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No, they can't advance if they've signaled a fair catch. If the receiving team signals a fair catch, the ball will be dead as soon as they possess it. Absent a fair catch signal, the ball will still be live when they recover and they can advance it.
With an illegal touch, the receiving team simply has the right to have the ball placed where it was touched and will start their series there. They can also opt to accept the result of the play if that is more advantageous to them.
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Even if you’re on the right track, you’ll get run over if you just sit there. - Will Rogers
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