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Fancamp closes the first tranche of a non-Brokered private placement flow-through financing

Financings

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

December 31, 2019 TSX-V Trading Symbol: FNC

Fancamp closes the first tranche of a non-Brokered private placement

flow-through financing

VANCOUVER, December 31, 2019 Fancamp Exploration Limited (“Fancamp” or the “Company”)

(TSXV: FNC) is pleased to announce that the Company has completed the closing of a first

tranche in connection with its previously announced (Fancamp News Release dated December

27, 2019) non-brokered private placement financing of up to 5,791,000 flow-through shares of

the Company for gross proceeds of up to Cdn$450,000.

At closing of the first tranche of the private placement, the Company issued 3,125,000 flow-

through shares for gross proceeds of $250,000 (the “First Tranche”). Each flow-through share

issued in connect ion with the First Tranche is subject to a four -month hold period under

applicable securities laws in Canada, which hold period shall end on May 1st, 2020.

The Company intends to use the gross proceeds for the purpose of conducting qualifying

exploration expenditures on its properties in Québec.

In connection with the closing or the First Tranche , Fancamp paid finder’s fees totalling

Cdn$17,500 in cash and 218,750 compensation options to purchase common shares (“Finder’s

Warrants”). The Finder’s Warrants entitle the holder thereof to purchase one common share

of the Company and will be exercisable for a period of 24 months following the closing of the

First Tranche. Each Finder’s Warrant is subject to a four-month hold period under applicable

securities laws in Canada, which hold period shall end on May 1 st, 2020. Laurentian Bank

Securities Inc. and Leede Jones Gable Inc. each received a total of Cdn$8,750 in cash and

109,375 Finder’s Warrants, each exercisable at a Cdn$0.10.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor

shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or

sale would be unlawful. The securities have not been and will no t be registered under the

United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities

laws of any state of the United states, and may not be offered or sold in the United States or

to, or for the account or benefit of, U .S. persons (as defined in Regulation S under the U.S.

Securities Act) absent registration under the U.S. Securities Act and applicable state securities

laws or pursuant to an exemption from such registration requirements.

About Fancamp Exploration Limited (TSXV: FNC)

Fancamp is a public company using a value added strategy based 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 Company has an exceptional inventory

of resource properties in Québec, Ontario and New Brunswick; commodities of interest include

gold, rare earth elements, strategic metals, base metals, chromium, titanium, iron and silica.

In addition, the Company has begun to build on the industrial possibilities inherent in dealing

with some of these materials. The Company is a reporting issuer in British Colombia, Alberta,

Ontario and Québec and its common shares are listed for trading on the TSX Venture Exchange

under the symbol FNC.

For further information, please contact

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

Certain statements in this release are forward -looking statements which reflect the

expectations of management. Forward-looking statements consist of statements that are not

purely historical, including any statements regarding beliefs, plans, expectations or intentions

regarding the future. Such statements include the proposed use of proceeds of the First

Tranche of the private placement and are subject to risks and uncertainties that may cause

actual results, performance or developments to differ materially from those contained in the

statements. No assurance can be given that any of the events anticipated by the forward -

looking statements will occur or, if they do occur, what benefits the Company will obtain from

them. These forward-looking statements reflect management’s current views and are based

on certain expectations, estimates and assumptions which may prove to be incorrect.

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.