Hello Kerry (“Cappysmart”),

You’ve said: “I fail to see how I will benefit from this transaction.”
You’ve asked for an explanation: “Enlighten me please.”

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The reason, “to unlock the value contained in the Magpie Deposits,” is given by
Peter H. Smith, “on behalf of the board,” in the 2/2/2011 PR, BarbuBeatnik
has just cited. I accept that explanation as being reasonable and as making sense.

When Magpie stock trades at a particular price (and our ownership percentage is
a known fact), it becomes that much harder for the markets to ignore that value
in computing the price Fancamp trades at every day.

Also, initially and later, Magpie is free to offer Private Placements and Secondary
Offerings, which will dilute Fancamp less than had Fancamp issued Fancamp
shares instead.

For any serious work to commence developing Magpie into a producing property,
for all practical purposes, a takeover of it or a joint venture will be necessary.
Fortunate or unfortunate, however you view it, this is the reality.

So, most important of all (in terms of the IPO and in terms of Magpie existing as
a separate identifiable entity), Magpie can pay for its share of joint ventures by
paying for it in Magpie stock instead of cash or instead of Fancamp stock. To say
the least, this is an important tool to have.