September 2015 Corporate Presentation

TSXV: FPC | WWW.FALCORES.COM | 1TSXV: FPC | WWW.FALCORES.COM

REDISCOVERING THE ROUYN-NORANDA MINING DISTRICT

REBIRTH OF THE HORNE MINE

SEPTEMBER 30, 2015

TSXV: FPC | WWW.FALCORES.COM | 2

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 projections contained herein are based on limited and incomplete data. More work is required before the mineralization on the projects and their economic aspects can be confidentially 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 to the 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 be economic.

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 be no 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 is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment.

This presentation contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company’s properties. 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 further cautioned 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, other than statements of historical fact, are forward-looking statements. The words “expect”, “believe”, “anticipate”, “will”, “intend”, “estimate”, “forecast”, “budget”, “schedule” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements.

Such factors include, but are not limited to: changes to current estimates of mineral reserves and resources; labour availability; litigation; availability of and increased costs associated with contractors and 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 civil disturbances; risks arising from holding derivative instruments; and business opportunities that may be pursued by the company. Many of these uncertainties and contingencies can affect our 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 cautioned that 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 as required 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,the United States Securities and Exchange commission does not recognize them. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility orother economic 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 mineralreserves. United States 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


2.8 MILLION GOLD EQUIVALENT OUNCES OF INFERRED RESOURCES (43-101)*

ROUYN-NORANDA, QUEBEC

* SEE APRIL 17, 2014 FALCO PRESS RELEASE


FALCO – A QUALITY CANADIAN GOLD DEVELOPER

INVESTMENT THESIS

ROBUST INITIAL ASSET IN HORNE 5

DESIRABLE & STRONG LAND POSITION IN

THE ABITIBI

EXPLORATION TARGETS TO DRIVE FURTHER

VALUE

GOOD CONSOLIDATION PROSPECTS

LOW POLITICAL RISKFLEXIBLE BALANCE

SHEET

EXPERIENCED MANAGEMENT WITH TECHNICAL EXPERTISE

STRONG SHAREHOLDER

BASE


Capital Structure

Shareholder Registry

Osisko Gold Royalties 12.0%

Goodman & Company 8.2%

Raymond James 7.0%

Quebec Funds 6.6%

Pate Capital 3.7%

Sentry 2.5%

Tocqueville 2.3%

US Global 2.3%

Insiders (D&O) 3.5%

Shares Outstanding (basic) 99,730,657

Stock Options 7,383,890

Warrants 9,547,583

Shares Outstanding (fully diluted} 116,662,130

Cash (March 31, 2015) C$7,436,098

CORPORATE SUMMARY

A NEW DEVELOPMENT VEHICLE IN THE ABITIBI

Share Price Performance

0

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800

1,200

1,600

2,000

2,400

2,800

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

9-Sep-14 9-Dec-14 9-Mar-15 9-Jun-15 9-Sep-15

VO

LUM

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'S)

PR

ICE

(C$

)

FT Hold period expiry

Closes Financing


2nd LARGEST GOLD PRODUCER IN CANADA

ONE OF THE LOWEST FISCAL POLICY IN CANADA

6TH SPOT IN THE 2014 FRASER RANKING FOR INVESTMENT ATTRACTIVNESS

HEALTHY & EXISTING MINING CULTURE

STRONG & EXPERIENCED LABOUR POOL

GOVERNMENT SUPPORT AND ESTABLISHED PERMITTING PROCESS

LOW POLITICAL RISK

QUEBEC’S COMPETITIVE ADVANTAGE


Larder Lake13 Moz Au

Kirkland Lake24 Moz Au

Timmins71 Moz Au

Rouyn-Noranda19 Moz Au

Malartic14 Moz Au

Bousquet21 Moz Au

Lennox Creek Fault Zone

Porcupine Destor Fault Zone

Cadillac Fault Zone

ONTARIO

QUEBEC

Rouyn-Noranda

Timiskaming Sediments

Cobalt Plate

Felsic Intrusive

Kap High

Mafic/Ultramafic Volcanics

Geology

Val d’Or14 Moz Au

Major gold mining camp

50 current and former gold and base metal mines in the Rouyn-Noranda camp

Rouyn-Noranda camp has produced 19 Moz of gold and 2.9 Blbs of copper, but underexplored for gold

0 25 50 75 100Kilometres

SOUTHERN ABITIBI GREENSTONE BELT

OVER 100 YEARS OF MINING HISTORY


Initial production

End of Mining(2.5 Blbs Cu & 11.5 Moz Au)

Falco acquires properties(Sep 2012)

Discovery of Horne Mine

Digitization & compilation of Horne historical drill results

(Aug 2013)

NI 43-101 Horne 5 resource estimate

(Mar 2014)

