Fancamp Exploration Ltd.: McFaulds Lake Drilling Reveals Interesting Offhole Geophysical Targets and Insights Into Regional Structure

VANCOUVER, BRITISH COLUMBIA, Aug 18, 2010 (MARKETWIRE via COMTEX News Network) --

Fancamp Exploration Ltd. (TSX VENTURE: FNC) - A second phase of exploration drilling, and borehole and surface EM geophysical surveys began on the McFauld's Lake Property in mid April, 2010 as follow up to the initial programme completed in the Fall of 2008. A total of 4,365 meters of drilling was done in this period, together with five down-hole EM surveys and one small surface EM survey. The field work was completed on July 7, 2010 and to date a grand total of 33 holes have been drilled on the Fancamp property (a very low density of coverage compared to our immediate neighbours). Map 1, a general geological map showing principal hole locations, represents a schematic geological interpretation The programme was designed to test five priority targets, C-1, C-6 for Ni PGM; C-2 for VMS; C-3 and C-5 for chromite.

Drilling on the C-1 peridotite intrusive was initially focused on its eastern contact, targeting the shallow mineralization reported in holes FN 08-02 and FN 08-10 (3.52% Ni/0.9 metres and 2.4% Ni/1.2 metres). The most significant intersection in this series of shallow holes was in FN 10-01, 100 metres to the south, which encountered 0.73% Ni, 0.22% Cu, 830 pbb Pd and 225 ppb Pt/ 1.4 metres at a depth of 60 metres. Hole FN 08-03, in the central part of the C-1 target was deepened, from 486 metres to 603 metres (the 560 metre level) to intersect the eastern peridotite/granodiorite contact. Results from the downhole geophysics indicated no significant offhole conductor at the bottom of the hole, which translated would mean no significant conductor down to about the 660 metre level. Hole FN 10-19 located 100 metres north of FN 08-03 (and 120 metres south of the Noront boundary) was drilled at 85 degrees to the northeast to a depth of 729 metres, having passed into the granodiorite at a depth of 675 metres in the hole. Downhole geophysics was carried out in this hole but to a depth of only 669 metres, due to a blockage. A number of weak offhole conductors were noted at shallower depths but the most interesting result is a subtle build up toward the hole bottom suggesting a conductor at depth to the south. This is potentially very significant and hole deepening and additional downhole surveys are certainly warranted.

Management has concluded, based on the results seen in the hole FN-10-19 (a westward shift in the eastern peridotite/granodiorite contact) that the northern portion of the C-1 target is displaced in a left lateral sense along probable NW/SE fault structures. Indeed, ground magnetics in the area suggest that the isolated Eagle 1 structure itself could be a left lateral offset of the C-1 target, a displacement of about 350 metres. This model is potentially a useful exploration tool because it implies a very much closer connection between Eagle 1 and C-1. Eagle I lies in the lower portion of an intrusive ultrabasic conduit (its present western side) and the same geometry could apply to C-1. At present little is known of this sector of the C-1 intrusion, "potentially the most important segment of the C-1 conduit itself" in the words of the Company's consultant John D. Harvey, P.Eng. In this interpretation, the eastern side of C-1, which has received most attention to date, represents the perhaps less prospective upper portion of the conduit with the high grade intersections possibly representing remobilized mineralization from an as yet unknown source.

The C-6 peridotite target, with lithological and structural similarities to the Eagle 1 Deposit, some 1.5 km west, was tested by Hole FN 08-07, which presented geochemically anomalous Ni PGM values, but downhole geophysics showed no significant responses at shallow depths. Similarily a surface EM survey was conducted over the northern portion of this target, again with little response. This north south striking peridotite body however remains a very important target for Ni PGM mineralization at depths below the penetration limits of surface geophysics.

Of immediate interest for base metal, gold, silver mineralization are the results from the C-2 target area located near the SE corner of the property. This cluster of VTEM anomalies lies within a NE trending, approximately 700 metres by 200 metre magnetic and gravity anomaly. Two drill holes, a hundred metres apart, FN 10-14 (360 metres total depth) and FN 10-20, (330 metres total depth) were tested with downhole geophysics which showed the presence of a strong offhole conductor lying between them. Characteristics of this conductor are suggestive of a massive sulphide body having a strike length of about 75 metres and dipping steeply to the NW (toward the strong gravity anomaly) (Map 2). Both these drill holes show strongly anomalous Zn, Cu, Pb, Ag, and Au values sporadically along their entire length in intermixed felsic and mafic volcanics. Drill Hole FN 10-16 drilled 180 metres to the SE from the above, encountered anomalous Au and Ag in the vicinity of the granite contact. One assay returned 0.7 metres running 3.08 grams Au and 23.6 grams Ag. Additional drilling is obviously required in this sector.

In the C-3 target area, one hole was drilled to test for the southwestern extension of the KWG Resources/Cliffs Natural Resources J.V.'s Big Daddy deposit along strike approximately 2 kilometres to the northeast. The hole was collared in granodiorite and then intersected about 60 metres of olivine rich pyroxenite below a 0.8 m thickness of chromite grading 35.93% Cr2O3 at a down-hole depth of 220 metres. This relatively high grade is important, given the fact that these deposits can be lenslike or long continuous beds and can vary considerably in thickness over short distances. The total prospective distance on the property of this "chromite horizon" is about 3.5 km, and again in the view of John Harvey, "has good potential."

The C-5 area drilling was designed to test the large gravity anomaly immediately south of the previously tested C-5 magnetic anomaly. Three holes drilled on this feature revealed that the gravity anomaly is actually due to a large gabbroic body with a distinct lithogeochemical signature seemingly unrelated to the ultramafic to mafic intrusives elsewhere on the property. No further work is planned for this area.

Analytical work for the drilling programme was performed by Activation Labs (ActLabs) in their Thunder Bay facility. An inspection of this facility and a review of the procedures used in the processing and analysis of samples were conducted by the author. Quality control procedures used by ActLabs was deemed sufficient quality control for the purposes of this early phase of exploratory drilling.

Further drilling is planned for the C-1, C-6 Ni PGM bearing peridotite conduits, the C-3 volcanic hosted base metal sulphides and the C-2 chromite horizon later this year.

Mike Flanagan, M.Sc.A., P.Geo. is the Qualified Person on the Fancamp McFaulds Lake property and is responsible for the preparation of this news release.

ON BEHALF OF THE BOARD

Peter H. Smith, PhD., P.Eng., President