20.1 falco presentation may 2017

THE NEXT GREAT UNDERGROUND MINE IN CANADACorporate Presentation

ROADSHOW - MAY 2017

WWW.FALCORES.COM | FPC:TSXV

Disclaimer

This presentation contains a review of the Company’s properties in Canada. Viewers are cautioned that the projects are at an early stage of exploration and that estimates and projectionscontained herein are based on limited and incomplete data. More work is required before the mineralization on the projects and their economic aspects can be confidentaly modeled.Therefore, the work results and estimates herein may be considered to be generally indicative only of the nature and quality of the projects. No representation or prediction is intended as tothe results of future work, nor can there be any promise that the estimates herein will be confirmed by future exploration or analysis, or that the projects will otherwise prove to beeconomic.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this presentation, which has been prepared by management. There can beno assurance that any of the assumptions in the resource estimates will be supported by a Pre-feasibility or Feasibility Study or that any forward looking event will come to pass. The data isincomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment.

Past performance is no guarantee of future performance and all investors are urged to consult their investment professionals before making an investment decision. Investors are furthercautioned that past performance is no guarantee of future performance

Forward-Looking Statements

Certain information included in this presentation constitutes forward-looking statements, including any information as to our projects, plans and future performance. All statements, otherthan statements of historical fact, are forward-looking statements. The words “expect”, “believe”, “anticipate”, “will”, “intend”, “estimate”, “forecast”, “budget”, “schedule” and similarexpressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable bymanagement, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differmaterially from those projected in the forward-looking statements.

Such factors include, but are not limited to: changes to current estimates of mineral resources; labour availability; litigation; availability of and increased costs associated with contractorsand exploration equipment; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits; contests over title to properties;uncertainty with the Company’s ability to secure capital to execute its business plans; changes in national and local government legislation in Canada; risk of loss due to sabotage and civildisturbances; risks arising from holding derivative instruments; and business opportunities that may be pursued by the Company. Many of these uncertainties and contingencies can affectour actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautionedthat forward-looking statements are not guarantees of future performance.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except asrequired by applicable law.

Cautionary Note to U.S Investors Concerning Measured, Indicated and Inferred Resources

This presentation uses the terms “measured,” “indicated” and “inferred resources. We advise investors that while those terms are recognized and required by Canadian regulations, theUnited States Securities and Exchange commission does not recognize them. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or othereconomic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. UnitedStates investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

CAUTIONARY STATEMENT

TSXV: FPC | WWW.FALCORES.COM | 3

TSXV:FPC

C$180MMARKET CAP

~C$35.0M CASH & CASH EQUIVALENTS

7.1 Moz AuEq M&ITOTAL RESOURCES

1.7 Moz AuEq InferredTOTAL RESOURCES

236,000 GOLD OZESTIMATED AVERAGE GOLD ANNUAL PRODUCTION

US$427 PER GOLD OZALL-IN SUSTAINING COST

US$680MDEVELOPMENT CAPITAL EXPENDITURE

17 YEARS INITIAL MINE LIFE


FALCO RESOURCES –EXPERIENCED SENIOR LEADERSHIP TEAM

OFFICERS & TECHNICAL TEAM BOARD OF DIRECTORS

Sean Roosen, Chairman

Mario Caron, Lead Director

Luc Lessard, President & CEO, Director

Bryan Coates, Director

Paola Farnesi, Director

Claude Ferron, Director

Paul Henri-Girard, Director

Luc Lessard, President & CEO, Director

Vincent Metcalfe, CFO

Claude Léveillée, Vice-President Community Relations & HR

Claude Bernier, Exploration Manager

Sylvain Doire, Environment

Claude Pilote, Senior Geologist

TECHNICAL TEAM

Helene Cartier, VP – Environment

Francois Vezina, VP – Mining

Christian Laroche, VP – Processing

John-Paul McGrath – Project Manager

Daniel Mathieu – Mechanical Designer

Iain Farmer – Project Engineer


FALCO RESOURCES – CAPITAL SUMMARY & SHAREHOLDER REGISTRY

CAPITAL STRUCTURE (AS OF MAY 5, 2017)

