Falco Resources Ltd.
2022  ESG Report
Published on  December 7, 2023
Falco has prioritized ESG factors to define its mission and has adopted an inspiring vision firmly rooted in its values:
-   Mission:  Our way of being a miner : Building a lasting legacy every day, through every action we take.
-   Vision : Falco’s innovative, scalable and transparent approach, rooted in current and future issues, is a model and a source of pride for its employees, its community and its peers.
-   Values: Falco advocates values such as transparency, integrity, determination and audacity.
Disclaimer and Forward Looking Statements
Company Profile
Organizational Profile
Name Falco Resources Ltd.
Describe nature of activities, brands, products and services Falco is an exploration and development stage
company in the business of acquiring, exploring
and developing mineral properties in Canada.
Falco's focus is on the exploration and
development of its mineral properties in the
Rouyn-Noranda region of the Province of
Québec for base and precious metals, primarily
on its wholly owned Horne 5 polymetallic
deposit (the “Horne 5 project”).

Falco is one of the largest claim holders in the
Province of Québec, with extensive land
holdings in the Abitibi Greenstone Belt. Falco
owns mining claims and contractual rights in or
in relation to mining concessions covering an
aggregate of approximately 70,000 hectares of
land in the Noranda mining camp. Falco's
principal property is the Horne 5 Project,
located in the Noranda mining camp, which has
hosted several former gold and base metal
producers including the Horne Mine, which was
operated by Noranda Inc. from 1927 to 1976.
The Horne Mine produced approximately 11.6
million ounces of gold and 2.5 billion pounds of
copper.

For further details regarding the Horne 5
Project, refer to the Updated Feasibility Study
entitled, “Feasibility Study Update, Horne 5
Gold Project”, dated effective March 18, 2021,
which was prepared in accordance with
National Instrument 43-101 Respecting
Standards of Disclosure for Mineral Projects
(“NI 43-101”), and is available on SEDAR at
www.sedar.com.
Link to Corporate Website https://www.falcores.com/en/
Industry Classification NAICS:
212220 Gold and silver ore mining
212233 Copper-zinc ore mining

ISIC:
B0729 Mining of other non-ferrous metal ores
Market Capitalization $0-$100Million USD
Type of Operations Exclusively non-producing operations
Company Headquarters Montreal, Canada
ESG Accountability
Role and Name of highest authority within company for Environment, Social and Governance strategy, programs and performance Falco Board of Directors
ESG Reporting Period
Unless otherwise noted, all data contained in this report covers the following period
From 2022-01-01
To 2022-12-31
Audit Status
Identify the degree to which any inputs of the report are third-party checked Self-Declared
Financial Reporting Period
Specify the frequency of sustainability reporting Annually
Whether Financial reporting period aligns with the period for its sustainability reporting No
Specify the reporting period for its financial reporting
From 2022-07-01
To 2023-06-30
If financial reporting period does not align with the period for its sustainability reporting, explain the reason for this ESG reports follow a calendar year while the
financial report follow a financial year of  July-
June.  Any questions should be addressed to VP
Environment and Sustainable Development at
info@falcores.com.
Specify the contact point for questions about the report or reported information Vice-President, Environment & Sustainable
Development
Geographic Scope of Report
Unless otherwise noted, the data in this report covers ESG matters related to the following countries of operations Canada
Fragile and Conflict-Affected Situations
Identify all of the entity's countries of operations that align with the World Bank's list of "Fragile and Conflict-Affected Situations" None
Business Operations Scope of Report
Identify notable exclusions, and reference any existing or planned reports that do or will address these (e.g, assets recently divested or acquired, non-managed joint ventures, specific exploration activities, recently closed sites, etc.) No exclusion
Mineral Resource Types in Scope
Which of the following mineral resource types are covered by this report
   •  Inferred
   •  Indicated
   •  Measured
Mineral Reserve Types in Scope
Which of the following mineral reserve types are covered by this report
   •  Proven
   •  Probable
Currency
Unless otherwise noted, all financial figures referenced in this report are in the following currency CAD
Organizational Profile
Provide a list of externally-developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes, or which it endorses, e.g., GRI, UN Global Compact GRI, SASB, UN Global Compact, TSM and
TCFD.
Strategy
Provide a description of key impacts, risks, and opportunities, Falco’s Management’s Discussion and Analysis
(MD&As) published on SEDAR on a quarterly
basis and also available on Falco's Web Site,
discuss the main risk factors associated with an
investment in Falco or in connection with its
business and operations (see attached).
As part of the development of the Horne 5
Project, Falco filed (i)  its updated Feasibility
Study on SEDAR in 2021 and submitted (ii) its
Impact Study (2017) to the regulators in 2018
(''EIS'') and iii) complements to the EIS in 2022.
These studies discuss the project risks, impacts,
and opportunities in detail and are available at
the links below.

