Mr. Jean Lafleur reports

FANCAMP'S LAC LAMELEE SOUTH IRON PROJECT YIELDS INFERRED MINERAL RESOURCES OF 520 MILLION TONNES @ 39.5% FE2O3 (OR 27.6% FET)

Fancamp Exploration Ltd. has released an initial mineral resource estimate (MRE) on the company's wholly owned Lac Lamelee South iron project in the Fermont mining district of northeastern Quebec.

P.J. Lafleur Geo-Conseil Inc. (PJLGC) has provided the company with an MRE from the project. The MRE will form part of a National Instrument 43-101 technical report to be available within 45 days under the company's filings on SEDAR. The current MRE was estimated by Ali Ben Ayad, PGeo, and Pierre-Jean Lafleur, PEng, both of PJLGC and independent qualified persons under NI 43-101 standards.

At a 22-per-cent Fe2O3 (iron III oxide) cut-off grade, there are 520 million tonnes grading 39.5 per cent Fe2O3 (or 27.6 per cent total iron) in the inferred mineral resources category. The 22-per-cent Fe2O3 cut-off grade used is a natural cut-off grade since the drilling and the combined geological-resource modelling covered the target iron formation in its entirety.

The quantity and grade of the reported mineral resources within the project are categorized as inferred mineral resources. Inferred mineral resources are that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling, and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from drill holes and outcrops. There has been insufficient exploration to define any of the resources as indicated or measured mineral resources, and there is no guarantee that further exploration will upgrade the inferred mineral resources to indicated or measured mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of inferred mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.

The attached table outlines incremental tonnages and iron grades at various cut-off grades.

Fe2O3                                    
cut-off                 Tonnes          Grades
grades            (in millions)    Fe2O3       FeT

10%                        524      39.4      27.6
15%                        523      39.4      27.6
20%                        522      39.5      27.6
22%                        520      39.5      27.6
25%                        510      39.9      27.9
30%                        465      41.0      28.7

Key parameters of the MRE and whittle open-pit shells study

• A total of 57 drill holes and two surface trenches totalling 18,305 metres were used for the MRE.
• The volume is constrained by a geological model drawn as polygons on sections.
• The Gems and Whittle software applications from 3DS Geovia (Gemcom) were used for database management, modelling the geology, analyzing the data, performing the grade interpolations, creating and managing the block model, and creating a conceptual pit shell, as well as reporting the mineral resources and its preliminary economic valuation.
• A total of 1,954 five-metre-length composites were created for the iron formation unit only from 5,202 original assay data from all rock types samples with variable length but mostly two-metre sample lengths.
• The MRE was modelled using a 10-metre cubic model, and grades were estimated using ordinary kriging within modelled mineralization domains defined by structural geology.
• The MRE was evaluated from historic and current drill hole assay results.
• A search ellipse 150 metres by 150 metres by 50 metres was used to find (five-metre) composites for each block in the interpolation process.
• No top grade capping value was used before or after compositing.
• The MRE for the project was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves Definitions and Guidelines, prepared by the CIM standing committee on reserve definitions and adopted by the CIM council on Dec. 11, 2005.

The economic parametres used to outline the mineral resources were based on the nearby Fire Lake North National Instrument 43-101 updated resource estimate technical report published by P&E Mining Consultants in November, 2011, under the then Champion Minerals Inc. on SEDAR. They are comparable with similar projects in the region and elsewhere in the world. For the project exercise they include:

• $1.90 per tonne, mining of ore and waste;
• $2.30 per tonne, processing with an 82-per-cent process recovery;
• 82 cents per tonne, general and administrative;
• $120 per tonne, iron ore price at 65 per cent iron (93 per cent pure hematite);
• $4.85 per tonne, transport cost.

The whittle open-pit shells study resulted in outlining two shells: the first -- a smaller open-pit shell of 315 million tonnes at a grade of 41.2 per cent Fe2O3 (28.8 per cent FeT); the second -- a larger open-pit shell of 520 million tonnes at a grade of 39.5 per cent Fe2O3 (27.6 per cent FeT). A comparison of results demonstrates the amenability of the inferred MRE to potential open-pit mining with 100 per cent of inferred MRE reporting within a conceptual open-pit shell.

Jean Lafleur, MSc, PGeo, president and chief executive officer of Fancamp, stated: "Fancamp has now reached the first milestone with these iron resources. We have clearly confirmed the potential of the Lac Lamelee South iron project, the proximity of iron resources to surface infrastructure and the effectiveness in drilling mineral resources at an all-inclusive cost of $200 per metre drilled. The iron formation has been successfully drilled tested to a maximum depth of 600 metres and remains open to the northwest, revealing an additional potential to add iron mineralization. The project sits 10 kilometres west-southwest of Champion's Consolidated Fire Lake North project with reserves of 464.6 million tonnes at more than 32 per cent iron and 10 km to the northwest of ArcelorMittal's Fire Lake mine with 341 million tonnes grading 33 per cent iron."

Mr. Lafleur added, "Fancamp plans additional work in the near term at Lamelee that will include metallurgy and a preliminary economic assessment ultimately setting the set the parametres for the future development of the project following the same path as the Consolidated Fire Lake North, Bloom Lake and the Kami iron deposits."

The Lac Lamelee South iron project

The project consists of 29 mineral claims covering 1,524 hectares or 15 square kilometres located in northeastern Quebec near the border with Newfoundland and Labrador, approximately 50 km south of the city of Fermont (Quebec). The project is situated in the southern segment of the Labrador Trough, which consist of early Proterozoic sedimentary and volcanic rocks highlighted by iron formations that have been mined since 1954. This segment of the Labrador Trough sits in the Gagnon terrain of the Grenville geological province. All the economic iron concentrations in the Labrador Trough are located in the same litho-stratigraphical package termed the Sokoman formation also known in Fermont as the Wabush formation. The higher metamorphic grade common throughout the Gagnon terrain is responsible for recrystallizing the iron oxides into coarse-grained magnetite and specular hematite thus improving the quality of the iron ore for processing.

Quality assurance and quality control

All drill core logging and sample preparation within the project were conducted by qualified company personnel under NI 43-101 guidelines at the company's core logging facilities at the project camp site. All the assays were carried out at ALS Chemex Laboratories in Val d'Or (Quebec) and at Activation Laboratories in Ancaster (Ontario). Certified reference standards and blank samples were inserted regularly for quality assurance and quality control purposes. As part of the independent verification program, PJLGC validated the exploration methodology, which includes core logging, sampling, analytical procedures and quality analysis following the quality control protocol implemented by Fancamp.

Stock option

Fancamp granted a stock option on Sept. 4, 2012, to Michael D'Amico for the purchase of up to 350,000 common shares at a price of 25 cents per share, expiring Sept. 4, 2017.

The technical information in this news release was prepared, reviewed and approved by Ali Ben Ayad, PGeo, and Pierre-Jean Lafleur, PEng, both of P.J. Lafleur Geo-Conseil Inc., and Jean Lafleur, MSc, PGeo, Fancamp's president and chief executive officer. All individuals are qualified persons under NI 43-101 rules.