Mr. Trent Mell reports

FALCO REPORTS HISTORICAL HIGH GRADE INTERCEPTS AT HORNE PROJECT

Falco Resources Ltd. has identified a number of historical high-grade gold intercepts within the Horne complex. In total, 15 new gold targets and one base metal target have been identified in proximity to Falco's Horne 5 deposit.

Selected highlights

• 9.2 metres (m) of 31.54 grams per tonne gold (g/t Au) and three m of 14.74 g/t Au in hole HN_65-9068;
• 3.0 m of 42.69 g/t Au in hole HN_33-8869;
• 3.0 m of 27.43 g/t Au in hole HN_21-6040;
• 3.0 m of 28.11 g/t Au in hole HN_21-5892;
• 3.0 m of 16.46 g/t Au in hole HN_25-1770;
• 6.1 m of 9.77 g/t Au in hole HN_21-5994.

These drill intercepts were generated from continuing compilation and digitization of over 460,000 metres of historic drilling (6,400 drill holes) conducted by Noranda while the Horne mine was in operation. Falco continues to compile 80 years of proprietary archives on the Horne complex area and additional intercepts are believed to be likely.

"We continue to be very encouraged by the gold potential of the Horne project," said Trent Mell, president and chief executive officer. "For most of the Horne mine's 50-year operating history, gold averaged less than $45 (U.S.) per ounce, or less than $300 (U.S.) per ounce in inflation-adjusted terms, so it is not surprising that Noranda did not follow up on high-grade gold intercepts. Falco plans to conduct an extensive six-month drill program in the coming months to validate historical findings -- particularly in the vicinity of the Horne 5 deposit."

These 16 targets were derived from historical underground drilling across five mine levels ranging in depth from 750 metres to 2,400 metres below surface. The reported high-grade gold intercepts have never been the focus of follow-up work and it is believed that the data have never be publicly disseminated. These new targets were not included in Falco's initial NI 43-101 inferred mineral resource estimate for the Horne 5 deposit, thus making them attractive targets for possible mineral resource expansion.

Previous compilation and digitization work resulted in the identification of 11 gold zones (see Aug. 22, 2014, and July 10, 2014, news releases). Those zones and the 15 isolated gold targets presented today speak to the potential of the Horne complex.

Falco is examining all newly identified prospects to determine their possible relationship to one another and to the Horne and Quemont gold-rich base metal deposits, with the expectation of drilling some of the higher priority targets. Falco intends to publish an updated 43-101 resource estimate in 2015, following an extensive drilling program. Further details will be forthcoming.

                  HIGHLIGHTED HISTORICAL ISOLATED TARGETS

                                               Core   Grade Grade Grade Grade
Mine level       Hole        From      To    length*   Au    Ag    Cu    Zn
                           (metres) (metres) (metres) (g/t) (g/t)  (%)   (%)

Level 21      HN_21-5902    263.65   294.15    30.50    0.89    NA    NA    NA
              Including     266.70   274.32     7.62    1.37    NA    NA    NA
              HN_21-5902    475.49   487.68    12.19    1.88    NA    NA    NA
              Including     475.49   478.54     3.05    6.19    NA    NA    NA
              HN_21-5994    414.53   420.62     6.09    9.77    NA    NA    NA
              Including     419.10   420.62     1.52   32.91    NA    NA    NA
              HN_21-2885    533.40   553.21    19.81    1.13    NA    NA    NA
              Including     533.40   534.92     1.52    4.80    NA    NA    NA
              HN_21-6040    609.60   612.65     3.05   27.43    NA    NA    NA
              HN_21-5892      6.07     9.12     3.05   28.11    NA    NA    NA
              HN_21-5892    647.70   650.75     3.05    5.49    NA    NA    NA

Level 25      HN_25-1770    128.05   131.10     1.52   16.46    NA    NA    NA

Level 33      HN_33-8869    344.42   347.47     3.05   42.69    NA    NA    NA
              HN_33-4772    566.44   567.26     0.82    6.17    NA    NA    NA

Level 57      HN_57-9087      0.00   686.41   686.41      NA    NA    TR    TR
              Including     670.56   686.41    15.85    0.08  0.16  0.08  0.17

Level 65      HN_65-9068     67.05    70.10     3.05   14.74    NA    NA    NA
              HN_65-9068    496.82   505.97     9.15   31.54    NA    NA    NA
              HN_65-9068    568.45   574.55     6.10    1.71    NA  0.14    NA
              HN_65-9130    131.06   137.16     6.10    2.40    NA    NA    NA

* All intercepts reported are down hole lengths, not true thicknesses, from 
  underground holes. Insufficient drilling has been completed to date to define 
  the orientation of the mineralized zones in space. The data are historical in 
  nature and Falco has not independently verified the results; consequently, 
  these results should not be relied upon.

All intersections remain open and are considered prime exploration targets. Intersections of interest are described below from shallowest drilling on Level 21 to deepest on Level 65.

Level 21

Five holes collared on Level 21 intersected significant gold both north of the Horne Creek fault and south of the Andesite fault. Of these, HN_21-5892 (1,400 metres west of Horne 5 and 760 metres deep) and HN_21-6040 (1,700 metres west of Horne 5 and 1,030 metres deep) were collared south of the Andesite fault. HN_21-6040 intersected 27.43 g/t gold over 3.05 metres in a relatively unaltered metadiabase, while HN_21-5892 generated two intersections of interest; 28.11 g/t gold over 3.05 metres within a syenite porphyry with associated quartz veins and minor pyrite, and a lower interval of 5.49 g/t gold over 3.05 metres in metadiabase.

