Challenge: budget minded to forward progressing.

Peter has developed Fancamp from conception, with very little financing, to where it is now. It would seem impossible on paper, that Fancamp could acquire the amount of fantastic properties that it has, with so little financing. It is no wonder that Peter takes pride and sees FNC as his baby. He has done wonders with it.

Peter and Pat have managed to do this by selling majority interests in properties that have great potential, such as Champion -as Fani pointed out.

The challenge for Peter is is to take FNC permanently above the above $1.00 range. Obviously, our ownership in percentages of companies should take us above $1.00, but with mini-micros, perception overrides reality. To reach that second tier of investor perception, as Noront has, he needs two things: 1) 100% ownership in a property that has economical ore, 2) Directors that investors perceive will no doubt take them to porfit via SP, stock distribution, or dividend profit.

Herein lies Peter's obstacle to overcoming this challenge. In order to do a realistic exploration program on a 100% owned property he's got to raise the cash. That means dilution which no one wants. That means selling property, which is difficult because so many of his properties have so much more potential. That means waiting for property to become developed which makes investors very, very impatient. Raising little bits of money to take shots at ore, as in McFaulds, relies on unrealistic expectation leading to major disappointment when the drill misses the ore. If it hits, bingo, challenge overcome.

The other obstacle to this challenge, is diluting Peter's power in Fancamp directorship. Peter's argument is that directorship doesn't get a high SP, you must have ore -the only thing that counts is have the ore. I would argue, that obtaining the ore is the second step, after obtaining the financing to make a realistic drill plan to get the ore. With financing, it's the CEO's choices of where proritize the money to find the ore, which in FNC's position, there are a lot of choices. I would also argue, that of great import is the director's ability to attract financing to develop a property -Champion is an example. So yes, ore is all important, but before that, a realistic plan to find the ore, and once having found it as in Champion and Magpie, drilling enough to attract a sale. I would also argue that it's the world perception of the directors, his connections, that effect the director's ability to sell a property which is also of great import. Magpie is one example. How many years have Pat or Peter (I'm honestly not sure which) sat on their bums with Magpie before initiating a metallurgical study? And because Magpie isn't sold, either the ore isn't good enough or the directors aren't doing their jobs expediently.

The investor's honesty should ask the question: is Peter the type of director to lead Fancamp to the next level? Has he done it before, can he do it again? Does Peter have the insistence, the energy, the enthusiasm, the experience, the connections, and the focus to increase a property’s value beyond a sell-out to cover immediate financial needs to its maximum perceived value? Fani was correct is raising the question, why aren't we developing Champion? Is the answer that we needed to cover immediate financial needs, or we just didn't have the cash to develop it? If not, why not. That is the question we need to ask of our CEO. Why not. If you have a baby, and it's hungry, is there any excuse for realizing their no cash in the bank to buy food? Do you let your baby starve for two weeks until next paycheck, or do you give your baby to adoption because you can't afford him? Where is the preparation, the reserves, the foresight? I think Champion was given up for adoption. Better then letting it starve, as we did with Magpie. Again, I praise Peter for what he's done with FNC on a shoestring budget.

My gut feeling of Peter's obstacle, because FNC is his baby from conception, is by attracting the kind of money that can take FNC to the next tier he would need a director who would take FNC out of his control. Consequently he needs the type of directors who are quality experts, but aren't influential self-initiating decision makers. Attracting a director who has the fervor, the energy, the enthusiasm, the experience, the connections, would be the type of director who Peter would not work well with or would leak out of his control. Getting that serious of director would take FNC from a fun exploration company to dealing with serious minded influential powerful money folks who would be intolerant of amateur decision making.

I think, Peter's fear would be to allow the Friedland type onto the board, who would take over. That would be like having a child you love, then marrying someone wealthy who brings financial security to your family, but this person wants to send the child to an exclusive boarding school. You gain the advantages of prosperity, but you lose your everyday involvement with your son/daughter.

Does anyone want Peter gone? ABSOLUTELY NO! He is the most talented CEO I've invested in. Do we want dividends, stock sharing, or an increased SP. ABSOLUTELY YES. I want a peaceful compromise where Peter continues his talent of buying properties. I honestly think that not only does he have a talent at doing this, but he enjoys it and is the source of his vitality in FNC. Is there a director who we could add to FNC, where the talent doesn't threaten nor take control of Peter's company, keeps Peter as CEO, but whom Peter respects, gets along with, and allows to take enough control of FNC to take it to the next level of prosperity. At this level, Peter could enjoy discovering even more properties and take credit as CEO for FNC's success.

I think this may be the most important concept:We need a director to take FNC out of a budget minded company into a forward progressing company.

In the meantime, lets cross our fingers for a couple of holes to hit ore.

Again, my desire and I would hope Peter Smith's desire, which reflects many an investor's desire, is not to usurp Peter's leadership, but add power to his leadership.

Thank you for allowing me to express my concerns.

StockGreed