An enterprise and project risks analysis was
initiated with KPMG in 2021 and an
assessment of the top key risks was completed
in 2022, which are aligned with those risks
included in Falco’s MD&A.

Horne 5 Feasibility Study Update 2021

Horne 5 Environmental Impact Assessment (in
French)

Falco Management's Discussion and Analysis
(MDA) for periods ended Dec 31, 2022

Environmental Assessment Registry (in French)
Falco’s Management’s Discussion and Analysis (MD&As) 2022
Provide a statement from the highest governance body or most senior executive of the organization (i.e., CEO, chair, or equivalent senior position) about the relevance of sustainable development to the organization and its strategy for for contributing to sustainable development. (CEO's message for this report) Message from the President & CEO, Luc
Lessard, and the Vice-President Environment &
Sustainable Development, Hélène Cartier (see
attached).
Falco Corporate Sustainability Report 2021
A word from Management
Policy commitments
Provide a description of the organization’s policy commitments for responsible business conduct Falco has a diligent organizational structure
that ensures healthy corporate governance.
Falco expects its corporate governance
framework and practices to evolve in tandem
with its growth. The organizational structure is
supported by several policies with clear
directions and concrete objectives including a
Code of Ethics, which requires the observance
of high standards of business, environmental,
and personal ethics in the conduct of all
directors, officers, and other employees, and
third party services provider of Falco.
Additional policy commitments for responsible
business conduct are contained in the
additional policies identified below:

- Code of Ethics
- Internal Whistleblowing
- Anti-Bribery, Anti-Corruption and Anti-
Money Laundering (newly adopted in 2022)
- Prevention of Harrassment in the Workplace
and the Handling of Complaints
- Securities trading
- Tenure on the board of directors
- Diversity of the board of directors
- Diversity in corporate talent
- Health and Safety
- Corporate Social Responsibility
- Environmental
Code of Ethics Prevention of Harrassment in the Workplace and the Handling of Complaints Health and Safety
Diversity of the board of directors Diversity in corporate talent
What are (if any) the authoritative intergovernmental instruments that the commitments reference Although Falco’s policy commitments do not
reference the specific authoritative
intergovernmental instruments, Falco’s policies
above identified, are developed and annually
reviewed and amended (where required) on the
basis of best practices in corporate governance
and in compliance with all applicable laws and
regulations.
Do the commitments stipulate conducting due diligence Falco policy commitments (including its Code of
Ethics, Anti-Bribery, Anti-Corruption, and Anti-
Money Laundering policy, and Internal
Whistleblowing policy) refer to due diligence,
monitoring, regular reviews, and/or reporting
on the policy commitments. Falco’s Internal
Whistleblowing policy provides for an
anonymous reporting mechanism with respect
to violations of commitments contained in
Falco’s policy commitments.
Do the commitments stipulate applying the Precautionary Principle or Approach Yes
Falco’s Environmental Policy does refer to “the
precautionary  principle " to mitigate the
nuisance factors that may result from our
operations. Although most of Falco’s policies do
not specifically stipulate the application of the
Precautionary Principle, they contain
guidelines and mechanisms that aim to prevent
and mitigate negative impacts notably in health
and safety and to prevent acts that would
contravene Falco’s policies.
Do the commitments stipulate respecting human rights No
Describe the specific policy commitment to respect human rights Although Falco’s policies do not overtly refer to
human rights, its commitments to human rights
include among others, the respect of all
(i) employees (including fair treatment and
equal opportunity, free from discrimination or
harassment of any sort, safe working
environment) and of (ii) all culture and rights of
communities (including First Nations) where
the Corporation operates its business
(including its stakeholders, customers,
suppliers, and other third parties treating with
the Company).  
Policy on the Prevention of Harrassment in the Workplace and the Handling of Complaints Code of Ethics
What are (if any) the internationally recognized human rights that the commitment covers There are no specific references to
''internationally recognized human rights.''
What are the categories of stakeholders, including at-risk or vulnerable groups, that the organization gives particular attention to in the commitment The First Nations and host communities are
specifically referred to in Falco's policy
commitments.  
Provide links to the policy commitments, if publicly available, or, if the policy commitments are not publicly available, explain the reason for this The policy commitments are publicly available
on the Falco website, see the link.
Links to the policy commitments
Report the level at which each policy commitment was approved within the organization, including whether this is the most senior level All of such policy commitments were approved
by the Board of Directors of Falco its most
senior level of governance.
To what extent the policy commitments apply to the organization’s activities and to its business relationships Falco’s policy commitments extend to
third parties conducting business (providing
services and goods) with the Company.
Describe how the policy commitments are communicated to workers, business partners, and other relevant parties Undertakings to comply with the policy
commitments (Code of Ethics, Anti-Bribery,
Anti-Corruption and Anti­ Money Laundering
and Prevention of Harassment in the
Workplace and the Handling of Complaints) are
provided, on an annual basis, to all employees,
directors and third parties conducting business
(providing services and goods) with Falco and
each such policy commitments must be read,
agreed to and signed by all such parties.
Embedding policy commitments
Describe how the organization embeds each of its policy commitments for responsible business conduct throughout its activities and business relationships Please refer to the information below for a
description of the Company's implementation
and enforcement of its policy commitments.
How are responsibilities allocated in order to implement the commitments across different levels within the organization Allocation of responsibilities to implement
Falco’s policies is managed through Falco’s
managerial oversight and reporting structure.
Please refer to section “Governance structure
and composition” of this report. As per the
Code of Ethics, each employee with executive
or managerial responsibilities is responsible for
communicating the expectations contained in
the policy commitments to all employees under
his supervision and obtaining their undertaking
as to their awareness and compliance with such
policy commitments.
How are the commitments integrated into organizational strategies, operational policies, and operational procedures The policy commitments have been established
by management of the Corporation as a Code
of Ethics to be observed by all directors and
employees of the Corporation in line with its
operations and activities. They are applicable in
all jurisdictions in which the Corporation
conducts business. This commitment is
renewed every year for each  employee and all
directors.
How does the organization implement its commitments with and through its business relationships As per the Code of Ethics, Falco's policy
commitments extend to all third parties
conducting business with the Company.
What implementation training does the organization provide Employees receive periodic training regarding
ethics and business conduct including on
corruption, social and professional integration
of Aboriginal workers. Falco also encourages its
employees (including contractor) to take
training throughout the year.
Supply Chain
Estimated Total number of Business Entities in its downstream 0
Estimated End-Use customers 0
Types of activities related to the organization’s products and services carried out by the downstream entities (e.g., manufacturing, wholesale, retail); Not applicable.
The nature of its business relationships with the downstream entities Not applicable.
Describe significant changes in the information reported about business activities, value chain and other business relationships compared to the previous reporting period No change.
Material Topics
Governance of Material Topics
Describe the process followed to determine the organization's material topics, including:
i. How has the organization identified actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights, across its activities and business relationships; provide details
   •  Economic impact assessment
   •  Environmental impact assessment
   •  Social impact assessment
   •  Civil society organizations
Falco completed a Materiality Assessment with
an approach inspired from the Global Reporting
Initiative (GRI) standards.

