Mr. Justin Reid of Sulliden reports

SULLIDEN MINING CAPITAL ANNOUNCES ACQUISITION OF COMMON SHARES OF FALCO RESOURCES

Sulliden Mining Capital Inc., by a share purchase agreement with QMX Gold Corp., has agreed to acquire 1,180,505 common shares of Falco Resources Ltd., representing approximately 1.6 per cent of the issued and outstanding common shares of Falco, at 45 cents per share for a total purchase price of $531,227.25. In addition, Sulliden intends to acquire, subject to the policies of the Toronto Stock Exchange, an additional 965,868 common shares of Falco that are subject to an escrow agreement at a price of 27 cents per common share.

Investment

Neither Sulliden nor any other persons acting jointly or in concert with Sulliden previously held any other securities of Falco. Sulliden intends to hold the Falco common shares for investment purposes. Other than the purchased shares and the escrowed shares, Sulliden has no current intention to increase its beneficial ownership of, or control or direction over, additional securities of Falco.

We seek Safe Harbor.