FAIRMONT RESOURCES INC. (FMR, TSX.V):

Harnessing The Power Of High-Grade Industrial Minerals

There are few companies on the Venture with any hope of ever generating cash flow and building a profitable, sustainable business, but one with immediate and exciting prospects in that regard is Fairmont Resources (FMR, TSX-V) which is effectively harnessing the power of high-grade industrial minerals in strategic areas of Quebec, surrounded by all the necessary infrastructure.

What’s even better is that this is a company with a tight capital structure (18.5 million shares outstanding) led by a President and CEO, Michael Dehn, who has skillfully taken a project from the acquisition stage to full permitting (Certificate of Authorization) in Quebec in less than 12 months - no small feat by any standards, even for a quarry operation.

Other properties in the company’s pipeline, including some intriguing

high-purity silica plays, have strong upside potential. FMR’s current market cap is only $2.5 million.

We started following Fairmont in January, and the fact that the share price has backed off modestly since then has made us even more excited about this opportunity as the company continues to make progress in advancing its corporate strategy. The general market will catch on to what’s evolving here soon enough.

When you’re evaluating whether to invest in a Venture-listed company it’s always critical to begin by taking a close look at management. Dehn is focused and genuine. He has a very strong command of the business he’s in, developed through more than two decades in the mining industry (senior geologist to CEO) including a dozen

years at Goldcorp during which he consolidated the eastern and western ends of the Red Lake Camp.

In other roles in the mining and exploration sector, Dehn has been instrumental in positioning companies for strategic and operational success - two specific and more recent examples being Nayarit Gold, a forerunner of AuRico Gold, and Argex. With the latter, he took it from an exploration company to a technology company with a five-fold increase in share value and more than $5 million raised in financings in less than 18 months.

Dehn has consistently followed a strategic game plan with Fairmont, creating a business model that makes a lot of sense in the current and future junior resource environment. Industrial minerals may not be as

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Positioned to begin generating cash flow

Very favorable sector (growing demand) and key logistical advantages

Clean share structure

May. 11, 2015 Close: 14 cents

glitzy as diamonds or Gold, but projects in this sector are much easier to permit, capex requirements are limited, and the production process is comparatively simple which helps explain why Fairmont is proceeding without a NI-43-101 resource estimate or feasibility study.

Dehn sees no shortage of demand for the products he believes Fairmont’s properties can churn out, and he learned during the difficult “Bre-X years” while at Goldcorp, serving under the leadership of Rob McEwen, just how important industrial minerals can be.

“Like now, those were tough days for the Gold sector,” he recalls, “compounded by a strike at one of our mines. But we had two industrial operations that generated really good, steady cash flow. Those operations kept the office going and the exploration going. They were critical.

“Is there a big opportunity now in this sector for Fairmont with the type of properties we have and their logistical advantages in Quebec? You bet there is.

“We want to be self-sustaining and paying a dividend,” Dehn stated

boldly. That’s a lofty goal for any Venture-listed junior resource company, but it’s one that’s within the realm of possibility for Fairmont as it continues to harness the power of high-grade industrial minerals with a suite of attractive properties in one of the world’s top resource jurisdictions. As always, perform your own due diligence.

FMR, Technically Speaking This monthly chart shows how Fairmont broke out above a long-term downtrend line early last year, and appears to have completed a healthy retrace to Fib. support at 10 cents with RSI(14) recently turning higher. Ideal entry point from a technical perspective.

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