A comprehensive list of potential ESG topics
was developed from multiple ESG standards
(BNQ 21000, Sustainable Development Goals,
SASB, GRI).  Redundancies were eliminated and
some topics were grouped in order to finalize a
list of Selected ESG Topics (see attached).
Falco Selected ESG Topics (in French)
ii. How has the organization prioritized the impacts for reporting based on their significance To understand the relative importance of the
selected ESG Topics to Falco's internal
stakeholders, a survey was developed and sent
to employees and manager and workshops
organized.
The relative materiality of the Selected ESG
Topics to Falco's external stakeholders was
assessed during a workshop.

The significance of Falco's ESG impacts was
assessed by WSP based on existing literature
on the organization and the Horne 5 Project
(see links below). The results were revised by
Falco's environment team in 2021. The
assessment and the Materiality Matrix were
finalized in 2022, after review by Falco's
Executives.

Falco Corporate Sustainability Report 2021

Horne 5 Environmental Impact Assessment
Study 2017 (in French)

Horne 5 Feasibility Study Update 2021
Falco Materiality Assessment External Stakeholder Input Materiality Matrix 2022
Specify the stakeholders and experts whose views have informed the process of determining its material topics and provide details
   •  Business partners
   •  Civil society organizations
   •  Employees and other workers
   •  Local communities
   •  Non-governmental organizations
List the organization's material topics
   •  Procurement Practices
   •  Energy
   •  Water
   •  Biodiversity
   •  Emissions
   •  Effluents and Waste
   •  Labor/Management Relations
   •  Occupational Health and Safety
   •  Training and Education
   •  Diversity and Equal Opportunity
   •  Equal Remuneration for Women and Men
   •  Non-discrimination
   •  Indigenous Rights
   •  Local Communities
   •  Anti-corruption
   •  Supplier Assessment for Impacts on Society
   •  Closure Planning
   •  Communications
   •  Materials Stewardship
   •  Other, please specify
Falco and Horne 5 Materiality Assessment was
initiated in late 2021 and completed in 2022.
This list reflects the potential topics that will be
assessed, prioritized and reported in the 2022
ESG report.

The list of topics assessed by the organization
also includes :
- Climate changes and ESG Risks
- Resilience and Climate Risks
- Integrating ESG into business decisions
- Noise and Vibration
- Environmental and Social Costs
Internalization
- Board Diversity and Accountability
- ESG Disclosure
Materiality matrix
Environment
General Disclosure
Compliance with laws and regulations
Report the total number of significant instances of non-compliance with laws and regulations during the reporting period, and a breakdown of this total by: 0
Number of instances for which fines were incurred 0
Number of instances for which non-monetary sanctions were incurred 0
Report the total number of fines for instances of non-compliance with laws and regulations that were paid during the reporting period 0
Report the monetary value of fines for instances of noncompliance with laws and regulations that were paid during the reporting period ($Million) 0
Total number of fines for instances of non-compliance with laws and regulations that occurred in the current reporting period 0
Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in the current reporting period ($Million) 0
Total number of fines for instances of non-compliance with laws and regulations that occurred in previous reporting periods 0
Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in previous reporting periods 0
Describe the significant instances of non-compliance Not applicable.
Describe how it has determined significant instances of non-compliance Not applicable.
Greenhouse Gas Emissions
Scope 1
For your operations, disclose the gross global Scope1 greenhouse gas (GHG) emissions to the atmosphere of the seven GHGs covered under the Kyoto Protocol (tonne CO₂-e)
Carbon dioxide (CO₂) (tonne CO₂-e) 104.192
Methane (CH₄) (tonne CO₂-e) 0.000
Nitrous oxide (N₂O) (tonne CO₂-e) 0.000
Hydrofluorocarbon-23 (CHF₃) (tonne CO₂-e) 0.000
Hydrofluorocarbon-32 (CH₂F₂) (tonne CO₂-e) 0.000
Sulphur hexafluoride (SF₆) (tonne CO₂-e) 0.000
Nitrogen trifluoride (NF₃) (tonne CO₂-e) 0.000
Perfluoromethane (CF₄) (tonne CO₂-e) 0.000
Perfluoroethane (C₂F₆) (tonne CO₂-e) 0.000
Perfluorobutane (C₄F₁₀) (tonne CO₂-e) 0.000
Perfluorohexane (C₆F₁₄) (tonne CO₂-e) 0.000
The total amount of gross global Scope 1 GHG emissions (CO₂-e) (tonne) 104.192
Falco's Scope 1 GHG emissions were generated
by gasoline-fueled vehicles, diesel-fueled
drilling work, and by natural gas-powered
warehouse heating. The warehouses are
intended to be relocated to the future Horne 5
Mining Complex, which will be powered by
hydroelectricity from the grid.

