Fancamp Exploration Ltd.: Fermont-Fire Lake North-Preliminary Economic Assessment

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 21, 2011) - Fancamp Exploration Ltd. (TSX VENTURE:FNC) is pleased to announce that Champion Minerals Inc. (the Operator) has released results of the updated preliminary economic assessment (PEA) study on the 17.5% owned Fire Lake North project that was performed by BBA Inc. Concentrator production would average 8.7 million tonnes of concentrate per year ("Mtpa") grading 65% iron for the first 25 of the 40 year mine life; however, the first five years of the financial model will average nearly 10 Mtpa of concentrate production.

The 2011 PEA study produced a Net Present Value of $4-billion at a discounted cash flow rate of 8% with an Internal Rate of Return ("IRR") of 41.5% and a capital payback period of 2.3 years.

The PEA was completed by Dr. Andre Allaire, Eng., M.Eng., Ph.D., and Mr. Stephane Normandin Eng., from BBA, an international, multi-disciplinary, engineering firm with expertise in mining and metallurgy, based in Montreal, (Quebec). BBA's National Instrument ("NI") 43-101 Technical Report will be posted by Champion on SEDAR at www.sedar.com within 45 days of the date of this press release. The PEA study has an accuracy of +/-30%, which is considered industry standard for preliminary capital and operating cost estimates.

The PEA has been developed with a higher degree of detail than normally required, which will facilitate the transition directly into the Feasibility Study phase. In the Feasibility Study, both the Base Case option, as well as the option of adding a second production line, will be studied.

Excluding the contingency, the cost of rail and port infrastructure totals $325.6 million. The cost to develop the mine and concentrator complex totals $841.7 million, which equates to $97 per tonne of the 8.7 million tonnes of annualized production of iron concentrate, a typical rate for mines in the Fermont Iron Ore District.

Capital expenditures total $1,368 million for 100% of the Project with the cost of rail and port infrastructure included. This PEA study assumes the usage of the Sept-Iles multi user Port facility project that is planned for completion in Q1/Q2 2014.

As Champion holds an 82.5% interest in the Fire Lake North Project, it is responsible for this proportional share of the capital expenditures. Fancamp Exploration Ltd. is responsible for the remaining 17.5% of the capital expenditures.

The PEA study is based on a stand-alone operation at Fire Lake North and does not consider any other adjacent projects in the area. The resource definition drilling program has been initiated and is designed to convert the majority of the current resources to the Measured and Indicated categories for the 2012 Feasibility Study for both production rate scenarios, i.e., associated to one or two concentrator production lines.

Results from the PEA indicate Fire Lake North to be a viable and economically robust project for the Base Case production scenario. Further evaluation of options to reduce costs and increase concentrate production could significantly enhance the project economics. The additional capital required to increase production with the addition of a second production line would be significantly less than the capital expenditures for this first production line. Other options will be evaluated during the course of the Feasibility Study with a focus on cost reduction. Ongoing discussions with strategic partners and stakeholders to evaluate various rail transportation options are being studied.

For further details of the results of this PEA, refer to Champion Minerals Inc. news release dated November 21, 2011.

ON BEHALF OF THE BOARD

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

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