Mr. Luc Lessard reports

FALCO ANNOUNCES KEY BOARD AND MANAGEMENT APPOINTMENTS

Falco Resources Ltd. has made the following appointments: Bryan A. Coates, president of Osisko Gold Royalties Ltd., will be joining the board of directors and will chair a newly formed finance committee of the board of directors. Helene Cartier, who currently sits on the board of directors, will join the company as vice-president of environment and sustainability. Ms. Cartier will continue to sit on the board of directors until a director has been appointed to replace Ms. Cartier. Francois Vezina will be joining the company as vice-president of technical services and Christian Laroche will be joining the company as vice-president, metallurgy. The company believes that experienced industry professionals with a varied array of expertise and background will be an important asset to the company as it advances its Horne 5 project through the project financing and development phases.

Luc Lessard, president and chief executive officer, commented, "As Falco continues to advance the Horne 5 project to feasibility, the addition of these key individuals with various backgrounds in project financing, mine development and operations in Quebec, will make them great assets to the company."

Finance committee of the board of directors

The board of directors is pleased to announce the appointment of Mr. Coates as chair of a newly formed finance committee of the board of directors. Mr. Coates will work with the current board of directors to nominate additional members to the committee.

Mr. Coates has been president of Osisko Gold Royalties Ltd. since June, 2014. From 2007 to 2014, he was the vice-president, finance, and chief financial officer of Osisko Mining Corp. Mr. Coates was responsible for all activities related to financing, financial reporting, marketing relating to the gold industry, risk management and government relations. Mr. Coates has more than 30 years of progressive experience within the international and Canadian mining industry. Before joining Osisko, he was chief financial officer of Iamgold Corp. (2006 to 2007), Cambior Inc. (2001 to 2006) and Compania Minera Antamina (1998 to 2001). Mr. Coates is a member of the board of directors of Timmins Gold Corp. and of Golden Queen Mining Co. Ltd. Mr. Coates holds an honours bachelor of commerce from Laurentian University, is a member of the Chartered Professional Accountants of Ontario and obtained the ICD.D designation from the Institute of Corporate Directors.

Executive team appointments

The company is pleased to announce the following appointments to its operational team as it continues to advance its project to feasibility and through development.

Ms. Cartier appointed vice-president of environment and sustainability

Ms. Cartier was formerly vice-president, environment and sustainable development, at Osisko Mining from 2011 to 2013. Ms. Cartier has been a director of Falco since November, 2015. From 2013 to 2015, Ms. Cartier was deputy manager of La rue des Femmes de Montreal. Ms. Cartier holds a degree in industrial engineering and a bachelor's degree in law. She was intimately involved in the community relations aspects during the permitting, construction and development phases of the Canadian Malartic mine.

Ms. Cartier will step down from the board of directors once a director has been duly appointed to replace Ms. Cartier on the board of directors.

Mr. Vezina appointed vice-president, technical services

Mr. Vezina is a mining engineer with over 17 years of experience in mining and has extensive experience in open-pit and underground operations in Canada, Mexico and Finland. Mr. Vezina was technical service manager for Agnico Eagle Mines Ltd. and was responsible for overseeing the completion of the feasibility studies of LaRonde II, Pinos Altos and Kittila. Mr. Vezina participated in the construction and commissioning of Pinos Altos as mine development manager and Kittila as mine operations manager before joining Osisko Mining and participating as mine manager in the construction of the Canadian Malartic mine. He served for over five years as mine operations manager at the Canadian Malartic mine. Mr. Vezina is a specialist in mine operation optimization and is recognized for innovative mining techniques and optimization of feasibility studies. Mr. Vezina holds a bachelor's degree in mining engineering and a master's degree in business administration (MBA). He is a registered engineer (Eng) in Quebec and (PEng) in Ontario.

Mr. Laroche appointed vice-president, metallurgy

Mr. Laroche has over 16 years of experience in engineering, design and construction of mining projects. Prior to joining Osisko Mining in 2009, Mr. Laroche spent nine years at BBA consulting engineering and participated as project manager on the Canadian Malartic development project. Mr. Laroche was site support engineer for the construction and commissioning of the Canadian Malartic project. Upon the sale of Osisko Mining, Mr. Laroche transitioned with Yamana Gold for one year, where he served as director metallurgy. Mr. Laroche joined Osisko Gold Royalties as director metallurgy in 2015.

Long-term incentive grants

The board of directors has approved the grants of incentive stock options to the newly appointed director and management members to purchase up to an aggregate of 143,600 common shares in the share capital of the company. Grants are subject to a three-year vesting period and a five-year term at an exercise price of 89 cents per share.

About Falco Resources Ltd.

Falco is one of the largest mineral claim holders 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 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. Osisko Gold Royalties is the largest shareholder of the company and currently owns 14.2 per cent of the outstanding shares of the company.

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