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Falco Sets the Stage FOR a Pivotal 2026 as the Horne 5 Project Advances Toward Government Decree

Corporate Updates

For Immediate Release TSX.V - FPC

FALCO SETS THE STAGE FOR A PIVOTAL 2026 AS THE HORNE 5 PROJECT

ADVANCES TOWARD GOVERNMENT DECREE

MONTRÉAL, QUÉBEC - January 21, 2026 – Falco Resources Ltd. (TSX.V: FPC) (“Falco”

or the “Corporation”) is pleased to provide shareholders with an outlook for 2026 as the

Corporation advances its flagship Horne 5 Project located in Rouyn- Noranda, Québec

(the “Horne 5 Project” or “Project”) through the final stages of project environmental acceptability

and towards the receipt of the Québec ministerial decree.

“The Horne 5 Project is one of the most advanced undeveloped polymetallic projects in Canada,

and our focus in 2026 is execution,” said Luc Lessard, President and Chief Executive Officer of

Falco. “With permitting advancing and a feasibility study update underway, we are working to

position the Project for its next stage while ensuring the market fully understands its scale, quality,

and value.”

The Horne 5 Project is a large, gold -led underground polymetallic deposit located in Qué bec’s

historic Noranda mining camp. In addition to strong community support, the Project benefits from

advanced project acceptability and permitting progression, existing regional infrastructure, and a

development plan outlining a long-life, low-cost operation supported by meaningful critical mineral

(copper and zinc) contributions. The Environmental Impact Assessment has been deemed

admissible, public hearings have been completed, and the Project continues to progress towards

the Québec ministerial decree.

As part of its 2026 plan, Falco is updating its 2021 Feasibility Study to reflect current metal prices,

updated cost assumptions, and refined development planning. This updated study is expected to

support strategic engagement and future financing discussions as the Project moves closer to

execution readiness.

“Our fundamentals are strong, and 2026 is about aligning execution with clear, consistent

communication,” continued Mr. Lessard. “ We believe this approach will help close the valuation

gap and position Falco as a leading, construction- ready polymetallic development story in

Canada.”

2026 priorities include:

• Advancing the Horne 5 Project toward receipt of the Québec ministerial decree

• Completing the feasibility study update

• Continuing disciplined technical and permitting work

• Expanding institutional and analyst engagement

• Advancing community consultation initiatives

• Maintaining transparent communication with shareholders

Qualified Person

Mr. Luc Lessard, P.Eng., President & CEO, is the qualified person for this release as defined by

National Instrument 43-101 and has reviewed and verified the technical information contained in

this news release.

Stock Option Grant

In parallel, Falco has engaged Achievers' Unlimited Inc. ( “Achievers”) to provide certain

management services to Falco, including corporate development , marketing and strategic

advisory services. As part of this engagement, the Corporation’s Board of Directors approved the

grant of incentive stock options (the “ Options”) to Achievers to purchase up to an aggregate of

400,000 common shares of the Corporation (“ Common Shares”). The Options are subject to a

twelve-month vesting period and have a five -year term. The Options are exercisable at an

exercise price of $0.495 per Common Share being the closing price of the Common Shares on

the TSX Venture Exchange on January 20, 2026.

About Falco

Falco Resources Ltd. is a Canadian mining company advancing the Horne 5 Project in Québec’s

historic Noranda mining camp. This project is one of the most advanced undeveloped polymetallic

assets in Canada, supported by established infrastructure, robust economics, and a proven

technical and executive team.

For further information, please contact:

Anthony Glavac

Chief Financial Officer

[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 Statement on Forward-Looking Information

This news release contains forward -looking statements and forward- looking information

(together, “forward looking statements”) within the meaning of applicable Canadian securities

laws. Statements, other than statements of historical facts, and including statements relating to

the expected timing for the update of the 2021 Feasibility Study and the receipt of the ministerial

decree for the Project and future milestones, may be 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 suc h words, or statements that

certain actions, events or results “may”, “could”, “would”, “might”, “will be taken”, “occur” or “be

achieved”, the negative of these terms and similar terminology although not all forward- looking

statements contain these terms and phrases. Forward- looking statements involve known and

unknown risks, uncertainties and other factors which may cause the actual results, performance,

prospects and opportunities to differ materially from those expressed or implied by such forward-

looking statements. These risks and uncertainties include, but are not limited to, the risk that the

conditions precedent to the ability to conduct dewatering or mining activities under the operating

license and indemnity agreement (the “OLIA”) between Falco and Glencore Canada Corporation

(“Glencore”) may not be satisfied; the risk that Falco may not obtain the required financial

assurances to be provided to Glencore, or the financing required to develop or operate the Horne

5 Project; the risk that the required permits and authorizations required fr om governmental

authorities to develop and operate the Horne 5 Project may not be obtained on the terms

contemplated or at all; the risk that the OLIA may be terminated in accordance with its terms in

the event of default or certain other triggers relating to delays in the commencement of dewatering

or mining activities; the risk that, once commenced, certain operations of the Horne 5 Project may

have to be suspended, altered or modified pursuant to the conditions of the OLIA; the risk that

Glencore may require modifications to Falco’s operations at the Horne 5 Project pursuant to the

OLIA which would render the operations less profitable or not profitable (compared to

expectations included in the 2021 Feasibility Study and any updated versions thereof for the

Horne 5 Project); the risk that Falco may incur significant losses and other obligations under its

indemnities in favour of Glencore contemplated in the OLIA; and the risk factors set out in Falco’s

annual and/or quarterly management discussion and analysis and in other of its public disclosure

documents filed on SEDAR+ at www.sedarplus.ca, as well as all assumptions regarding the

foregoing. 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 press release, and no assurance can be given

that such events will occur in the disclosed time frames or at all. Except as required by applicable

law, Falco disclaims any intention or obligation to update or revise any forward- looking

statements, whether as a result of new information, future events or otherwise.