Mr. Luc Lessard reports

FALCO ANNOUNCES BOUGHT DEAL PRIVATE PLACEMENT FOR GROSS PROCEEDS OF $10 MILLION

Falco Resources Ltd. has entered into an agreement with Cantor Fitzgerald Canada Corp. to act as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters, in connection with a bought deal private placement of 31.25 million units at a price of 32 cents per unit for aggregate gross proceeds of $10-million.

Each unit will consist of one common share of the corporation and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder to purchase one common share at a price of 46 cents at any time on or before that date that is 18 months after the closing date (as defined below).

In addition, the corporation will grant the underwriters an option to increase the size of the offering by up to an additional 4,687,500 units on the same terms and conditions as the offering for additional gross proceeds of $1.5-million by giving written notice of the exercise of the option, or a part thereof, to the corporation at any time up to 48 hours prior to the closing date.

The corporation intends to use the net proceeds from the sale of units for the advancement of the Horne 5 project in Quebec as well as for working capital and general corporate purposes.

The offering is anticipated to close on or about Oct. 17, 2025, or such other date as the corporation and the underwriters may agree, 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.

The units are being offered by way of private placement in all of the provinces of Canada to investors who qualify as accredited investors under Canadian securities legislation or who are otherwise exempt from prospectus delivery requirements. The offering may also be offered in the United States to accredited investors (as defined in Rule 501(a) of Regulation D) pursuant to an exemption from registration under the U.S. Securities Act of 1933, as amended, and in such other jurisdictions outside of Canada in accordance with applicable law.

The common shares issuable from the sale of the units to accredited investors in Canada or otherwise on a prospectus-exempt basis will be subject to a hold period of four months plus one day from the date of issuance of the units.

About Falco Resources Ltd.

Falco is one of the largest mineral claim holders in the province of Quebec, with an extensive portfolio of properties in the Abitibi-Temiscamingue greenstone belt. Falco holds rights to approximately 67,000 hectares of land in the Noranda mining camp, which represents 67 per cent of the camp as a whole and includes 13 former gold and base metal mining sites. Falco's main asset is the Horne 5 project, located beneath 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. Osisko Development Corp. is Falco's largest shareholder, with a 16-per-cent interest in the corporation.

We seek Safe Harbor.