Mr. Trent Mell reports

FALCO ANNOUNCES THREE NEW INDEPENDENT BOARD NOMINEES AND WITHDRAWS RIGHTS PLAN

Falco Resources Ltd. has nominated three new independent mining industry veterans to stand for election as part of a seven-person board of directors at Falco's annual and special meeting of shareholders, scheduled for Dec. 23, 2014.

"Each of these individuals has an outstanding track record and will be called upon to help formulate Falco's strategy," said Sean Roosen, chairman of Falco's board of directors. "We have high expectations for the Horne complex and our Rouyn-Noranda land package, and I believe we are assembling a team capable of unlocking meaningful shareholder value."

New independent director nominees

All nominees are proven leaders with strong operational and c-suite experience. The following is a brief biography of each of the new nominees:

• Claude Ferron (PEng) has over 30 years of experience in mining and mineral processing. From 2006 to 2012, he was chief operating officer for Xstrata Copper Canada (now part of Glencore Canada Corp.), with responsibility for mining, smelting, refining and recycling operations. Mr. Ferron began his career as a metallurgist at the Horne operations and later assumed a number of technical and managerial roles with increasing responsibility at Noranda, Falconbridge and Xstrata.
• Luc Lessard is a mining engineer with 25 years of experience designing, building and operating mines. He is currently COO of Canadian Malartic Partnership and was previously COO of Osisko Mining. He was responsible for the design and construction of the Canadian Malartic gold mine. Prior to this, he was vice-president, engineering and construction, for Iamgold and general manager, projects, for Cambior Inc.
• Rene Marion is a business executive and mining engineer with approximately 30 years of industry experience. He was president and chief executive officer of AuRico Gold from 2007 through 2012, where he oversaw the friendly takeover of Northgate Minerals and the subsequent development of the Young-Davidson mine in Kirkland Lake. From 1995 to 2007, Mr. Marion held a variety of roles with increasing responsibility at Barrick Gold.

"Each nominee has considerable experience not only in the industry but also in the Abitibi greenstone belt," noted Trent Mell, president and chief executive officer. "I welcome the guidance and support of a reconstituted board in what will be a very active period for Falco."

The new independent nominees were recruited following a board renewal process overseen by Falco's nominations committee and executed by Russell Reynolds Associates, a global executive leadership and search firm.

Incumbent director nominees and retiring directors

The incumbent directors nominated for election are as follows:

• Sean Roosen is chairman and CEO of Osisko Gold Royalties. Prior to this, he was president and CEO of Osisko Mining, which he co-founded and transformed from a junior exploration company to a leading intermediate gold producer. Over that period, he was responsible for developing the permitting and financing strategy to bring the $1-billion Canadian Malartic mine into production. Mr. Roosen has held numerous roles in the mining industry over his career, both domestically and internationally.
• Trent Mell was an executive vice-president at AuRico Gold prior to joining Falco in July, 2014. He has extensive corporate finance and transactional experience, having raised over $2-billion in the mining industry and been involved in over 100 transactions. Mr. Mell began his professional career as a securities lawyer with Stikeman Elliott LLP before entering the mining industry. He has held a variety of roles with increasing responsibility at Barrick Gold, Sherritt International and North American Palladium.
• Paul-Henri Girard has over 30 years of industry experience, most recently as vice-president, Canadian operations, with Agnico Eagle Mines. During his 25-year career with Agnico, he was instrumental in the development of its flagship LaRonde mine and in the advancement of the Goldex and Lapa mines in Quebec. Mr. Girard was part of the senior management team that oversaw the growth of Agnico Eagle from 400 employees to over 4,000 employees at the time of his retirement in 2012.
• Jim Davidson is a chartered accountant and one of Falco's co-founders. Mr. Davidson has over 30 years of experience starting with Deloitte & Touche. He is former chief financial officer of Great Western Minerals Group Ltd. and Athabasca Potash Ltd., the latter which was acquired by BHP Billiton. He has also held a number of senior management and project accounting positions with Weyerhaeuser Co. in the United States and Canada.

Dr. Mike Byron and Gord Neal, two co-founders of the company, will not be standing for re-election at the annual meeting. Dr. Byron will, however, continue in a leadership role as vice-president, exploration. The board wishes to thank them both for their leadership and contribution to Falco growth.

Withdraws rights plan

Falco also announced today that its board of directors has decided to withdraw the shareholder rights plan adopted July 14, 2014. The rights plan had been approved by the TSX Venture Exchange and was subject to ratification by shareholders. The rights plan previously approved by shareholders on Dec. 5, 2013, will continue to be in effect.

We seek Safe Harbor.