Fancamp Exploration Ltd.
TSX VENTURE : FNC

Fancamp Exploration Ltd.

December 31, 2010 15:50 ET

Fancamp Completes Final Tranche of $4 Million Brokered Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 31, 2010) - Fancamp Exploration Ltd. (TSX VENTURE:FNC): Fancamp Exploration Ltd. (the "Company") is pleased to announce the completion of the final tranche of the brokered private placement originally announced on December 7, 2010 with Secutor Capital Management Corporation and Industrial Alliance Securities Inc. (collectively, the "Agents"). The Company issued 1,080,000 flow-through units (the "FT Units") at $0.65 per FT Unit and 289,000 units ("Units") at $0.52 per Unit for aggregate gross proceeds of approximately $852,280 (the "Offering").

Each FT Unit consists of one common share of the Company, issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one-half of one common share purchase Warrant (each whole warrant, a "Warrant"). Each Unit consists of one common share of the Company and one-half of one Warrant. Each whole Warrant entitles the holder to acquire a common share of the Company at a price of $0.90 per share until June 30, 2012, subject to earlier forced acceleration in the event the Company's shares close at a price of $1.30 per share or more on the TSX Venture Exchange for 20 consecutive trading days after the expiry of a four month hold period.

The Company paid the Agents and a selling group member a cash commission equal to 7% of the gross proceeds of the Offering and issued to the Agents and their selling group member (i) an aggregate number of non-transferrable broker warrants to acquire that number of Units that is equal to 7% of the total number of FT Units sold, exercisable at a price of $0.65 per Unit until June 30, 2012, and (ii) an aggregate number of non-transferable broker warrants to acquire that number of Units that is equal to 7% of the total number of Units sold, exercisable at a price of $0.52 per Unit until June 30, 2012.

All of the above securities are subject to a four-month plus one-day hold period expiring May 1, 2011 in accordance with applicable securities laws and stock exchange rules.

The Company will use the proceeds from the sale of the FT Units for exploration on the Company's mineral properties in Quebec and the proceeds from the sale of the Units for general working capital purposes.

ON BEHALF OF THE BOARD

"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.

Contact Information