GHG emissions (tonne CO2-e) have been
calculated based on estimated gasoline and
diesel consumption and natural gas invoices by
the Company's energy provider, using EPA
conversion factors.
The percentage of its gross global Scope 1 GHG emissions that are covered under an emissions-limiting regulation or program that is intended to directly limit or reduce emissions, such as cap-and-trade schemes, carbon tax/fee systems, and other emissions control (e.g., command-and-control approach) and permit-based mechanisms 100.0000%
The entity shall discuss its long-term and short-term strategy or plan to manage its Scope 1 greenhouse gas (GHG) emissions Although its Scope 1 GHG emissions are low, in
part due to its limited activities in 2022, Falco
has already begun identifying and integrating
solutions to minimize the carbon footprint in
the planning and design stages of the Horne 5
Project.
Falco will maintain this approach and continue
to look for best practices and innovative
technologies to further reduce its GHG
emissions at the detailed engineering stage of
the project.
Falco GHG Emissions Reduction
Air Emissions
Report emissions of air pollutants that are released into the atmosphere
Emissions of carbon monoxide, reported as CO (tonne) 0.000
Emissions of oxides of nitrogen (NOx), reported as NOx (tonne) 0.000
Emissions of oxides of sulphur (SOx), reported as SOx (tonne) 0.000
Emissions of Particulate Matter 10 micrometres or less in diameter (PM₁₀), reported as PM₁₀ (tonne) 0.000
Emissions of lead and lead compounds, reported as Pb (tonne) 0.000
Emissions of mercury and mercury compounds, reported as Hg (tonne) 0.000
Emissions of non-methane Volatile Organic Compounds (VOCs) (tonne) 0.000
Falco is currently conducting exploration and
project development activities that do not
release significant air pollutants into the
atmosphere.
Energy Management
Total energy consumed in aggregate, in gigajoules (GJ) (hydrocarbons and electricity) including the fuel types used (e.g., biomass, hydro-electric power or bioenergy) 4,313.320
Falco's total energy consumed for 2022 is from:

-   Vehicles (gasoline) : 65.958 GJ (1,53%)
-    Drilling work (diesel) : 35.286 GJ (0,81%)
-    Winter work (propane) 1.280 GJ (0,03%)
-   Warehouses heating (natural gas)  : 1890.588
GJ  (43,81%)
-   Rouyn-Noranda office (hydroelectricity from
the grid) : 2322.461 GJ (53,82%)
The warehouses are intended to be relocated
to the Horne 5 Mining Complex, which will be
powered by hydroelectricity from the grid.
Percentage energy consumed that was supplied by grid electricity 53.8439%
Falco's total energy consumed for 2022 is from:

-   Vehicles (gasoline) : 65.958 GJ (1,53%)
-    Drilling work (diesel) : 35.286 GJ (0,81%)
-    Winter work (propane) 1.280 GJ (0,03%)
-   Warehouses heating (natural gas)  : 1890.588
GJ  (43,81%)
-   Rouyn-Noranda office (hydroelectricity from
the grid) : 2322.461 GJ (53,82%)
Percentage of energy consumed that is renewable energy 53.8439%
Water
Water Management
Disclose the amount of water that was withdrawn from freshwater sources (in thousands of cubic meters) 0.525
Most of the water consumed in 2022 was
withdrawn from the city's water supply system.

The water used for drilling came from surface
streams. Given the limited amount of water
withdrawn and since it was not measured and
only estimated, no distinction was made and all
water was considered to be from freshwater
sources.

