Mr. Vincent Metcalfe reports

FALCO ANNOUNCES CLOSING OF C$5,000,000 CREDIT FACILITY

Falco Resources Ltd. has closed a $5-million revolving credit facility with National Bank of Canada, which will be secured by a hypothec in favour of the lender over a collateral account maintained by the company. The credit facility will be used to secure Falco's obligations in favour of Hydro-Quebec in connection with certain electrical and engineering work to be performed with respect to the development of its Horne 5 project in Rouyn-Noranda and, subject to third party consent, for other purposes consented to by the lender. At this time, the credit facility will provide Falco with access to standby letters of credit and letters of guarantee issued by the lender to Hydro-Quebec on Falco's behalf. The credit facility is uncommitted, meaning that the lender can in its sole discretion (i) terminate the company's right to make requests for the issuance of letters of credit on same-day notice; and (ii) decline a request from the company for the issuance of a letter of credit.

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 about 67,000 hectares of land in the Rouyn-Noranda mining camp, which represents approximately 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, which was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper.

We seek Safe Harbor.