HN_21-5902 was drilled north across the Andesite and Horne Creek faults 1,400 metres west of Horne 5 and 760 metres below surface. Two gold targets were identified of which the larger 30.50-metre interval of 0.89 g/t gold, including 1.37 g/t gold over 7.62 metres, occurs within rhyolite breccia, while a second intercept within the Powell granite assayed 1.88 g/t gold over 12.19 metres, including 6.19 g/t gold over 3.05 metres.

HN_21-5994, a horizontal hole drilled to the north across the Andesite and Horne Creek faults, 1,280 metres west of Horne 5 and 760 metres deep, intersected 9.77 g/t gold over 6.09 metres, including 32.91 g/t gold over 1.52 metres, within the Powell granite. Mineralization is associated with minor quartz veins, pyrite and chalcopyrite.

A flat hole drilled north across the Horne Creek fault (HN_21-2885) cut 1.13 g/t gold over 19.81 metres, including 4.80 g/t gold over 1.52 metres, within the Powell granite, 1,030 metres west of Horne 5 at a depth of 750 metres.

Level 25

One isolated intersection of 16.46 g/t gold over 1.52 metres is reported for HN_25-1770, a flat hole drilled south of the Andesite fault 400 metres east of Horne 5 and 950 metres below surface. Mineralization is related to an isolated shear zone within relatively unaltered andesite.

Level 33

Two flat holes (HN_33-8869 and HN_33-4772), separated by over 2.0 kilometres, were drilled south of the Andesite fault from either side of Horne 5 testing areas southeast and southwest of the deposit. HN_33-8869, collared 1,200 metres south-southwest of Horne 5 at a depth of 1,100 metres, intersected mineralization in association with a weakly altered andesite in contact with metadiabase, returning 3.05 metres of 42.69 g/t gold. HN_33-4772, located 900 metres southeast of the deposit at a depth of 1,300 metres, intersected andesite/metadiabase contact-related mineralization over 0.82 metre that assayed 6.17 g/t gold.

Level 57

HN_57-9087 was drilled horizontally across the Andesite fault cutting rhyolites 850 metres southwest of Horne 5 and 2,000 metres from surface. Anomalous copper over a 686-metre core length was reported along with an intersection of two discrete semi-massive to massive pyrite zones (6.1 metres and 15.85 metres) with elevated copper, zinc and local gold values.

Level 65

Historical holes drilled from level 65, the mine's deepest level, record high-grade gold intercepts over significant widths. Two horizontal holes (HN_65-9130 and HN_65-9068) were drilled near the western convergence of the Horne Creek fault and the Andesite fault centred at a vertical depth of 2,400 metres and 900 metres west of Horne 5. Hole HN_65-9068 was drilled southwest cutting the Andesite fault and three gold horizons. The first assayed 14.74 g/t gold over a 3.05-metre silicified rhyotite tuff interval within the Andesite fault. A second, lower down hole, intersection of 31.54 g/t gold over 9.15 metres occurs near the tuff/metadiabase contact in association with pyrite and trace chalcopyrite, while the last interval returned 1.71 g/t gold and 0.14 per cent copper over 6.10 metres. North of HN_65-9068, hole HN_65-9130 intersected 6.10 metres of 2.40 g/t gold within the Horne Creek fault, defining a localized alteration zone overprinted by a larger anomalous copper and zinc intersection in excess of 275 metres.

Next steps

Historic drilling within the Horne complex area focused on zones of copper-dominant base metal mineralization to feed the adjacent Horne smelter. Gold-only and zinc-rich base metal intercepts were assigned a lower priority for follow-up, leaving an extensive database with substantial potential for gold- and zinc-rich target generation that Falco is aggressively pursuing both in the Horne complex area and throughout the larger Rouyn-Noranda camp. Horne 5 is one of a number of known zones of gold and polymetallic mineralization that form the Horne mine complex, centred around the former producing Horne copper-gold deposit. Falco announced a maiden NI 43-101 inferred mineral resource for the Horne 5 deposit on March 4, 2014. The 16 newly identified targets relative to Horne 5 all occur within two kilometres of Horne 5 as well as the Horne and Quemont mines, two prolific former gold-rich base metal producers (14 million ounces Au historic production).

Falco plans to conduct an extensive six-month drill program in the coming months to validate historical findings -- particularly in the vicinity of the Horne 5 deposit. Results from this program will be incorporated into an updated 43-101 resource estimate in 2015.

Results from Falco's 2014 field program (see June 5, 2014, news release) will be forthcoming, including an update on the continuing drilling at the Lac Herve (see Sept. 2, 2014, news release) and RIMO properties (see July 21, 2014, news release).

Qualified person

Stephane Poitras, exploration manager (PGeo), is the qualified person for this release as defined by National Instrument 43-101 -- standards of disclosure for mineral projects, and has reviewed and verified the technical information contained herein. Mr. Poitras is an employee of Falco and is non-independent.

Quality assurance/quality control

Independent data verification of the entire historical Horne 5 drill database included a review of core from 16 different diamond drill holes, validation of over 90 per cent of the drill hole collar locations and of down holes surveys were made and 5 per cent of the assays were validated against original drill logs. Core samples from historical core were sent to ALS Chemex Laboratory for check assays. Assays show good correlation to historic assays for gold, silver, copper and zinc, and recent specific gravity determinations depict excellent reproducibility compared with calculated specific gravity values. The check assays program used regular QA/QC protocols which included the insertion of blank, standard and duplicate samples.

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