Mr. Luc Lessard reports

FALCO MOBILIZES TWO DRILLS TO HORNE 5

Falco Resources Ltd. is starting a new surface drilling program at the company's 100-per-cent-owned Horne 5 project. Two diamond drill rigs will be active on the property, targeting the Horne 5 western extension with 10,000 metres of drilling aimed at expanding the current resource in the Horne 5 western extension and 10,000 metres planned to explore the Quemont extension.

Horne 5 western extension program

The Horne 5 western extension drilling program will consist of drilling two wedges from the existing H5-15-09 pilot hole and drilling three additional pilot holes and five additional wedges. The 10-hole program will target an area located between 600 metres and 1,200 metres below surface and located to the west of the existing Horne 5 resource. The westernmost intercept of the 2015 confirmation drilling program returned 45.1 metres averaging 3.4 grams per tonne gold equivalent (two grams per tonne gold) and 43.7 metres averaging 2.6 grams per tonne gold equivalent (1.4 grams per tonne gold) (see Falco press release dated Nov. 23, 2015, on SEDAR).

The new drill program is primarily designed to target potential gold mineralization to increase the current size of the Horne 5 gold deposit. The targeted extension is essentially located below level 17 and above level 33 (1,200 metres), where 44 per cent of the gold-equivalent indicated resources of the Horne 5 deposit is currently hosted (see Falco press release dated Jan. 25, 2016, on SEDAR).

"We are excited to announce the commencement of the western extension drilling. Drilling will focus on expanding resources in zones which have never been tested, but that have been identified as high priority by our geological team," commented Luc Lessard, Falco's president and chief executive officer.

Quemont extension program

The company will also commence a 10,000-metre drilling program on the Quemont extension target. The program will target the western plunge of the historical Quemont deposit, where over 3.2 million ounces of gold were produced from 1949 to 1971 (15.4 million tonnes at 6.5 grams per tonne gold, 2.4 per cent zinc, 1.3 per cent copper and 30.8 grams per tonne silver).

The mineralization at Quemont is hosted within massive, aphanitic lava flows of dacitic to rhyolitic composition. Historical work shows that the major structural control appears to be fractured within a westerly plunging anticline. The plunge of this anticline is practically flat to reverse in the upper portion of the mine to produce a dome-like capping of porphyritic rhyolite over the ore zones. The ore at Quemont is of two types: massive sulphides and disseminated sulphides in highly chloritized zones. The recent intercepts of the Quemont mineralization were essentially composed of massive pyrite and sphalerite with few chalcopyrite (see Falco press release dated Nov. 19, 2015).

Preliminary economic assessment update

Falco initiated a preliminary economic assessment at Horne 5 in November, 2015, after completing its initial infrastructure evaluation. Following the receipt of positive flotation and leaching results, the company awarded the contract to BBA Inc., and it includes oversight from Luc Lessard, Robert Wares, Francois Vezina and Christian Laroche, Osisko Mining Group's technical team, and contributions from InnovExplo, Golder, WSP, and ASDR -- all which are Quebec based.

As of April 25, 2016, all field-related preliminary economic assessment programs, including drilling, were complete and engineering work is well under way. The preliminary economic assessment tracking is on schedule and budget; the estimated completion date remains the second quarter of 2016.

We seek Safe Harbor.