Mr. Luc Lessard reports

HORNE 5 PROJECT UPDATE

Since its March 3, 2025, press release, Falco Resources Ltd. has received complementary correspondence from the Direction de l'evaluation environnementale des projets industriels et minieres, at the Ministere de l'Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs, which aims to clarify the ministry's position regarding the continuing process regarding the Horne 5 project.

The complementary correspondence confirms, among other things, that the list of comments and questions previously received and discussed in the March 3, 2025, press release is part of the standard process and that, at this stage of the process, as with any other project, no conclusions can be drawn, whether regarding the acceptability or otherwise of the project or the recommendation that may subsequently be made to the minister.

The ministry's position regarding its interpretation of Section 197 of the Clean Air Regulations (CAR) was not reiterated in the complementary correspondence. The complementary correspondence specifies that only the responses that the corporation is invited to provide to the ministry will allow the analysis to continue in accordance with the usual process. The corporation understands that the ministry's position regarding its interpretation of Section 197 of the CAR remains under review. The corporation submitted responses to the additional questions, along with an explanatory letter to the ministry on March 21, 2025.

Luc Lessard, president and chief executive officer of Falco, commented, "Falco continues its discussions with representatives of the ministry with the aim of obtaining the necessary authorizations to continue the project."

Furthermore, the results of the recently conducted independent survey show that the corporation enjoys strong majority support in Rouyn-Noranda, where 72 per cent of respondents are in favour of the Horne 5 project, as well as in Abitibi-Temiscamingue, where support reaches 74 per cent. These results demonstrate significant public support for the project. For more information about the survey, refer to the corporation's press release dated March 18, 2025.

The corporation reiterates that there is no certainty or guarantee that Falco will be able to raise the necessary funds to pursue the project or that the project will obtain the required government authorizations.

About Falco Resources Ltd.

Falco Resources is one of the largest holders of mining titles in the province of Quebec, with a large portfolio of properties in the Abitibi greenstone belt. Falco holds rights to approximately 67,000 hectares of land in the Noranda mining camp, representing 67 per cent of the entire camp and including 13 former gold and base metals mining sites. Falco's principal asset is the Horne 5 project located beneath the former Horne mine, which 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 with a 16.0-per-cent interest in the corporation.

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