Mr. Karim Rayani of Falcon reports

FALCON / MARVEL OPTION BAIE VERTE PROJECTS TO CARMANAH MINERALS CORP.

Falcon Gold Corp. and Marvel Discovery Corp. jointly hold 1,402 claims totalling 35,050 hectares located along the Baie Verte Brompton line (BVBL) in central Newfoundland. Falcon and Marvel have agreed to option their interests in the property to Carmanah Minerals Corp. Carmanah recently announced the acquisition of the Hare Hill pluton rare earth project covering 162 claims totaling 4,050 hectares in western Newfoundland. The property is directly contiguous to the recent Bottom Brook acquisition by York Harbour Metals Inc. announced Dec. 21, 2022.

The Hare Hill granitic system is prospective for rare earth mineralization, as recently reported by York Harbour Metals, whose grab rock samples returned total rare earth oxide grades (TREO) grades between 3.45 per cent and 21.63 per cent TREO. Previously, Kirrin Resources Inc. reported drilling results that included 4.47 per cent TREO over 5.64 metres (m) core lengths and 1.16 per cent TREO over 15.3 m core lengths on the Bottom Brook project in February, 2011.

Carmanah will make cash payments totalling $155,000 over a four-year period and issue five million common shares and five million share purchase warrants exercisable at 10 cents per share for a period of three years from the date of issue: three million shares issued to Marvel and $93,000; and two million shares issued to Falcon and $62,000; 60/40 split in favour of Marvel. Falcon and Marvel's properties will be subject to a 2.5-per-cent NSR (net smelter royalty). Carmanah can purchase 1 per cent for $1-million cash payment.

This transaction is beneficial for Falcon and Marvel, having a large equity stake in Carmanah positions both companies very well as exploration at the BVBL moves forward, while the option agreement assists Carmanah to develop a significant portfolio of prospective properties. The BVBL acquisition will allow Carmanah to become a dominant new player with ground next to York Harbour's Bottom Brook property which has recently announced an aggressive exploration program.

Karim Rayani, chief executive officer, commented: "We are very pleased to have been able to work an option deal with Carmanah Minerals, Carmanah presents a great opportunity for all companies while allowing us to share in the success of potentially a new district-scale discovery. Falcon currently has approximately 90,000 hectares of prospective ground -- tied to major structures in Gander, Hope Brook and the Victoria Lake area. We look forward to new developments coming out of the BVBL as the area is quickly becoming known for its rare earth potential."

The transaction is considered a non-arm's length as a result of the companies having directors and officers in common and is subject to TSX Venture Exchange approval.

Qualified person

Greg Robinson, PGeo, an independent qualified person as defined in National Instrument 43-101, has reviewed and approved the technical contents of this news release on behalf of the company.

About Falcon Gold Corp.

Falcon is a Canadian mineral exploration company focused on generating, acquiring and exploring opportunities in the Americas. Falcon's flagship project, the Central Canada gold mine, is approximately 20 kilometres (km) southeast of Agnico Eagle's Hammond Reef gold deposit which has currently estimated 3.32 million ounces of gold (123.5 million tonnes grading 0.84 gram per tonne (g/t) gold) mineral reserves and 2.3 million ounces of measured and indicated mineral resources (133.4 million tonnes grading 0.54 g/t gold).

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