Mr. Luc Lessard reports

FALCO HORNE 5 PROJECT STATUS AND ENVIRONMENTAL PROCESS UPDATE

Falco Resources Ltd. has made substantial progress on Falco's Horne 5 project since the Bureau d'audiences publiques sur l'environnement (BAPE) report. Working with Quebec's Ministry of the Environment, the Fight Against Climate Change, Wildlife and Parks (MELCCFP), Falco has advanced technical and environmental assessments, addressed community concerns and made tangible regional commitments. This update highlights the progress made in addressing concerns and advancing the Horne 5 project toward the next stages of its development.

Advancing toward a key environmental milestone

Helene Cartier, vice-president, environment, sustainable development and community relations at Falco, commented: "The past two years have been an important phase in the development of the Horne 5 project. This time has enabled us to better understand community concerns, further assess several technical, social and environmental aspects, and strengthen our commitments. The progress achieved puts us in a position to continue advancing toward a major milestone: obtaining the environmental decree."

Continued progress with Quebec's Ministry of the Environment and the new government

In June, 2026, the MELCCFP indicated that information submitted by Falco allowed potential solutions to be identified for issues raised during the review. At that time, the ministry anticipated completing its environmental acceptability assessment in fall 2026, subject to receiving satisfactory additional information.

Falco continues to participate in working sessions with the Ministry's Environmental Assessment Directorate and to respond to requests for clarification and supporting information. Meanwhile, the corporation is engaging with members of the new government following last October's elections.

Concrete commitments to the community

Alongside the environmental review, Falco has advanced a series of initiatives focused on community dialogue, protection of residences and infrastructure, quality of life and lasting regional benefits.

Luc Lessard, president and chief executive officer of Falco Resources, added: "The Horne 5 project has the potential to deliver lasting economic benefits to Rouyn-Noranda and the wider region. Our progress is measured not only by technical milestones, but also by how we respond to local priorities. We are advancing the project through sustained dialogue, independent assessment and concrete commitments to the community. Next Milestone: the environmental decree

Falco is working with the MELCCFP to complete the environmental assessment. Once that assessment concludes, the MELCCFP then recommend the project to the Quebec cabinet, which will determine whether to authorize it by decree. The decree would mark a major milestone, allowing Falco to move forward with detailed engineering and preparatory development work. Additional studies, permits and authorizations would still be required before construction and operations.

A significant opportunity for Rouyn-Noranda and the region

The Horne 5 project represents approximately $1.75-billion in planned investment and the potential for 500 direct, permanent jobs. An independent KPMG assessment (French) estimates $12.1-billion in project-related expenditures over 15 years, with the potential to support economic activity across Rouyn-Noranda and the Abitibi-Temiscamingue.

Based on its current project schedule, Falco is targeting receipt of the environmental decree in early 2027. The timing and outcome remain subject to the government's assessment and authorization process.

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 60,000 hectares of land in the Noranda camp, which includes 13 former gold and base metal mine 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 Gold Group Inc. is Falco's largest shareholder, with a 16.0-per-cent interest in the corporation.

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