VANCOUVER, BRITISH COLUMBIA–(Marketwired – March 4, 2014) – Falco Pacific Resource Group Inc. (“Falco Pacific” or the “Company”) (TSX VENTURE:FPC) today announced an initial mineral resource estimate for the upper portion of its 100% owned Horne 5 deposit in Rouyn-Noranda, Quebec.

Highlights:

• At a CDN$80/tonne net payable metal or net smelter return (“NSR”) cut-off, the upper portion of the deposit hosts an inferred resource of: 25.3 million tonnes @ 2.64 g/t gold, 0.70 % zinc and 0.23% copper (or 3.41 g/t gold equivalent “AuEq”).

• At this cut-off the resource contains an estimated 2.15 million ounces of gold, 131 million pounds of copper, and 393 million pounds of zinc (see Table 1) for a total of 2.8 million AuEq ounces. Gold accounts for 77% of the total gold equivalent resource.

• At lower NSR cut-off’s the resource tonnage and contained metals increase substantially providing significant leverage to higher gold and base metal prices. At a CDN$50/tonne cut-off the estimated inferred resource increases to 67.6 million tonnes at 2.48 g/t AuEq, containing 3.95 million ounces of gold and 5.39 million AuEq ounces (Table 1). The scale and continuity of the deposit suggests potential for the employment of low cost, underground bulk mining methods similar to those employed at other precious metal mines in the region.

• Metal price assumptions of $US1300/oz gold, $3.30/lb copper, and $0.95/lb zinc were used in the NSR and gold equivalent calculations. Other key assumptions used in these estimates are summarized below.

• While silver is present within the deposit in significant quantities it has not been incorporated in this resource estimate as it was not systematically assayed for by Noranda Inc. In 1963 Noranda collected and milled 76 bulk samples (140,000 metres of drill core) from the upper portion of the Horne 5 deposit which returned an historic average assayed silver grade of 16.8 g/t. A qualified person has not done sufficient work with respect to the historically reported silver content of the Horne 5 deposit to allow for its incorporation into the current mineral resource estimate and the Company is not treating the historic estimate of silver grade as part of the current mineral resource.

The estimated inferred resource for the Horne 5 deposit over a range of cut-off NSR values is:

1. The effective date of the resource estimate is February 17, 2014. The Independent and Qualified Persons for the Mineral Resource Estimate as required by National Instrument 43-101 are Carl Pelletier, B.Sc., P.Geo. and Karine Brousseau, P.Eng., both employees of InnovExplo Inc..
2. NSR estimates are based on the following assumptions: exchange rate of $Cdn1.05/$US, metal prices of (all $US): gold $1,300/oz, copper $3.30/lb, zinc $0.95/lb, payable metal of 87% for gold, 65% for copper and 37% for zinc (based on conservative estimates of milling and smelting terms for comparable operations within the southern Abitibi district). Current metallurgical testing is underway to facilitate optimization of these estimates utilizing available Horne 5 drill core. Gold equivalent calculations assume these same metal prices.
3. Resources were compiled at NSR cut-offs of C$50, C$60, C$70, C$80, C$90, C$100, and C$110 per tonne. The base case resource estimate is reported at a C$80 per tonne NSR cut-off. The appropriate NSR cut-off will vary depending on prevailing economic and operational parameters, for example gold price, exchange rate, mining method and cost.
4. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.
5. 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.
6. 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.

The Horne 5 resource estimate is based on 4,384 underground diamond drill holes (305,788 metres) drilled by Noranda between 1924 and 1976 (Figure 1). Holes were collared at depths ranging from 600 to 2,300 metres below surface across a strike length of up to 1,000 metres. The majority of drilling was conducted as radiating “fan drilling” from 40 underground working levels developed throughout the deposit on 15 metre centres. The 15 metre spacing is significantly closer than standard drill spacing used in resource estimation work today providing a very high level of confidence in the data. Noranda dominantly sampled at 3 metre core lengths (which homogenizes individual higher grade results), generating the more than 83,000 assays that were used in this resource estimate.