SHAREHOLDER REGISTRY

Osisko Gold Royalties 13.2%

Tocqueville 8.9%

Investissement Quebec 6.0%

Raymond James 3.0%

Other Quebec Funds 2.8%

Pate Capital 2.4%

Commodity Discovery Fund 1.0%

Insiders (D&O) 4.0%

Shares Outstanding (basic) 157,260,152

Stock Options 8,056,798

Warrants 17,138,216

Shares Outstanding (fully diluted) 181,971,420

Share Price C$1.29

Market Capitalization C$180.2

Cash Position ~C$35 Million

Source: Factset, Bloomberg, public filings and Company estimates


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$112

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$55 $54 $48 $45 $39 $37 $31 $25 $20 $12 $12 $9

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COMPARABLES – PRE-PRODUCTION > 5 M OZS & CAPEX BELOW $1BN

EV / RESOURCES (US$/OZ AU EQ.)

ALL-IN SUSTAINING CASH COST (US$/OZ AU)

$427 $446$524

$750 $752

$492$583 $605 $616 $620 $623 $634 $674 $690

$779$855 $860

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IN PRODUCTION OR ACQUIRED

1. Acquisition MultipleSource: Company websites, filings from SEDAR and Factset


17

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2018 17 17

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LIFE OF MINE (YEARS)

COMPARABLES – PRE-PRODUCTION > 5 M OZS & CAPEX BELOW $1BN

4.4x

11.8x

5.5x 5.5x

2.6x

6.6x 6.1x 5.6x4.4x 4.1x 3.8x 3.6x 3.5x 3.3x 2.9x 2.6x

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LIFE OF MINE / PAYBACK (RATIO)

1. Payback period not disclosed.Source: Company websites, filings from SEDAR and Factset

IN PRODUCTION OR ACQUIRED

M&IONLY


DOMINANT POSITION IN THE ESTABLISHED ROUYN-NORANDA CAMP

HIGHLY PROSPECTIVE LAND IN A TOP JURISDICTION

13 former mines on 668 km2 of Falco properties

Over 80 years of data archives

Great land package with several high potential green and brown field prospects


ROUYN-NORANDA – THE BEST PLACE TO BUILD A MINE

TIER 1 LABOUR POOL

TIER 1 SUPPLIERS

TIER 1 POWER

RAIL & HIGHWAY

CLEAR PERMITTING

NO CAMP

NO WAREHOUSE

NO SEASONALITY

• Rouyn-Noranda and the region of Abitibi produce the most experienced miners in the world. With underground and open pit experience & capabilities

• Access to tier 1 mining equipment suppliers & mining contractors in the world• ~80% of required suppliers & contractors located within 1 hour from project

• Access to one of the most affordable and reliable power source in the world • Hydro power – clean & renewable

• Rail: Reception of equipment, reagents, but also shipment for concentrates• Highway access: Regional suppliers, miners, etc.

• Québec Government: a strong supporter of the mining industry• Clear permitting process & BAPE process for operations over 2,000 tpd

• Proximity to the town of Rouyn-Noranda eliminates the need for a camp• Access to better & experienced miners; better work-life balance & conditions

• Proximity to the town of Rouyn-Noranda eliminates the need for a warehouse• Access to suppliers warehouse; reduced size of required working capital

• Weather conditions allow to build and produce all-year round

CANADIAN DOLLAR• Majority of costs associated with project build in Canadian dollars• In underground operations >75% of operating costs are in local currency


HIGH GRADE ZONES

HORNE 5 PROJECT| LONG & CROSS SECTIONS OF THE DEPOSIT

MINERAL ENVELOPS


HORNE 5 PROJECT| THE NEW PROJECT – THE NEW VISION

A state-of-the-art UNDERGROUND MINING project

MAXIMIZE USE OF EXISTING INFRASTRUCTURE

Bulk tonnage operation

Highly efficient mining methods

15,000 tonnes per day mill

Limited footprint on surface with use of historical voids and stopes for waste and tailings disposal

