Mr. Luc Lessard reports

KPMG STUDY FINDS FALCO'S HORNE 5 PROJECT IS PROJECTED TO CONTRIBUTE $8.8-BILLION TO QUÉBEC GDP

Falco Resources Ltd. released the results of a third party socioeconomic impact study conducted by KPMG LLP for the corporation's Horne 5 project located in Rouyn-Noranda, Que., Canada. The report outlines the significant economic and labour opportunities of the Horne 5 project, based on the project's updated feasibility study report filed on July 27, 2026, under the corporation's profile on SEDAR+\.

The report confirms that over the project's anticipated lifespan, its direct and indirect contribution to gross domestic product (GDP) within the Quebec economy at the provincial level is currently estimated at $8.8-billion. The complete report is available on the corporation's website (in French only).

Luc Lessard, Falco's president and chief executive officer, stated: "KPMG's analysis demonstrates the scale of Horne 5's potential economic contribution to Quebec, and particularly Abitibi-Temiscamingue. With an estimated $8.8-billion contribution to the Quebec GDP, more than 22,800 direct and indirect jobs in person-years and approximately $5.1-billion in municipal, provincial and federal tax revenues over the project's life, Horne 5 has the potential to generate substantial and lasting economic benefits. Importantly, KPMG estimates that 82 per cent of the value added generated in Quebec would accrue to Abitibi-Temiscamingue, reinforcing the project's significance to the region."

Key highlights from KPMG's report (figures and timelines are estimates)

KPMG's analysis considers approximately $12.1-billion of project expenditures over 15 years, including preproduction investments, recurring operating costs, and site maintenance and reclamation expenses.

Economic impact of the Horne 5 project

Preproduction and construction phase (four years)

• Provincial impact (Quebec): $914.4-million in GDP (gross domestic product) ($228.6-million per year), 4,318 jobs in person-years and $59.4-million in provincial tax revenue;
• Regional impact (Abitibi-Temiscamingue): $644.6-million in GDP ($161.1-million per year), 2,075 jobs in person-years and $3.5-million in local tax revenue;
• $32.7-million in federal tax revenue.

Operational and closure phases (15 years)

• Provincial impact: $7.9-billion in GDP ($524.5-million per year), 18,485 jobs in person-years and $3.5-billion in provincial tax revenue ($233.6-million per year);
• Regional impact: $6.5-billion in GDP ($435.8-million per year), 11,808 jobs in person-years and $37.5-million in local tax revenue;
• $1.4-billion in federal tax revenue ($95.6-million per year).

Over all, 82 per cent of the direct and indirect added value generated by the project is expected to accrue to the Abitibi-Temiscamingue region, which is expected to retain 61 per cent of the jobs supported by the project.

Additional highlights from KPMG's report

• Work force development: The Horne 5 project will support work force training and skills development, with a focus on trades and technical roles.
• Local community: Significant employment and business opportunities, in addition to infrastructure improvements.
• Environmental sustainability: Falco is committed to minimizing the project's environmental footprint through the use of modern technologies, responsible water and tailings management, and the reuse of existing mining infrastructure wherever practicable.
• Supply chain and export potential: The project will strengthen provincial supply chain for critical minerals.
• Government alignment: The project supports Quebec and Canada's strategic priorities for critical minerals and responsible resource development, while contributing to domestic mineral supply and long-term economic growth.

About Falco Resources Ltd.

Falco is one of the largest mineral claim holders in the province of Quebec, with an extensive portfolio of properties in the Abitibi-Temiscamingue greenstone belt. Falco holds rights to approximately 60,000 hectares of land in the Noranda camp, which includes 13 former gold and base metal mine sites. Falco's main 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 Gold Group Inc. is Falco's largest shareholder, with a 16.0-per-cent interest in the corporation.

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