Mr. Vincent Metcalfe reports

FALCO ANNOUNCES GRANTING OF STOCK OPTIONS

Falco Resources Ltd.'s board of directors has approved the grant of incentive stock options to directors, officers and key employees to purchase up to an aggregate of 1,532,700 common shares in the capital stock of the company. Grants are subject to a three-year vesting period and a five-year term at an exercise price of 98 cents per share.

About Falco Resources Ltd.

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.