Nov 04, 2010 15:44 ET

Fancamp/Champion Fermont Joint Venture

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 4, 2010) - Fancamp Exploration Ltd. (TSX VENTURE:FNC): The Company wishes to report that one of its sixteen joint ventured properties (in all of which Fancamp holds a 17.5% working interest, together with a 1.5% NSR), the Fire Lake North, has undergone a preliminary economic assessment (PEA) performed by BBA Inc. of Montreal, an international multi-disciplinary engineering firm with expertise in mining and metallurgy. BBA's National Instrument ("NI") 43-101 Technical Report on the PEA will be posted under Champion's filings on SEDAR at www.sedar.com within 45 days.

The PEA study shows a Net Present Value (NPV) of US$ 1.637 billion at a cash flow discount rate of 5% based on an Iron concentrate production rate of 7 million tonnes per year at a grade of 65% Iron. The internal rate of return ("IRR") for the project is 24.8%.

Based on these positive results a Feasibility study is being planned for 2011. Fire Lake North is considered to be a viable project with the current Mineral Resource estimates of 388 million tonnes grading 29% Total Iron as calculated and reported in August 2010 by Eugene Puritch, P. Eng., of P&E Mining Consultants Inc. ("P&E") of Brampton (Ontario). The ongoing 15,000m drilling campaign has the potential to enhance the project's economics if it increases the compliant Mineral Resources and production profile that could result in higher Net Present Value and extend the mine life. This PEA has an accuracy of +/- 30%, which is considered industry standard for preliminary capital and operating cost estimates. The table below lists the key metrics:

The PEA study is based on a stand-alone operation at Fire Lake North and does not consider the Bellechasse NI 43-101 Inferred Resource Estimates of 215.1 million tonnes grading 28.7% Total Iron (refer to the Champion news release dated November 18, 2010). Bellechasse is located 12km to the northwest of Fire Lake North. There are synergies anticipated from the significant exploration potential within Bellechasse and Champion's other adjacent claim blocks in the area. An increased exploration program will be considered in response to these favorable results so that they can be incorporated in the Feasibility study. The combined Fire Lake North and Bellechasse Inferred Mineral Resources estimates total 603 million tonnes grading 29% Total Iron.

The 15,000m Fire Lake North drilling program is progressing on schedule with 3 drill rigs on site with the aim of increasing the quantity and quality of compliant Mineral Resources. Champion previously announced on October 18, 2010, that drill hole FL10-21 extended to known Iron mineralization to 361.5m from the original 171.0m core length grading 36.2% Total Iron. This significant 190m extension to the mineralization is not included in the PEA study but is projected to help reduce the strip ratio. Champion also announced on May 18, 2010, that drill hole FL10-24 intersected 197.8m grading 38.3% Total Iron. The drill hole was collared and ended in Iron mineralization and will be extended and undercut with the potential of increasing the mineralized width that could also help reduce the strip ratio.

For further information and details, see full Champion Minerals Inc. (TSX:CHM) release of November 3, 2010.

ON BEHALF OF THE BOARD

Peter H. Smith, PhD., P.Eng., President

S.E.C. Exemption: 12(g)3-2(b)

For more information, please contact

Fancamp Exploration Ltd.
Peter H. Smith, PhD., P.Eng.
President
514-481-3172
www.fancampexplorationltd.ca
or
Bay Street Connect Investor Relations
Michael D'Amico
647-500-6023