Mr. Trent Mell reports

FALCO INTERSECTS VMS STYLE MINERALIZATION AT LAC HERVE

Falco Resources Ltd. has intersected volcanogenic-massive-sulphide-style mineralization at its Lac Herve property. A single hole targeting a large anomaly intersected 3.8 metres of sulphide stringer zone material, bolstering the view that that the target is related to sulphide mineralization.

Drilling was initiated to test a recently detected borehole geophysical anomaly with conductivities typical of massive sulphide mineralization (see Sept. 2 news release). Recognition of a new VMS setting in the eastern portion of the Noranda camp opens up over 15 kilometres of highly prospective felsic volcanic stratigraphy for potential new VMS discoveries.

"Lac Herve is now a priority exploration target for Falco due to the size of the anomaly and its potential link to a zinc or copper-zinc mineralized body," said Trent Mell, president and chief executive officer. "Today's announcement has significant implications for our entire 728-square-kilometre land package, as it demonstrates that opportunities still exist for new VMS discoveries in this historic mining camp."

Lac Herve

Located 15 kilometres northeast of the city of Rouyn-Noranda, Lac Herve spans an area of over 2,500 hectares within the eastern portion of Falco's land package, and represents a new exploration corridor for VMS deposits.

Falco began drilling at Lac Herve on Sept. 2, targeting a geophysical anomaly generated from a time-domain electromagnetic (TDEM) survey previously carried out by Falco on a historical drill hole. Reports indicate that the hole had intersected anomalous copper and zinc mineralization in association with typical VMS-style alteration.

The survey generated an off-hole, subvertical conductor that was modelled to begin approximately 400 metres below surface with a potential depth extent of several hundred metres. A single hole (19925-14-05) was drilled to probe the centre of the modelled conductor and at a downhole depth of 920 metres, 3.8 metres of sulphide stringer zone was intersected consisting of pyrrhotite-pyrite-sphalerite-chalcopyrite mineralization in association with black chlorite alteration. Stringer zones are typical of VMS systems, serving as conduits for mineralized fluids, often lying beneath and/or lateral to VMS deposits. It is believed that the hole may have missed the main body of possible massive sulphide mineralization and intersected a more distal stringer zone.

Falco subsequently completed a borehole pulse-EM survey to better locate and delineate the conductive body. Follow-up drilling is anticipated once survey results have been modelled.

Rimo

Recognized as the largest underexplored VMS setting in the Noranda mining camp, Riviere Mouilleuse (Rimo) lies within the camp's largest regionally extensive volcanic sequence featuring the same distinct geochemical characteristics as Falco's Horne complex, host to the Horne-Quemont high-grade Cu-Au VMS deposits and Falco's Horne 5 deposit.

On July 21, 2014, Falco announced drilling had commenced on its Rimo copper-zinc-gold property, 25 kilometres northwest of the city of Rouyn-Noranda. In addition to its similarities to the Horne complex rocks, Rimo's northeast-southwest striking stratigraphy of felsic volcanic rocks also contains over two kilometres of an undrilled exhalative sequence, numerous zinc-rich showings, favourable alteration, and several shallow untested EM conductors.

Three of the near-surface conductive features within the sequence of Horne-type altered volcanic rocks were tested during the drill campaign. A total of 1,044 metres was drilled at three different stratigraphic horizons. Two of the three holes (17906-14-01 and 17906-14-02) failed to explain their respective anomalies while the third (17906-14-03) cut a unit of tuffite assaying 0.47 per cent zinc over 0.33 metre. Falco has commissioned a detailed compilation and evaluation of geophysical surveys in the area to address the two holes that failed to explain the nature of the underlying conductors. Integration of recent in-loop surface surveys with current and historical borehole pulse-EM surveys, and the regional airborne MegaTEM survey is currently under way. Drilling is expected to recommence in 2015 once the results of this work has been finalized.

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

Falco has implemented a quality control program to comply with best practices in the sampling and analysis of drill core. Drill core samples were transported in security-sealed bags for analyses at Activation Laboratories Ltd.'s Techni-lab facilities in Ste-Germaine-Boule, Que. Activation Laboratories is an ISO 17025-certified laboratory. As part of its QA/QC program, Falco inserts external copper, zinc and gold standards (low to high grade) and blanks every 25 samples in addition to the standards, blanks and pulp duplicates inserted by Activation Laboratories.

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