Mr. Vincent Metcalfe reports

FALCO INTERCEPTS 55.5M AVERAGING 4.0 G/T AU EQ AT HORNE 5 QUEMONT EXTENSION

Falco Resources Ltd. has released results from its drilling program on the company's 100-per-cent-owned Horne 5 project. The new results include two additional intersections of holes H5-15-07 and H5-15-08 located in the Quemont Extension mineralization.

Highlights from Quemont Extension

The Horne 5 drilling program has highlighted the extensions of the Quemont mineralization. The results of holes H5-15-07 and H5-15-08, which intersected the western extensions of the Quemont mineralization, returned strong combined grades.

Given the positive results and as part of the Horne 5 drilling program, the company will focus on targets within a corridor hosting the existing stopes and along the western plunge of the deposit.

As part of the program, a total of 3,000 metres will be drilled to follow up on these targets. One additional wedge will be drilled on both pilot holes H5-15-07 and H5-15-08. Additionally, two new pilot holes will be drilled. The company plans to conduct a downhole geophysical survey following the completion of the drilling in order to compile additional data.

                   RESULTS FROM QUEMONT EXTENSION INTERCEPTS 
 
Hole                      From      To  Length     Au     Ag   Cu    Zn   AuEq
                            (m)     (m)     (m)  (g/t)  (g/t)  (%)   (%)  (g/t) 

H5-15-07 (Quemont)(1)  1,102.3 1,127.9    13.2    4.5   27.1  0.3  11.9   11.4 
H5-15-08 (Quemont)       676.0   731.5    55.5    2.7   13.0  0.1   1.9    4.0  
Including                703.0   718.9    15.9    7.2   20.2  0.2   4.1    9.9  
Including                703.0   708.9     5.9   12.8   32.1  0.3   4.1   15.9 

(1) For hole H5-15-07, the Quemont intercept is non-continuous. Due to the 
crossing of a stope, only 51 per cent of the core was recuperated and 
analyzed. The remainder of the intercept is either backfill or void.                                                                            

Gold-equivalent calculations are based on the following assumptions: exchange rate of $1.05/$1 (U.S.), metal prices of gold $1,300 (U.S.)/ounce copper $3.30 (U.S.)/pound and zinc 95 U.S. cents/pound. Metallurgical testing is under way to facilitate optimization of these estimates utilizing available Horne 5 drill core.

Qualified person

Claude Bernier, exploration manager (PGeo, PEng), is the qualified person for this release as defined by National Instrument 43-101, and has reviewed and verified the technical information contained herein. Mr. Bernier is an employee of Falco and is non-independent.

Quality assurance/quality control

Falco has implemented a strict quality control program to comply with best practices in the sampling and analysis of drill core. As part of its QA/QC program, Falco inserts certified external mineralized standards. In the mineralized zones, each shipment comprises 27 samples. Every shipment is composed of 23 samples, a standard, a blank, a pulp duplicate and a reject duplicate placed randomly every 15th sample to test the laboratory analysis methods and precision for each shipment of samples. Blanks and standards are inserted within the normal sample number sequence. Assay results and certificates of analysis are interpreted and reported on a regular basis. If anomalies are detected, the laboratory is advised and the entire batch of samples is reassayed. In non-mineralized zones, every shipment is composed of 27 samples, which includes a standard and a blank. In non-mineralized zones, if anomalies are detected, the laboratory is advised, but the batch of samples is not necessarily reassayed.

We seek Safe Harbor.