1923 1927 1976 1985 2012 2013 2014

Remnant mining(102,000 oz Au)

$2.2M Regional Exploration (Jun 2014)

HORNE PROJECT

38 YEARS LATER


City of Rouyn-Noranda

Glencore Smelter

Horne Mine

Quemont Mine

Falco Surface Rights

Horne West

Horne project located in an Industrial Park

HORNE PROJECT

LOCATED NORTH OF THE CITY


Inferred resource estimate from historic drilling

Open at depth and along strike

Discovery costs of <$0.25/oz Au

1km strike length; 40-120m thick; 1,700m vertical extent

En echelon stacked tabular body; well defined metal zonation (gold, copper, zinc)

Extensively developed (1930s to 1960s)

4,386 drill holes at 15m spacing (305,000m)

40 working levels & 55km of underground development

HORNE PROJECT

MAIDEN RESOURCE ESTIMATE


ENV_B

ENV_C

ENV_D

NSR Assumptions and Parameters Maiden resource of 2.8 Moz AuEq at 3.4 g/t

Opportunity to increase the resource: Conservative NSR & base metal payabilities Silver content not considered

Commodity Payable Metal

Metal Price ($US)

Gold 87% $1,300.00

Copper 65% $3.30

Zinc 37% $0.95

Resource Class

Cut-off (NSR $C)

Tonnes(Millions)

AuEq(g/t)

Au(g/t)

Cu(%)

Zn(%)

Contained AuEq (Moz)

Contained Au (Moz)

Contained Cu (Mlbs)

Contained Zn (Mlbs)

Inferred

>50 67.6 2.48 1.8 0.17 0.72 5.4 4.0 261 1,073

>60 50.4 2.75 2.1 0.19 0.73 4.5 3.3 214 814

>70 35.9 3.07 2.3 0.21 0.72 3.5 2.7 168 573

>80 25.3 3.41 2.6 0.23 0.70 2.8 2.2 131 393

>90 17.9 3.77 3.0 0.26 0.69 2.2 1.7 102 272

>100 12.8 4.17 3.4 0.28 0.67 1.7 1.4 79 190

>110 9.5 4.57 3.7 0.30 0.66 1.4 1.1 63 138

Exchange Rate: CAD/USD = 1.05

HORNE PROJECT

RESOURCE ESTIMATE – UPSIDE OPPORTUNITIES


HORNE PROJECT

HORNE 5 PRELIMINARY ECONOMIC ASSESMENT TEAM

Luc Lessard, Eng., Former COO, Vice-President of Engineering & Construction for Osisko , IAMGOLD and Cambior

Francois Vezina, Eng., MBA, Mine Development Former Mine Manager Osisko and Agnico-Eagle; Technical Services Manager for Agnico-Eagle (LaRonde II, Pinos Altos, Kittilä) Director – Mining, Osisko Mining Group

Christian Laroche, Eng., Processing & Metallurgy Metallurgical engineer with 15 years experience in plant design, engineering, feasibility, construction and commissioning Director – Metallurgy, Osisko Mining Group

InnovExplo, Mineral Resource Evaluation, Modelling and Mine Development Est. 2003, Independent Canadian mining consulting firm

SGS Lakefield, Metallurgy Est. 1941, recognized world-wide as a premier testing and consulting facility

BBA, Mill Design Est. 1979, Independent Canadian consulting engineering firm

Golder, Tailings Management Est. 1961, Independent Canadian consulting engineering firm

WSP, Surface infrastructure and Environment Est. 1959, Independent Canadian consulting engineering firm


Goldex(Agnico-Eagle)

Young-Davidson(AuRico)

LaRonde(Agnico-Eagle)

Horne 5 **(Falco)

Resource Grade (g/t AuEq) 1.8 2.8 5.1 3.4

Mining Method Long hole Transverse long holeLongitudinal Retreat /

Transverse Open Stoping

Transverse 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 >10,000 tpd **

Operating Cost/NSR $41/t * $53.50/t * $95/t Under review

Annual Production (koz) 71,000 * 200,000 * 230,000 * Under review

* Projected life-of-mine (LOM)

** Horne 5 tonnes and grades per 43-101 report; balance is conceptual

Horne 5 $80 NSR Cutoff in Maiden 43-101 Resource Estimate Under Review

Source: Company website and filings

COMPARABLE MINE ANALYSIS

HIGH MARGIN POTENTIAL


16,000m surface drill program 9 holes, 9 wedge holes Metallurgical testing Updated NI 43-101

Primary objectives of confirmation drilling: Upgrade resource category from Inferred to

Indicated Confirm metallurgical parameters (improve

payability) Confirm historic silver grades of >15 g/t

Targeted Results Increase tonnes by >30% Increase AuEq to >3.5 Moz

$3.7M cost; Completion by H2 2015

N S

HORNE PROJECT

CONFIRMATORY DRILL PROGRAM – HORNE 5


HORNE PROJECT

CONFIRMATORY DRILL PROGRAM – INITIAL RESULTS

($0 NSR)

