Falco Resources Ltd. (TSX-V:FPC) is pleased to announce that it has closed with Investissement Québec acting as agent for the Government of Québec, the final tranche of its private placement of units, for a total financing of $17,280,000. This last tranche of $5,000,000 is being subscribed to on the same terms and conditions as those entered into by the other investors in August 2021. Pursuant to the terms of this last tranche, Falco has issued an aggregate of 12,500,000 units at a price of $0.40 per unit for gross proceeds of $5,000,000.

Each unit consists of one common share of the Company and one-half of one common share purchase warrant. Each Warrant is exercisable to acquire one Common Share until July 31, 2025, at an exercise price of $0.55. The expiry date of the Warrants may be accelerated by the Company at any time following the six-month anniversary of the closing date if the volume-weighted average trading price of the Common Shares on the TSX Venture Exchange is greater than $0.80 for any 10 consecutive trading days. The Company may then accelerate the expiry date by issuing a press release announcing the reduced warrant term, which will expire on the 30^th calendar day after the date of such press release.

The net proceeds from the Offering will be used for engineering work, the preparation of technical and environmental studies relating to the Horne 5 Project and for general business purposes. This critical work, as well as the required authorizations currently being sought, represent the final steps required prior to commencing the construction of the Horne 5 Project.

All Common Shares and Warrants issued pursuant to the Offering are subject to a four-month hold period under applicable securities laws in Canada.

Luc Lessard, President and Chief Executive Officer of Falco, stated that “we are delighted to conclude this last tranche, which brings the financing to a total of $17,280,000, and which will allow us to continue our operations in preparation for the next fundamental steps in the development of our project. We are grateful for our shareholders’ strong participation in this offering.”

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements thereunder.

About Falco Resources Ltd.

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 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 an 18.1% interest in the Company.