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News Release - September 19, 2014 4:40 AM ET

Fancamp Exploration Ltd. Sells Gold Project to Uragold Bay Resources

NEW YORK, NY, September 19, 2014 /Sector Newswire/ - Fancamp Exploration Ltd. (TSX-V: FNC) (US listing: FNCJF) (Frankfurt: 3F9) has this week announced news regarding the sale the historic Beauce Paleoplacer Gold Channel Project in Southern Quebec to a new partner company (Uragold Bay Resources Inc. TSX-V: UBR). Fancamp Exploration is a junior miner with ownership interests in several exceptional advanced-stage flagship properties that it originated and has since vended. FNC.V is positioned for potential extraordinary share price appreciation over the coming months and years as the reality of the large inherent value that the Company possesses is understood by the market and milestones by its partner companies are achieved.

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Company's Q3-2014 Corporate Presentation

Fancamp Exploration has a 25 year history of successful exploration and has amassed an array of projects it has vended to partner companies in exchange for cash, shares, and royalties. FNC.V also has a portfolio of projects it is advancing for eventual spin-off. FNC.V has 140,704,236 shares outstanding (~172M fully diluted) and trades with a current market cap under $10 million (click here to see related July 4, 2014 news of 10 million share corporate buy-back). FNC.V's current market cap is trading near its securities & cash value alone, ignoring interests in multiple properties that are significantly advanced, including potentially multi-millions per annum in royalty payments on the horizon with Champion at Feasibility, also ignoring the >$15 million earn-in payments due from Bold (Koper Lake deal) if taken to completion, and ignoring the inherent value of ~1 billion tonnes of iron ore at Magpie it will likely spin-off, among others. FNC.V owns ~$10 million in with negotiable securities (in partner companies). FNC.V also has ~$500K cash in the treasury (as of Sept. 2014), and it does NOT have cash burn-rate issues as its best course of action on most everything is to monitor multiple partner company developments. Near-term cash availability (on top of current ~$1/2M cash position); FNC.V receives $50K/year in advanced royalty payments from Uracan and $100K/year from RGX, plus it has 4.4125 million liquid shares of RGX currently valued at $2.65 million.

No capex is required by FNC.V to eventually reap substantial potential revenue from vended properties, and developments on multiple fronts are expected near-term. A potential near-term production decision scenarios is developing at a partner company that will entitle FNC.V eventually to sizeable royalty payments with conservative potential life of mine revenue to FNC.V in excess of $270 million.

Flagship assets and key interests of Fancamp Exploration Ltd.:

1) FNC.V owns ~11 million shares (representing ~5.6%) of Champion Iron Mines Ltd. + Royalty (CIA.TO -- trading at ~$0.27/share as of September 15, 2014). Champion has a preliminary feasibility study on its Consolidated Fire Lake North (CFLN) project within its Fermont Holdings in Quebec (delineated 5.1 Billion tonnes of NI43-101 compliant iron ore resources). FNC.V owns a 1.5% net smelter royalty (NSR) on the Fermont Iron Holdings. Champion has recently entered into agreement with Mamba Minerals to create a new iron ore company to be named "Champion Iron Limited". It is believed this new entity will be positioned to see projects through to fruition. An upcoming CFLN Feasibility Study will evaluate the potential to produce 20 Mtpa of iron concentrate, and according to Champion that is more than sufficient volume to economically support an independent railway. Champion has also increased and upgraded the project's Global Mineral Resource to 3.567 billion tonnes on the CFLN project compared to the PEA; using a 15% FeT cut-off grade it sits at 746 Mt at 31.1% FeT Measured & Indicated and 2,821 Mt at 28.8% FeT Inferred. In short, it is conceivable we may see CFLN producing within 5 years, assuming the upcoming feasibility and related decisions unfold as many expects it to. This Q2-2014 the Québec Government committed up to $20M for a Feasibility Study for new Labrador Trough rail line.

Eventual royalty 1 -- near-term production scenario: FNC.V's 1.5% NSR on Champion's CFLN project will translate to large royalty payments; Mining MarketWatch Journal guesstimates that at 10 Mtpa it might translate to somewhere in the neighborhood of ~$6.5 million to FNC.V every year. The upcoming Feasibility Study is considering the potential at 20 Mtpa. We calculate potential NSR life of mine royalties to FNC.V on CFLN at conservatively $273.6 million.

