DISTRACTION & DEMAND

Every time the SP plummets, the underlying resentment towards the CEO for having to wait so long surfaces. For some, it never goes away until he does his job and delivers. The longer he takes, the deeper the resentment. There are real mortgages to pay. There are real family issues that money could ease. And sometimes it feels like the CEO forgets that many investors haven’t lived a full life yet. Many investors feel like if Smith could bring out the value of Fancamp’s assets, many hardships could be solved. I’ve talked to some who put their life on hold for this one man, Peter Smith. Smith is outraged for having to wait an extra month for the Magpie 43-101. Imagine a shareholder’s feeling of always waiting for “next week” for 5 years for Peter Smith to flesh out an asset. This is why a CEO must make shareholder’s profit a priority in a timely manner, just as the company creating the 43-101 should have delivered in a timely and respectable manner. Shareholders place trust in a CEO, and I’m sure Smith responds to this responsibility with all integrity and honor and to the best of his ability. Therefore, an attempt to replace a CEO creates a whole new batch of problems, and distracts from the progress Smith has made. Despite the recent 43-101 delay and SP setback, FNC is moving rapidly towards its goals/our goals. The one problem we need to attend to is that of Demand.

LACKING DATA

1) Who is taking down Champion? Is it for taxes or is someone creating a low average for an offer? The same applies to Fancamp.

2) Is Magpie 43-101 in yet? Once in, how long until the prospectus can be released? What's after prospectus?

3) Desolation Assays in yet? When? Third hole must be complete, how many more holes? A CEO should release material information that changes the value of an asset. An onsite XRF visual are accurate to a 10th of a percent if it is massive sulphides. Doesn't this make it material altering data for that asset? Smith already knows what's there. When do we?

4) What’s Nemis' timing for drilling McFaulds?

5) What resulted from discussions with Raymond James and other houses? Are there any internal reports spreading through investment community?

6) To generate demand, can we line up a BNN interview once Magpie prospectus gets out or if desolation assays are spectacular?

7) Surely Larsen is feeling the heat of being vulnerable. If CHM can offer us close to 17.5% of current value, and control 100%, would their poison pill be more meaningful in case of an offer!

FNC wants a share swap, not cash.So there’s no reason for them to wait to make an offer when they are at a higher market cap. They've seen that our ratio remains consistent to their market cap fluctuations. The ratio won't change when Champion’s marketcap increases.

8) It makes sense that they arrange an offer now, if it protects both companies now. If what Rago says is true, and a deal is on its way, CHM must feel a great threat. If Raymond James is involved in negotiating a deal, they are invested in Champion and could be biased.But they also must see a benefit of CHM owning FNC’s interest. What is the benefit and what deal can they help negotiate? The one thing I trust is that Granger and Smith have never wanted to sell the interest cheap, so I’m sure they are representing our interests well.

A PLAN TO INCREASE DEMAND

This is one I'm grappling with. But I believe this strategy would generate the greatest demand for Fancamp. Champion is motivated to get our percentage before releasing Oilcan.I’m sure they’re aware that the more CHM increases ore, the more our percentage becomes tempting by outsiders, and Champion may be forced to meet someone else’s offer since they have first rights.This is our advantage.

It is in Fancamp’s interest to get an offer first, than negotiate with Champion?

Everyone in the business knows CHM/FNC Fermont will have 4-5 billion tons by the time they’re done exploring. Do you think there is some WISCO type who would pay 300million for 17.5% of that amount of ore?As a FNC shareholder, would you take a 10 multiple right now by selling off Fermont interest for $3.30/share? 330 million gives 17.5% of an asset of 4-5 billion tons of 27-30% ore likely to go into production in 3 years by the same crew from Consolidated Thompson who already did it in same vicinity.

This gives the buyer a steal assuming Fermont can sell for equal or greater than Consolidated Thompson. 17.5% of 5billion /110million OS = $7.95/FNC share.I’m talking half that for a large percentage of CHM early on where the owner gets influence over decision making –which in itself could have cost benefit.

This would credit Smith with a sale 3 times greater than Watson sold FWR and Smith still has his company to explore properties, including Magpie. We can individually choose with our 10-bagger to buy Champion and get further multiples as they rise. Instead of each share ending up with $7.95 we get many multiples of that because we get it before CHM starts the rise. It's a win for all FNC holders.

CHM has first rights to outbid of course, but then we’d force them to pay more than they are likely currently negotiating.At the very least, placing an offer out there will finally force people to take FNC's assets more seriously, because they realize FNC’s CEO intends to make the shareholders profit by forcing value from the assets.

Is this strategy sound? It's aggressive. But we’re currently looking at a buyout beginning with a sub .30c average. Why not force the inevitable in our favor. Wisco bought in to Consolidated Thompson with less ore for 250million for 25% without the precedence and infrastructure that Cliffs established buying Cons.Thomp.Some even think Champion has 6-8 billion tons when all properties are explored. I think $330 million is reasonable. Considering that by the time someone is through trying to acquire FNC at a premium of our average, the poison pill would allow Smith to get us close to 2.50 to 3.00 share. Why not make it friendly and assure success.I’m sure Lac Lamalee could sweeten the deal?

SUMMATION

.27c

-StockGreed