Mr. Trent Mell reports

FALCO BEGINS CONFIRMATION AND METALLURGICAL DRILL PROGRAM AT HORNE PROJECT

Falco Resources Ltd. has commenced an inaugural drill program on the Horne 5 gold-silver-copper-zinc deposit in Rouyn-Noranda, Que. This program is intended to confirm historical drill data, upgrade the size and confidence level of the mineral resource estimate, and provide material for metallurgical testing.

Highlights/objectives:

• 16,000-metre surface drill program consisting of nine holes and nine wedge holes;
• $3.7-million budget;
• Metallurgical testing to establish recoveries for gold, silver, copper and zinc;
• Drilling to be completed by September, 2015, initial metallurgical results anticipated in June, 2015;
• Silver content expected to be added to new National Instrument 43-101 resource estimate;
• Upgrade current resource estimate from inferred to indicated classification;
• Geotechnical studies to assist future mine design;
• Preliminary engineering studies to include hydrogeology, hoisting, rock mechanics and environmental;
• Updated NI 43-101 resource estimate anticipated in the fourth quarter of 2015.

Horne project

The Horne project area encompasses the former-producing Horne and Quemont mines, as well as the Horne 5 deposit. The Horne mine was operated by Noranda from 1927 to 1976, and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. The Quemont mine is located 600 metres north of Horne, and produced approximately two million ounces of gold and 400 million pounds of copper between 1949 and 1971.

The Horne 5 deposit lies immediately below the historical Horne mine. Together, Horne and Horne 5 share many similarities with Agnico Eagle's La Ronde mine located 40 kilometres to the east. The two orebodies are dynamic multimetallic systems that remain open, plunging steeply to depth for several kilometres.

Falco released a maiden NI 43-101 mineral resource estimate for the Horne 5 deposit in March, 2014, delineating an inferred resource of 25.3 million tonnes grading 2.64 grams per tonne gold, 0.23 per cent copper and 0.7 per cent zinc. The company recently secured surface rights above the Quemont mine in order to safeguard property rights for future use.

Program parameters

The program will consist of nine holes and nine wedge holes targeting five mineralized zones within the Horne 5 deposit. The holes will vary between 1,000 and 2,250 metres in length, with the deepest drill hole targeting a high-grade gold zone at depth.

Sixteen of the 18 holes will be collared above the former-producing Quemont mine. All holes will be drilled to the south passing through the Quemont mine area, the boundary zone between the two mine sites and then into the Horne 5 deposit. Attention will be paid to intersections of anomalous and potentially new mineralized areas marginal to the two deposits. Assay results will be released periodically as available.

Deliverables and timeline

The company has retained G4 Drilling for the first phase of drilling. Drilling will run continuously until September, 2015.

Materials will be collected from the nine wedge holes spanning the full extent of the known deposit for metallurgical testing. Initial test results are anticipated by June. Metallurgical testing is required to optimize metal recoveries, and geotechnical information is required for future mine design. All studies will be completed in tandem with the drill program, laying the groundwork to support a future preliminary economic assessment on the Horne 5 project.

Upon completion of the drill program and receipt of all metallurgical studies, the company will commission a new NI 43-101 technical report, which it expects to release in the fourth quarter of 2015.

"We are bringing a contemporary perspective to a historic mine 38 years after Horne ceased operating," said Trent Mell, president and chief executive officer. "This is a very significant work program for Falco, as the deliverables over the next eight months are expected to confirm the tremendous potential of the Horne project."

Community relations

Falco is committed to building relationships within Rouyn-Noranda and other communities in which it operates, and sustainability is an integral part of its business plans and decision-making processes. Falco will not compromise on this core value and will partner with local communities for long-term mutual benefit.

Qualified person

Claude Bernier, project manager (PEng), is the qualified person for this release as defined by NI 43-101 -- standards of disclosure for mineral projects, and has reviewed and verified the technical information contained herein. Mr. Bernier is an employee of Falco and is non-independent.

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