Mr. Luc Lessard reports

FALCO PROVIDES POSITIVE RESULTS FROM UNDERGROUND WATER SAMPLING AND ANNOUNCES NEW INDEPENDENT DIRECTOR NOMINEES

Falco Resources Ltd. has released positive results from its preliminary infrastructure evaluation assessment and from its groundwater sampling campaign on its 100-per-cent-owned Horne complex property, located in Rouyn-Noranda, Que.

The company is also pleased to announce the nomination of two new independent mining industry veterans who will stand for election as nominees to Falco's board of directors at the upcoming annual and special meeting of shareholders, scheduled for Nov. 24, 2015.

Horne complex infrastructure evaluation

The company has conducted a comprehensive evaluation of the existing infrastructure on its Horne complex property.

A preliminary assessment of the existing infrastructure suggests that the company will be able to utilize the existing Quemont No. 4 shaft as its production shaft, and three of the Horne shafts (No. 4, No. 6 and No. 8) as ventilation raises. The Quemont No. 4 shaft will need to be rehabilitated to current production standards, however, it will not have to be widened to accommodate larger skips.

The historical workings located in the upper portion of the orebody offer several openings where waste material and tailings could be sent and disposed of. These openings will enable the company to minimize the impact on surface and manage tailings efficiently.

The evaluation estimates the capital cost savings to be upward of $100-million in direct and indirect costs. Additionally, the existing infrastructures will enable the company to further accelerate the development timeline of the Horne 5 deposit.

"The work program results at the Horne 5 project continue to confirm the tremendous potential," said Luc Lessard, president and chief executive officer. "The availability of the existing infrastructure represents a major breakthrough for the company as this will be pivotal in unlocking the potential of the project and positioning the company for the future."

Underground water sampling results

The company is pleased to report initial results on the quality of groundwater in the flooded Quemont No. 4 shaft. The water sampling operation was initiated by measuring the physico-chemical parameters (pH, conductivity, dissolved oxygen and redox) in the water columns while descending a probe to a depth of 1,000 metres in the flooded shaft. This was completed nine times to obtain reliable data. No obstacles were encountered during the probe ascension and descent.

Water quality in the shaft is homogeneous to a depth of 600 metres. It contains mostly sulphates (approximately 1 per cent by weight), calcium, magnesium, sodium and iron; the latter gives a yellowish to rusty brown colour to the water. Iron and zinc exceed their respective Quebec effluent water quality criteria. The conductivity increases with depth to reach around 11,000 mS/cm (milli-Siemens per centimetre) at the bottom of the shaft, which is consistent with the presence of soluble metals in the water. In the intervals sampled, the shaft water pH is slightly below the effluent limit (pH 5.6 versus pH 6.0 which is the lower limit of Directive 019).

                                               Conductivity    Temperature
ID station               Depth (m)       pH     (microS/cm)    (degrees C)

Quemont
shaft 110 m
Oct. 7, 2015                   110      5.6          10,322           11.3
Quemont
shaft 300 m
Oct. 7, 2015                   300      5.7          10,400           11.3
Quemont
shaft 600 m
Oct. 7, 2015                   600      5.6           9,937            9.6
                                                               

                            Dissolved
ID station                     oxygen        ORP            Colour      Turbidity
                               (mg/L)
Quemont
shaft 110 m 
Oct. 7, 2015                      9.5       44.3         yellowish              4
Quemont
shaft 300 m 
Oct. 7, 2015                      8.8       16.8         yellowish              4
Quemont
shaft 600 m                                             yellowish/              
Oct. 7, 2015                      9.7       39.9          brownish              4
    

A water treatment procedure is planned for a future underground dewatering. Neutralization will be needed to reach the lower pH limit, however, the company and its consultants believe neutralization will be minimal and that standard equipment and technology could be utilized. It is expected that water treatment for attenuation of iron and zinc will be straightforward.

Below the 600-metre interval the pH increases to reach 6.5 at the bottom of the shaft. The variations observed in the readings at shallow depth could be explained by the influence of surface water infiltration.

New independent director nominees

The two 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 Nov. 24, 2015, are Mario Caron and Helene Cartier.

Sean Roosen, chairman of the board of directors, noted, "Our two new nominees, Ms. Cartier and Mr. Caron, would bring valuable and complementary experience and would be a welcomed additions to work alongside the five incumbent directors to build value for all shareholders."

The new nominees are proven leaders with strong operational and C-suite experience.

Mr. Caron is an executive with over 35 years of experience in the mining industry including board and management expertise in operations, development, exploration and capital markets as well as government relations with companies having projects in the Americas, Africa and Southeast Asia. From November, 2011, to July, 2013, he served as chief executive officer and director of Aldridge Minerals Inc. Mr. Caron previously held similar positions, chief executive officer and director, with Axmin Inc., and Tiberon Minerals Ltd. Mr. Caron is also a former vice-president, mining and infrastructure, with PricewaterhouseCoopers Securities Inc. He is currently a director of Adventure Gold Inc., Algold Resources Ltd. and Alloycorp Mining Inc. Mr. Caron is a member of the Quebec Order of Engineers and the Association of Professional Engineers of Ontario.

Ms. Cartier was formerly vice-president, environment and sustainable development, at Osisko Mining Corp. from 2011 to 2013. From 2013 to 2015, Ms. Cartier was deputy manager of La rue des Femmes de Montreal. Ms. Cartier holds a degree in industrial engineering and a bachelor's degree in law. She was intimately involved in the community relations aspects during the permitting, construction and development phases of the Canadian Malartic mine.

Qualified person

The scientific and technical information regarding the mining and engineering evaluation set out in this news release has been approved by Francois Vezina, director, mining development, of Osisko Mining Group. Mr. Vezina is a professional engineer with the Ordre ingenieurs du Quebec and is a qualified person as defined by National Instrument 43-101.

The scientific and technical information regarding the water evaluation and testing set out in the news release has been approved by Valerie Bertrand of Golder Associates Ltd. Valerie Bertrand is an MASc, PGeo, and is a qualified person as defined by NI 43-101.

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