Hole_ID

From

(m)

To

(m)

Length

(m)

Au

(g/t)

Ag

(g/t)

Cu

(%)

Zn

(%)

Au_Eq_

With

Silver

(g/t)

Au_Eq_

Without

Silver

(g/t)

Au

(g/t)

Cu

(%)

Zn

(%)

Au_Eq_

Without

Silver

(g/t)

2015 vs

2014

%

H5-15-01 1,110 1,141 31.2 2.03 10.16 0.46 0.04 3.00 2.85 2.26 0.30 0.10 2.82 0.9%

H5-15-01-Atw 1,105 1,142 36.7 0.88 4.51 0.27 0.06 1.45 1.38 2.18 0.35 0.12 2.85 (51.5%)

H5-15-02 1,001 1,102 100.9 1.32 29.46 0.11 1.94 2.93 2.48 1.14 0.11 1.19 1.92 29.4%

H5-15-02-Atw 1,002 1,089 87.0 1.43 28.61 0.13 1.47 2.82 2.39 1.25 0.12 1.41 2.16 10.6%

H5-15-03B 1,248 1,365 116.7 0.50 15.51 0.06 1.00 1.34 1.11 0.79 0.06 0.67 1.23 (9.7%)

H5-15-03Dtw 1,255 1,390 134.4 0.55 15.44 0.08 1.10 1.46 1.23 0.82 0.06 0.70 1.28 (3.7%)

Total 506.9 0.96 19.39 0.13 1.17 2.05 1.76 1.14 0.12 0.83 1.76 0.4%

Grade % Difference (15.6%) 8.8% 39.8% 0.4%

2015 Diamond Drill Hole Results

Weighted Average of 2014 Raw

Assays within a 15 m radius

cylinder around DDH

New Drill Hole Data New Drill Hole DataHistorical Raw Assay Data

Hole_ID

Length

(m)

Au_Eq_With Silver

(g/t)

Au_Eq Without

Silver

(g/t)

Au_Eq Without Silver

(g/t)

2015 Results vs

Historical Data

H5-15-01 31.2 3.00 2.85 2.82 0.9%

H5-15-01-Atw 36.7 1.45 1.38 2.85 (51.5%)

H5-15-02 100.9 2.93 2.48 1.92 29.4%

H5-15-02-Atw 87.0 2.82 2.39 2.16 10.6%

H5-15-03B 116.7 1.34 1.11 1.23 (9.7%)

H5-15-03Dtw 134.4 1.46 1.23 1.28 (3.7%)

Total 506.9 2.05 1.76 1.76 0.4%


600m

HORNE PROJECT

CONFIRMATORY DRILL PROGRAM – HORNE 5

ENV_A

Targets (Zones)

All within the Main Envelope (ENV_A)

At least one in each High Grade Zones

Two in the two major high grade zones (HG_A and HG_B)

HG_A targeted a silver-zinc rich zone

HG_AHG_B

HG_E

HG_C

HG_D

High Grade Zones Main Envelope

1000 ft

E

305 m

W

1000 ft

E

305 m

W

H5-15-01

H5-15-02

H5-15-03


1110.4m

Mineralized Zones Hole H5-15-01

HORNE PROJECT

2015 DRILL PROGRAM – HORNE 5


Highly Prospective Land in a Top Jurisdiction

13 former mines on 740 km2 of Falco properties

Over 80 years of data archives

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

LAND PACKAGE

DOMINANT POSITION IN ESTABLISHED CAMP

Balmoral 700 km

Lake Shore Gold 182 km

Niogold 125 km

Eastmain Resources 125 km

Eagle Hill 124 km

St. Andrews Goldfields 120 km

Integra Gold 30 km

Falco Resources 740+ km


Background

Previously Untested

Cu-Zn-Au property, located 25km northwest of Rouyn-Noranda

One of the most significant VMS properties in the Camp

Lithogeochemically similar to Horne Complex rocks

Falco identified near-surface conductors related to stratigraphy with the chemical characteristics of Horne Complex

Over 2km of laterally extensive exhalative sequence, akin to VMS systems

Several Zn-rich anomalies

Consistent with lateral placement to VMS mineralization

Distribution Map of High Probability “Horne Type” Samples

Rimo

Horne Complex

RIVIERE MOUILLEUSE (RIMO)

SIMILAR SIGNATURE TO HORNE


RIVIERE MOUILLEUSE (RIMO)

