Mr. Luc Lessard reports

FALCO ANNOUNCES CLOSING OF BROKERED PRIVATE PLACEMENT

Falco Resources Ltd. has closed its previously announced best efforts brokered private placement with Cantor Fitzgerald Canada Corp., acting as sole agent and sole bookrunner. Pursuant to the offering, Falco has issued an aggregate of 24 million units of the corporation at a price of 25 cents per unit, for aggregate gross proceeds of $6-million.

Each unit consists of one common share of the corporation and one common share purchase warrant. Each warrant is exercisable to acquire one common share at a price of 35 cents at any time on or before that date which is 60 months after the closing date of the offering.

The corporation intends to use the net proceeds from the sale of units for the advancement of the Horne 5 project and for working capital and general corporate purposes.

In connection with the closing of the offering, the corporation paid the agent a cash commission totalling $324,000 and has issued the agent 1,152,000 non-transferrable compensation warrants. Each broker warrant entitles the agent to purchase one common share of the corporation at an exercise price of 25 cents per broker warrant at any time for a term of 24 months following the date of issuance.

All common shares and warrants issued pursuant to the offering are subject to a hold period of four months plus one day from the date of issuance of such securities under applicable securities laws in Canada.

A related party of the corporation subscribed for 1.79 million units under the offering. A transaction with a related party of the corporation constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). The corporation is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to Section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to Section 5.7(1)(a) in respect of such related party participation as the fair market value of the transaction, insofar as it involves interested parties, does not exceed 25 per cent of the corporation's market capitalization. The corporation did not file a material change report 21 days prior to closing of the offering, as the related party's participation had not been confirmed at that time and the company wished to close the transaction as soon as practicable for sound business reasons.

About Falco Resources Ltd.

Falco Resources 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 67,000 hectares of land in the Noranda mining camp, which represents 67 per cent of the entire camp and includes 13 former gold and base metal mine sites. Falco's principal asset is the Horne 5 project, located under 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 Development Corp. is Falco's largest shareholder owning a 16.7-per-cent interest in the corporation.

We seek Safe Harbor.