Fortress Financial Group fka FFGO

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News for 'FFGO' - (Fortress Financial Group, Inc. -- Additional Clarification Company Clarifies a Number of Issues Raised by Its Stockholders)


NEW YORK, NY, Aug 01, 2008 (MARKET WIRE via COMTEX) -- Fortress Financial Group, Inc. (PINKSHEETS: FFGO) announced on July 24, 2008 that the Company had resolved to distribute an amount of US$400 million of its Gold Assets to its Stockholders, in the form of an Extraordinary Dividend.

This Extraordinary Dividend equates to an amount of 1.24 cents per share of Common Stock based upon the outstanding shares of the Company's Stock at July 24, 2008. The Company receives an amount of US$500 million in quoted Gold Mining stock ("Goldco") in exchange for its stockholding in the "Bouse" and "South Copperstone" Gold Mining & Exploration companies. This transaction will be consummated in August of 2008. Our calculations of this valuation are contained in the latest Form 8-K filings with the SEC.

On July 31, the Company announced that a Private Equity Firm was set to control 51% of its outstanding shares of Common Stock.

The CEO of Fortress Financial Group, Inc., Alan Santini, pledged to stockholders that he would address each of their concerns in this Press Release. The main areas of interest and concern to our stockholders are listed below with Alan Santini's responses.





1. WILL THE COMPANY CONTINUE TO REPURCHASE AND RETIRE STOCK AFTER THE

ASSUMPTION OF A CONTROLLING INTEREST BY THE PRIVATE EQUITY GROUP:

The Company remains committed to further repurchases and retiring of

its outstanding shares of Common Stock; and in particular its "free

float." We have been given undertakings by the Private Equity Group

that this will continue and they support this strategy.

2. WILL ALAN SANTINI REMAIN AS CEO FOLLOWING THE ASSUMPTION OF A

CONTROLLING INTEREST BY THE PRIVATE EQUITY GROUP:

Yes. The Private Equity Group has stated that they support Alan

Santini and will back up and assist him in his endeavors.

3. WHY DOES THE COMPANY HAVE SUCH A HUGE AUTHORIZED SHARE CAPITAL:

I understand that this is a historical matter. Obviously the Company

does not require 5 trillion shares of Authorized Share Capital, this

was an error made some time ago. The Company has filed to amend its

Authorized Share Capital to that of 35 billion shares and will

decrease this number over time.

4. WILL THE COMPANY EFFECT A REVERSE SPLIT OF ITS COMMON STOCK:

The Company will not contemplate a Reverse Split until such time as we

can be absolutely assured that we can protect the stock price, post

any split. In my opinion and based upon this Company's history of

unsuccessful Reverse Splits, I will not be entertaining the idea of a

Reverse Split at this time. The Private Equity Group has made it clear

that they will not support any Reverse Split.

5. HOW MANY SHARES DOES THE COMPANY BELIEVE TO BE IN THE "FREE FLOAT":

The Company is awaiting the filings of Form 13(g) and Form 13(d) from

certain investors. Upon receipt of these filings, we will be in a

position to publish an accurate number. We do not want to mislead

investors nor stockholders. The "Free float" has been considerably

reduced over the past month and the daily trading volumes reflect much

intraday trading as the "free float" certainly cannot now be in excess

of 1.5 billion shares of the Company's Common Stock.

6. WILL THE COMPANY STILL BE PAYING THE EXTRAORDINARY DIVIDEND AFTER THE

ASSUMPTION OF A CONTROLLING INTEREST BY THE PRIVATE EQUITY GROUP:

Absolutely yes. They invested primarily as they saw our Company as a

"value play." They are 100% behind the payment of this Dividend. It is

of huge benefit and profit to themselves.

7. WHY HAS THE TRANSFER AGENT NOT YET CANCELLED ALL OF THE SHARES

REPURCHASED BY THE COMPANY:

This is a time consuming process and involves much paperwork. We are

awaiting stock certificates from a number of parties; and upon

receipt thereof, we will file them with the Transfer Agent for

cancellation along with all of the requisite paperwork. Stock

repurchased by the Company in the market can only be cancelled upon

settlement of these trades and then a physical stock certificate will

have be requested from the Broker; and these stock certificates will

be filed with the Transfer Agent for cancellation.

All stock cancellations will be up to date with the Transfer Agent

well before the "Record Date" of the Extraordinary Dividend to ensure

that there are no errors in the payment of this Extraordinary

Dividend.

8. WHY IS THE COMPANY INCREASING ITS STOCK IN HUNT GOLD CORPORATION:

The Company believes that Hunt Gold Corporation is way undervalued and

as it is already a stockholder in that Company, we see an opportunity

to profit from a takeover of that Company. We will continue to

increase our holdings in that Company and will keep up the pressure in

the hopes of a "bidding war" for that Company. To date, we have made a

sizeable paper profit on this investment. This a short term and

unrelated activity to our core business and being done purely for

short term investment gains.



Alan Santini, the CEO of Fortress Financial Group, Inc. commented that he hoped that he was able to clarify many of the issues raised by Stockholders. Alan Santini "hoped that these answers would enable stockholders to make logical decisions as to whether or not they should buy or sell the Company's stock."

Any further information required by our stockholders will be immediately provided, should they E Mail their questions to the Company.

About Fortress Financial Group, Inc.

Fortress Financial Group, Inc. was primarily engaged in the issuing and marketing of prepaid debit card and related payment solution activities. Through the closure of the Trinity Mercantile Finance Group and the Mortgage Bank acquisitions, Fortress Financial Group, Inc. is now expediting its plans to become a broadly based Consumer Finance Group. The "Mortgage and Consumer Lending Divisions" will comprise the vast majority of the Group's earnings in the immediate to medium term.

The Company is utilizing is substantial Balance Sheet of circa US$100 million comprised of quoted and unquoted Gold Mining & Exploration stocks (This is after the payment of the Extraordinary Dividend of US$400 million to stockholders) to aggressively fund a large number of acquisitions in the consumer financial services sector, initially focused in the Mortgage Lending and Banking sectors.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may,"
"future," "plan" or "planned," "will" or "should," "expected," "anticipates,"
"draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.





Contact:



Fortress Financial Group, Inc.

Alan Santini

Chief Executive Officer



Email Contact



Tel: [phone]





SOURCE: Fortress Financial Group, Inc.




CONTACT: http://www2.marketwire.com/mw/emailprcntct?id=B3DD85E23547A90C




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SUBJECT CODE: Manufacturing and Production:Mining and Metals



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