Fancamp Announces First Assay Results From the Lac Lamelee Iron Project Diamond Drilling Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2012) - Fancamp Exploration Ltd. (TSX VENTURE:FNC) is pleased to announce the first series of Iron assay results from the ongoing summer-fall NQ diamond drilling program at the Company's wholly owned Lac Lamêlée South Iron Project, located 100 km southwest of Fermont (Quebec) in the heart of the Fermont-Wabush-Labrador City Iron Camp.

Fancamp has completed over 11,000 metres in 33 drill holes to date, having surpassed the 10,000 metres initial program planned. Iron assay results are available for the first 6 drill holes (LS-12-01 to 06) of the planned 39-hole campaign and the best intervals are summarized below*. Results are pending for the remaining holes.

Diamond Drill Hole #		From (m)	To (m)	Core Length (m)	FeT (%)	Fe2O3 (%)
LS-12-01		81.0	226.5	145.5	29.64	42.39
	including	112.5	192.0	79.5	31.74	45.40
	including	144.5	192.9	48.4	36.82	52.66
LS-12-02		246.0	354.0	108.0	21.72	31.07
	including	295.5	333.0	37.5	23.83	34.08
LS-12-03		15.0	127.0	112.0	31.74	45.39
LS-12-04		25.6	76.4	50.8	33.22	47.51
	including	25.6	52.9	27.3	35.27	50.45
		124.7	194.9	70.2	27.64	39.53
		217.0	266.1	49.1	30.41	43.48
	including	241.3	266.1	24.8	32.80	47.03
LS-12-05		91.0	248.5	157.5	32.08	45.87
	including	191.0	225.0	34.0	37.29	53.33
		401.2	434.0	32.8	22.73	32.50
LS-12-06		4.5	306.6	302.1	28.08	40.07
	including	4.5	191.0	186.5	30.70	43.90

* The selected composite assay results are not necessarily representative of the average grade or thickness of the mineralized zones or potential resource. Intervals are down-hole lengths and not necessarily true widths of the mineralized zones. Grades are calculated from Fe(T)% sample assays completed by the ALS Laboratory Group. Certain iron formation lithologies contain variable amounts of Iron in silicates which may reduce the recoverable Iron grade.

Based on these early encouraging results Fancamp expanded its drilling program from 10,000 metres to 12,500 metres as the Company completes its second phase of the program with the objective of establishing the highest quality National Instrument ("NI") 43-101 compliant Mineral Resources. The entire program is expected to be completed in November 2012 with the completion of the Mineral Resources estimates due for early 2013.

This summer's activities also included outcrop stripping and channel sampling at key iron formation locations, blasting at two locations to collect small bulk samples representative of the magnetite and hematite mineralization, and a detailed ground magnetometer survey over the full strike of the known and projected iron formations.

The character of the iron mineralization changes from the northeast to the southwest. Consequently the mineralization has been divided into three structurally distinct zones:

• the Mountain Pond Zone to the northeast,
• the centrally located "91-92" Zone, and
• the Tanguay Zone in the southwest.

These three zones span a distance of approximately 2.5 kilometres. The Mountain Pond Zone is comprised of a steeply south dipping, steeply west-northwest plunging, tightly folded to isoclinal syncline with a curvilinear axial plane striking SE to E and dipping steeply to the south-southwest.

Proceeding to the southwest into the "91-92" Zone, the fold is isoclinal and the axial plane strikes W-SW, dipping steeply northwest. At this point the northern limb of the structure appears to transition into leaner iron formations with lower iron grades.

The Tanguay Zone is offset from the "91-92" Zone by a late-stage fault with a horizontal displacement of about 300 metres. This zone appears to be complexly folded as the stratigraphy is repeated in several drill holes. Lithologies generally trend to the southwest-northeast and dip to the northwest at moderate angles.

The drill programs of 2011 and the current program were designed to calculate resources to vertical depths of 350 metres, however two holes were drilled to vertical depths of 600 - 650 metres indicating that the target iron formation extends to at least those depths.

