Mr. Trent Mell reports

FALCO PACIFIC IDENTIFIES 11 GOLD ZONES ADJACENT TO HORNE 5 DEPOSIT

Continuing compilation and evaluation efforts in proximity to Falco Pacific Resource Group Inc.'s Horne 5 gold deposit have outlined 11 nearby, partially delineated gold zones and several other high-grade gold targets. Many of these newly defined targets were generated from over 6,000 historic holes drilled by Noranda.

Selected highlights

• 42 metres of 6.16 grams per tonne gold, 11.34 grams per tonne silver, 0.16 per cent copper and 0.75 per cent zinc in hole HN-33-9369, including 22.8 m of 10.22 grams per tonne gold, 13.44 grams per tonne silver, 0.24 per cent copper and 1.35 per cent zinc; 15.20 m of 5.04 grams per tonne gold, 14.47 grams per tonne silver, 0.08 per cent copper and 1.47 per cent zinc in hole HN-33-9339 (zone STU);
• 33.5 m of 2.52 grams per tonne gold in hole HN-09-305 (zone C);
• 12.2 m of 4.11 grams per tonne gold in hole HN-09-313 (zone M);
• 18.3 m of 3.49 grams per tonne gold in hole HN-07-4124;
• 33.5 m of 2.34 grams per tonne gold in hole HN-09-1760; 28.9 m of 2.82 grams per tonne gold in hole HN-09-1724; and 1.5 m of 100.11 grams per tonne gold in hole HN-09-1740 (Gatehouse);
• 9.1 m of 1.85 grams per tonne gold and 12.8 m of 2.3 per cent zinc in hole HN-49-8670 (zone 8670).

"Today's results continue to validate our view that the Rouyn-Noranda mining camp deserves a closer look for its gold potential," said Trent Mell, president and chief executive officer. "These zones point to underevaluated opportunities immediately adjacent to our Horne 5 gold deposit and within a prolific gold-rich VMS system. Given the gold price environment in which Noranda operated throughout much of the Horne mine life, historic drilling focused on base metals and left prominent gold targets like the ones reported today primed for additional testing and expansion." Select drill intercepts from the first five of the 11 zones outlined to date are included in the associated table. In each case, results define broad gold zones of notable grade and continuity. All zones lie outside the current Horne 5 resource model (see March 4, 2014, news release) but occur within a few hundred metres of Horne 5. Results from the remaining six zones and isolated intersections, which may indicate potential for the development of new zones, will be released as compilation in the work is completed.

                  HIGHLIGHTED HISTORIC DRILL RESULTS                                 

                                      Core    Grade   Grade
                  From        To    length       Au      Ag   Grade   Grade
Hole          (metres)  (metres)  (metres)    (g/t)   (g/t)  Cu (%)  Zn (%)

HN-33-9334      126.50    158.50     32.00     1.25    9.35    0.05    0.31
HN-33-9339       88.40    103.60     15.20     5.04   14.47    0.08    1.47
HN-33-9357        9.10     27.40     18.30     3.46   17.69    0.12    0.94
HN-33-9369      227.70    269.70     42.00     6.16   11.34    0.16    0.75
including       246.90    269.70     22.80    10.22   13.44    0.24    1.35
HN-49-8670      597.40    610.20     12.80     0.46      NA    0.02    2.32
HN-49-8670      606.60    615.70      9.10     1.85      NA    0.04    1.46
including       606.60    608.20      1.60     1.03   28.46    0.04   11.30
HN-07-4124       18.30     36.60     18.30     3.49      NA      Tr      NA
HN-09-1724       22.90     51.80     28.90     2.82      NA      NA      NA
HN-09-1760       16.80     50.30     33.50     2.34      NA    0.57      NA
HN-09-1740       50.30     51.80      1.50   100.11      NA      NA      NA
HN-07-4103       56.40     57.90      1.50    11.66      NA      NA      NA
HN-09-313        41.10     53.30     12.20     4.11      NA      NA      NA
including        44.20     47.25      3.05     6.17      NA      NA      NA
HN-09-305        42.70     76.20     33.50     2.52      NA      NA      NA
including        42.67     47.20      4.53     4.34      NA    1.57      NA
HN-09-364        64.01     67.01      3.05    10.29      NA      NA      NA

All intercepts reported are downhole lengths, not true thicknesses. Insufficient drilling has been completed to date to define the orientation of the mineralized zones in space The data are historic in nature and Falco has not independently verified the results; consequently, these results should not be relied upon. Historic drill data were sourced from Falco's extensive archives. To date, more than 10,000 historic drill holes have been digitized and incorporated into Falco's new Horne complex model. Evolution of the model is critical to the identification of new exploration targets, which could ultimately supplement resources identified at Horne 5.

