Mr. Mario Caron reports

FALCO ANNOUNCES ELECTION OF DIRECTORS, APPROVAL OF THE AMENDED AND RESTATED SHAREHOLDER RIGHTS PLAN AND APPROVAL OF THE LONG TERM INCENTIVE PLAN AMENDMENT

The seven nominees listed in the management information circular dated Oct. 20, 2016, were elected as directors of Falco Resources Ltd.

Detailed results of the vote for the election of directors held at the annual and special meeting of shareholders on Nov. 22, 2016, are set out in the attached table.

                                      Votes         %        Votes          %
Nominee                                 for        for    withheld   withheld

Mario Caron                      37,882,586     94.21%   2,326,200      5.79%
Helene Cartier                   37,873,586     94.19%   2,335,200      5.87%
Paola Farnesi                    40,149,286     99.85%      59,500      0.15%
Claude Ferron                    37,861,586     94.16%   2,347,200      5.84%
Paul-Henri Girard                40,206,786     99.99%       2,000      0.01%
Luc Lessard                      40,206,786     99.99%       2,000      0.01%
Sean Roosen                      40,189,786     99.95%      19,000      0.05%

The appointment of PricewaterhouseCoopers LLP as auditor of the corporation, as provided for in the management information circular, was also approved.

Amended and restated shareholder rights plan

The corporation's amended and restated shareholder rights plan agreement, which amends and restates the corporation's original shareholder rights plan agreement dated Nov. 28, 2013, between the corporation and Equity Financial Trust Company, has been approved by the corporation's shareholders at the meeting.

The rights plan is not being adopted in response to any proposal to acquire control of the corporation, and the corporation is not aware of any such efforts at this time. Shareholders may access the rights plan through the Internet on SEDAR. Reference should be made to the full text of the rights plan for the details of its provisions.

Falco adopts a rolling provision under its long-term incentive plan (LTIP)

During the annual and special meeting of shareholders, the shareholders also approved the reinstatement of Falco's rolling stock option provision under its long-term incentive plan. Pursuant to the rolling stock option provision, options shall not exceed 10 per cent of the issued and outstanding shares of the corporation, outstanding at the time of the granting of the award (on a non-diluted basis), which may be granted from time to time to directors, senior officers, employees and other persons eligible to be granted options. The rolling stock option provision contained in the corporation's LTIP is subject to the approval of the TSX Venture Exchange.

About Falco

Falco Resources is one of the largest mineral claim holders in the province of Quebec, with extensive landholdings in the Abitibi greenstone belt. Falco owns 74,000 hectares of land in the Rouyn-Noranda mining camp, which represents 70 per cent of the entire camp, and includes 13 former gold and base metal mine sites. Falco's principal property is the Horne 5 project located in the former Horne mine that was operated by Noranda from 1927 to 1976, and produced 11.6 million ounces of gold and 2.5 billion pounds of copper.