The Horne 5 deposit is a massive to semi-massive sulfide body of volcanogenic massive sulphide (“VMS”) affinity that physically underlays the historic Horne copper-gold mine (54Mt @ 6.1 g/t gold, 2.2% copper, and 13 g/t silver (Figure 4)). Gold mineralization is associated with fine-grained pyrite within a gangue of quartz and sericite. Interstitial chalcopyrite and sphalerite are present throughout the deposit in varying quantities. The deposit is a tabular, stratiform body that extends to a depth of at least 2,800 vertical metres and for up to 1,200 metres along strike, varying between 40 and 120 metres in thickness. A limited tonnage of copper/gold-rich ore was mined by Noranda from four stopes within the Horne 5 deposit. These areas have been excluded from the resource estimate.

The Horne 5 deposit remains open for extension to depth (see Figure 1 & 2, Table 2). Limited historical drilling has intersected broad mineralized zones below that portion of the Horne 5 deposit included in this resource estimate. These intercepts extend the deposit to a minimum vertical depth of 2,800 metres from surface, 500 meters below the deepest elevation incorporated in this resource estimate.

“The initial resource estimate for Horne 5 has exceeded our expectations confirming the presence of a large, continuous, gold-rich deposit with a strong grade profile and abundant upside” said Darin Wagner, Chairman of Falco Pacific. “Work to optimize the value of this important asset and outline the economic parameters for any potential development of Horne 5 and several nearby deposits owned by Falco Pacific is already underway with the assistance of InnovExplo and Falco Senior Mining Advisor Mr. Paul-Henri Girard, former Vice President Canada for Agnico Eagle Mines.”

Resource Expansion Potential:

The current resource estimate is for the upper portion of the Horne 5 deposit only. The deposit is known to extend for at least 500 metres below the 1,700 vertical metres included in this initial resource estimate.

In addition another 6,600 historic drill holes (totalling 460,000 metres) including 217,000 gold, silver, copper and zinc assays are currently being added to the Horne mine complex database. A significant number of these holes are in areas not previously mined and include areas adjacent to the Horne 5 deposit and other proximal zones of mineralization such as the Lower H, Remnor and Horne West zones.

Key target areas of focus for the Company over the near term are as follows:

Horne 5 Deposit Down-Dip Extension

The high grade D mineralized domain (“HG_D”) constitutes the deepest and highest grade portion of the Horne 5 deposit included in the current resource estimate (see Table 2 below). This open-ended sub-zone demonstrates that at its deeper levels the Horne 5 deposit hosts mineralization similar to that found in the former producing Horne deposit and the currently producing Bousquet-LaRonde deposits located 40 kilometres to the east.

Noranda drilled a total of 37 holes below the HG_D domain from unground levels 57 and 65 (Figure 2; Table 3). These results are not included in the current resource estimate due to limitations in overall drill coverage and drill density. They clearly illustrate that the deposit continues to depth for at least an additional 500 metres down dip and continues to exhibit a strong grade profile. These results along with metal ratio/zoning studies completed during the resource modelling process suggest potential for continuity of good grade gold-copper-silver mineralization to depth.

Table 3 highlights results from this area and defines an open-ended exploration target having minimum dimensions of 880 x 500 metres with mineralized intercepts ranging from 3 to over 50 metres in true thickness.

* All reported grades are uncapped

Horne West Zone

The Horne West Zone is located 500 metres to the west of Horne 5 deposit. This gold (+/-zinc) zone was initially discovered from drilling off Horne 5 sublevels in the 1940’s, with near surface mineralization subsequently discovered in the 1980’s. The deeper mineralization appears to correlate well with the shallower drilling outlining a sub-vertical zone of gold mineralization that extends down dip for 1,500 metres and remains open at depth. The Horne West Zone shows zonation from gold rich to the west to more zinc rich to the east and also appears to be of VMS affinity. Highlights from Noranda historic intercepts through the Horne West Zone include:

* Insufficient work has been done at this time to determine the true widths of the reported intercepts, all reported values are uncapped.

