Found it, you are right it is one of many properties FNC is holding 50% interest in. Interesting is that the owner of the other 50% is never mentioned. vila

2008 ANNUAL REPORT

The Company has focused primarily on its McFauld’s Lake Property and recently began a small

drill programme on the C-1 target, part of the Eagle 1 ultrabasic intrusive complex. No massive

sulphides were intersected in the first three holes which sectioned a strong north south TDEM

anomaly some 500 metres in length and 75 metres wide. Strong conductivity was seen in the

subsequent downhole geophysics. Weakly disseminated sulphides were seen in the conductive

zone but the exact cause of the conductivity is yet to be determined. The significance of this

conductive corridor is of course its proximity to Eagle 1 and that it appears to be structurally

controlled in a north south direction which is the same as that seen in the Eagle 1 and Eagle II

deposits. The drill programme has been expanded, and flow through funds in the order of 2

million dollars have been raised to continue it. It is the Company’s intention to thoroughly test

some six distinct TDEM targets on its property in the coming months. The property is highly

prospective and given its proximity to very significant nickel mineralization in ultrabasic

intrusions, management believes there are very good possibilities for similar mineralization in

our target zones.

The Company’s 50% interest in the Magpie Property, a world class titaniferous magnetite

deposit located some 130 kilometres north of tidewater on Quebec’s North Shore, is a major

asset. A 43-101 report has been completed on the deposit on the basis of historical data, and a

small confirmatory drill programme (the deposit has never been drilled) is in progress. The

Company is considering alternatives to advance this project in a way that will maximize the

benefit to our shareholders.

The Company continues to acquire grassroots properties of merit, most notably the Desolation

Lake Property north of Attawapiskat in the James Bay Lowlands. The claims cover a long

known major magnetic anomaly situated at the juncture of large regional lineaments, and

certainly, given the Noront results some 215 Km to the SW a potential nickel target. The

Property is held 50% by Fancamp and has never been tested.

The Company continues to deal its property inventory. Fifteen of its 50% held iron properties in

the Mount Reed/Mount Wright area of Quebec have been optioned to Champion Minerals Inc,

who may earn up to a 70% interest in any or all of these properties. The Company’s 50% held

uranium properties north of Baie Comeau, Quebec have been sold to Bonaventure Enterprises

Inc. in return for cash, shares, and a royalty.

On Behalf