Mr. Luc Lessard reports

FALCO SECURES HOISTING SYSTEMS FOR THE HORNE 5 PROJECT; SECURES 3 HOISTS FROM ABB

Falco Resources Ltd. has entered into an exclusive agreement with ABB Canada, a member of ABB Group, to supply the hoisting systems for its wholly owned state-of-the-art Horne 5 project, located in Rouyn-Noranda, Que.

The contract includes the overall engineering, procurement, supply, performance services and installation of the hoisting systems. The hoisting systems will include a production hoist, an auxiliary hoist and a service hoist. The delivery and installation of the service and auxiliary hoists are expected in 2018.

The new production friction hoist will have a 6.5-metre diameter and will allow a skip payload of 39,400 kilograms. The service hoist will have a 5.5-metre diameter and will be equipped with a double-deck cage for two times 50-man capacity or a 15,000-kilogram payload. The auxiliary hoist will have a 3.1-metre diameter and will be equipped with a double-deck cage for two times five-man capacity or 1,250-kilogram payload.

Luc Lessard, president and chief executive officer of Falco, commented: "We are extremely pleased to have entered into this partnership with ABB Canada to supply the hoisting systems for the Horne 5 project. ABB is the leader for hoisting solutions in the mining industry and the perfect partner to supply the hoisting systems of our state-of-the-art Horne 5 project. Our partnership goes beyond simply delivering the equipment; ABB's proposal will enable the company to accelerate the installation of the service and auxiliary hoist, which will play a strategic role during the dewatering and shaft reconditioning for the Horne 5 project. Additionally, ABB will be providing support and performances guarantees for the friction hoist for the first three years of production at Horne 5."

"We are proud to be chosen by Falco to be part of this important state-of-the-art project in Quebec," commented Nathalie Pilon, president of ABB Canada. "The long history of co-operation between ABB and Falco's management, and also ABB's decades of deep knowledge and experience in mine hoist application, were key factors in winning this order."

About Falco Resources Ltd.

Falco 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 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 Ltd. 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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