Falco Resources Ltd. provided the update on its development of the Horne 5 Project, exploration and corporate activities. Horne 5 Project Development: Community Relations and Permitting: The Company has continued its community outreach program and held on November 16, 2017 its initial project presentation and session in Rouyn-Noranda. Approximately 140 individuals attended the meeting and heard Company representatives outline the various aspects of the Project, and respond to their observations and questions. On December 6, 2017 the Project is not a designated activity under the Regulations Therefore, the Project is not subject to the federal environmental assessment; however, there will be other federal authorizations to be obtained. Pavillon Quemont School Construction: The Pavillon Quemont School ("Pavillon") construction program is advancing very well. The building was erected, closed off and winterized prior to year-end. The Pavillon construction program is 30% complete and Falco is on schedule to deliver the Pavillon to the local school board of Rouyn-Noranda for September 2018. The relocation and construction costs of the Pavillon are estimated at $22.5 million. Hoisting System Construction and Delivery of Key Components: Construction of the hoist building that will host the auxiliary and service hoists commenced in December 2017 and is expected to be completed during the second quarter of 2018. Acquisition Program: The Company also acquired land, surface rights and strategic buildings near the Project footprint. Dewatering Program: Major equipment for the water treatment facility and pumping system were ordered. The water treatment facility components are expected to be received during the first quarter of 2018. Detailed Engineering: The Company has commenced the detailed engineering and procurement of equipment shop drawings in relation to the Project. Exploration Program update: 2017 Regional Exploration Program: The Company drilled about 54,500 meters, completed 77 drill holes, with three holes remaining to complete the 2017 program. A total of 25 targets were worked on during the 2017 regional exploration program. As of January 10, 2018, 13,250 out of 26,250 or 50 % of the samples analyzed have yet to be received from the assay lab. Thus far, the best intercepts included a shallow intercept at Lac Clericy (1.2 g/t Au over 9.1 m from 124.4 to 133.5 m), a deeper intercept at Noralex (1.4 g/t Au over 22.4 m from 407.6 to 430.0 m) and another intercept at Flavrian (1.3 g/t Au over 13.5 m from 325 to 338.5 m). Several targets of the 2017 program will require follow up with further drill holes and geophysical work in 2018. 2018 Donalda Exploration Program: On December 21, 2017, the Company closed a $8.5 million private placement financing to fund its 2018 exploration program. The bulk of the placement proceeds will be spent on the Donalda property and surrounding properties located near Horne and Quemont. The Donalda property is located 800 metres east of the Horne 5 deposit. In 2017, about 4,700 metres were drilled on the Donalda property, results are pending. The drilling consisted of testing the extensions of the known mineralization and confirming historical results. Following the reception of results, a preliminary NI 43-101 resources calculation will be initiated. Given its close proximity to the Horne 5 deposit, potential underground mineralization would be accessible from the Horne 5 future underground infrastructure. The Donalda targets consists of a gold quartz vein system, however the volcanogenic massive sulfide potential remains to be tested.