236,000 ounces of avg. annual GOLD production

US$427 per ounce all-in cash cost

Development Capital Investments of US$680 million

525 full-time jobs during operation : >16 years

800 jobs during 18-24 construction period

NEW MINE: HORNE 5 PROJECT

16 M AuEq Oz

Produced

7.1 M AuEq Oz

M&I

1.7 M AuEq Oz Inferred


Surface control underground operations:• Hoist – production and services• Teleoperation of loaders• Monitoring and management of

ventilation requirements• Monitoring of the paste backfill

distribution • Water pumping monitoring• Staff & equipment location monitoring

HORNE 5 PROJECT| HIGH LEVEL OF AUTOMATION


HORNE 5 PROJECT| HIGH LEVEL OF AUTOMATION

Bucket capacity of 21t (equivalent loading bucket size to 100t trucks used in open pits)

Scoop fleet operated from the surface by 2 technicians (4 scoops)

High capacity production mining equipment

Scoop tram: 21 metric tonnes

Haulage truck: 63 metric tonnes

Conveyor system from Horne 5 to Quemont shaft

Allow to operate between working shifts (20h/day vs 14h/day for a conventional mine)


HORNE 5 PROJECT| MINING APPROACH FOR FEASIBILITY >17 YEARS OF LIFE

EXISTING SHAFT


Project Potash CorpUkraine KJRK

Phase 1Ukraine KJRK

Phase 2Horne 5Phase 1

Horne 5Phase 2

Depth (m) 1,200 1,340 1,800 1,200 1,800

Speed (m/s) 18-20 19 19 18 18

OperatingHours

19-20 22 22 19 19

Skip capacity(t)

40-65 50 50 43 39.4

Productivity(tpd)

25,000-30,000 22,050 17,640 23,200 16,550

HORNE 5 PROJECT| HOISTING COMPARABLES


HORNE 5 PROJECT| HOIST 43T SKIP – Similar to Horne 5 Sizing


HORNE 5 PROJECT| MINING METHOD & PROCESSING

Bulk Tonnage & Transverse Long Hole

Stope size 38m X 25m X 20m (~65,000 t per stope)

Primary – secondary stope mining sequencing

Production drilling in ore at 6.5 inches

Stope paste backfill to ensure stability

PROCESS PLANT

Mill throughput of 15,000 tpd

SAG-Ball mill as primary comminution circuit (55 microns)

Three selective flotation circuits (copper, zinc, pyrite)

Fine regrind circuit of pyrite concentrate as secondary comminution circuit (15 microns)

Leaching/CIP of the two pyrite flotation circuit streams

Precious metal stripping circuit (elution and refining)

Cyanide destruction circuit (Carot Acid < 10ppm)


HORNE 5 PROJECT| PROPOSED FLOWSHEET

67%8%

15%

10%

NSR REVENUE SPLIT (from PEA)

Gold Silver Zinc Copper

Note: Commodity Price Assumptions in US$ - $1,250/oz Au, $17.00/oz AG, $2.85/lb CU, $1.00/lb ZN

PROCESS PLANT PRODUCTS

Copper concentrate (+/- 140 tpd)

Zinc concentrate (+/- 240 tpd)

Ag-Au ingot


HORNE 5 PROJECT| DEVELOPMENT CAPITAL EXPENDITURES US$680M

$186

$265

$16

$74

$14

$82

$45

Mining

Processing Plant

Electrical and Communication

Site Infrastructure

Tailings and Water Management

Indirects

Contingency

TOTAL PRE-PRODUCTION

CAPITAL COSTS US$680M

Note: Amounts may vary due to rounding.