Quality Assurance, Quality Control Protocols

Drill core boxes arrive at the Fancamp core logging facility on the Lac Lamêlée South Iron Project. Boxes are opened and depth tags are verified for errors. Each box is labeled with embossed aluminum tape stapled to box end. Numbers indicated hole and box numbers as well as "from" and "to" footages. Sampling is continuous through mineralized intervals and intermittent in other lithologies. Within mineralized intervals, samples taken are 2 metres in length of half-sawed core, or up to lithological or structural boundaries. One standard per hole is included within the sampling of mineralized zones up to 250 metres of hole length. Holes deeper than 250 metres contain a second standard. There is one blank sample and one duplicated sample per 80 metres of core. Some 26 samples of varying lithologies have been quartered and sent to the principal laboratory and a second laboratory. Approximately 50 Davis Tube and density test have been conducted on a range of important lithologies. One-half of the sample is returned to the core box with the sample tag number stapled at the down-hole end of the sample interval. The other half is packaged in a plastic bag accompanied by its stapled sample tag number. The sample number is also written with felt pen on the bag.

Core logging is conducted using GeoticLog and Geotic Graph software. Data is transcribed for GEMCOM software. Geology is described using 13 lithological units and several sub-lithologies. Other parameters described in the logs include structure, magnetic susceptibility, rock quality data and mineralization. Rock quality data is described at varying intervals according to their common fracture characteristics, recovered lengths, RQD length (total lengths of sections over 10 centimetres) and number of fractures over the interval. Recovery and RQD percentages are calculated. Mineralization is described as a visual percentage of magnetite and/or hematite and a ratio of magnetite to hematite is generally estimated.

Sample bags are secured with staples and/or cable ties. Sample batches are tabulated for shipping control. Sample requisitions are included in the first bag of each batch. Samples are placed in large rice bags for shipping, all secured with a cable tie. Batches are separated into two groups corresponding to the two drills working on the project. Samples are transported from camp to a shipping depot in Wabush (Newfoundland and Labrador). Batches are placed on pallets and wrapped in plastic to secure the bundles. Samples are shipped by commercial transport to the ALS Laboratory Group facilities in Val-d'Or (Quebec). Shipping waybills are kept for tracking shipments as required.

Core samples received at the laboratory are sorted and verified against the original list to ensure that all samples have been received to check for discrepancies. The samples were entered into the laboratory information management system. The sorted samples are dried in the original sample bags to ensure that any damp fines did not remain upon transfer to drying containers. Once dry the samples were crushed 70% to under 2 millimetres. Each sample was then riffle split and an aliquot was pulverized 85% to under 75 microns. Samples were then analyzed using the fusion XRF whole rock package which provide the analysis of Al₂O₃, CaO, Cr₂O₃, Fe(T), K₂O, MgO, SiO₂, TiO₂, and single temperature Loss On Ignition, as well as As, Ba, Cl, Co, Cu, Mn, Ni, P, Pb, S, Sn, Sr, V, Zn, and Zr. Each batch was accompanied by QAQC measures provided by the laboratory as well as those conducted during the sampling. These included the analysis of blanks, duplicates and certified standard reference materials. All QAQC standards are control charted to ensure that the data passes quality control prior to final release.

Upon completion of analysis and verification by the laboratory chemist, results were entered into the information management system and approved. Reports are then generated and a final quality control check is done by an independent person. This person also did the final certification of the data. Data was then transferred to Fancamp.

This news release was prepared, reviewed and approved by Mr. Mike Flanagan, P. Geo., the Lamêlée South Project Manager, and Mr. Jean Lafleur, M.Sc., P. Geo., a Director of Fancamp and Chairman of the Board. Both individuals are Qualified Persons under NI 43-101 standards.

ON BEHALF OF THE BOARD

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

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

S.E.C. Exemption: 12(g)3-2(b)