Resource Summary

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)
MEASURED > 40 11,644,000 2.21 1.42 15.46 0.17 0.73 826,722 530,386 5,789,209 42,781,845 186,158,376
> 45 10,884,200 2.28 1.47 15.74 0.17 0.75 799,424 513,969 5,506,283 41,196,031 180,655,296
> 50 10,118,600 2.36 1.52 16.01 0.18 0.78 769,095 495,643 5,207,294 39,505,764 174,219,296
> 55 9,361,800 2.45 1.58 16.33 0.18 0.81 736,424 475,410 4,914,349 37,672,449 167,402,703
> 60 8,643,600 2.53 1.64 16.61 0.19 0.84 702,781 454,619 4,616,673 35,830,796 160,164,077
> 65 7,885,500 2.62 1.70 16.90 0.19 0.87 664,417 431,243 4,285,355 33,782,384 151,210,238
> 70 7,193,300 2.71 1.77 17.19 0.20 0.90 626,789 408,525 3,975,881 31,729,326 141,970,341
> 75 6,477,100 2.81 1.84 17.48 0.21 0.92 585,214 383,485 3,639,181 29,410,622 131,694,520
> 80 5,818,100 2.91 1.92 17.66 0.21 0.95 544,501 359,144 3,303,540 27,225,652 121,309,845
> 85 5,202,300 3.01 2.00 17.77 0.22 0.96 504,116 335,148 2,972,444 25,141,955 110,615,281
> 90 4,642,000 3.12 2.09 17.86 0.23 0.98 465,390 311,854 2,665,172 23,105,264 100,619,066
> 95 4,100,200 3.23 2.18 17.99 0.23 1.00 426,051 287,638 2,371,119 21,144,745 90,605,672
> 100 3,623,700 3.34 2.28 18.08 0.24 1.02 389,705 265,219 2,106,521 19,317,452 81,329,166


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)
INDICATED > 40 101,193,300 2.18 1.40 13.28 0.16 0.78 7,106,710 4,561,707 43,216,888 361,222,169 1,732,373,996
> 45 94,776,600 2.26 1.45 13.58 0.17 0.80 6,876,279 4,420,159 41,389,265 347,023,865 1,681,157,217
> 50 88,312,700 2.33 1.50 13.88 0.17 0.83 6,620,424 4,263,292 39,423,671 331,909,656 1,621,335,082
> 55 81,735,100 2.41 1.56 14.19 0.18 0.86 6,335,857 4,088,383 37,294,859 315,830,464 1,552,729,386
> 60 75,030,900 2.50 1.61 14.53 0.18 0.89 6,021,290 3,893,721 35,042,172 298,866,949 1,475,006,823
> 65 68,278,500 2.59 1.68 14.89 0.19 0.92 5,679,400 3,683,116 32,678,965 280,681,708 1,387,152,589
> 70 61,663,700 2.68 1.75 15.24 0.19 0.95 5,319,671 3,463,531 30,211,981 261,810,565 1,291,174,091
> 75 55,291,800 2.78 1.82 15.58 0.20 0.97 4,949,131 3,239,298 27,699,476 243,001,702 1,187,893,122
> 80 49,387,700 2.89 1.90 15.88 0.21 0.99 4,583,656 3,020,056 25,211,029 224,864,386 1,082,826,423
> 85 43,777,200 3.00 1.99 16.14 0.21 1.01 4,215,800 2,798,579 22,721,918 207,141,824 976,681,962
> 90 38,485,300 3.11 2.08 16.37 0.22 1.03 3,849,377 2,577,589 20,255,648 189,790,010 870,545,575
> 95 33,608,500 3.23 2.19 16.61 0.23 1.04 3,494,066 2,361,472 17,947,645 173,002,348 768,394,721
> 100 29,224,100 3.36 2.30 16.79 0.24 1.04 3,158,286 2,158,014 15,772,309 157,207,719 670,572,051


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)
MEASURED + INDICATED > 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)
INFERRED > 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

Source: press release dated October 3, 2016

 Resource Estimate 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 Resources
  12. 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

Qualified Person

Carl Pelletier (P.Geo., B.Sc.) and Guilhem Servelle (P.Geo., M.Sc.) are the qualified persons as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects for the mineral resource estimate Data in this release as it relates to the technical information related to the 2014 and 2016 Horne 5 Project Resource Estimate update and they have reviewed and verified the technical information contained herein. Messrs. Pelletier and Servelle are consulting geologists with InnovExplo Inc. and fulfill the requirements to be "qualified person" for the purposes of NI 43-101.

Falco Resources Ltd.

1100, avenue des Canadiens-de-Montréal, Suite 300
Montréal, QC H3B 2S2

Tel: +1.514.905.3162

info@falcores.com

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