Mr. John Burzynski reports

OSISKO GOLD ROYALTIES ANNOUNCES ACQUISITION OF COMMON SHARES OF FALCO RESOURCES

By share purchase agreement with QMX Gold Corp. dated Aug. 28, 2014, Osisko Gold Royalties Ltd. has agreed to acquire 1,488,990 common shares of Falco Resources Ltd. for an aggregate purchase price of $670,045.50, representing approximately 2.04 per cent of the issued and outstanding common shares of Falco.

Pursuant to the transaction, Osisko agreed to acquire 1,488,990 common shares at a price of 45 cents per share. In addition, Osisko intends to acquire, subject to the policies of the TSX Venture Exchange, an additional 1,218,265 common shares of Falco that are subject to an escrow agreement at a price of 27 cents per share.

Falco has agreed to appoint a nominee of Osisko to the Falco board of directors, subject to compliance with the policies of the TSX Venture Exchange.

Investment

Other than eight million common shares of Falco previously held by Osisko, neither Osisko, nor any other persons acting jointly or in concert with Osisko, previously held any other securities of Falco. Accordingly, Osisko will own, upon completion of the transaction, a total of 9,488,990 common shares of Falco, representing approximately 12.98 per cent of the total issued and outstanding common shares of Falco. If, as and when Osisko acquires the 1,218,265 escrowed shares, it would own a total of 10,707,255 common shares of Falco, representing approximately 14.99 per cent of the total issued and outstanding common shares of Falco.

Osisko intends to hold the purchased shares, the escrowed shares and the prior holdings for investment purposes. Other than the purchased shares and the escrowed shares, Osisko has no current intention to increase the beneficial ownership of, or control or direction over, additional securities of Falco.

Osisko will file an early warning report containing further details of the acquisition of the purchased shares and escrowed shares on SEDAR under Falco's profile.

About Falco Resources

Falco is a resource exploration company and owner of mineral rights to 14 former mines within a 700-square-kilometre land package in the Abitibi region of Quebec, Canada. Falco's principal property is the Horne mine complex, which was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. A maiden 43-101 mineral resource estimate for the Horne 5 deposit delineated an initial inferred resource totalling 25.3 million tonnes grading 2.64 grams per tonne gold, 0.23 per cent copper and 0.7 per cent zinc, for 2.2 million ounces of gold contained (see Falco's news release dated March 4, 2014, for more details).

We seek Safe Harbor.