Zone Stu

Zone Stu occurs within a rhyolite assemblage 1,100 m southwest of Horne 5 at a vertical depth of 1,300 m. Three distinct mineralized trends define this north-northeast-striking 300 m by 240 m by 245 m domain that remains open to expansion. Mineralization is hosted by semi-massive to disseminated sulphide (pyrite, with lessor chalcopyrite, sphalerite and galena) observed in association with chloritization, sericitization and silicification.

Stu zone definition is based on historic underground drilling. Highlights include holes HN-33-9339, which intersected 5.04 grams per tonne (g/t) gold, 14.47 g/t silver, 0.08 per cent copper and 1.47 per cent zinc over 15.2 m, and HN-33-9334, which returned 1.25 g/t gold, 9.35 g/t silver, 0.05 per cent copper and 0.31 per cent zinc over 32.0 m (including 1.62 g/t gold, 16.65 g/t silver, 0.08 per cent copper and 0.61 per cent zinc over 10.7 m). Hole HN-33-9369 was drilled 76 to 91 m southwest and 152 m below the mineralization in the previous holes, reporting 6.16 g/t gold, 11.34 g/t silver, 0.16 per cent copper and 0.75 per cent zinc over 42.0 m.

Zone C

Zone C is located 306 m northeast of Horne 5 at 308 m depth. Six underground holes cut this 165 m by 65 m by 15 m mineralized body within metadiabase and rhyolite. Drill hole HN-09-305 intersected 2.52 g/t gold over 33.5 m (including 4.34 g/t gold over 4.53 m) and HN-09-364 returned 10.29 g/t gold over 3.05 m. Zone C is open at depth.

Zone M

Zone M is a 100 m by 35 m by 15 m relatively shallow target (309 m) located 225 m north-northeast of Horne 5 approximately 55 m from shaft No 4. Mineralization is associated with diabase and rhyolite. Five holes cut the zone of which drill hole HN-09-313 intersected 4.11 g/t gold over 12.2 m, including 6.17 g/t gold over 3.05 m. Two other holes reported values greater than three g/t gold. The zone is open above and below.

Gatehouse

Gatehouse is the largest and shallowest of the zones (195 m by 115 m by 180 m) spanning from 230 m to 290 m depth. Hosted in rhyolite breccia 526 m southwest of Horne 5, this steeply dipping body is bounded by the andesite fault to the south. Mineralization consists of pyrite with trace chalcopyrite. Some localized chlorite-rich portions are present and are associated with areas anomalous in copper. Intersection highlights include hole HN-07-4124 which returned 3.49 g/t gold over 18.3 m and HN-09-1760 which assayed 2.34 g/t gold over 33.5 m. Drill holes HN-09-1740 and HN-07-4103 returned the highest reported intercepts assaying 100.11 g/t gold over 1.5 m and 11.66 g/t gold over 1.5 m. Gatehouse is open at depth with some restrictions to the east.

8670

Zone 8670 is located south of the andesite fault and 976 m southwest of Horne 5 at a vertical depth of 1,950 m. Mineralization consists of disseminated to massive sulphide (pyrite with lesser chalcopyrite, sphalerite and locally galena) in a host rhyolite. Drill hole HN-49-8670 returned an average grade of 2.32 per cent zinc over 12.8 m, including 11.3 per cent zinc, 28.46 g/t silver and 1.03 g/t gold over 1.6 m, and 1.85 g/t gold over 9.1 m.

Compilation and evaluations update

In a March 4, 2014, news release, Falco announced a maiden National Instrument 43-101 inferred mineral resource for the Horne 5 deposit. Horne 5 is one of a number of known zones of gold and polymetallic mineralization which forms the Horne mine complex, centred around the former producing Horne copper-gold deposit. Historic drilling within the Horne complex area focused on zones of copper-dominant base metal mineralization to feed the adjacent Horne smelting complex. Gold-only and zinc-rich base metal intercepts were assigned a lower priority for follow-up, leaving an extensive database with substantial potential for gold and zinc-rich target generation that Falco is aggressively pursuing both in the Horne complex area and throughout the Rouyn-Noranda camp. Accordingly, efforts are now being focused on areas adjacent to Horne 5 by expanding the model to incorporate a number of former producers, including the Remnor, Quemont, Joliette and Chadbourne deposits and high-priority exploration targets in the immediate Horne area such as Horne West.

Results from Falco's 2014 field program (see June 5, 2014, news release) will follow, including an update on the Riviere Mouilleuse property, a high-priority, largely untested, target which shows strong similarities to the Horne complex stratigraphy.

Qualified person

Stephane Poitras, senior exploration geologist, PGeo, is the qualified person for this release as defined by National Instrument 43-101 -- standards of disclosure for mineral projects -- and has reviewed and verified the technical information contained herein. Mr. Poitras is an employee of Falco and is non-independent.

We seek Safe Harbor.