Dr. Mike Byron reports

FALCO TARGETS HORNE TYPE HIGH-GRADE COPPER-GOLD MINERALIZATION ON RIMO PROPERTY

Falco Pacific Resource Group Inc., soon to be Falco Resources Ltd., has commenced drilling on its Riviere Mouilleuse copper-zinc-gold property, located 25 kilometres northwest of the city of Rouyn-Noranda.

The Rimo property covers the only regionally extensive volcanic sequence in the Rouyn-Noranda camp featuring the same distinct geochemical characteristics as Falco's Horne complex, which hosts the Horne-Quemont high-grade copper-gold volcanogenic-massive-sulphide system and Falco's Horne 5 deposit. Recent work by Falco has identified numerous near-surface conductive features within this sequence of Horne-type altered volcanic rocks, which will be the focus of a multiphase exploration program beginning with the testing of three targets in the current drill campaign.

"We believe Rimo has the potential to quickly become one of the most significant VMS properties, outside the Horne complex, in the entire Rouyn-Noranda camp," said Dr. Mike Byron, vice-president, exploration. "With a clearly defined Horne-type signature and limited historic access, this large property has remained relatively underexplored. Our exploration team is to be commended for their innovative approach, which has led to the identification of a remarkable new opportunity within a historic mining camp."

Rimo highlights:

• Largest underexplored VMS setting in the Rouyn-Noranda mining camp, and lithogeochemical similarities to the Horne complex;
• Numerous shallow, recently identified and untested electromagnetic conductors;
• Plus-two-kilometre-long exhalative sequence, commonly associated with productive VMS horizons throughout the camp, that has never been drill tested;
• Presence of alteration typically associated with VMS deposits;
• Numerous zinc-rich showings -- consistent with lateral placement to VMS mineralization.

Rimo and the Duprat rhyolite

Rimo is underlain by a northeast-southwest-striking package of felsic volcanic rocks distinct from any other sequence within the Noranda camp as being most similar to the felsic volcanic rocks that host the Horne, Quemont and Horne 5 deposits.

A study of more than 75,000 surface lithogeochemical samples from throughout the Rouyn-Noranda camp establishes an excellent correlation between the Horne complex and rhyolite sequence in the Rimo area, which was found to host the greatest number of Horne-type samples in the study.

Historically, geophysical surveys in the camp have been optimized for steeply dipping targets, similar to Horne 5. However, recent mapping has confirmed shallow-dipping stratigraphy in association with a laterally extensive exhalative sequence on the Rimo property, which would have been poorly tested by historic work. Surface EM geophysical surveys by Falco in 2013, configured to identify shallow-dipping conductors, have led to the identification of numerous shallow-dipping and strongly conductive bodies in the Rimo area. None of these newly identified VMS targets have been drilled.

Three targets have been selected for initial drill testing while additional EM surveys are being completed on the property.

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 supervised the recent work programs on the property, and reviewed and verified the technical information contained herein. Mr. Poitras is an employee of Falco and is non-independent.

We seek Safe Harbor.