*FROM PEA


HORNE 5 PROJECT| FEASIBILITY ADVANCING – SURFACE


PROCESSING | SAG & Ball Mill with Cyclone Cluster


PROCESSING | Overall Flotation Tank


PROCESSING | Regrind Mill


PROCESSING | Carbon in Pulp


PROJECT SCHEDULE – On the Road to Feasibility & Development

ACTIVITIES START COMPLETION

PEA COMPLETED

Feasibility Study Q2 2016 Q3 2017

Environmental Impact assessment Q2 2016 Q4 2017

Dewatering (Phase 1) Q4 2017 Q2 2019

Detailed engineering Q3 2017 Q4 2018

Head frame and hoist construction (Exploration Phase) Q4 2017 Q3 2018

Public audiences – “BAPE” Q4 2017 Q1 2019

Permits for project construction Q2 2019

Processing plant construction Q2 2019

First mineralized ore in mine Q1 2021

Full Mine ramp up (Phase 1) H1 2021

End of process plant construction / plant commissioning H1 2021

Process plant ramp up H2 2021


FALCO RESOURCES – 2017 EXPLORATION PROGRAM – REGIONAL

RIMO

Lac

Laynes

Routhier

NORALEX

Dufresnor

Baie

D’Alembert

Four Corners -

Beauchastel Gold

Viau -

Lac Hervé

Horne 5 Project

Flavrian


NORALEX –Young Buck Longitudinal - looking NE

Open


FLAVRIAN – Duprat Syenite

Similar Magnetic signature to Upper Beaver ?

Similar context as Queenston’s Upper Beaver syenite;

1.2 km in diameter, 1 existing drill hole;

Two anomalous gold values on the contacts of the syenite;

Largely unexplored


CENTRAL CAMP – West Ansil – 1.7 KM of Ansil

Inmont

New Insco

Bouchard-Hebert

Horne

Ansil

Gallen

Aldermac

CorbetMillenbach

0 5 km

Montbray

Norbec

Delbridge

Amulet A-CWaite

DEPOSIT Mt %Cu %Zn Opt Au

Horne (H-G-E) 54.0 2.20 0.18

Quemont 15.0 1.22 1.90 0.12

Bouchard-Hebert lens 1100 10.2 0.72 5.39 0.04

Amulet Lower A 5.2 5.10 5.20 0.04

Norbec 4.3 2.77 4.70 0.02

Millenbach 3.5 3.50 4.50 0.03

Gallen 3.3 0.07 4.77 0.02

Corbet 2.7 2.90 2.00 0.03

East Waite 1.7 4.10 3.25 0.05

Ansil 1.4 7.18 0.80 0.06

Old Waite 1.2 4.70 2.98 0.03

New Insco (Not mined) 1.2 2.11 0.03

Delbridge 0.4 0.55 8.60 0.07


CENTRAL CAMP – West Ansil Massive Sulphide Zones

Category (NI 43-101) Tons (MT) Cu % Zn % Au g/t Ag g/t

Indicated Resource: 0.53 3.4 0.4 1.4 9.2

Inferred Resource: 0.60 3.3 0.2 0.3 5.9

AN-05-04 – 3.57% Cu over 52.7 m


Head Office

Falco Resources Ltd.

1100, avenue des

Canadiens-de-Montréal

Bureau 300

Montréal, QC H3B 2S2

Tél. : +1.514.905.3162

Toll Free : +1.888.915.2009

Courriel : [email protected]

Investor Inquiries

Vincent Metcalfe, CFO

Tel: +1.514.905.3162

Email: [email protected]

CONTACT US


APPENDIXAppendix A – PEA Additional InformationAppendix B – Resource & Modeling NotesAppendix C – Research Coverage


Appendix A - HORNE 5 PROJECT LOCATED NORTH OF THE CITY OF ROUYN-NORANDA

HORNE 5 PROJECT LOCATED IN AN INDUSTRIAL PARK

City of Rouyn-Noranda

Smelter

Horne Mine

Quemont Shaft

Falco Surface Rights

Industrial Park

Rail

Highway


Appendix A – @ C$55NSR


Resource

Class

Cut-off

(NSR C$)

Tonnes Au Equivalent

g/t

Au

g/t

Ag

g/t

Cu

%

Zn

%

Contained Au

EQ

(oz)

Contained Au

(oz)

Contained Ag

(oz)

Contained Cu

(lbs)

Contained Zn

(lbs)

> 40 112,837,300 2.19 1.40 13.51 0.16 0.77 7,933,432 5,092,093 49,006,097 404,004,013 1,918,532,372

> 45 105,660,800 2.26 1.45 13.80 0.17 0.80 7,675,704 4,934,128 46,895,548 388,219,896 1,861,812,513

