Dr. Peter Smith reports

FANCAMP EXPLORATION LTD.: COMPANY TO BEGIN DRILLING ON MAJOR C-5 TARGET

Fancamp Exploration Ltd.'s drilling is to begin on the very large C-5 target in the north portion of the property. This structurally complex magnetic feature, about one mile long and a third of a mile wide, lies on the southeast edge of the pre-McFauld's greenstone belt granitic basement, and could well conceal sulphide-rich peridotite feeder zones of the Eagle One and Eagle Two type.

The company also wishes to report completion of the first phase of the C-1 target drilling. The high-grade nickel mineralization seen over a narrow width in hole No. 2 was intersected again in Hole No. 10, where massive sulphides were seen over very narrow widths again within a zone of less than a metre, some eight metres down dip of the original intersection at a vertical depth of about 40 metres. The local dip appears to be about 40 degrees to the west, and holes 8 and 9, drilled at 45 degrees and 55 degrees, respectively, to the west (east of the No. 1 and 2 collars) on the assumption the zone was near vertical, appear to have undercut it. This mineralized zone, small though it appears, is open down dip and along strike.