Mr. Kelly Klatik reports

FALCO PACIFIC ANNOUNCES AND PLACES $1.06 MILLION PRIVATE PLACEMENT

Falco Pacific Resource Group Inc. has arranged and placed a non-brokered private placement of a total of 2,670,500 flow-through common shares at a price of 40 cents per flow-through common share with eight placees for total gross proceeds of $1,068,200. Closing of the offering is subject to receipt of regulatory approvals, including the final approval of the TSX Venture Exchange. A cash finder's fee in the amount of 5.5 per cent on gross proceeds is payable on a certain portion of the private placement.

Net proceeds of the private placement will be used by the company to finance exploration on the Rouyn-Noranda project in Quebec. The securities issued will be subject to a four-month hold period ending Sept. 16, 2013, pursuant to applicable securities laws in Canada.

We seek Safe Harbor.