SIMILAR SIGNATURE TO HORNE

5,000 meter drilling program has commenced

2 drills

~10 holes


Potential to increase Mineral Resources in the Horne Complex

11 gold targets within the shadow of the old mines

Identified potential Horne West extension at depth

Targeting 3 zones initially

HORNE 5 PLUS PROGRAM

ADDITIONAL TARGETS IN THE HORNE COMPLEX


Horne West

Au g/t

Several near-surface mineralized zones close to Horne

Drilled by Noranda but smelter sought higher copper values

Would provide early cash flow during production ramp-up

Testing extensions

Horne 5Deposit

HorneMine

Possible Extension

HORNE 5 PLUS PROGRAM

NEAR SURFACE TARGETS


Glencore will retain its back-in right to acquire a 65% interest on any base metal deposit containing more than 350,000 tonnes copper metal equivalent after presentation of a NI 43-101 compliant resource, under the following conditions: paying Falco three times the project-specific exploration and development expenditures; paying Falco three times the Rouyn regional base metal exploration expenditures up to a maximum of $20

million; Glencore must complete a compliant feasibility study, within a specified period and at no cost to Falco; Falco will retain a 35% interest; receive a 6-month financing period subsequent to a production decision; and

will participate in a JV management committee where unanimous agreement is required on critical mining decision

The back-in right does not apply to any gold deposit, defined as a deposit where the value of gold and silver are three times greater than the value of base metals, using 6-month average metal prices at closing as defined at the date of the agreement. As such, gold deposits are solely to the Falco account.

Glencore retains a 1-2% NSR on all metals on mineral claims transferred to Falco. Where historic royalties exist, the combined royalty is capped at 3 to 4%. In areas with no prior royalties, the NSR is capped at 2%.

Glencore has the right to explore for and exploit smelter materials (e.g. flux) in all areas. Should smelter materials be mined from the Falco properties, Falco will receive a royalty of $0.50 per tonne plus 50% of any gold which may be recovered

Glencore retains their rights of first refusal for custom milling and smelting of base metal production

GLENCORE AGREEMENT

TERMS OF THE AGREEMENT


FALCO RESOURCES

VALUE PROPOSITION – EV / RESOURCES

$7 $8

$14

$28

$3 $9

$13 $13 $16

$22 $24

$5 $6

$12

$31

$8

$23

$32

$64 $65 $67

$90

$139

Pure

Gold

Fa

lco

Nio

gold

Eastm

ain

Pilo

t G

old

Alm

ade

n

Co

rvu

s

Inte

gra

Kam

ina

k

Da

lra

dia

n

Co

ntin

enta

l

Lydia

n

Mid

as

We

st

Kir

kla

nd

Pre

tium

Tru

e G

old

Asan

ko

TM

AC

Guya

na G

F

Aure

us

To

rex

Ru

bic

on

Ro

xgo

ld

Resources

PEA

PFS / Feasibility Study - Not Yet Funded

Fully Financed and In Construction / Ramp up

PEA Average: $14

Fully Funded and in Construction / Ramp-Up Average: $61

Resource Average: $14 PFS / Feasibility - Not Yet Funded Average: $13

SOURCE: BMO, FACTSET AND COMPANY FILINGS


CORPORATE TIMELINE

First Half of 2017

• Full Feasibility Study

•Construction Decision

2016

• Significant Infill Drilling Program from surface

• Initiate dewatering program

2nd

Quarter 2016

• Initial PreliminaryEconomicAssessment

November-December

2015

•New 43-101 Resource Estimate

Summer & Fall 2015

•5,000 meter program on RIMO

•7,800 meter program on Horne 5 plus

•Metallurgy

•Hydrology

•Geotechnical

•Environment

•Engage with community and all stakeholders

January to August 2015

•16,000 meters Confirmatory Drilling Program


Sean Roosen, Chairman Chairman & CEO of Osisko Royalties

Luc Lessard, President & CEO, Director Former COO of Canadian Malartic Partnership Former COO and Senior Vice-President of Engineering

& Construction for Osisko Mining Former Vice-President of Engineering & Construction

for Iamgold Former Executive Director of Engineering &

Construction for Cambior

Jim Davidson, Director Co-Founder of Falco Resources Former CFO of Western Minerals Group

Claude Ferron, Director Former COO of Xstrata Copper Canada

Paul Henri-Girard, Director Former Vice-President of Canadian Operations at

Agnico Eagle Mines

Luc Lessard, President & CEO, Director

Vincent Metcalfe, CFO Former mining investment banker

Claude Bernier, Exploration Manager Over 40 years of experience on various exploration projects

Claude Léveillée, Vice-President Community Relations & Human Resources Former Corporate Director, Human Resources/Organizational

Development at Agnico Eagle Mines

SENIOR LEADERSHIP TEAM

Board of Directors Officers


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

September 2015 Corporate Presentation

Investor Relations

Transcript of September 2015 Corporate Presentation