Fairfax Capital Inc.

November 19, 2007 09:53 ET

Fairfax Capital Inc. Completes Qualifying Transaction & Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2007) - Fairfax Capital
Inc. (TSX VENTURE:FFX.P) is pleased to announce that it has acquired all of
the issued and outstanding shares of Free Energy Solutions Inc. ("Free
Energy") in consideration of the issuance of 9,796,453 shares of the
Company, of which 6.3 million shares are subject to a 6 year escrow
arrangement which provides for the release of the shares to principals of
the company in stages over six years.

The acquisition completes the Company's Qualifying Transaction described
in its Information Circular dated July 25, 2007. As a result the Company
will no longer be considered a Capital Pool Company.

The Company is also pleased to announce that it has completed the
$760,000 private placement announced by the Company on October 19, 2007.
The notes which are the subject of the private placement are convertible at
the option of the holders into common shares of the Company at the
conversion price of $1.56 per share. On closing, the Company issued to the
subscribers warrants exercisable to purchase up to an aggregate of 487,180
common shares of the Company for a period of two years for $1.56 per share.

The proceeds from the private placement will be used by the Company
for general working capital purposes. Any shares acquired by investors
pursuant to any conversion of their notes or any exercise of their warrants
will be subject to a hold period expiring on March 8, 2008.

About Free Energy Solutions Inc.

Free Energy is a British Columbia corporation in the renewable energy
sector. Free Energy is a 100% subsidiary of Fairfax Capital Inc. Its
principal business is developing innovative technologies for the heating
and cooling industry based on a new class of thermal superconductors now
becoming available on the world market. Its head office and principal place
of business is located in Richmond, British Columbia.

Free Energy's technologies build on the well-established principle of
"earth source energy", which allows a building to draw free heat out of the
ground for heating and induce heat into the ground for cooling. Free Energy
is in the process of developing a high efficiency condenser that can be
used in commercial refrigeration applications, a seawater heat exchanger
for large commercial air conditioning systems, and a simple heat exchanger
that can be installed in the ground to act as a heat source or heat sink
for conventional residential heating and air conditioning systems.
Prototypes of its geoheating and geocooling units have already been

Information on the technology can be viewed at the Free Energy website
at www.freeenergysolutions.ca.

About Fairfax Capital Inc.

Fairfax is a British Columbia corporation with its head office in
Vancouver, British Columbia. Fairfax is listed on the TSX Venture Exchange
as a Tier 2 company. Fairfax has a total of 12,636,453 common shares issued
and outstanding, of which 7,140,000 shares are subject to escrow

Additional information on Free Energy and Fairfax may be found in the
Information Circular for the 2007 annual and special general meeting of
Fairfax shareholders, which is posted on SEDAR at www.sedar.com.


Alf Sanderson, President

The statements made in this release may contain forward-looking statements
or statements relating to matters that involve a number of risks and
uncertainties. Actual events or results could differ materially from the
Company's expectations and projections.

Capitalization Report for Fairfax Capital Inc.

Shares Issued: 2840000

Shares Escrow: 840000

TSX Venture closing price for Fairfax Capital I

Date: 2007/11/01

Closing Price: 1.450

The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.

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