> 50 98,431,300 2.34 1.50 14.10 0.17 0.83 7,389,520 4,758,936 44,630,965 371,415,421 1,795,554,378

> 55 91,096,800 2.41 1.56 14.41 0.18 0.86 7,072,273 4,563,793 42,209,208 353,502,913 1,720,132,089

> 60 83,674,500 2.50 1.62 14.74 0.18 0.89 6,724,071 4,348,340 39,658,845 334,697,744 1,635,170,900

> 65 76,164,000 2.59 1.68 15.10 0.19 0.92 6,343,817 4,114,360 36,964,321 314,464,092 1,538,362,827

> 70 68,857,000 2.69 1.75 15.44 0.19 0.94 5,946,460 3,872,056 34,187,862 293,539,891 1,433,144,432

> 75 61,768,900 2.79 1.82 15.78 0.20 0.97 5,534,345 3,622,782 31,338,658 272,412,325 1,319,587,642

> 80 55,205,800 2.89 1.90 16.07 0.21 0.99 5,128,157 3,379,201 28,514,569 252,090,038 1,204,136,268

> 85 48,979,500 3.00 1.99 16.32 0.22 1.01 4,719,916 3,133,727 25,694,362 232,283,780 1,087,297,243

> 90 43,127,300 3.11 2.08 16.53 0.22 1.02 4,314,767 2,889,443 22,920,820 212,895,273 971,164,640

> 95 37,708,700 3.23 2.19 16.76 0.23 1.03 3,920,117 2,649,110 20,318,763 194,147,093 859,000,393

> 100 32,847,800 3.36 2.29 16.93 0.24 1.04 3,547,992 2,423,233 17,878,830 176,525,171 751,901,217

Resource

Class

Cut-off

(NSR C$)

Tonnes Au Equivalent

g/t

Au

g/t

Ag

g/t

Cu

%

Zn

%

Contained Au

EQ

(oz)

Contained Au

(oz)

Contained Ag

(oz)

Contained Cu

(lbs)

Contained Zn

(lbs)

> 40 29,982,700 2.09 1.27 20.20 0.18 0.62 2,018,308 1,225,760 19,474,995 121,579,421 408,634,980

> 45 27,554,500 2.18 1.33 21.03 0.19 0.64 1,930,445 1,176,117 18,634,351 114,786,950 389,104,374

> 50 24,940,000 2.28 1.39 21.98 0.20 0.66 1,826,125 1,116,815 17,622,512 107,406,534 365,167,423

> 55 22,283,200 2.39 1.47 22.98 0.20 0.68 1,709,902 1,053,061 16,463,471 99,171,805 336,101,668

> 60 20,058,400 2.49 1.54 23.94 0.21 0.70 1,604,361 995,491 15,437,436 91,439,498 309,347,419

> 65 17,472,900 2.62 1.64 25.21 0.21 0.72 1,472,114 922,946 14,159,498 80,661,116 278,551,219

> 70 15,293,600 2.75 1.74 26.48 0.21 0.74 1,352,929 856,634 13,019,250 71,823,610 249,906,179

> 75 13,406,500 2.88 1.84 27.70 0.22 0.75 1,242,755 794,507 11,940,661 64,601,999 222,924,808

> 80 11,528,900 3.04 1.96 29.10 0.23 0.77 1,126,483 727,514 10,784,724 57,409,881 195,709,438

> 85 9,821,100 3.21 2.11 30.25 0.23 0.78 1,014,192 664,774 9,552,769 50,654,094 168,612,199

> 90 8,222,900 3.41 2.29 30.98 0.25 0.77 902,741 604,603 8,189,164 44,700,861 139,977,418

> 95 6,927,000 3.63 2.48 31.57 0.26 0.76 807,727 552,850 7,030,524 39,678,474 115,974,677

> 100 5,912,700 3.84 2.68 32.15 0.27 0.74 729,660 509,966 6,112,206 35,554,367 96,081,089

