Mr. Luc Lessard reports

FALCO ANNOUNCES CLOSING OF BOUGHT DEAL PRIVATE PLACEMENT

Falco Resources Ltd. has closed its previously announced bought deal private placement with a syndicate of underwriters led by Cantor Fitzgerald Canada Corp., acting as lead agent and sole bookrunner, and including BMO Nesbitt Burns Inc., National Bank Financial Inc. and Canaccord Genuity Corp. Pursuant to the offering, Falco has issued an aggregate of 41,005,000 units of the corporation at a price of 32 cents per unit, for aggregate gross proceeds of $13,121,600.

Each unit consists of one common share of the corporation and one-half of one common share purchase warrant. Each warrant is exercisable to acquire one common share at a price of 46 cents at any time on or before April 17, 2027.

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

In connection with the closing of the offering, the underwriters received an aggregate cash fee equal to $787,296.

All common shares and warrants issued pursuant to the offering are subject to a hold period of four months plus one day from the date of issuance of such securities under applicable securities laws in Canada.

Related parties of the corporation, including Osisko Development Corp. and certain directors and officers of the corporation, subscribed for an aggregate of 7,455,000 units such that the offering constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). The corporation is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to Section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to Section 5.7(1)(a) in respect of such related party participation as the fair market value of the transaction, insofar as it involves interested parties, does not exceed 25 per cent of the corporation's market capitalization. Additional information with respect thereto will be published in a material change report to be filed by the corporation following the closing of the offering. The corporation did not file the material change report 21 days prior to closing of the offering, as the related parties' participation had not been confirmed at that time and the corporation wished to close the transaction as soon as practicable for sound business reasons.

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 is Falco's largest shareholder, with a 16-per-cent interest in the corporation.

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