Montreal - Falco Resources Ltd. (FPC: TSX-V) ('Falco' or the 'Corporation') is pleased to announce the results of the updated feasibility study, prepared in accordance with National Instrument 43-101 Respecting Standards of Disclosure for Mineral Projects for the Corporation's Horne 5 Gold Project located in Rouyn-Noranda, Quebec, Canada.

The UFS was updated to reflect the improved commodity prices, the silver stream financing arrangement with Osisko Gold Royalties Ltd. and the copper and zinc concentrate offtake agreements with Glencore Canada Corporation and its affiliated companies ('Glencore'). The capital and operating costs were reviewed to reflect current market conditions for labour, supplies and services.

UPDATED FEASIBILITY STUDY CONFIRMS SIGNIFICANT VALUE OF THE HORNE 5 PROJECT

The UFS reiterates that the Horne 5 Project represents a robust, high margin, 15-year underground mining project with attractive economics in the current gold price environment. At a gold price of $1,600 per ounce and using an exchange rate of C$1.28 = US$1.00, the UFS shows that the Horne 5 Project would generate an after-tax net present value ('NPV'), at a 5% discount rate, of $761 million and an after-tax internal rate of return ('IRR') of 18.9%. In this scenario, the mine could become the next significant gold producer in Quebec, with a production profile averaging 220,300 payable ounces annually over life of mine ('LOM'), with an average all-in sustaining costs ('AISC') of $587 per ounce, net of by-product credits.

Luc Lessard, President and Chief Executive Officer, noted: 'The Horne 5 Project demonstrates robust returns from average annual gold production of 220,300 ounces over a 15-year mine life. The significant copper and zinc by-product credits from the copper and zinc production, as well as the highly automated modern operations result in a low projected all-in sustaining cost of $587 per ounce. The Project benefits from strong existing infrastructure in the world-class Rouyn-Noranda mining area. We expect that the Horne 5 Project will deliver strong cashflows and outstanding benefits to all of its stakeholders with anticipated production in the second half of 2025.'

About Falco

Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Quebec, with extensive land holdings in the Abitibi Greenstone Belt. Falco owns approximately 70,000 hectares of land in the Rouyn-Noranda mining camp, which represents 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 (now Glencore Canada Corporation) from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Osisko Gold Royalties Ltd's subsidiary, Osisko Development Corp. is Falco's largest shareholder owning 18.2% interest.

Contact:

Luc Lessard

Tel: 514-261-3336

Email: info@falcores.com

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable securities laws ('forward-looking statements'). Forward-looking statements are typically identified by words such as: 'believe', 'envisions', 'estimates', 'assumes', 'evaluates', 'inferred', 'probability', 'planned', 'projected', 'ensure' 'anticipates', 'contemplated', 'expected', 'anticipate' and similar expressions, or that events or conditions 'would', 'will', 'can', or may' occur. All statements that are not statements of historical fact are forward-looking statements.

Forward-looking statements in this press release include, without limitation, statements regarding the projections and assumptions of the Updated Feasibility Study, including, without limitation: NPV; IRR; CAPEX; OPEX; estimated cash costs and estimated AISC; mine life; payback period; LOM post-tax net cash flow; gross revenues; margins; exchange rates; inflation; recoveries; grades; processing rates; potential production from the Horne 5 Property as envisioned by the mine plan; economic assumptions and sensitivities and other operational and economic projections with respect to the Horne 5 Project as well as maintaining social acceptability for the Horne 5 Project and the timely obtaining, as the case may be, by Falco of all required licenses, rights of way and surface rights from third parties owner of infrastructures or rights necessary to perform the activities contemplated in this press release on terms and conditions acceptable to the Corporation. Mineral resource and mineral reserves estimates are also forward-looking statements because use such estimates involve estimates of mineralization that may be encountered in the future if a production decision is made, as well as estimates of future costs and values.

Although the Corporation believes the forward-looking statements in this press release are reasonable, it can give no assurance that the expectations and assumptions in such statements will prove to be correct. Consequently, the Corporation cautions investors that any forward-looking statements by the Corporation are not guarantees of future results or performance and that actual results may differ materially from those in forward-looking statements.

The forward-looking statements contained herein is subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: the effects of general economic conditions; changing foreign exchange rates; risks associated with exploration and project development; the calculation of mineral resources and reserves; risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work arising from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Corporation's properties; risk of accidents, equipment breakdowns and labour disputes; access to project funding or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; title matters; government regulation; obtaining and receiving necessary licenses; the risk of environmental contamination or damage resulting from Falco's operations and other risks and uncertainties including those described in the Corporation's Annual Information Form dated February 16, 2021, MD&A and Financial Statements for the three-month and six-month period dated December 31, 2020, dated February 25, 2021 available at www.sedar.com.

The forward-looking statements contained in this news release are based on the beliefs, estimates and opinions of Falco's management on the date the statements are made. Although Falco has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation is under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.

(C) 2021 Electronic News Publishing, source ENP Newswire