Mr. Vincent Metcalfe reports

FALCO RAISES $1,850,000 WITH STRATEGIC QUEBEC FUNDS

Falco Resources Ltd. has closed a non-brokered private placement of units to raise aggregate gross proceeds of $1.85-million. The offering is composed of units at an issue price of 40 cents per unit. SODEMEX, Fonds de solidarite FTQ, SIDEX, Fonds regionaux de solidarite FTQ SEC and Capital Croissance PME II SEC have subscribed to the offering. Osisko Gold Royalties Ltd., an insider of the company, also participated in the offering.

Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant shall be exercisable into one additional common share of the company for 24 months from the closing date of the offering at an exercise price of 52 cents per common share.

The company may accelerate the expiry of the warrants, should the volume-weighted average trading price of the common shares of the company on the TSX Venture Exchange exceed 65 cents over a period of 20 consecutive trading days, by giving notice in writing to the warrantholders that the warrants shall expire on that day which is 30 days following the notice date unless exercised by the holders prior to such date.

For a period of two years, SODEMEX, Fonds de solidarite FTQ, SIDEX, Fonds regionaux de solidarite FTQ SEC, Capital Croissance PME II SEC and Osisko have the right to participate in future equity financings in order to maintain their then current proportional equity ownership in the company.

The net proceeds of the offering will be used by the company to advance and complete the Horne 5 preliminary economic assessment to be delivered in 2016, and for general working capital.

Securities issued under the offering will be subject to a four-month hold period expiring on Nov. 23, 2015.

The insider's participation is exempt from the formal valuation and shareholder approval requirements provided under Regulation 61-101 respecting protection of minority holders in special transactions in accordance with sections 5.5(a) and 5.7(a) of said Regulation 61-101. The exemption is based on the fact that the market value of the insider's participation or the consideration paid by such insider does not exceed 25 per cent of the market value of the company. The company did not file a material change report at least 21 days prior to the completion of the private placement since the insider's participation was not determined at that moment.

The offering was completed on a private placement basis pursuant to prospectus exemptions of applicable securities laws and is subject to final acceptance by the TSX Venture Exchange.

As a result of the private placement, 99,730,657 common shares of Falco are issued and outstanding.

We seek Safe Harbor.