For the Horne 5 Project, Falco will implement
various strategies and technologies to limit the
use of freshwater and maximize water
recirculation and reuse :
-    Collecting Ponds will be installed at the mine
site to capture rainwater, which will be used in
the process.
-   Once the tailings facility is in place,
precipitation and tailings water will be
collected and recirculated into the process.
Horne 5 Water Protection and Reduction
Disclose the freshwater withdrawn in locations with High or Extremely High Baseline Water Stress as a percentage of the total water withdrawn 0.0000%
Falco operates exclusively in the Province of
Quebec that is characterized by the Water
Resources Institute's Water Risk Atlas as a Low
Overall Water Risk area.
Disclose freshwater consumed in locations with High or Extremely High Baseline Water Stress as a percentage of the total water consumed 0.0000%
Disclose the amount of water that was consumed in its operations (in thousands of cubic meters) 0.525
The water consumed in 2022 was for:

-    Drinking and sanitary water for the Rouyn-
Noranda office and warehouses, comes from
the city's water system and is determined from
water meters: 0.49  in thousands of cubic
meters (93%).

-    Drilling conducted as part of environmental
and engineering studies for the Horne 5 Project
development : 0.035 thousand of cubic meters
(7%).  This volume is an estimate, no
measurements were taken during drilling.
Drilling water was withdrawn from surface
streams.
Was your organization subject to any fines, enforcement orders, and/or other penalties for water-related regulatory violations No
Total number of instances of non-compliance, including violations of a technology-based standard and exceedances of quality-based standards 0
Waste Management
Tailings Storage Facilities Management
Does your company manage Tailings Storage Facilities No
Falco's activities are currently limited to
exploration and project development and the
Company does not currently own nor manage
any tailings storage facilities.
Disclose the approach to the development of Emergency Preparedness and Response Plans (EPRPs) During the operation of the Horne 5 project,
Falco plans to strategically manage tailings to
minimize their impact on the environment.
Falco is committed to the several actions and
measures (see attached).
The Tailings Storage Facility (TSF) is designed
to manage acid mine drainage. The
classification of its containment structures and
the outcome of the risk assessment conducted
on them are disclosed as part of the
Environmental Impact Study (EIS).

An Operation, Maintenance and Surveillance
(OMS) Manual will be developed to ensure the
asset integrity and will include procedures such
as regular inspections as well as an emergency
preparedness and response plan.

Horne 5 Tailings Management (in French)
Horne 5 Tailings Management
Biodiversity
Management Plan
List the environmental and biodiversity management plan(s) implemented at active sites Falco has no active sites in areas of high
biodiversity value at this stage. Environmental
and biodiversity management plans will be
implemented as the Horne 5 Project
development evolves.
Falco has initiated the third-party externally
verified UL 2723 ECOLOGO Certification for
Responsible Development for Mineral
Exploration, and is in compliance with the
Environmental Requirements included in the
standard.

Falco is also committed to the following
biodiversity protection measures as part of the
development of the Horne 5 Project:
-   Limit the impact on wildlife by adjusting the
timing of activities, especially to protect fish
habitat, eastern whip-poor-will (a threatened
species) and bats (some of which are classified
as endangered).
-   Cover tailings transport pipes with granular
material to allow the passage of small wildlife.
-   Collaborate with regional stakeholders to
identify the most promising, innovative and
appropriate habitat loss compensation projects
for the region.

Horne 5 Vegetal Biodiversity (in French)

Horne 5 Wildlife Biodiversity (in French)
Horne 5 Biodiversity Protection
Impacts
Does access to the site involve traversing a protected area No
This disclosure includes all relevant categories
and designations of provincial, national, and
internationally recognized protected areas,
including: the World Conservation Union
(IUCN) designation I-IV, UNESCO Natural
World Heritage Sites, UNESCO Man and the
Biosphere Reserves, and wetlands designated
under the Convention on Wetlands of
International Importance (the Ramsar
Convention).
Do any of the entities concessions share a watershed with a protected area No
Percentage of proved reserves in sites with protected conservation status or in areas of endangered species habitat 0.0000%
The Horne 5 Project reserves and resources are
all located outside of protected areas.
Percentage of probable reserves in sites with protected conservation status or in areas of endangered species habitat 0.0000%
Percentage of inferred, indicated and/or measured resources in sites with protected conservation status or in areas of endangered species habitat 0.0000%
Falco has completed the environmental
biodiversity studies for the Horne 5 Project
development and its Environmental Impact
Assessment (EIA). The Horne 5 Project
resources and reserves are all located outside
of areas that could potentially impact
endangered species habitats.