Inferred

Measured

+

Indicated


Appendix A - RESOURCE COMPARISON – APRIL 2014 MINERAL RESOURCE TO CURRENT

Resource Category Measured Indicated Inferred

Mineral Resource Estimate

Cut-off (NSR C$)

Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%) Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%) Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%)

2016 update (Sept. 26) > 55 9,361,800 1.58 16.33 0.18 0.81 81,735,100 1.56 14.19 0.18 0.86 22,283,200 1.47 22.98 0.20 0.68

2016 (Jan. 8) > 65 -- -- -- -- -- 58,346,300 1.82 15.60 0.20 1.00 12,678,700 2.10 26.26 0.22 0.57

Maiden 2014 (Feb. 17) > 80 -- -- -- -- -- -- -- -- -- -- 25,319,200 2.64 -- 0.23 0.70

Update ∆ Measured ∆ Indicated ∆ Inferred

Mineral Resource Estimate Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%) Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%) Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%)

2016 update vs. Jan. 2016 100% 100% 100% 100% 100% 40% -14% -9% -10% -14% 76% -30% -12% -9% 19%

2016 update vs. Maiden 2014 -- -- -- -- -- 100% 100% 100% 100% 100% -12% -44% 100% -13% -3%

Resources have increased 310% from 2014 and 47% from earlier in 2016


Appendix A – Historical Drill Density of Horne 5 Deposit

600m

HORNEQUEMONT Exceptional Drill Density

4,384 underground drill holes at 15 m spacing (305,788m) drilled by Noranda

Very high confidence in historical drilling

Great upside at Depth – limited drilling vs. upper area


Appendix A – Horne 5 Deposit & 2015 Confirmation Drilling Program

HORNEQUEMONT


Appendix A – Current Mineral Envelops


• NPV of $1.131 billion at a 5% discount rate and an IRR of 20.0% before taxes and mining duties• NPV of $667 million at a 5% discount rate and an IRR of 16.0% after taxes and mining duties• Peak-year production of 274 kozs and average LOM annual production of 236 kozs of gold

• Net payable gold recovery of 86.8%• 3,051,000 gold ounces production at an average diluted grade of 2.60 g/t Au LOM• 2,903,000 ounces of payable gold LOM• 807 million pounds of payable zinc LOM• 194 million pounds of payable copper LOM• 23.8 million ounces of payable silver LOM• All-in sustaining costs* of US$427 PER PAYABLE GOLD OUNCE• All-in cost (CAPEX plus OPEX) is estimated at US$660 per payable gold ounce

• Initial CAPEX of C$905 million (including a $60 million contingency) or US$680 million• Payback Period of 3.8 years pre-tax and 4.1 years post-tax• Gross Revenue of $6.8 billion and Operating Cash-flow of $2.6 billion

• Start of production in 2020• Full production in 2021• Initial mine life of 12 years

*All-in Sustaining Costs are presented as defined by the World Gold Council ("WGC") less Corporate G&ANote: Commodity Price Assumptions in US$ - $1,250/oz Au, $17.00/oz AG, $2.85/lb CU, $1.00/lb ZN

Appendix A – Horne 5 Project Key Highlights


AFTER TAX NPV AND IRR SENSITIVITY

TO GOLD PRICES

Gold Price (US$/oz) $1,150 $1,200 $1,250 $1,300 $1,350 $1,400

Pre-Tax NPV 5% C$M $898 $1,015 $1,131 $1,248 $1,364 $1,481

After-Tax NPV 5% C$M $521 $594 $667 $739 $804 $874

Pre-Tax IRR 17.4% 18.7% 20.0% 21.3% 22.5% 23.7%

After-Tax IRR 13.8% 15.0% 16.0% 17.1% 18.0% 18.9%

Pre-Tax Payback Years 4.4 4.1 3.8 3.5 3.3 3.1

After-Tax Payback Years 4.7 4.4 4.1 3.8 3.6 3.4


Appendix A – PEA Sensitivities


HORNE 5 PROJECT – GOLD AND ZINC LEVERAGE (BASED ON PEA)

Source: Horne 5 Technical Report, SEDAR

Headline PEA economics: $667 million NPV and 16% IRR (post-tax)

