Fancamp Exploration Ltd.

Fancamp Exploration Ltd.

May 19, 2010 13:51 ET

Fancamp Acquires Red Paint Lake Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2010) - Fancamp Exploration Ltd. (the "Company") (TSX VENTURE:FNC) wishes to announce the option of an additional grassroots gold property in the Atikokan area of western Ontario, located some 13 km (8 miles) NE and tying on to the 6.7 million ounce Hammond Reef Gold Deposit Property of Brett Resources Inc., recently acquired by Osisko Mining Corp. in a friendly takeover bid valued at Cdn $372M.

The property, known as the Red Paint Lake Property, totals some 5040 acres and in its western part covers an 8 km (5 miles) strike length of the NE trending Marmion Lake Fault System of which the Hammond Reef shear zone is probably an offset. The property is host to eight historic gold occurrences, four of which lie along the Marmion Fault trend. This trend is obviously highly prospective for gold and is largely unexplored in this area. Together with the Company's Norway Lake property immediately to the north, the total strike length held of the Marmion Fault trend and its projections is some 20 km (12.5 miles). Further indication of the prospectivity of this trend are the high lake bottom sediment gold anomalies in the Norway Lake sector which have yet to be explained.

An extensive prospecting programme is scheduled to begin shortly.

Terms of the option to 100% interest in the property are as follows; $125,000 cash and 150,000 common shares of Fancamp Exploration Ltd. and $256,000 in exploration expenditures in staged amounts over a three year period. A 3% NSR royalty will be payable, with a buyback on 1.5% for $1.5M.

The Company also wishes to report on its McFaulds drilling programme which is about 35% complete. Due to a scarcity of crews, the Crone EM geophysics, both downhole and surface, are only now underway and will guide the drill programme beginning the second week in June following a three week break. Results will be reported at the end of the programme, expected to be about the end of July.


Peter H. Smith, PhD., P.Eng., President

S.E.C. Exemption: 12(g)3-2(b)

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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