Mr. Richard Whitehead reports

FUNDAMENTAL APPLICATIONS CORP. CLOSES FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Fundamental Applications Corp. has closed the first tranche of a non-brokered private placement, issuing a total of 957,272 units at a price of 22 cents per unit to raise gross proceeds of $210,600.

The first tranche is part of a private placement offering of up to 4.5 million units. Each unit consists of one common share and one-half common share purchase warrant, whereby each full warrant entitles the holder to purchase one additional common share of the company for a period of two years from closing at an exercise price of 30 cents per share. The securities distributed under the first tranche and the private placement, in general, are and will be subject to a statutory hold period of four months plus one day from the date of issuance. The proceeds from the private placement will be used for general working capital and corporate purposes.

In connection with the closing of the first tranche, the company has paid finders' fees in the amount of $99 to PI Financial Corp.

We seek Safe Harbor.