Lac Lamelee South project

FNC’s drill program was increased from 3,000 metre to 5,613 metre. On average, three drill hole results are being received by the company at every 10 days and a total of 10 drill hole results (LS-2011-08 – LS-2011-17) are pending.

July 27, 2011 - The company plans a 3,000-metre drill program on its 100-per-cent-owned Lac Lamelee hematite/magnetite deposit to determine the size, scope and quality of the iron resource, initially identified by Fancamp on the basis of the great strength of its airborne magnetic signature.

October 18, 2011The intersections cited approximate the thickness of the iron formation in this zone.

Drill hole LS-2011-02 intersected 61.4 metres (down hole core length) grading 30.3 per cent total iron (FeT),

drill hole LS-2011-03 intersected 53.3 metres (down hole core length) grading 29.4 per cent FeT and drill hole

LS-2011-04 intersected 59.2 metres (down hole core length) grading 31.9 per cent FeT. (Hole LS-2011-01 appears to have been drilled off structure to the west.)

The iron formation in this area has been delineated to a depth of about 250 metres as determined from drill hole LS-2011-05. This hole intersected 95.0 metres (downhole core length) grading 26.8 per cent total iron (FeT) from 4.0 metres to 99.0 m; 20.0 metres (downhole core length) grading 29.4 per cent FeT from 251.0 m to 271.0 m (downhole core length); and 33.5 metres (downhole core length) grading 36.3 per cent FeT from 326.5 to 360.0 m. The hole was terminated in magnetite iron formation at 360.0 m due to technical difficulties.

Drill hole LS-2011-06 intersected 183.0 metres (downhole core length) grading 27.9 per cent FeT, from 6.0 m to 189.0 m, mainly in hematite iron formation.

Drill hole LS-2011-07 intersected 63.0 metres (downhole core length) grading 23.9 per cent total iron (FeT) from 4.0 m to 67.0 m; 29.0 metres (downhole core length) grading 28.0 per cent FeT from 124.0 m to 153.0 m (downhole core length); and 59 metres (downhole core length) grading 22.9 per cent FeT from 222.0 to 281.0 m.

October 28, 2011 - The drill program was completed on Oct. 23, 2011, with a total of 5,613m in 17 drill holes. Results are pending on 10 holes drilled between the Tanguay and the Mountain Pond zone.

McFauld's C-1 target

In 2011, holes FN-10-25 and 26 drilled to depths of 1,082 metres and 1,086 metres respectively, in the very eastern portion of the C-1 area, passed through the granodiorite and, at depths below 700 m, through significant thicknesses of high-grade chromite with peridotite which appear to overlie a lower dunite horizon.

Hole FN-10-25 intersected over 200 metres of chromite with an estimated average grade of 43.5 per cent Cr2O3, drilling downdip, while hole FN-10-26, drilling across strike, intersected 56.6 m of an interlayered sequence of peridotite and chromite with an estimated grade of 27.6 per cent Cr2O3 followed by 53.2 m of massive chromite with an estimated average grade of 43.7 per cent Cr2O3. This newly discovered chromite horizon, previously reported, has been dubbed the BlackHorse occurrence.

Further drilling (FN-10-27) is planned to recommence on June 2 to confirm the true thickness and strike extent of the chromite horizon toward the surface and along strike to the east.