“With a large initial resource at Horne 5 now confirmed, clear potential to further expand this resource and the opportunity to add other nearby unmined and remnant deposits to our resource and exploration model, Falco Pacific is uniquely positioned for further low cost, high impact growth” said Mr. Kelly Klatik, President and CEO of Falco Pacific. “For our shareholders the best part may be that we have accomplished all of this at very low cost on a small fraction of the 700+ square kilometres we hold in this world-class mining district.”

The technical report in support of this resource estimate will be filed on SEDAR (www.sedar.com) and placed on the Company’s website within the next 45 days and the Company will advise its shareholders once the report is available.

Resource Modeling Notes:

1. Densities for zone ENV_A and HG_A to E were estimated from drill hole iron assay data using a 3-pass ID2 interpolation method. The average density for these zones ranges from 3.17 to 3.54 g/cm³. Limited density data was available for zones ENV_B to D and a fixed density of 2.88 g/cm³ representing the average of the available data was assumed for these zones.
2. A minimum true thickness of 7.0 m was applied, using the grade of the adjacent material when assayed, or a zero value when not assayed. Compositing was done on drill hole sections falling within the mineralized zones (composite = 3.0 metres).
3. The estimate was generated using GEMS(c) software based on a three dimensional block model (5x5x5 metre blocks). Nine contiguous mineralized domains (5 high-grade gold bearing and 4 low-grade gold bearing) were identified, defined, and modelled from 600 metres to 2,300 metres depth. Wireframes were used as hard boundaries to constrain the interpolation of grades into the block model. Interpolation parameters were derived based on geostatistical analysis conducted on 3 metre composited drill hole data. Block grades have been estimated using Inverse Distance Squared (ID2) interpolation method and the mineral resources have been classified based on proximity to sample data and the continuity of mineralization in accordance with CIM best practices.
4. Capping of high grade gold values was done on raw assay data and established on a per zone basis: HG_A: 35 g/t, HG_B: 70g/t, HG_C: 25g/t, HG_D: 35g/t, HG_E: 25g/t, ENV_A: 70g/t, ENV_B: 25g/t, ENV_C: 25g/t, ENV_D: g/t25. No upper capping was applied to copper and zinc data.
5. 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.
6. CIM definitions and guidelines were followed in estimating Mineral Resources.
7. 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.
8. InnovExplo’s data verification included, a review of core from sixteen (16) different diamond drill holes, validation of 100% of the drill hole collar locations and of down holes surveys were made and 10% of the assays were validated. 121 core samples from historical core were sent to ALS Chemex Laboratory for check assays. Assays show good correlation to historic assays for gold, silver, copper, and zinc, and recent specific gravity determinations depict excellent reproducibility compared to calculated specific gravity values. The check assays program used regular QAQC protocols which included the insertion of blank, standard and duplicate samples. InnovExplo is of the opinion that the final drill hole database is adequate to support a mineral resource estimate for the Horne 5 deposit.

Technical information related to the 2014 Horne 5 Project Resource Estimate contained in this news release has been reviewed and approved by Carl Pelletier, B.Sc., P.Geo. and Karine Brousseau, Eng (InnovExplo Inc.) who are independent Qualified Persons as defined by NI 43-101 who have the ability and authority to verify the authenticity and validity of this data. By reason of their education, affiliation with a professional association and past relevant work experience, Carl Pelletier and Karine Brousseau fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

Stéphane Poitras, Senior Exploration Geologist (P.Geo.) an employee of Falco Pacific, is the non-independent qualified person for this release as defined by NI 43-101 and has reviewed and verified the technical information contained herein other than the resource estimate.

About Falco Pacific Resource Group

Founded in 2012 with the acquisition of the 728 square kilometre Rouyn Noranda Project in Quebec, Falco Pacific is focussed on the evaluation of precious and base metal targets in one of the world’s great mining camps. Horne 5 Deposit represents the largest, partially developed gold deposit in the southern portion of the Abitibi greenstone belt. Horne 5 is one of a number of known zones of gold and gold-base metal mineralization, which form the Horne Mine Complex, centered around the former producing Horne copper-gold deposit.

For more information, please go to www.falcopacific.com.

On behalf of the Board of Dir