2) FNC.V owns 4.4125 million shares (representing 3.2%) of Argex Titanium Inc. + Royalty (RGX.TO -- trading at ~$0.60/share as of September 15, 2014). Argex has a patented and proprietary titanium extractive technology it plans to take to industrial production, it is the only TiO2 process that can effectively extract TiO2 from ores containing different contaminates such as MgO, V, Cr, etc. Argex also has a couple of properties that originated from FNC.V, including the La Blache Fe-Ti-V property in Quebec where the current combined initial NI 43-101 compliant mineral resource estimate totals 30.88 Mt grading 18.78% TiO2, 63.29% Fe2O3 and 0.45% V2O5 in the measured and indicated categories with an additional 2.87 Mt grading 18.67% TiO2, 63.06% Fe2O3 and 0.43% V2O5 in the inferred category. FNC.V had 9 million shares of RGX, and sold 3 million of its position last year for $2.1 million. FNC.V owns a 2% NSR on La Blache, rising to 4% two years after production. This 2014 FNC.V is entitled to, and expected to receive, $100,000 in advanced royalty payments from RGX in 2014.

3) FNC.V owns 43 million shares (representing ~47.33%) of Lamelee Iron Ore Ltd. + Royalty (LIR.V -- trading at ~$0.075/share as of September 15, 2014). LIR.V is advancing the Lamelee South Iron Property in Quebec. In Q2-2013 FNC.V released an initial resource estimate on Lamelee South revealing Inferred Resources of 520Mt @ 39.5% Fe2O3 (27.6% FeT). The Lamelee South deposit is interesting from an economic point of view as it has a lot of iron formation squeezed into a relatively small area, a study indicates 100% of the Inferred Resources are in the pit shell (the area where the mining is expected to take place) (Note: DDH LS-12-23 yielded 333 m @ 41.7% Fe2O3 (29.1% FeT)). The team tasked with advancing Lamelee are the same individuals that started up the Consolidated Thompson's iron ore operation at Bloom Lake, they advance that project to buy-out, and in the process they brought the stock of Consolidated Thompson up to where they sold it for $17 per share in 2011. The plan is to replicate that success at Lamelee Iron Ore Ltd. The immediate plan for Lamelee is to delineate the deposit further, conduct metallurgy, and conduct a PEA, which should lead toward Feasibility in 2014, with a target of production in 36-48 months. FNC.V has retained a royalty of 1.5% of the net sales price of minerals extracted from the Lamelee Iron Property.

4a) Koper Lake Project, Ring of Fire - Ontario, adjacent Noront Resources Eagle's Nest Discovery (~400 metres to the southeast) + Royalty. FNC.V is the original claimholder and is vendor to Bold Ventures Inc. which has an earn-in option agreement for up to 100% working interest on the Koper Lake Project. If Bold fulfills all its requirements the deal will have generated ~$16.5 million cash to FNC.V, and a sizeable production Gross Metal Royalty (GMR) on the project. The GMR entitles FNC.V to 2% (scalable up to 4% under certain conditions) of total revenue from the sale of all metals and mineral products. The Inferred Mineral Resources sits at 77.2 MILLION TONNES @ 35.1% dichromium trioxide at 20% cut-off, and on-going metallurgical work shows chromite amenable to reduction into metalized chrome and iron using natural gas. Bold and its partner KWG Resources are advancing the project and have recently announced plans to raise sizeable capital. FNC.V is due ~$15 million as the deal progresses (plus the royalty).

4b) FNC owns 10 million shares (representing 1.3%) of KWG Resources. (KWG.V -- trading at ~$0.04/share as of September 15, 2014).

