Fancamp Provides Initial Comments on Lawsuit

FANCAMP EXPLORATION LTD.

7290 Gray Avenue, Burnaby, British Columbia, V5J 3Z2

Telephone: 604-434-8829 Facsimile: 604-434-8823 Web site:

www.fancampexplorationltd.ca

NEWS RELEASE

August 6, 2019 TSX-V Trading Symbol: FNC

Fancamp Provides Initial Comments on Lawsuit

Fancamp Exploration Ltd. (“ Fancamp” or the “ Corporation”) (TSX VENTURE: FNC)

provides comments with regards to a claim filed against the Corporation and The Magpie

Mines Inc. (“Magpie”, and together with Fancamp, the “ Defendants”), a subsidiary of

the Corporation, by Fouad Kama leddine, a former office r of the Defendants, and FFK

Consulting Services Inc. (the “Plaintiffs”) in the Ontario Superior Court of Justice.

In April 2019, the Corporation and Magpie received a statement of claim relating to

liquidated damages for termination of the agreement dated January 1, 2018 whereby

Fouad Kamaleddine acted as consultant to Fancamp to assist Magpie with mineral

engineering research and development activities (the “Agreement”), for alleged unpaid

services and for alleged moral and punitive damages, in the aggregate amount of

approximately $933,500.00 (the “Damages”).

In June 2019, the Defendants filed a statement of defense in the Ontario Superior Court

of Justice whereby they alleged that Fouad Kamaleddine breached his obligations

towards the Defendants by misappropriating part of the intellectual property of Magpie

through FFK Technologies Inc. and misusing the funds of Magpie, including a grant from

Sustainable Development Technology Canada. These actions led to the rightful

termination of the Agreement in November 2018.

Based on the facts of the case, Fancamp believes that the litigation instituted by the

Plaintiffs is without merit and believes that the Plaintiffs are not entitled to any of the

Damages. As such, the Defendants intend to vigorously defend themselves against the

Plaintiffs.

Concurrently with the proceedings described above, o n July 11, 2019, Fancamp and

Magpie filed an Originating Application to I nstitute Proceedings (the “ Originating

Application”) against Fouad Kamaleddine, FFK Consulting Services Inc. and FFK

Technologies Inc. for damages and declaratory judgment in the Superior Court of

Quebec, notably to declare Fancamp/Magpie owner of the intellectual property in

dispute and to claim monetary damages they are entitled to . The monetary damages

notably cover costs that have been incurred for professional services rendered for the

development of the intellectual property with regards to the process for the recovery

of high-grade synthetic rutile from low -grade titanium bearing ores of Magpie, costs

incurred for the patent applications, costs of third parties that were not authorized and

misuse of funds, amounts received as a result of misappropriation of the intellectual

property, and loss of profits associated to the commercializat ion of the intellectual

property, in the aggregate amount of approximately $930,000.00.

About Fancamp

Fancamp is a public Corporation using a value added strategy predicated on the

acquisition of potentially valuable assets, adding value through the selection process

itself and subsequent development work, self -financed or otherwise, followed by

disposition, proceeds from which, are used to finance the same process multiple times.

The Corporation has an exceptional inventory of resource properties in Quebec, Ontario

and New Brunswick; commodities of interest include gold, base metals, chromium,

titanium, iron and silica. In addition, the Corporation has begun to build on the industrial

possibilities inherent in dealing with some of these materials. The Corporation is a

reporting issuer in British Colombia, Ontario and Que bec and its common shares are

listed for trading on the TSX Venture Exchange under the symbol FNC. Peter H. Smith,

President.

Forward-looking Statements

This news release contains certain “forward- looking statements” or “forward -looking

information” (collectively referred to herein as “forward -looking statements”) within

the meaning of applicable securities legislation. Such forward -looking statements

include, without limitation, forecasts, estimates, expectations and objectives for future

operations that are subject to a number of assumptions, risks and uncertainties, many

of which are beyond the control of the Corporation . Forward-looking statements are

statements that are not historical facts and are generally, but not always, identified by

the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimate s”,

“projects”, “potential” and similar expressions, or are events or conditions that “will”,

“would”, “may”, “could” or “should” occur or be achieved. This news release contains

forward-looking statements, pertaining to, among other things, Fancamp ’s belief that

the litigation is without merit.

Although Fancamp believes that the material factors, expectations and assumptions

informing such forward- looking statements are reasonable based on information

available to it on the date such statement s were made, no assurances can be given as

to future results of such statements are not guarantees of future performance.

Fancamp’s actual results may differ materially from those expressed or implied in

forward-looking statements and readers should not place undue importance or reliance

on the forward-looking statements.

Such forward-looking statements involve known and unknown risks, uncertainties and

other factors that may cause actual results or events to differ materially from those

anticipated in such forward-looking statements.

Readers are cautioned that the foregoing list of factors is not exhaustive. Statements

including forward-looking statements are made as of the date they are given and, except

as required by applicable securities laws, Fancamp disclaims any intention or obligation

to publicly update or revise any forward-looking statements, whether as a result of new

information, future events or otherwise. The forward- looking statements contained in

this news release are expressly qualified by this cautionary statement.

For further information, please contact

Peter H. Smith PhD., P.Eng.(Ont) – President 1-514-481-3172

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is

defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy

or accuracy of this news release.