Ms. Deanna Kress reports

FALCO SECURES LAND FOR HORNE 5 OPERATIONS

Falco Resources Ltd. has signed an option agreement with the City of Rouyn-Noranda to acquire surface rights to land above the Horne 5 deposit and immediately adjacent to the Horne smelter.

The agreement provides Falco with a five-year option to purchase over five hectares of land in the Horne complex that could support a headframe, mill and other surface facilities required to develop the Horne 5 underground deposit. The property is located in an industrial area north of Rouyn-Noranda bounded by infrastructure and a rail line.

The total purchase price is $2.9-million, of which a $1-million non-refundable deposit will be payable upon transfer of the property, which is anticipated in the coming weeks. The remaining $1.9-million is payable by Aug. 1, 2019. Falco recently accelerated approximately $1-million in warrants to offset the deposit amount.

"This is a significant milestone in the advancement of our long-term strategy within the Horne complex," said Trent Mell, president and chief executive officer. "There are no plans to make a development decision in the near term, but this acquisition preserves that option by ensuring there are surface rights from which to operate a mine. We are very pleased by the support the community has shown Falco, and I look forward to an ongoing dialogue with the citizens of Rouyn-Noranda in the months ahead."

Evaluation of the potential of Horne 5 and several surrounding mineralized zones is continuing. Two priorities over the next nine months are to increase the size of the Horne 5 resource and upgrade the confidence level from inferred to an indicated mineral resource.

We seek Safe Harbor.