5) FNC.V has a 46.7% ownership interest in its private subsidiary Magpie Mines Inc. (advancing toward spin-off). The Magpie Iron-Titanium-Chromium-Vanadium deposit in Quebec is considered to be among the world's largest undeveloped titaniferous magnetite deposits. NI 43-101 Mineral Resource released in 2012 sits at 928.4 Mt @ 42.3% Fe(T), 11.2% TiO2, 2.6% Cr2O3, 0.3% V2O5. Resource growth potential appears readily achievable as the current compliant resource is only on one section of a larger historically-known deposit. The deposit has significant relief (a mountain rising from the ground) and appears ideal for an open-pit scenario. In Q4 2013 the Company signed a Memorandum of Understanding ("MOU") with the Pangang Group of China which included the possibilities of technology exchanges with respect to Pangang’s smelting and beneficiation processes and their possible applications for the Magpie deposit. Metallurgical work performed in 2013 by a scientific group from China, interested in perusing the Magpie deposit, has dramatically upgraded the economics of the project; Metallurgical test work from SGS Lakefield and Sichuan Non-Ferrous Metallurgical Institute of China has yielded a TiO2-grade to ~98%, and meets the specifications for marketable synthetic rutile products. In addition, a three-stage grinding/magnetic separation produced acceptable results for Fe-concentrate with a grade of 55% Fe and recovery rate of 89.5%. Further metallurgical test work will be performed on Vanadium and Chrome in the pig iron, as well as improvement on the aforementioned TiO2 beneficiation test results.

Magpie Mines Inc. is a private company right now, 47% owned by FNC.V and another 47% is owned by the The Sheridan Platinum Group Ltd which participated in its staking. FNC.V's objective is to spinout the entity in the next 12 months, obtaining cash, shares, and royalties as per its business model.

6) FNC.V owns NSR on Uracan Resources Ltd.'s Turgeon Lake Uranium Deposit. The deposit also goes by the name 'North Shore Project' in Quebec. The current NI 43-101 Mineral Resource sits at Indicated of 21.5Mt @ 0.014% U3O8 (3.1M Kg), Inferred of 140.7 Mt @ 0.012% U3O8 (16.8M Kg). FNC.V's owns a 1.5% NSR for the first two years of commercial production, increasing to 2.5% thereafter. FNC.V receives a $50,000/year advance royalty per year.

7) Historic Beauce Paleoplacer Gold Channel Project, Southern Quebec. (Ownership: 100% Fancamp, however Breaking News: Sale pending to new partner company) see related September 17, 2014 news release entitled 'Fancamp and Uragold Bay Sign a Letter of Intent Regarding the Sale of 32 Fancamp Claims Covering the Section of the Historic Beauce Paleoplacer Gold Channel Not Owned by Uragold'.

8) Desolation Lake Polymetallic Project, Ontario (advancing toward spin-off) (Ownership: 80% Fancamp, 20% The Sheridan Platinum Group). The project hosts a 15 km magnetic trend located in James Bay Lowlands and has potential of substantial mineralization. Recent drilling has yielded impressive numbers, including 422 m @ 28.6% Fe(T) or 40.9% Fe2O3. FNC.V has plans to perform further exploration to delineate the size of the mineralized system and produce a NI mineral resources on Iron, Limestone. FNC.V's objective is to spinout the entity, obtaining cash, shares, and royalties as per its business model.

9) Kalko Palladium Property, Labrador Trough, Quebec (Ownership: Fancamp has option to earn 100%). The Kalko claims themselves are centered on a striking cluster of palladium lake bottom sediment anomalies defined by the re-analysis in 2009, of 21,984 samples by the Quebec government (MRN) taken over some 550 km of strike length in the Labrador Trough. Of these lake bottom sediment samples, only 12 are above 35 ppb palladium, and 8 of these 12 samples are clustered on the Kalko Property including the 3 best palladium values of the entire survey (42, 48 and 50 ppb).

Excerpt of FNC.V's latest news release -- September 17, 2014:

Fancamp and Uragold Bay Sign a Letter of Intent Regarding the Sale of 32 Fancamp Claims Covering the Section of the Historic Beauce Paleoplacer Gold Channel Not Owned by Uragold

VANCOUVER, BRITISH COLUMBIA--(Sept. 17, 2014) - Fancamp Exploration Ltd. ("Fancamp") (TSX VENTURE:FNC) is pleased to announce that it has signed a letter of intent with Uragold Bay Resources Inc. ("Uragold") (TSX VENTURE:UBR) regarding the sale of 32 claims adjoining Uragold's Beauce Placer Gold Project located in the municipality of Saint-Simon-les-Mines in the Beauce region of southern Quebec.

Uragold's current Beauce paleoplacer project, 5 claims situated between the Rang Chaussegros and the Rang Gustave, covers only twenty-six percent (26%) of the entire historic paleoplacer gold channel. When the transaction closes, Uragold's claim block will cover the full 6.5 km length of the channel.

