Falco Resources Announces Significant Increase In Horne 5 Resources

(Montreal, Québec, October 3, 2016) – Falco Resources Ltd. (TSXV:FPC) is pleased to report an updated mineral resource estimate for its wholly-owned Horne 5 gold project located in Rouyn-Noranda, Québec. Gold equivalent resources have increased significantly as a result of this update. The updated resource estimate now includes and combines the newly assembled historical underground channel sample database, new economic parameters as per the Company’s recently published preliminary economic assessment (“PEA”), including lowering of the NSR cut-off, additional 2016 drilling results and revised commodity pricing assumptions. New Measured, Indicated and Inferred Resources have been updated for the Horne 5 deposit, which now contains 6 high grade zones.
This updated resource estimate increases Gold Equivalent M&I resources by 32 percent.
The updated resource estimate lays the foundation for the completion of a feasibility study in 2017. This update was undertaken to support feasibility work on the Horne 5 Project and to convert part of Indicated Mineral Resources into Measured Mineral Resources by adding 14,799 samples from the historical underground channel sample database into the resource estimate.
Highlights
At a C$55/tonne net smelter return (“NSR”) cut-off

• Horne 5 is now estimated to host:
  • a Measured Resource of 736,000 gold equivalent ounces (“oz AuEq”), including 475,410 oz Au contained in 9.4 million tonnes averaging 2.45 g/t AuEq (1.58 g/t Au; 16.33 g/t Ag; 0.18% Cu; 0.81% Zn).
  • an Indicated Resource of 6,336,000 gold equivalent ounces (“oz AuEq”), including 4,088,383 oz Au contained in 81.7 million tonnes averaging 2.41 g/t AuEq (1.56 g/t Au; 14.19 g/t Ag; 0.18% Cu; 0.86% Zn).
  • an Inferred Resource of 1,710,000 oz AuEq, including 1,053,061 oz Au contained in 22.3 million tonnes averaging 2.39 g/t AuEq (1.47 g/t Au; 22.98 g/t Ag; 0.2% Cu; 0.68% Zn).
• The Measured & Indicated Resources represent 81% of the total resources in AuEq content (oz).
• The Measured Resources represent 10% of the Measured & Indicated resources in AuEq content (oz). The recently completed historical underground channel chip sample database confirmed Au, Cu and Zn modelled grades and provided the data to upgrade a portion of the Indicated Resource into the Measured Resource category.
• A Feasibility study which will incorporate the updated Horne 5 resource estimate has been commenced and is planned to be completed in the first half of 2017.
• Ongoing drill programs are focussing on additional exploration targets in the vicinity of the Horne 5 Deposit. The company plans to drill 20,000 metres at the Horne 5 West and Quemont Extension exploration targets in 2016.

Luc Lessard, President and Chief Executive Officer, stated “The resource estimate update will enable Falco to aggressively pursue the advancement of the feasibility study on the Horne 5 Project. Establishing an initial Measured Resource was critical to the advancement of the technical studies. The outlined Horne 5 prospective large bulk-tonnage underground resource has enabled Falco to commission work on developing a state-of-the-art highly mechanized mining project.”
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