Investment returns are dependent, to varying degrees, on future events. It requires you to make sensible investment decisions. It’s a gamble whose success depends on an ability to predict future.“Intrinsic value” can be determined by careful analysis of present conditions and future prospects. If the difference between now and the future is high enough, we will be rewarded with handsome profit on our investment. The fluctuations on sp will eventually be corrected – or so the theory goes.

Having said that, I wish to correct the most common claim on this forum “This stock is severely undervalued” I realized that there has been deep misunderstanding of true value of FNC properties based on proven mineral resources to date. YES it is undervalued to a certain degree and severely undervalued against future prospects. Here is my question. Of hundreds of exploration mining companies, who do really care the estimated (or indicated noncompliant 43-101) resources?? Well, here is the picture.

July 2010

MacFauld – Nil (No drilling performed)

Beauce - Nil

Magpie – 201Mt 43-101 Compliant Resources (48.7% ownership)

Lac Lamelee – Nil

Champion’s Fermont – virtually none 43-101 compliant resources, (CHM .75 cent share, estimated 4 billion tonnes of iron formation)

Peter informed that many parties had interest in Magpie iron ore property when the possible POSCO deal was on the table in year 2010. If sold, its selling price on 201Mt could have a deep hair-cut.

June 2011

MacFauld – Initial Assay Results for FN 10-25 drill hole, Drilling on FN 10-26 & FN10-27

Beauce - drillings

Magpie – 201Mt 43-101 compliant resources (46.7% ownership, $3.23 mil financing)

Lac Lamelee – Nil (no estimated resource)

Champion’s Fermont – 1.55 billion tonnes of 43-101 compliant resources grading 25.4% total iron & List on TSX (CHM $1.50 a share, increase CHM shares by 300,000shares plus $100,000 before May 21st 2011)

JuLy - Nov 2011

MacFauld – Assay Results for 10-26 & 10-27

Beauce – Assay Results followed by subsequent drillings

Magpie – ~700 Mt 43-101 compliant resources on Deposit #2(46.7% ownership)

Lac Lamelee – ???

Champion’s Fermont – ? billion tonnes of 43-101 compliant resources, increase CHM shares by 450,000 shares plus $100,000 before May 21st 2012)

As you can see, there will be a dramatic increase on FNC property value in forthcoming months.

MacFauld – from none to high grade of Chromite resources

Beauce – from none to a new gold discovery

Magpie – more than tripling 43-101 compliant iron ore resources (from 201Mt)

Lac Lamelee – from none to ???

Mt Champions Fermont – double the tonnage of 43-101 compliant iron ore resources(from 1.5 Billion tonnes), Increase CHM shares by 450,000 shares plus $100,000 before May 21st 2012

While the property value at Fermont and Magpie will be doubled and tripled, significant value at Lac Lamalee, Beauce and MacFauld are going to be new additions from NONE. Please don’t be confused with Lamellee (double l) which has an estimated

642Mt iron resource which belongs to Consolidated Thompson. Lac Lamelee property (5km by 5km) is adjacent to Consolidated Thomson’s and surrounded by CHM’s Fermont properties. It has a really high potential considering its location - centre of all latest discoveries pursued by Consolidated Thompson and Champion.

To date, drillings were conducted for only a portion (section 14-20, ~900m) of Magpie Deposit #2 of #1-4 in year 2008 where the inferred 43-101 compliant resource was 201 Mt. The new drilling, which will commence on July 7, 2011, will uncover the entire 1.6Km strike length of deposit #2. The company has been doing metallurgical testing on already existing samples and will include news samples arising from new drillings. FNC is in preparation for applying patent some technology related to mineral processing of titaniferous magnetite ores.