Mr. Justin Rasekh reports

FUNDAMENTAL ANNOUNCES CLOSE OF SECOND TRANCHE OF PRIVATE PLACEMENT

Fundamental Applications Corp. has closed the second tranche of a previously announced non-brokered private placement.

Further to an initial news release dated Oct. 6, 2014, the company issued a news release on Nov. 10, 2014, announcing an alteration of terms to include up to 2.5 million units at 30 cents per unit for gross proceeds of up to $750,000, with each unit composed of one common share and one warrant exercisable to purchase one additional common share at 75 cents per share for 12 months.

Fundamental announced the closing of an initial tranche of the private placement on Oct. 30, 2014, and is pleased to announce the closing of the second tranche for $56,550. Of the second tranche, 140,000 units were issued to a company controlled by a controlling shareholder and director of Fundamental. Fundamental is continuing to raise funds for the balance of the private placement. The shares comprising the private placement units are subject to a hold period of four months and one day.

We seek Safe Harbor.