Mr. Dean Linden reports

FALCO TO RAISE UP TO $7 MILLION THROUGH MARKETED OFFERING

Falco Resources Ltd. has entered into an agreement with a syndicate of agents, led by Scotia Capital Inc., under which the agents will raise approximately $7-million in a combination of flow-through shares and common shares from Falco in a marketed offering. Final pricing and determination of the number of flow-through shares and common shares will be determined in the context of the market.

The agents shall also have the option (exercisable up to 48 hours prior to closing of the offering) to purchase from Falco up to an additional 15 per cent of the securities on the same terms as the offering.

Net proceeds from the offering will be used to advance Falco's Horne 5 project and for further exploration at Falco's Rouyn-Noranda properties, as well as for general working capital purposes. Proceeds raised from the sale of flow-through shares will be used by Falco to finance qualified Canadian exploration expenditures on its Canadian resource properties.

The offering will take place by way of a marketed private placement to qualified investors in such provinces of Canada as the agents may designate and otherwise in those jurisdictions where the offering can lawfully be made, including, but not limited to, the United States (with respect to the common shares only) under applicable private placement exemptions. The securities to be issued under the offering will have a hold period of four months and one day from their issue.

The offering is expected to close on or about Oct. 22, 2014, and is subject to receiving all necessary regulatory approvals.

We seek Safe Harbor.