As per its Environmental Policy, Falco will
respect legal requirements applicable, will
communicate its requirements to its suppliers
and subcontractors, and will contribute to the
preservation of local biodiversity during the
development of its mining projects.  The
exploration activities are conducted in
accordance with the third-party externally
verified ECOLOGO Certification requirements.
The Horne 5 Project design integrates
numerous vegetal and wildlife biodiversity
protection measures that will be implemented
at active sites, as described in Biodiversity
Management Plan section above.
Social
Scale of the Organization
Describe how the organisation defines its "Operation" Falco is in the business of exploring, evaluating
and developing mineral properties in Canada.
Its focus is on developing its mineral properties
in the Rouyn-Noranda region of the Province of
Québec for base and precious metals, primarily
on its wholly owned Horne 5 Project.

The Company has a 100% interest in
approximately 700 square kilometres of mining
claims and contractual rights in or in relation to
mining concessions in the Rouyn-Noranda
Mining Camp, which Management believes
represents approximately 70% of the entire
Mining Camp. Rouyn-Noranda is an established
Mining Camp in the Province of Québec with
the required infrastructure (electricity, rail,
water, etc.) in place for exploration and mine
development.
Report the total number of operations 1
Scale of the Organization
Report the total number of direct employees worldwide (exclude contractors) 11
This is the number of direct employees
(excluding contractors) as of December 31,
2022.
Report the total number of male direct employees worldwide (exclude contractors) 3
Report the total number of female direct employees worldwide (exclude contractors) 8
Report the total number of contract employees worldwide 2
Total number of employees worldwide (include contractors) 13
This is the number of employees (including
contractors) as of December 31, 2022.
Total number of female employees and contractors worldwide 10
Female employees and contractors as percentage of total employees and contractors 76.9231%
Total number of male employees and contractors worldwide 3
Male employees and contractors as percentage of total employees and contractors 23.0769%
Employee Information
Report the total number of direct employees by employment type (permanent and temporary), by gender 11
This is the number of direct employees as of
December 31, 2022.
Total number of permanent employees - female 8
Total number of permanent employees - male 3
Report the total number of employees by employment type (full-time and part-time), by gender 11
Report the total number of full-time employees 11
Report the total number of part-time employees 0
Total number of full-time employees - female 8
Total number of full-time employees - male 3
Describe the methodologies and assumptions used to compile the data The data are compiled in an Excel table by the
pay service.
Are the numbers reported in head count, full-time equivalent (FTE), or using another methodology The numbers reported are using a head count
methodology.
Are the numbers reported at the end of the reporting period, as an average across the reporting period, or using another methodology The numbers reported at the end of the
reporting period reflect the actual number of
employees at the end of the period.
Provide contextual information necessary to understand the employment information provided Falco Resources is working to develop the
Horne 5 Project with a small team of
specialized workers. The Falco team will grow
as the Horne 5 Project  progresses, other
specialized workers will join the team.
Describe significant fluctuations, if any, in the number of employees during the reporting period and between reporting periods The large decrease in the number of employees
is due to the lack of work associated with
waiting for the admissibility of the
environmental impact study.
Workers who are not employees
Report the total number of workers who are not employees and whose work is controlled by the organization 2
Describe the most common types of worker and their contractual relationship with the organization Not applicable.
The type of work they perform Not applicable.
Report the total number of contractors by employment type (permanent and temporary), by gender 2
Total number of temporary contractors - female 2
Report the total number of contractors by employment type (full-time and part-time), by gender 2
Total number of part-time contractors - female 2
Describe the methodologies and assumptions used to compile the information about workers who are not employees. Workers who are not employees include only
