1/2027.