Mr. Kelly Klatik reports

FALCO PACIFIC UPDATES MODELING PROGRESS ON THE HORNE 5 GOLD/SILVER/COPPER/ZINC DEPOSIT

Falco Pacific Resource Group Inc. is providing an update on its advanced computer modelling of the Horne 5 gold/silver/copper/zinc deposit. The Horne 5 deposit hosts a non-National Instrument 43-101-compliant historic resource of 167.83 million tonnes, grading 1.25 grams per tonne gold, 17.14 g/t silver, 0.10 per cent copper and 0.57 per cent zinc (news release dated Feb. 13, 2013), and is located 100 metres north of the former-producing Horne mine (historic production of 54 million tonnes at 6.10 g/t gold and 2.22 per cent copper), collectively representing one of the richest mineral deposit settings in North America, based in Rouyn-Noranda, Que. A qualified person has not done sufficient work to classify any of the historical estimates as current mineral resources, and the issuer is not treating the historical estimate as current mineral resources.

In March, 2013, the company retained InnovExplo to construct a computer-generated three-dimensional model of the Horne 5 deposit. Over 9,000 drill holes, 370 level plans, 620 cross-sections and 99 longitudinal sections are being incorporated into the model with construction currently nearing completion. Acquisition of the original underground survey records enabled the accurate digitization of all mine workings (shafts, level plans, stopes, sections and drill holes) in a common reference system. This represents the first time that the mine infrastructure and deposit have ever been digitally modelled.

The finished product, among other things, will primarily provide a platform from which to generate resource estimates, to help better define internal high-grade gold subzones, and help develop new exploration strategies and targets moving forward. A structurally controlled high-grade gold subzone is present throughout the core of the No. 5 zone (see news release dated Feb. 13, 2013). Modelling should also better define the dimensions and structural controls of this and similar higher-grade domains.

"The scale and completeness of infrastructure being modelled rivals anything that I have seen before, and given that this is the first time that the Horne 5 deposit has been computer rendered, and in such remarkable detail, we will be able to analyze the exploration and economic opportunities of the deposit from an entirely new perspective," states Dr. Michael Byron, vice-president, exploration, for Falco Pacific. "Also, seeing the preliminary modelling of the thicknesses of some of the newly modelled upper-level gold zones is very encouraging."

"Horne 5 was last evaluated in a period of much lower gold prices prior to the early 1980s," noted Kelly Klatik, president and chief executive officer for Falco Pacific. "We have seen gold prices and geological modelling techniques advance significantly from that period of time."

The 3-D model to date is ahead of schedule and under budget, and the company is targeting completion the early part of calendar third quarter 2013.

Dr. Michael Byron, PGeo, vice-president, exploration, is the qualified person for this release as defined by NI 43-101, and has reviewed and verified the technical information contained herein.

We seek Safe Harbor.