Fancamp's Oil Can operator drills 401.5 m of 30.7% FeT
Ticker Symbol: C:FNC

Fancamp Exploration Ltd (C:FNC)
Shares Issued 74,681,122
Last Close 10/19/2011 $0.235
Thursday October 20 2011 - News Release

Mr. Peter Smith reports

INTERSECTION OF 401.5 M GRADING 30.7% TOTAL IRON AT FANCAMP'S 17.5% OWNED OIL CAN PROPERTY, ADJOINING THE CHM/FNC FLAGSHIP FIRE LAKE NORTH PROJECT NEAR FERMONT, QUEBEC

Fancamp Exploration Ltd. has provided assay results from the first three drill holes completed on the Company's 17.5% owned Oil Can property, located immediately northeast of and contiguous with the flagship Fire Lake North Project in the Fermont Iron Ore District, Quebec.

Drill hole OC11-01 intersected 190.89 metres grading 30.6 percent total iron (FeT). Drill hole OC11-02 intersected 401.50 metres grading 30.7 percent FeT, including 213.54 metres grading 33.1 percent FeT. Drill hole OC11-03 intersected 224.02 metres grading 28.1% FeT, including 140.0 metres grading 30.0% FeT.

The initial 5,000 m drill program of 800 metre spaced holes at the Oil Can Property is nearing completion and has tested approximately five kilometres of a total six kilometre strike length of favourable magnetic and gravimetric responses on the property. The distribution of magnetic/gravimetric anomalies and broad intersections of iron formation indicate a complex deformation history resulting in structurally thickened zones of iron formation.

Tom Larsen, Champion's President and CEO, commented, "The long intersections from the initial drill holes at Oil Can are very promising and could lead to the delineation of a large tonnage of magnetite-hematite iron resources for potential "pellet-feed" and/or "sinter-feed" production. This prospective resource is located only seven kilometres from the proposed location of our Fire Lake North Mine and Concentrator Complex that is currently undergoing a Preliminary Economic Assessment study that will be followed by a Feasibility study planned for mid-2012. Champion remains focused on developing the Fire Lake North Project and continues to systematically delineate resources on nearby projects. Our iron ore resource base, which currently exceeds 2.2 billion tonnes, is expected to grow significantly in the coming months and will provide support for the large capital requirements needed to develop the Fire Lake North and other projects."

Champion will continue to operate three drills at the Oil Can property until pending drilling permits are received for Fire Lake North Feasibility definition-drilling at which time, the drill-rigs will be re-allocated accordingly. Champion expects to complete the entire 8,000 m proposed drill program at the Oil Can property in Q4-2011. Upon completion of drilling and receipt of all assay results, a National Instrument 43-101 Mineral Resource Estimate will be completed for the Oil Can property with results expected in early Q1-2012.

The Fermont Iron Holdings

Fancamp holds a 17.5% interest in the Fermont Holdings, comprising of seventeen properties, three of which - Fire Lake North, Bellechasse and Harvey-Tuttle - host combined NI 43-101 compliant, Measured and Indicated Mineral Resources estimated at 400 Million Tonnes grading 30.6% FeT and Inferred Mineral Resources estimated at 1.82 Billion Tonnes grading 25.4% FeT, at a 15% FeT cut-off(1). Seven of the remaining fourteen properties contain combined historical Mineral Resource estimates(2) totalling 620 Million Tonnes grading 31% FeT.

(1) The current Mineral Resource estimates were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.

(2) All historical Mineral Resource estimates outlined in this disclosure are non-compliant to NI 43-101 Mineral Resources and Mineral Reserves standards, and should therefore not be relied upon. A Qualified Person has not done sufficient work to upgrade or classify these Historical Mineral Resources as current NI 43-101 compliant Mineral resources.

© 2011 Canjex Publishing Ltd.