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Falco Discovers New Gold Showings Through Use of Artificial Intelligence Technology Surface grab samples grading up to 12 g/t Au at Four Corners Dubuisson

Drill Results Exploration Programs Sampling & Geoscience Results

Falco Discovers New Gold Showings Through Use of Artificial Intelligence

Technology

Surface grab samples grading up to 12 g/t Au at Four Corners Dubuisson

MONTREAL, Sept. 10, 2018 -- Falco Resources Ltd. (FPC: TSX-V) (“Falco” or the “Company”) is pleased to announce results

from the recent prospecting work conducted by the Company. Recent field work resulted in the discovery of new gold

showings at Four Corners, located 20 kilometers from the Horne 5 Project in Rouyn-Noranda, Quebec. Based on the use of

Artificial Intelligence (“AI”) technology, a compilation was done exposing numerous anomalies. A field program, still in

progress, was undertaken in order to test the best anomalies.

FIELD WORK PROGRAM:

In December 2017, Falco appointed Albert Mining Inc., a leader in the use of AI, to analyze historical data in the Rouyn-

Noranda mining camp using their pattern recognition algorithms (“CARDS”). The AI software learned the signatures of positive

and negative gold and base metals targets and identified new targets with a high discovery potential. Fifty anomalies in gold

(15), copper (13), zinc (11) and silver (11) were identified. These anomalies were grouped into 11 exploration areas.

A field investigation and sampling campaign occurred during the summer of 2018, targeting the sectors of interest identified by

CARDS and by the IP anomalies. Of the eleven identified areas, four have now been investigated. Multiple samples returned

anomalous gold values (figure 1).

One of the most interesting area is the Four Corners property where a new showing was identified near a CARDS target and

following field work. A grab sample, composed of felsic volcanic rock strongly hematized with quartz veinlets and 1-3% pyrite,

returned 9.53 g/t Au. From eight additional samples collected on the same 5 metre x 10 metre outcrop, seven samples

returned grades over 1g/t Au (ranging from 0.11 g/t Au and 5.07 g/t Au, figure 2).  At about 100 metres to the NNE in extension

of this outcrop, similar rock returned 1.04 g/t Au suggesting continuity of the mineralisation.  

Additional field work also occurred on the Four Corners Dubuisson property, located less than 4km to the SW of the former

Four Corners new showing, along a known regional structure. Grab samples, returning 12.79 g/t Au and 3.10 g/t Au (figure 2)

were collected from an angular mineralized block. The angular shape and size (about 1.5m) of the block may indicate close

proximity of the source. 

These results, on both properties, have highlighted a NE-SW structural corridor of great interest for gold. Field exploration work

continues along strike between these two new surface showings. Channel sampling of the Four Corners showing is in progress

on the surface already exposed. Mechanical stripping, mapping and more channel sampling are planned in the next weeks

after receiving the permit. The work will allow a better geological and structural understanding of the gold distribution and

controls. The excellent results on our greenfield properties are very exciting and promising as they are located in zones of very

little historical work and without existing showings. The zones remain open in all direction. Although the focus will be on the

Four Corners sector, the field work program will continue on other CARDS targets over the next weeks. The Company is very

confident on finding other showings based on the initial success of the methodology and work program to date.

QUALIFIED PERSON

Mr. Claude Bernier, Exploration Manager, (P.Geo. Eng.) is the qualified person as defined by National Instrument 43-101 who

has reviewed and verified the technical information relating to the exploration program and results contained in this news

release.

QA/QC

Falco has implemented a strict quality-control program to comply with best practices in the sampling and analysis of grab

samples. As part of its QA/QC program, Falco inserts certified external mineralized standards and blanks within shipment

composed of 24 samples. Every shipment is composed of 22 rock samples, one standard and one blank to test the laboratory

analysis methods and precision for each shipment of samples. Blanks and standards are inserted within the normal sample

number sequence. Assay results and certificates of analysis are interpreted and reported on a regular basis. If anomalies are

detected, the laboratory is advised and the entire batch of samples is re-assayed. Assays are done at “Laboratoire Expert Inc”

from Rouyn-Noranda

Grab samples are selected samples and may not be representative of the mineralization hosted on the property.

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

approximately 70% of the entire camp and includes 13 former gold and base metal mine sites. Falco's principal asset 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 12.7% of the issued and outstanding shares of the Company. The Company has 188,957,863 shares issued

and outstanding.

For further information contact:

Luc Lessard

President and CEO

514-905-3162

[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 statements, other than statements of historical facts, are forward-looking 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, achievement of objectives set for the exploration

program on the regional properties. 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 analysis, 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 this 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.

Photos accompanying this announcement are available at:

http://www.globenewswire.com/NewsRoom/AttachmentNg/2143a137-f8fb-4524-a28f-8587b79e106d

http://www.globenewswire.com/NewsRoom/AttachmentNg/b0e1e6ec-c5cc-4552-acb5-988649690695