Mr. Luc Lessard reports

FALCO SETS THE STAGE FOR A PIVOTAL 2026 AS THE HORNE 5 PROJECT ADVANCES TOWARD GOVERNMENT DECREE

Falco Resources Ltd. has provided shareholders with an outlook for 2026 as the corporation advances its flagship Horne 5 project located in Rouyn-Noranda, Que., through the final stages of project environmental acceptability and toward the receipt of the Quebec ministerial decree.

"The Horne 5 project is one of the most advanced undeveloped polymetallic projects in Canada, and our focus in 2026 is execution," said Luc Lessard, president and chief executive officer of Falco. "With permitting advancing and a feasibility study update under way, we are working to position the project for its next stage while ensuring the market fully understands its scale, quality and value."

The Horne 5 project is a large, gold-led underground polymetallic deposit located in Quebec's historic Noranda mining camp. In addition to strong community support, the project benefits from advanced project acceptability and permitting progression, existing regional infrastructure, and a development plan outlining a long-life, low-cost operation supported by meaningful critical mineral (copper and zinc) contributions. The environmental impact assessment has been deemed admissible, public hearings have been completed and the project continues to progress toward the Quebec ministerial decree.

As part of its 2026 plan, Falco is updating its 2021 feasibility study to reflect current metal prices, updated cost assumptions and refined development planning. This updated study is expected to support strategic engagement and future financing discussions as the project moves closer to execution readiness.

"Our fundamentals are strong, and 2026 is about aligning execution with clear, consistent communication," continued Mr. Lessard. "We believe this approach will help close the valuation gap and position Falco as a leading, construction-ready polymetallic development story in Canada."

2026 priorities include:

• Advancing the Horne 5 project toward receipt of the Quebec ministerial decree;
• Completing the feasibility study update;
• Continuing disciplined technical and permitting work;
• Expanding institutional and analyst engagement;
• Advancing community consultation initiatives;
• Maintaining transparent communication with shareholders.

Qualified person

Luc Lessard, PEng, president and chief executive officer, is the qualified person for this release as defined by National Instrument 43-101, and has reviewed and verified the technical information contained in this news release.

Stock option grant

In parallel, Falco has engaged Achievers Unlimited Inc. to provide certain management services to Falco, including corporate development, marketing and strategic advisory services. As part of this engagement, the corporation's board of directors approved the grant of incentive stock options to Achievers to purchase up to an aggregate of 400,000 common shares of the corporation. The options are subject to a 12-month vesting period and have a five-year term. The options are exercisable at an exercise price of 49.5 cents per common share being the closing price of the common shares on the TSX Venture Exchange on Jan. 20, 2026.

About Falco Resources Ltd.

Falco Resources is a Canadian mining company advancing the Horne 5 project in Quebec's historic Noranda mining camp. This project is one of the most advanced undeveloped polymetallic assets in Canada, supported by established infrastructure, robust economics, and a proven technical and executive team.

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