PEA near spot price: $786 million NPV and 17.9% IRR (post-tax)

PEA at $1,300/oz Au and $1.50/ lb Zn : $936 million NPV and 20% IRR (post-tax)


Appendix A – Proposed Flowsheet of Horne 5 Project


Appendix B – Ramp-Up Example for Horne 5 Project

• 23,500 tonne stopes (38x15x15)

• 20 effective hrs/day

• 58-day stope cycle time

• 4 mucking faces

• 6-7 days mucking per stope


HOISTING – FS Hoisting & Shaft

Headframe height: 100m


Appendix B – Example Sequence for a Single Pyramid – 1st level


Appendix B – Example of Active Pyramids during Ramp-up

• 4 pyramids will be active (mucking) at any given time

• Full production (15,000 tpd) expected to be reached in as quickly as 4.5 months


HIGH MARGIN PROJECT – HIGHLY MECHANISED PROJECT

Goldex(Agnico Eagle)

Young-Davidson(Alamos)

LaRonde(Agnico Eagle)

Horne 5(Falco)

Resource Grade (g/t AuEq)

1.8 2.8 5.1 2.9

Mining Method Long hole Transverse long holeLongitudinal Retreat /

Transverse Open StopingTransverse long hole

Depth (m) 800 - 1,500 750 - 1,500 2,000-3,000 600 - 2,300

Stope Size 15-38 x 30 x 50 20-25 x 20 x 30 5-25 x 15 x 30 38 x 15 x 15

Mining Rate 5,100 tpd 8,000 tpd * 7,200 tpd 15,000 tpd

Specific Gravity 2.8 2.69 3.3 3.45

Mining Dilution 15% 10%-20% 10%-20% < 4%

Operating Cost/NSR $41/t * $53.50/t * $95/t $47.50/T*

Annual Production (koz) 71,000 * 200,000 * 230,000 * 236,000*

* Projected life-of-mine (LOM)

Source: Company website, technical reports and filings from SEDAR

TSXV: FPC | WWW.FALCORES.COM | 48Source: Wood Mackenzie Ltd. And BMO Capital Markets* All-in Sustaining Costs are presented as defined by the World Gold Council ("WGC") less Corporate G&A

$0

$500

$1,000

$1,500

$2,000

$2,5002016 Gold Mine, Composite, Total Cash + Sustaining Capex Cost

Grouped By Mine and Ranked By Total Cash plus Sustaining Capex

Tota

l C

ash

+ S

ust

ain

ing

Cap

ex

(U

S$/o

z)

0 500 1000 1500 2000Paid Gold (t)

Horne 5 Project AISC of US$427/oz

Appendix B – Low All-In Sustaining Cost, a Top Quartile Asset


Appendix B – Mineral Resource Estimates & Modeling Notes

1. The effective date of the resource estimate is September 26, 2016. The Independent and Qualified Persons for the Mineral Resource Estimate as required by National Instrument 43-101 are Carl Pelletier, P. Geo., B.Sc. and Guilhem Servelle, P.Geo., M.Sc., both employees of InnovExplo Inc.

2. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. 3. While the results are presented undiluted and in situ, the reported mineral resources are considered by the Qualified Persons to have reasonable prospects for economic extraction. 4. These estimates include six (6) low grade gold-bearing mineralized zones.5. The principal low-grade gold-bearing mineralized zone includes six (6) high-grade gold-bearing zones, one (1) high-grade copper-bearing zone, one (1) high grade zinc-bearing zone, three (3)

high-grade silver-bearing zones. Note that these high-grade zones may overlap each other.6. Resources were compiled at NSR cut-offs of C$40, C$45, C$50, C$55, C$60, C$65, C$70, C$75, C$80, C$85, C$90, C$95, and C$100 per tonne for sensitivity purposes.7. The official base case resource is reported at a C$55 per tonne NSR cut-off. 8. The appropriate NSR cut-off will vary depending on prevailing economic and operational parameters to be determined.9. NSR estimates are based on the following assumptions: exchange rate of $C1.30/$US, metal prices of (all $US): gold $1,300/oz, silver $18.50, copper $2.15/lb, zinc $1.00/lb (Long term

analyst consensus price forecast study). Net recoveries of 86.8% for gold, 74.9% for silver, 67.3% for zinc and 74.0% for copper. Smelting cost (including transportation) C$6.52 per tonne (based on the Cost Mine service as well as on non-public smelter contract obtained from one of the proposed destinations and on talks with transport providers).