To view Figure 1, click on the following link: http://media3.marketwire.com/docs/FNC917.jpg

In 1959, the Beauce Placer Gold Mining Company defined a drilled historical resource of 168,952 Au oz (12,978,710 m3 @ 0.405 g/m3) (June, 1959 - GM08785) on a channel defined as ranging from Rang St-Charles through to Rang Delery, Rang Chaussegros, Rang St-Gustave all the way to Rang 6. (V. Stuart-Williams, Beauce Placer Property NI 43-101 Technical Report, February 2014). All information such as resources estimates and grades herewith presented is historical in nature and while relevant, the information was obtained before the implementation of National Instrument 43-101 and as such does not meet National Instrument 43-101 reporting standards. The historical estimate should not be relied upon until the Company can confirm them.

Studies by Uragold of the auriferous basal till and the underlying saprolite suggest a close proximity source of gold, and since the acquired claims cover an extensive area of the Gilbert river valley this increases the chances that the unknown Bellechasse / Timmins type deposit mentioned in our March 27, 2014 press release will be found on Uragold claims.

Salient points of the non-binding letter of intent are:

1. Uragold and Fancamp intend to enter into a definitive written Agreement for the acquisition by Uragold of a 32 claim block contained in the Appalachian Properties that surrounded the Uragold Beauce Property (herein, collectively the "Claims") ("The Acquisition") within thirty (30) days.

a) As consideration for the transfer and the sale of the Claims and related assets to Uragold, Uragold will issue, at the closing an amount equal to 8,000,000 Uragold Units. Each Unit will be comprised of 1 common share and 1 common share purchase warrant (the Warrant") of Uragold.

b) Each full Warrant will entitle Fancamp to purchase one common share of the capital stock during a period of 60 months from the date of the issuance of the Units. Each Warrant shall entitle Fancamp to purchase one (1) additional common share of Uragold at a price of C$0.20 per share during the first 24 months from the date of issuance of the units, at a price of C$0.30 from the start of the 25th month until the end of the 48th month, and at a price of C$0.40 per share at the start of the 49th month until the end of the 60th month.

2. Contemporaneously with the signing of the definitive Agreement:

a) Uragold will make a cash payment of C$25,000 to Fancamp within six (6) months of the Signature of the definitive Agreement.

b) Uragold will finance C$400,000 worth of exploration work on the Claims over the next 4 years, under the following schedule, Year 1: C$50,000, Year 2: C$75,000, year 3: C$100,000 and year 4: C$175,000.

c) Uragold will grant Fancamp a three and one half percent (3.5 %) Gross Metal Royalty on any gold production extracted from the 32 Claim block acquired by Uragold.

3. Fancamp and Uragold will sign a Covenant regarding the sale of Uragold shares held by Fancamp.

a) Included in the Covenant will be a Standstill agreement whereby Fancamp agrees not to sell any of its Uragold shares ("Standstill") during a twelve (12) month period ("Standstill Period") starting on the day of the issuance of the Uragold Units to Fancamp.

b) The Covenant will also include a Change of Control Clause whereby in the event that a Change of Control event occurs at Fancamp, then either the Standstill Period will be automatically increased by thirty six (36) months or a new thirty six (36) months Standstill Period start.

c) Included in the Covenant will be a Vote with Management Clause whereby Fancamp agrees to votes all of its shares proxy in favor of Uragold Management.

4. Once Gold Mining operations have begun on the Claims purchased, Uragold will make a one-off cash payment of C$500,000 to Fancamp.

Both Parties are actively working to finalize the definitive written Agreement by end of next week, once final board approval is obtained both Parties. The transaction is also subject to the approval of the TSX Venture Exchange....

...click here for full copy from source

Sector Newswire has identified the following additional related research links on Fancamp Exploration Ltd.:

- Company's latest corporate presentation: http://sectornewswire.com/report0301-2014FNC.pdf

- Fancamp corporate website: http://www.fancampexplorationltd.ca

- Q2 2014 Research report ($0.75/share target): http://sectornewswire.com/report0301-2014FNC.pdf

- Recent Mining Journal article: http://miningmarketwatch.net/fnc.htm

- Mining Expert, Jay Taylor's opinion/recommendation: http://sectornewswire.com/FNCJayTaylor-2014-02-28.pdf

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL(s).

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