Mr. Vincent Metcalfe reports

FALCO ANNOUNCES C$25 MILLION BOUGHT DEAL FINANCING

Falco Resources Ltd. has entered into an agreement with a syndicate of underwriters, co-led by BMO Capital Markets and Macquarie Capital Markets Canada Ltd., pursuant to which the underwriters have agreed to buy on a bought deal basis, 19.38 million units of the company at a price of $1.29 per unit, representing aggregate gross proceeds to Falco of $25,000,200. The company has granted the underwriters an option, on the same terms and conditions as the offering, for a period of 30 days following the closing of the offering, to purchase up to an additional 15 per cent of the offering to cover overallotments, if any. BMO Capital Markets is the sole bookrunner on the offering.

Each unit consists of one common share of Falco and one-half of one common share purchase warrant of Falco. Each full warrant will entitle the holder thereof to purchase one common share of the company at a price of $1.70 per common share for a period of 18 months following the closing date.

The net proceeds of the offering will be used to advance the Horne 5 deposit, including the dewatering program, refurbishing of the shaft and ordering of long-lead items, and for general corporate purposes.

The units to be issued under the offering will be offered by way of a short form prospectus in all of the provinces of Canada.

The offering is anticipated to close on or about June 7, 2017, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

As per the financing completed by the company on July 22, 2015, certain Quebec institutional partners of the company have rights to maintain their current proportional equity ownership in the company.

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.

We seek Safe Harbor.