Dr. Mike Byron reports

FALCO BEGINS DRILLING LARGE CONDUCTIVE ANOMALY AT LAC HERVE

Falco Resources Ltd. has initiated drilling of a large borehole anomaly with conductivities typical of massive sulphide mineralization at its Lac Herve property. The untested conductor was generated from a time-domain electromagnetic (TDEM) survey recently completed by Falco as part of its 2014 field exploration program. The large off-hole subvertical conductor lies about 400 metres below surface and may have a depth extent of several hundred metres.

"We are encouraged by the preliminary data as anomalies such as these are typically associated with massive or semi-massive sulphide mineralization," said Dr. Mike Byron, vice-president, exploration. "Equally important is the fact that this is just the latest of a number of prospective targets that Falco has generated in the two years since it acquired this land package."

Lac Herve covers over 2,500 hectares within a highly prospective volcanogenic massive sulphide area 15 kilometres northeast of Rouyn-Noranda in the eastern portion of Falco's land package.

Interest in the area is centred on an historical drill hole intersection of anomalous copper and zinc mineralization in association with typical VMS-style alteration. Despite encouraging results, a borehole geophysical survey was never carried out. Recognizing this opportunity, Falco completed a borehole EM survey to determine if the previously encountered mineralization and alteration are an indication of more significant material proximal to the drill hole. Falco believes that survey results appear to support this possibility and drill permitting was fast-tracked in order to test this highly prospective target. Similar geophysical targeting has enjoyed success in other historic VMS districts. HudBay Minerals' discovery of the Lalor Lake deposit in 2007 is a prime example of the need to revisit and actively explore in these prolific historic mining camps. Surface EM data predicted a target at depth that was subsequently drilled, intersecting massive high-grade zinc mineralization, ultimately leading to the definition of a zinc-copper-gold-silver deposit.

Stephane Poitras, PGeo, is the qualified person for the project as defined by National Instrument 43-101 and he has reviewed this news release.