Mr. Peter Smith reports

FANCAMP UPDATE

Fancamp Exploration Ltd. has received the returned Lamelee iron ore deposit claims. This 100-per-cent-owned and centrally located asset in Quebec's Fermont iron ore district is well positioned to be development ready, pending recovery of world iron ore markets.

In other matters, the company continues to hold its 100-per-cent-owned Koper Lake property, immediately adjoining Noront's Eagle One nickel-copper-platinum-group-metal deposit in Ontario's Ring of Fire. The property, under option to Bold/KWG, hosts the Black Horse chromite deposit with an inferred, National Instrument 43-101 measured resource of 85.9 million tonnes at 34.5 per cent chromium (III) oxide. A financing announcement for a permanent Ring of Fire road is expected shortly, and this event will certainly affect development prospects for deposits such as Black Horse.

The company continues trenching and bulk sampling on its Robidoux and Ste. Marguerite gold properties in western Gaspe, where gold-bearing quartz veins and stockworks are exposed at surface. The abundance and variety of gold mineralization associated with major regional faults on both these underexplored properties are such as to warrant further and more detailed exploration programs when financing becomes available.

Prospecting continues on the lithium front with several newly staked properties, and the company is confident of eventual success in this new and potentially important field. The Chibougamau property acquired by staking this past winter was prospected last month, but the government reported lepidolite occurrences had been misidentified and bore no relation to lithium.