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Falco Provides Exploration Program Update Intersects 4.25 g/t Au over 15.5 metres at Donalda

Drill Results Exploration Programs

Falco Provides Exploration Program Update

Intersects 4.25 g/t Au over 15.5 metres at Donalda

MONTRÉAL, Sept. 04, 2018 -- Falco Resources Ltd. (FPC: TSX-V) (“Falco” or the “Company”) is pleased to announce an

update on the drilling program initiated in February 2018. The program consists in 25,000 metres of core drilling conducted

mostly on three main properties.

The principal objectives of the program was to test the Volcanogenic Massive Sulfide (VMS) potential of the Quemont and

Horne felsic sequences as well as the lateral extensions of the known Donalda gold-bearing vein system (see figure 1) . All

targets were located close to existing Horne and Quemont underground infrastructures (see figure 2). The targeted felsic

sequences occur between 600 metres and 1,400 metres vertical depth and included large underexplored areas with high

potential for discovery of new VMS lenses. To date the Company has received about 50% of the 2018 assays.

Luc Lessard commented: “The Horne West, Quemont and Donalda are highly prospective properties contiguous to Horne 5

project. The 2018 results on the Horne West zone, the Quemont and the western extension of the high grade gold bearing

Donalda quartz vein require more work. The compilation of all the data produced during the recent work will help to better

understand the Horne area, which remains one of the best environments to find VMS mineralization.”

HORNE WEST DRILLING:

Two holes were drilled in the Horne West Zone extensions. They identified alteration and mineralization composed of 3-7%

pyrite occurring as disseminations and stringers with local sphalerite.

• Hole HW-18-08 is marked by high silver content from 708.8 to720.0 metres: 132.2 g/t Ag and 1.07% Zn over 11.2

metres within a felsic lapilli to blocky tuff.

• Hole HW-18-10 intersected the mineralized package from 622.0 to 822.0 metres. The mineralization is composed of 3-

7% pyrite in stringers, disseminations and clusters, 1-3% sphalerite and traces of chalcopyrite. A weak background of

0.1 g/t Au is generally associated with the interval with local enrichment such as in 634.7-654.9 metres: 0.42 g/t Au

and 0.94% Zn over 20.2 metres and from 667.0-674.5 metres: 0.99 g/t Au over 7.5 metres.

The holes confirmed the Horne West mineralized zone remains open laterally and vertically.

Additionally, two holes were drilled to test the mineralized package towards Horne 5, where mineralization was identified

during 2016 drilling program. Hole HW-18-09 intersected a silicified and mineralized unit, containing 2-5% pyrite at the target

horizon over 8 metres from 964 to 972 metres. Assays from hole HW-18-09 are pending.

QUEMONT DONALDA DRILLING:

Four holes, QT-18-01, 02, 03 and 04, drilled between Quemont and Donalda, successfully intersected the Quemont felsic

package with local intervals being more altered and mineralized. Only 10% of the assay results were received to date, but an

interesting intersection in hole QT-18-03 consisted of massive to brecciated rhyolite containing 2-5% stringers of chalcopyrite

and a local massive to semi-massive sulfide band. Preliminary assay result returned 0.72 g/t Au, 1.72% Cu, 0.41 g/t Ag, over

1.8 metres from 1,315-1,316.8 metres.

DONALDA QUARTZ VEIN SYSTEM DRILLING:

In addition to the VMS targets, the Company tested the Donalda quartz vein system. Quartz veins with visible gold and 1-5%

pyrite were intersected during the campaign.

A large open area of over 600 metres remains untested between the known Donalda veins and the recent intercepts (see figure

3). This highly prospective area will require follow-up drilling work.

• Hole QT-18-03 intersected two gold quartz veins with significant values.

◦ The first vein, from 861.2 to 862.8 metres, graded 13.62 g/t Au and 28.20 g/t Ag over 0.8 metres (0.35 metres

estimated true width).

◦ The second vein was intersected from 976.4 to 977.9 metres and graded 26.77 g/t Au over 1.5 metres

(0.5 metres estimated true width).

◦ The second vein is part of a wider interval returning 4.25 g/t Au over 15.5 metres (7.7 metres estimated true

width) in the extension of the Donalda quartz vein #2.

LAC CLERICY DRILLING:

Other results coming from the 2018 Lac Cléricy drilling program were received. The results confirmed the gold association with

a shear zone. Drilling defined a near surface (under 200 metres vertical depth) low grade zone composed of multiple gold

bearing quartz veins (refer to June 18, 2018 Press release). The zone is open laterally and at depth.

GEOPHYSICAL SURVEY WORK PROGRAM:

Our 2018 exploration program includes deep geophysical surveys, using innovative surface, airborne and borehole techniques.

More than 200km of surface geophysics (Ore-Vision, gradient IP, OMNI InfiniTEM XL and Deep-Vision) surveys and more than

1,000km of MAG/VLF/AFMAG airborne surveys were performed on different properties. GraviLog and/or RIM (Radio Imaging

Method) surveys were done in the recent holes on Quemont and Horne West properties. Results of the IP surveys showed

numerous anomalies which are currently being field investigated. The interpretation of the in-hole surveys are in progress, and

preliminary results confirm the persistence of certain structures and mineralisation between holes surveyed.

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 drill core.

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

24 samples. In the mineralized zones, every shipment is composed of 21 rock samples, one standard, one blank and a pulp

duplicate to test the laboratory analysis methods and precision for each shipment of samples. Blanks and standards are

inserted within the normal sample number sequence, while the duplicate is asked at the end of a batch. 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. In non-mineralized zones, every shipment is composed of 24 samples, which

includes a standard and a blank. If anomalies are detected, the laboratory is advised, but the batch of samples is not

necessarily re-assayed.

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 rcepresents

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 & 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 drilling program

on the Horne 5 property and the regional exploration 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/e4ae006b-565e-4581-8afc-84d69015ba11

http://www.globenewswire.com/NewsRoom/AttachmentNg/2212d9f8-84c7-43a8-9fdc-41bbef1235bd

http://www.globenewswire.com/NewsRoom/AttachmentNg/445ad1e2-f25a-4c1a-b63f-39278ae780ce