FEC Resources Increases Holding in Iron Ore License, and Production Commences at 20,000 Metric Tons Per Month

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FEC Resources Increases Holding in Iron Ore License, and Production Commences at 20,000 Metric Tons Per Month

    CALGARY, Alberta, Nov. 8 /PRNewswire-FirstCall/ -- FEC RESOURCES INC.
(OTC Bulletin Board: FECOF; Frankfurt/Munich: FE8) ("FECR" or "the company")
is pleased to report that the company has agreed terms to increase its
interest in an Iron Ore Mining license situated to the North of Manila in the
province of Bulacan, Philippines.
    The agreement supersedes the previously announced deal with Transpacific
Mining Limited ("TML") and accordingly the company will increase its stake in
the license by 15% by acquiring a direct 35% equity interest in Metalore
Mining Corporation ("MMC"), the Philippine Operating Company which owns and
operates the 64 Hectare license situated in close proximity to Manila.
    As part of the transaction, the company's previous 20% indirect holding,
held through TML, will be cancelled, as will the original US$500,000
non-interest bearing and unsecured loan from FECR to TML. TML will remain the
majority shareholder of MMC.
    An independent Competent Persons Report indicates the estimated probable
reserves of the license are between 25 - 50 million metric tons of high grade
iron ore, with Fe content in the range 60 - 75%. Production commenced in
October at an initial rate of 20,000 Metric Tons per month.
    "We are delighted to have increased our holding particularly as cash flow
is imminent. The initial production rates based on work to date, will deliver
substantial cash flow to the company when the first sales contracts are
negotiated in the near term. The company can expect an initial equivalent
share of 7,000MT production per month which will improve our balance sheet and
cash position, and this production figure is forecast to improve substantially
through 2006," commented Larry W. Youell, President & CEO.
    Mr. Youell continued, "With our Oil & Gas assets now fully funded and
being expertly managed through London, and our first mining asset now in
production, we are confident that 2006 will deliver substantial value to our
shareholders."

     On behalf of the Board of,
     FEC Resources, Inc.
     "Larry W. Youell"
     President & CEO

    This release contains "forward-looking statements" as per Section 21E of
the US Securities and Exchange Act of 1934, as amended. Although the Company
believes that the expectations reflected in such forward-looking statements
are reasonable, it can give no assurance that such expectations will prove to
have been correct. Management is currently reviewing many options and there is
no assurance that they will not make decisions other than those now
contemplated. The Company is subject to political risks and operational risks
identified in documents filed with the Securities and Exchange Commission,
including changing and depressed oil prices, unsuccessful drilling results,
change of government and political unrest in its main area of operations

    For more information please contact Larry Youell at (403) 290-1676 e-mail
info@FECResources.com or visit the FEC Resources website at
http://www.FECResources.com

SOURCE FEC Resources Inc.

http://www.fecresources.com
CONTACT:
Larry Youell of FEC Resources Inc.,
+1-403-290-1676, or info@FECResources.com