Mr. Luc Lessard reports

FALCO DRILLS 12.4 METRES AT 5.14 G/T AUEQ AT HORNE 5 WEST EXTENSION

Falco Resources Ltd. has released results from three initial drill holes from its 2016 exploration and development program at its 100-per-cent-owned Horne 5 project located in Rouyn-Noranda, Que. The two initial holes were drilled in the existing Horne 5 mineralized envelope. The third hole was drilled in the Horne 5 West Extension target.

Luc Lessard, president and chief executive officer, commented, "We are very pleased with the initial result from the Horne 5 West drilling, this first result demonstrates the potential for further resource definition to the west of the currently defined Horne 5 deposit."

Horne 5 drilling program

The first two drill holes were completed within the existing Horne 5 deposit envelope. The drill holes tested specific areas of the Horne 5 deposit in order to increase the geological and metallurgical understanding of the Horne 5 deposit. Highlights from new drill holes include 43.2 metres at 2.73 grams per tonne gold-equivalent in drill hole H5-16-17 and 177.2 metres at 1.71 g/t AuEq in drill hole H5-16-18. Details of the new results are outlined in the table.

Hole H5-16-17

Positive results from hole H5-16-17 have confirmed grade and thickness at the western edge of the deposit. Due to its location, hole H5-16-17 cannot be compared with the historical database given there are no data within a 15-metre radius of the encountered mineralization. The mineralized interval of hole H5-16-17 correlates well with the thickness of the envelope interpreted in the resource estimate -- see Jan. 25, 2016, press release for details.

Hole H5-16-18

Hole H5-16-18 tested an area specifically for metallurgical purposes, yet also improved the company's confidence level in the historical database. Given the location of hole H5-16-18, a comparison with the historical database was completed. The reported interval was 177 metres; however, in order to compare the results with the historical database, 37 metres of mineralization were not used. This additional mineralization of comparable grade could suggest an increase in thickness on the Horne 5 mineral envelope in this specific zone. Details of hole H5-16-18 are outlined in the table.

Horne 5 West exploration drilling program

The Horne 5 West Extenstion drilling program was initiated to test potential mineralization located west of the currently defined Horne 5 deposit. The company initiated a 10,000-metre drilling program to test an area located between the western edge of the Horne 5 deposit and the Horne Creek fault, the tested zone being located between 600 metres and 1,300 metres below surface. The tested area was never specifically targeted previously.

Hole H5-16-17A

Positive results from hole H5-16-17A have confirmed presence of grade and thickness in the western continuity of the Horne 5 deposit. This initial result is very encouraging. Highlights include 12.4 metres at 5.14 g/t AuEq. Details of the new result are outlined in the table.

                           SUMMARY OF DRILL RESULTS
 
Hole           From      To   Length      AuEq      Au      Ag    Cu    Zn
                 (m)     (m)      (m)     (g/t)   (g/t)   (g/t)   (%)   (%)

H5-16-17    1,507.3 1,550.5     43.2      2.73    1.80    0.04  0.32  0.79
incl.       1,525.0 1,550.0     25.0      3.52    2.40    0.05  0.43  0.81
H5-16-18    1,125.8 1,303.0    177.2      1.71    1.16   12.20  0.07  0.50
incl.       1,132.0 1,139.6      7.6      3.61    3.07    7.50  0.20  0.22
incl.       1,137.0 1,138.0      1.0     13.79   12.70   29.80  0.26  0.50
            1,167.0 1,182.3     15.3      2.70    2.14   11.50  0.13  0.36
            1,225.0 1,238.0     13.0      2.23    1.95    6.20  0.07  0.17
H5-16-17A   1,570.0 1,582.4     12.4      5.14    3.01   52.18  0.29  1.77
incl.       1,580.9 1,582.4      1.5     21.26   16.61  231.18  0.79  0.50

Gold-equivalent calculations are based on the following assumptions: metal 
prices of: gold -- $1,250 (U.S.)/ounce; copper -- $2.85 (U.S.)/pound; 
zinc -- $1 (U.S.)/pound; and silver -- $17 (U.S.)/ounce. The results are 
presented uncapped. True widths are not known at this time.

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 20 samples. Every shipment is composed of 17 samples, a standard, a blank and a reject duplicate to test the laboratory analysis methods and precision for each shipment of samples. Blanks and standards are inserted within the normal sample number sequence, while the duplicate is asked at the end of a batch. 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 20 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.

About Falco

Falco owns 74,000 hectares of land in the Rouyn-Noranda mining camp, which represent 70 per cent of the entire camp and include 13 former gold and base-metal mine sites. Falco's principal property is the Horne mine, which was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Osisko Gold Royalties is the largest shareholder of the company and currently owns 16.2 per cent of the outstanding shares of the company.

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