FALCO ANNOUNCES INCREASE TO PREVIOUSLY ANNOUNCED BOUGHT DEAL FINANCING

Executive Summary

• Falco Resources announced an upsized bought‑deal private placement, increasing total units from 31.25 M to 37.5 M at $0.32 per unit for gross proceeds of $12 M.
• The additional 6.25 M units will be sold on the same terms as the original offering; no extra underwriter option was granted for the upsized portion.
• Net proceeds are earmarked for advancing the Horne 5 Project in Québec, plus working capital and general corporate purposes.

Key Details

• Original Offering (Sept 29, 2025): 31,250,000 units at $0.32 per unit → $10,000,000 gross proceeds.
• Upsized Offering: Additional 6,250,000 units, bringing total to 37,500,000 units at the same price of $0.32/unit → $12,000,000 aggregate gross proceeds.
• Unit Composition: Each unit = 1 common share + ½ warrant (full warrant gives right to purchase 1 common share at $0.46).
• Warrant Terms: Exercise price $0.46; exercisable up to 18 months after the closing date.
• Underwriter Option (Initial Offering only): Right to increase by up to 4,687,500 units for an extra $1.5 M; option not extended to upsized portion.
• Closing Date: Anticipated on or about October 17, 2025, subject to customary conditions and TSX Venture Exchange approval.
• Use of Proceeds: Primarily to fund the Horne 5 Project development in Québec; remainder for working capital and general corporate purposes.
• Placement Eligibility: Private placement to accredited investors in Canada; may also be offered to U.S. accredited investors under Regulation D exemption and to other jurisdictions as permitted.
• Holding Period: Canadian common shares issued will be subject to a lock‑up of four months plus one day from issuance.

Notable Quotes

(No direct quotes were included in the release.)