Mr. Vincent Metcalfe reports

FALCO COMMENCES 40,000 METRE DRILL PROGRAM

Falco Resources Ltd. is initiating exploration activities on its large 668-square-kilometre land package in the Rouyn-Noranda camp, which surrounds its 100-per-cent-owned Horne 5 project. The planned 40,000-metre exploration drill campaign is part of a $10-million budget allocated to 2017 exploration work. The exploration program will concentrate on eight different areas, including the Horne 5 project, with the objective of discovering new mineralization in the prolific past-producing Rouyn-Noranda camp.

2017 regional exploration program

Central Camp properties

The Central Camp properties are located in the south-central portion of Falco's considerable land position. The properties cover approximately 90 per cent of the historical mining camp and include several past-producing volcanogenic massive sulphide base metal deposits.

Exploration work on the Central Camp properties will include approximately 15,000 to 18,000 metres of drilling and is aimed at updating the 3-D Noranda Camp geological model with a systematic review and testing of existing exploration targets. Numerous drill-ready targets have been identified and will be tested during the campaign. In addition, historical data compilation in and around former producing mines will be conducted, reviewing historical resources and drilling results to further identify new opportunities and generate new targets.

RIMO

The RIMO properties are greenfield exploration projects located 25 kilometres northwest of Rouyn-Noranda. Work will focus on the western extension of the 2015 geophysical survey and field testing of geophysical targets with new drilling.

Lac Laynes

The Lac Laynes property is known for its VMS potential; however, recent work has determined potential low-grade gold mineralization at surface. In 2014, DDH 17931-14-02 drilled by Falco intersected a gold-bearing tectonic breccia with values of 0.79 g/t Au over 14.0 metres, including 3.18 g/t Au over 1.2 metres. Planned work includes field validation (including rock sampling) and drilling of geophysical targets.

Flavrian

The Flavrian area has a historical production of one million ounces gold. Exploration at Flavrian will evaluate the mineral potential of the Duprat syenite, which shows similar geological context to the Upper Beaver deposit in Ontario. Work includes approximately 2,000 metres of drilling.

Falco will also test for high-grade gold zones at depth and along strike, or proximal to the former producing Quesabe gold deposit. Quesabe encompasses more than 30 gold and copper showings over a 10-square-kilometre area. The new work will follow up on previously drilled mineralized intersections with the aim to upgrade mineral resources. Numerous drill-ready targets have been identified using a 3-D model along three main structures in the Quesabe area (the Quesabe fault to the south, the Beauchemin fault to the east and the St-Jude breccia system to the north), including potential high-grade extensions of the Quesabe main deposit.

Noralex, Routhier and Blake River area

The Noralex property includes the Young Buck (intrusion related) showing, which bears similarities with the Doyon and Mouska mines. Historical drilling has returned low-grade gold values over wide intercepts, including 1.93 g/t Au over 33.0 metres and 1.64 g/t Au over 24.5 metres. Work will include drilling approximately 4,000 metres on the Young Buck showing and drilling on the southwest portion of the property. The Routhier property and Blake River properties will see new geophysics, surface trenching and drilling of approximately 3,500 metres.

2017 Horne 5 exploration program

The Horne 5 mineralization is hosted in a felsic volcanic sequence (known as the Horne felsic block) mostly composed of rhyolitic flows, rhyolite breccias and felsic lapilli to blocky tuffs. The block is confined by the Horne Creek fault to the north, the Andesite fault to the south and follows an east-west trend. The trend extends over 1.5 km to the west of the Horne mine, where gold mineralization has been recognized. The West zone which occurs one km from the Horne 5 deposit has returned historical results showing the good potential for this area, including 4.6 grams per tonne gold over 14.6 metres, 4.3 g/t Au over 9.3 m and 5.5 g/t Au over 20.6 m. The 2016 drill program identified a new mineralized zone 200 metres to the southwest of the Horne 5 deposit, the H5-SW zone. The low gold grades defining the H5-SW zone indicate it could be an extension of the West zone, which confirms the continuation of the mineralization in western direction. New exploration drilling will test the western extension between the West zone and the H5-SW zone. Approximately 10,000 metres of drilling are planned. Three main areas are being targeted covering a total distance of approximately 1.4 km long and between 300 m and 1,200 m of vertical depth.

 
          2017 EXPECTED DRILLING METRES

Property/project                         Metres
 
Central Camp (excluding Horne 5)       16,600 m
RIMO                                      900 m
Lac Laynes                                750 m
Flavrian                                3,600 m
Noralex and Routhier                    4,650 m
Blake River                             3,500 m
Horne 5                                10,000 m
Total                                  40,000 m

Qualified person

Claude Bernier, exploration manager (PGeo, Eng), 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.

About Falco Resources Ltd.

Falco Resources is one of the largest mineral claimholders in the province of Quebec, with extensive landholdings in the Abitibi greenstone belt. Falco owns 68,800 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 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. Osisko Gold Royalties is the largest shareholder of the corporation and currently owns 14.2 per cent of the outstanding shares of the corporation.

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