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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2010) - Fancamp Exploration Ltd. (the "Company") (TSX VENTURE:FNC) is pleased to announce the completion of the first tranche of the brokered private placement originally announced on December 7, 2010 with Secutor Capital Management Corporation and Industrial Alliance Securities Inc. (collectively, the "Agents"). The Company issued 4,292,647 flow-through units (the "FT Units") at $0.65 per FT Unit and 600,000 units ("Units") at $0.52 per Unit for aggregate gross proceeds of approximately $3.1 million (the "Offering"). The Company expects to complete the second tranche of the Offering by issuing 1,080,000 FT Units and 289,000 Units for aggregate gross proceeds of approximately $850,000 by the end of December 2010.
Each FT Unit consists of one common share of the Company, issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one-half of one common share purchase Warrant (each whole warrant, a "Warrant"). Each Unit consists of one common share of the Company and one-half of one Warrant. Each whole Warrant entitles the holder to acquire a common share of the Company at a price of $0.90 per share for a period of 18 months following the closing of the Offering, subject to earlier forced acceleration in the event the Company's shares close at a price of $1.30 per share or more on the TSX Venture Exchange for 20 consecutive trading days after the expiry of a four month hold period.
The Company paid the Agents a cash commission equal to 7% of the gross proceeds of the Offering and issued to the Agents (i) an aggregate number of non-transferrable broker warrants to acquire that number of Units that is equal to 7% of the total number of FT Units sold, exercisable at a price of $0.65 for a period of 18 following closing of the Offering and (ii) an aggregate number of non-transferable broker warrants to acquire that number of Units that is equal to 7% of the total number of Units sold, exercisable at a price of $0.52 for a period of 18 following closing of the Offering.
All of the above securities are subject to a four-month plus one-day hold period expiring April 23, 2011 in accordance with applicable securities laws and stock exchange rules.
The Company will use the proceeds from the sale of the FT Units for exploration on the Company's mineral properties in Quebec and the proceeds from the sale of the Units for general working capital purposes.

ON BEHALF OF THE BOARD

Peter H. Smith, PhD., P.Eng., President
S.E.C. Exemption: 12(g)3-2(b)




FOR FURTHER INFORMATION PLEASE CONTACT: Peter H. Smith, PhD., P.Eng.
Fancamp Exploration Ltd.
President
514-481-3172
http://www.fancampexplorationltd.com/">www.fancampexplorationltd.com