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FPC.V ·

Falco Announces Closing of C$5,000,000 Credit Facility

Financings Debt & Credit Facilities

For Immediate Release TSX.V - FPC

FALCO ANNOUNCES CLOSING OF C$5,000,000 CREDIT FACILITY

Not for distribution to U.S. newswire services or diss emination in the United States.

Any failure to comply with this restriction may constitute a violation of U.S. securities laws.

(June 28, 2017) Montreal, Québec - Falco Resource s Ltd. (“Falco” or the “Company” )

(TSX.V: FPC) is pleased to announce that it has closed a C$5 million revolving credit facility

(the “Credit Facility”) with National Bank of Canada (the “Lender”), which will be secured by a

hypothec in favour of the Lender over a collateral account maintained by the Company. The

Credit Facility will be used to secure Falc o’s obligations in favour of Hydro -Québec in

connection with certain electrical and engineering work to be performed with respect to the

development of its Horne 5 project in Rouyn -Noranda, and, subject to third party consent, for

other purposes consented to by the Lender. At this time, t he Credit Facility will provide Falco

with access to standby letters of credit and letters of guarantee issued by the Lender to Hydro -

Québec on Falco’s behalf. The Credit Facility is uncommitted, meaning that the Lender ca n in

its sole discretion (i) terminate the Company’s right to make requests for the issuance of letters

of credit on same day notice, and (ii) decline a request from the Company for the is suance of a

letter of credit.

About Falco

Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Québec, with

extensive land holdings in the Abitibi Greenstone Belt. Falco owns about 67,000 hectares of

land in the Rouyn- Noranda mining camp, which represents approximate ly 70% of the entire

camp and includes 13 former gold and base metal mine sites. Falco's principal property is the

Horne 5 Project located in the former Horne mine that 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

Royalties Ltd is the largest shareholder of the Company and currently owns 13. 3% of the

outstanding shares of the Company.

For further information contact:

Vincent Metcalfe

Chief Financial Officer

514-905-3162

[email protected]

Bettina Filippone

Renmark Financial Communications Inc.

514-939-3989

[email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward -looking statements and forward -looking information (together, "forward -

looking statements") within the meaning of applicable securities laws and the United States Private Securities

Litigation Reform Act of 1995. All stat ements, other than statements of historical facts, are forward- looking

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statements. Generally, forward- looking statements can be identified by the use of terminology such as "plans",

"expects', "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain

actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved", and includes,

without limitation, that the Company will continue to have access to the Credit Facility . Forward-looking

statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects

and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors

that could cause actual results to differ materially from these forward- looking statements include the reliability of

the historical data referenced in this press release and those risks set out in Falco’s public documents, including in

each management discussion and anal ysis, filed on SEDAR at www.sedar.com. Although Falco believes that the

assumptions and factors used in preparing the forward- looking statements are reasonable, undue reliance should

not be placed on these statements, which only apply as of the date of thi s news release, and no assurance can be

given that such events will occur in the disclosed times frames or at all. Except where required by applicable law,

Falco disclaims any intention or obligation to update or revise any forward- looking statement, whether as a result

of new information, future events or otherwise.