FEX Fjordland Exploration Inc

Fjordland Exploration Inc. (TSX VENTURE: FEX) (the "Company" or "Fjordland") reports that the second tranche of the non-brokered private placement announced on July 5, 2011 has closed for gross proceeds of $620,300. The Company has issued 3,446,109 non flow-through units (the "Units") with each Unit consisting of one common share and one share purchase warrant. Each share purchase warrant entitles the holder to purchase one common share at a price of $0.23 until September 12, 2012. The Company paid finders fees totaling $5,130 in connection with this final portion of the financing.

The securities issued under this second tranche are subject to a four month hold period and may not be traded until January 13, 2012.

In connection with the first tranche of the financing, the Company determined through taxation advisors that it would be unable to issue T101s or renounce expenditures in respect of the flow-through portion of the placement, as the shares were likely to be considered to be 'prescribed shares' under federal tax laws due to the fact that at the time of their issuance there was an existing agreement relating to the contemplated spin-out transaction announced on June 24, 2011. Participants were offered a refund of $0.05 per unit in settlement of the inability to renounce, giving the effect of moving the subscriber to a non flow-through unit. As a result, we report that under the first tranche the Company issued 1,896,456 Units for gross proceeds of $341,362. The warrant terms remain the same as previously announced.

Early Warning Report

Richard C. Atkinson, a director of the Company, acquired an aggregate 1,550,000 Units at a price of $0.18 per Unit for gross proceeds of $279,000 in the closing of the second tranche, being 2.01% of the issued capital. The Units were acquired as follows: Richard C. Atkinson as to 800,000 Units of which 150,000 Units are held by Carol Atkinson; and Les Entreprises de Richard Atkinson Ltee. ("LERA") as to 750,000 Units. LERA is a private investment corporation, the shares of which are held by Mr. Atkinson and members of his immediate family.

Prior to this transaction Mr. Atkinson owned or controlled 9,215,423 common shares of Fjordland, directly and indirectly.

Mr. Atkinson owns or controls an aggregate of 10,765,423 common shares of Fjordland, representing 13.98% of the issued and outstanding common shares of Fjordland, and warrants to acquire 1,550,000 common shares of Fjordland and options to acquire a further 925,000 common shares of Fjordland, representing approximately 16.65% of the issued and outstanding shares of Fjordland, on a partially diluted basis assuming the exercise of the convertible securities held or controlled by Mr. Atkinson only.

Mr. Atkinson acquired these securities for investment purposes, thus depending on the economic or market conditions or matters relating to Fjordland, Mr. Atkinson may choose to either acquire additional securities or dispose of securities of Fjordland. The Company has not provided legal counsel to Mr. Atkinson in regards to these transactions.

About Fjordland Exploration Inc.

Fjordland Exploration is a mineral exploration company focused on the discovery of gold, copper and molybdenum deposits in British Columbia. Of the 28 properties Fjordland owns, the Woodjam North and Woodjam South properties (totaling 56,150 ha) are part of the Woodjam Joint Venture between Fjordland (60%) and Cariboo Rose Resources Ltd (40%); both properties are under separate option agreements to Gold Fields Horsefly Exploration Corporation. Fjordland also has a 100% interest in 7 properties known as "Tak" totaling 52,342 ha in the Woodjam area. Fjordland has a 100% interest in the 2,192 ha "Milligan" project, adjoining Thompson Creek Metals Company Inc.'s Mt. Milligan copper-gold deposits on the west. The Tak-Milligan properties have been optioned to Capstone Mining Corp. Fjordland and Serengeti Resources Inc. are 38%/62% partners exploring 12 properties (QUEST Project) totaling 56,670 ha in the Quesnel terrane north of Woodjam for precious and base metals. Fjordland has a 100% interest in 8 properties totaling 60,047 ha in the Iron Range area and has an option agreement on 7 properties totaling 21,222 ha with Kootenay Gold Inc. in southeastern BC. Fjordland's shares trade on the TSX Venture Exchange under the symbol "FEX". For more information visit Fjordland's website at www.fjordlandex.com.

Tom Schroeter, President & CEO

Neither TSX Venture Exchange nor its Regulation Services providers (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Fjordland Exploration Inc. John Gomez Investor Relations 604-893-8365 604-669-8336 (FAX) www.fjordlandex.com