10. Gold equivalent calculations assume these same metal prices.11. Inferred resources are separate from Indicated Resources12. The quantity and grade of reported Inferred Resources in this estimate are uncertain in nature and there has not been sufficient work to define these Inferred Resources as Indicated or

Measured Resources. It is uncertain if further work will result in upgrading them to an Indicated or Measured mineral resource category.13. The resource was estimated using Geovia GEMS 6.7. The estimate is based on 5,977 diamond drill holes (478,281m) of which 4,138 crosscut mineralized zones for a total of 177,996m of core

within these zones. For silver the estimate also uses the results of an exhaustive metallurgical test comprising 2,112 diamond drill holes assayed for silver over a total length of 75,540 meters. A minimum true thickness of 7.0 m was applied, using the grade of the adjacent material when assayed, or a value of zero when not assayed. Only the silver interpolation in the Inferred resources does not use the material when not assayed.

14. The estimate database contains also 14,799 channel samples for a total of 23,791m from drifts historically sampled. Channel sample data was only used for distance to composite criterion for resource classification purposes.

15. 91% of density values were estimated using historical drill hole iron assays data and Falco density data for an average of 3.41 g/cm3. Interpolation method use 3 pass ID2 for the ENV_A and HG_A to HG_F zones. 8% of density values were fixed at 2.88 g/cm3 for ENV_B to ENV_E zones due to the scarcity of the data. 2.88 g/cm3 representing the median of the available data. 1% of density values were fixed at 2.67 g/cm3 for ENV_F zone due to the scarcity of the date and to adequately characterise this quartz-rich zone.

16. Compositing was done on drill hole sections falling within the mineralized zones (composite = 3.0 metres). Tails shorter than 0.75 m were not created.17. Resources were evaluated from drill holes using an ID2 interpolation method in a block model (block size = 5 x 5 x 5 m).18. High grade capping was done on raw assay data and established on a per zone basis for gold (Au g/t): (HG_A: 35; HG_B: 35; HG_C: 25; HG_D: 35; HG_E: 25; HG_F: 35; ENV_A: 35; ENV_B: 25;

ENV_C: 25; ENV_D: 20; ENV_E: 35; ENV_F: 25) and for silver (Ag g/t): SG_HG:100; HG_D: 165; HG_F: 165; ENV_A_SG_Low: 110; ENV_B: 100; ENV_C: 100; ENV_D: 100. Capping grade selection is supported by statistical analysis. No capping was applied to the Cu and Zn data based on statistical analysis.

19. The Mineral Resources presented herein are categorized as Measured, Indicated and Inferred. The Inferred category is only defined within the areas where blocks were interpolated during pass 1 or pass 2 in areas where continuity is sufficient to avoid isolated blocks. The Indicated category is only defined by blocks interpolated in areas where the maximum distance to the closest drill hole composite is less than 25m for blocks interpolated in passes 1 and 2. The Measured category is only defined by blocks classified as indicated and in sufficient proximity to sampled drifts (< 15m). The average distance to the nearest composite is 6.97 meters for the Measured resources, 10.01 meters for the Indicated resources and 40.10 meters for the Inferred resources.

20. Tonnage estimates were rounded to the nearest hundred tonnes. Any discrepancies in the totals are due to rounding effects. Rounding practice follows the recommendations set out in Form 43-101F1.

21. CIM definitions and guidelines were followed in estimating mineral resources. 22. InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the mineral resource

estimate. 23. Metal contained in ounces (troy) = metric tonnes x grade / 31.10348. Calculations used metric units (metres, tonnes and g/t). Metal contents are presented in ounces and pounds .

RESOURCE ESTIMATE NOTES

20.1 falco presentation may 2017

Investor Relations

Transcript of 20.1 falco presentation may 2017