Falco Resources Releases Updated NI 43-101 Feasibility Study for Horne 5 Gold Project in Québec

Strategic Location and Importance of the Horne 5 Project

The Horne 5 Gold Project lies beneath the historic Horne mine in the Noranda Camp within Québec’s Abitibi-Témiscamingue greenstone belt. The original Horne mine, operational from 1927 to 1976, produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Continuing exploration and development at this site could revive one of Canada’s most historically productive gold mining regions.

Falco’s focus on the Horne 5 Project reflects confidence in the deposit’s economic potential. By targeting mineralization beneath former workings, the company leverages existing geological data and infrastructure, potentially easing the transition from development to production.

Falco’s Extensive Mineral Claims in the Abitibi Belt

Falco holds approximately 60,000 hectares of mineral claims across the Noranda Camp, making it one of Québec’s largest claim holders. This portfolio includes rights to 13 former gold and base metal mines, positioning Falco as a major player in one of North America’s top mining districts.

This extensive land position offers multiple exploration opportunities beyond Horne 5, enabling Falco to diversify its exploration efforts while prioritizing its flagship project.

Compliance with National Instrument 43-101 and Report Submission

The updated feasibility study was prepared in full compliance with National Instrument 43-101 (NI 43-101), the Canadian regulatory standard for mineral project disclosure. This ensures that technical and economic data are presented consistently and reliably for investors and regulators.

Filing the report on SEDAR+ fulfills regulatory requirements for public companies on Canadian exchanges, providing transparency and easy access to the detailed feasibility study for investors, analysts, and industry stakeholders.

Economic Highlights from the Feasibility Study

As outlined in the June 17, 2026 announcement preceding the filing, the updated feasibility study projects a net present value (NPV) after tax of approximately CAD 3.35 billion under a base case gold price of USD 3,600 per ounce. The internal rate of return (IRR) is estimated at 28.2%, with total cash flow generation of about CAD 6.4 billion over the project’s lifespan.

These financial metrics reflect the technical team’s assessment based on current assumptions about costs, commodity prices, and operational factors. It is important to recognize that these projections may vary with changes in market conditions, regulatory environments, capital expenditures, and other variables. The USD 3,600 per ounce gold price is the scenario basis for these estimates.

Osisko Gold Group’s Significant Ownership Stake

Osisko Gold Group Inc. (formerly Osisko Development Corp.) owns a 16.0% stake in Falco Resources, making it the largest shareholder. This investment signals strong confidence from a leading Canadian gold sector entity and may offer Falco access to valuable technical expertise, industry connections, and strategic support as Horne 5 advances.

The involvement of an experienced shareholder like Osisko may enhance institutional investor confidence in Falco’s governance and project execution capabilities. Investors should monitor how shareholder influence and strategic partnerships evolve as the project progresses.

Recent Warrant Exercises and Funding Activities

In early July 2026, Falco announced warrant exercises totaling approximately CAD 1.25 million, including early exercises by Osisko Development Corp. This capital injection reflects ongoing investor confidence and supports continued feasibility study work, exploration, and pre-development efforts.

These warrant exercises represent a form of financing involving existing investors converting previously issued rights, avoiding dilution from new equity issuance. The timing aligns with key project milestones, indicating coordinated financing and development activities.

Historical Production and Exploration Continuity

Located beneath a historically productive mine, the Horne 5 Project benefits from proven gold mineralization, with the original mine yielding 11.6 million ounces of gold. This legacy reduces exploration risk by confirming the presence of economically viable deposits.

Falco’s approach to mining deeper mineralization at Horne 5 continues the legacy of the Noranda Camp, leveraging advances in mining technology and favorable economic conditions to exploit deposits previously uneconomical during the original mine’s operation.

Regulatory and Administrative Details

The announcement includes a standard disclaimer noting that the TSX Venture Exchange (TSX-V), where Falco is listed, and its Regulation Services Provider do not accept responsibility for the announcement’s adequacy or accuracy. This reflects regulatory protocols and does not imply any deficiency in company disclosures.

All financial figures in the feasibility study are expressed in Canadian dollars unless otherwise noted, aligning with domestic investor considerations regarding financing, operating costs, and taxation relevant to a Québec mining project.

Access to the Full Feasibility Study Report

The complete updated feasibility study is available on SEDAR+ (sedarplus.ca) under Falco Resources’ corporate profile. SEDAR+ is the official Canadian repository for regulatory filings by public companies on Canadian stock exchanges, operated by the Canadian Securities Administrators.

Investors and market participants can review the full report free of charge, which includes detailed sections on geology, mining engineering, metallurgy, environmental and social factors, capital cost estimates, and operational cost forecasts.