Question:

My concern, and apparently that of most FNC shareholders, is why these current prices? If FNC is so valuable, why aren’t we moving up? Is it lack of promotion? Do the institutions invested in FNC have an interest to maintain a low stock price?

Fact Finding:

I’ve just learned from someone close to Mineralfields that Mineralfields enlisted support and interest of Fancamp Exploration from a major Toronto investment firm prepared to buy FNC stock. Apparently they are very impressed with FNC properties –particularly with Magpie ore grades and an April IPO -which will substantially increase an investment in FNC. Mineralfields also has stock for sale, but at a higher price than our current prices.

Where’s the Promotion?

One of our institutions is Industrial Alliance Securities Inc. They assist keeping their members informed through CoreTalk. On Feb 2nd, they interviewed Peter Smith (see appendix). When I questioned why IA is not promoting FNC, I was told they have a regulation black-out date following involvement with a company that prevents them from promoting the company. This expires in a couple of weeks.

There is also a hushed tone surrounding a little spoken fact surrounding Magpie. The upcoming 43-101 of nearly 1 billion tons of ore represents only one quarter of the magpie property. Magpie may prove to be 4 fold of 1 billion. Please check for accuracy of this.

What is preventing Demand?

Answer: confidence. Institutions are aware that a huge increase of demand will arrive with greater level of confidence in Magpie. Secutor Capital Management feels that the SP will likely rise as the level of confidence increases with the known ore. This will be the 43-101, where the confidence in the ore rises from inferred to indicated.

Conclusion:

We are currently and quietly entering a period of friendly accumulation, whose profit incentive coincides with retail: profit arrives by selling at a much higher stock price. The catalyst will be the 43-101 to be released mid to end of March. This will be further increased with the upcoming Magpie IPO in April. We may also expect institutional promotion in the upcoming weeks.

-StockGreed

Appendix I:

CORETALK from INDUSTRIAL ALLIANCE

Recent Development - February 2, 2012

RECENT INTERVIEW WITH PETER SMITH,

PRESIDENT OF FANCAMP EXPLORATION

Industrial Alliance Securities (IAS) recently conducted an interview Peter Smith for an update on his properties and what he has in store for FNC in 2012. Here are the highlights from the interview:

IAS: When can we expect a resource estimate for Lac Lamêlée?

FNC: Results to date have been very good but we will not put forward a resource estimate until further drilling, planned for Q2 2012.

IAS: What are your plans for Magpie this year?

FNC: We are working on a 43-101 and there have been delays due to missing samples, not surprising considering the total weight of samples was on the order of 55,000 lbs, it’s not a huge surprise that some things did not go as planned but hopefully the 43-101 will be finished by the end February, and in the meantime we are working on the mechanics of taking this project to an IPO in the Spring.

IAS: Any updates on the permitting for Magpie and the metallurgy?

FNC: We haven’t done anything on the permitting side except discussions with the aboriginal band on whose traditional land Magpie sits, and they’re quite happy with what we have done so far. We keep them posted and more detailed agreements will emerge as we progress.

Metallurgically there are two challenges. The massive Magpie mineralization contains about 15% gangue (mostly feldspar) most of which can be removed by fine grinding and further concentration, in effect increasing the metal content of the concentrate output. This output would be suitable for smelting purposes, in effect an iron product with titanium, chrome and vanadium credits. A small portion of this output could be treated hydrometallurgically to produce high grade Fe, TiO2, Cr2O3 and V2O5 products. Initial concentrating tests are underway at Corem as were hydrometallurgical tests which have already been reported on. These latter are proprietary to Magpie and are in the process of further development.

IAS: As for grass roots exploration, McFauld’s Lake and the Beauce seem to be interesting properties. Could you provide more info as to why?

FNC: Well, the McFauld’s Lake property is immediately adjacent to Noront and about 400m ESE of their high grade Ni, Cu, PGM, Eagle’s Nest Deposit. The McFauld’s property covers similar geology and there is strong evidence that the Eagle’s Nest is a fault offset from the Fancamp’s C-1 target. In addition recent Fancamp drilling has indicated large masses of high grade chromite at depth.

The very large Beauce property remains of great interest; the source of the Gilbert River gold placers has never been identified but upcoming reconnaissance drilling by the Company in the overburden covered upper reaches of the small Gilbert River drainage basin could change

Appendix II:

I have much more detailed notes from a conversation with Peter Smith, which I will make legible once I get time available. He is not worried about CHM’s infusion of cash. FNC has enough to take care of their end until Magpie brings in cash. Also there was an indication that McFaulds may assist here, but no details were given, but he’ll NR in a week or two. He expressed particular excitement regarding Desolation Lake, as grassroots as this may be, should the targets have massive sulphides, our SP will reflect excitement as it will be compared to Sudbury. One can see why institutions will now be buying FNC shares. Magpie is nearing an IPO stage, the Fermont CHM/FNC JV has billions of tons nearing a buyout, Lac Lamalee will likely sweeten a deal, McFaulds may bring immediate cash in, and Desolation and Beauce are at grass roots which could surprise us. -sg