Mr. Vincent Metcalfe reports

FALCO ANNOUNCES ELECTION OF DIRECTORS

The eight nominees listed in Falco Resources Ltd.'s management information circular dated Oct. 10, 2017, were elected as directors of Falco.

Detailed results of the vote for the election of directors held at the annual and special meeting of shareholders on Nov. 10, 2017, are set out in the attached table.

Nominee           Votes for    % for   Votes withheld   % withheld

Mario Caron      76,103,200   99.99%            7,200        0.01%    
Bryan A. Coates  76,085,600   99.97%           24,800        0.03%    
Paola Farnesi    73,290,911   96.30%        2,819,489        3.70%    
Claude Ferron    76,103,200   99.99%            7,200        0.01%    
Luc Lessard      76,087,600   99.97%           22,800        0.03%    
Sean Roosen      76,084,600   99.97%           25,800        0.03%    
John Sabine      76,046,890   99.92%           63,510        0.08%    
Chantal Sorel    76,042,700   99.91%           67,700        0.09% 

Appointment of auditor

The appointment of PricewaterhouseCoopers LLP as independent auditor of the corporation, as provided for in the management information circular, was also approved.

Amendment to the articles

During the annual and special meeting of shareholders and based on the proxies received, the shareholders also approved the special resolution authorizing an amendment to the articles of incorporation of the corporation to include the French form to its name, namely Ressources Falco Ltee.

Reapproval of the long-term incentive plan

During the annual and special meeting of shareholders and based on the proxies received, the shareholders also reapproved the long-term incentive plan.

Acceleration of stock option vesting

Pursuant to the retirement of Paul-Henri Girard, the board of directors of Falco approved the acceleration of the vesting of all previously unvested stock options granted to Mr. Girard under the long-term incentive plan. The vesting acceleration represents options exercisable for a total of 54,867 common shares of the corporation at an exercise price of 98 cents per share. The acceleration of the vesting schedule of the corporation's stock options was effected pursuant to Section 5.3 of the long-term incentive plan, which authorizes the board of directors, in its sole discretion, to substitute an accelerated vesting schedule for stock options granted under the long-term incentive plan.

Granting of options

In addition, the board of directors approved the grant of incentive stock options to directors, officers and key employees to purchase up to an aggregate of 2,743,800 common shares in the capital stock of the company. Grants are subject to a three-year vesting period and a five-year term at an exercise price of 96 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 about 67,000 hectares of land in the Rouyn-Noranda mining camp, which represent approximately 70 per cent of the entire camp and include 13 former gold and base metal mine sites. Falco's principal asset 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.