contractors who work all year for Falco.
For the other contractors who do short-term
work, only hours worked are counted for the
Health and Safety statistics.
Falco Health and Safety statistics - 2022
Is the number of workers who are not employees reported in head count, full-time equivalent (FTE), or using another methodology Yes, the number of workers who are not
employees is reported in head count.
Is the number of workers who are not employees reported at the end of the reporting period, as an average across the reporting period, or using another methodology No, the number is the total of workers who
have worked throughout the year for Falco.
Describe significant fluctuations, if any, in the number of workers who are not employees during the reporting period and between reporting periods One more person was hired for the exploration
department compared to last year.
Turnover
Report the total number and rate of employee turnover during the reporting period, by age group, and gender
All Employees
Total number of turnover (the number that left during the period) 10
Of these 10 turnovers, only one employee
voluntarily left their position. The other
turnovers relate to a temporary lack of work
due to the delay in receiving the admissibility of
the EIA by the relevant Quebec Ministry, which
momentarily precluded the Company from
further advancing to other steps of its
operations.  
Female employees
Total number of turnover (the number of females that left during the period) 0
Male employees
Total number of turnover (the number of males that left during the period) 10
Of these 10 turnovers, only one employee
voluntarily left their position. The other
turnovers relate to a temporary lack of work
due to the delay in receiving the admissibility of
the EIA by the relevant Quebec Ministry, which
momentarily precluded the Company from
further advancing to other steps of its
operations.
Turnover & Age Breakdown
Employees aged 30 years old and under
Total number of turnover (the number that left during the period) 0
Employees aged between 30 and 50 years old
Total number of turnover (the number that left during the period) 7
Employees over 50 years old
Total number of turnover (the number that left during the period) 3
Identify types of employees captured in the turnover rate calculations All employees on the payroll
Includes employees and contractors
(temporary and permanent).
Average age of employees 46
Diversity and Equal Opportunity
Report the percentage of employees per employee category in each of the following diversity categories
Board of Directors
Total Board of Directors 6
Percent Male 66.6667%
Percent Female 33.3333%
Percent over 50 years of age 100.0000%
Senior Management
Total Senior Managers 4
This number is as of December 31, 2022.
Percent Male 50.0000%
Percent Female 50.0000%
Percent between 30 and 50 years of age 25.0000%
Percent over 50 years of age 75.0000%
Salaried (excluding Senior Management)
Total Salaried (excluding Senior Management) 7
Percent Male 14.2857%
Percent Female 85.7143%
Percent under 30 years of age 14.2857%
Percent between 30 and 50 years of age 57.1429%
Percent over 50 years of age 14.2857%
Technical Employees (skilled hourly)
Total Technical Employees 0
No hourly employees (only salaried).
Production Employees (unskilled hourly)
Total Production Employees 0
Contractors:
Total Contractors 2
Excluding Senior Management.
Percent Female 100.0000%
Labour Relations
Collective Bargaining Agreements
Percentage of total direct employees covered by collective bargaining agreements 0.0000%
Falco does not have any collective bargaining
agreements or unionized employees or
contractors.
For employees not covered by collective bargaining agreements, report whether the organization determines their working conditions and terms of employment based on collective bargaining agreements that cover its other employees or based on collective bargaining agreements from other organizations Not applicable.
Notice Periods
Minimum number of weeks’ notice typically provided to employees and their representatives prior to the implementation of significant operational changes that could substantially affect them Minimum of 2 weeks, as per applicable law.
Occupational Health and Safety
Work-related Injuries
Injuries - For all employees
i. Number of fatalities as a result of work-related injury 0
ii. Number of high-consequence work-related injuries (excluding fatalities) 0
iii. Number of recordable work-related injuries 0
iv. Main types of work-related injury, e.g., confined space, trips, falls, etc. No work-related injuries of any kind for Falco
employees in 2022.
v. Number of hours worked 25,296
Lost Time Injuries (LTIs) 0
Lost Time Injuries Rate (LTIR) 0.000
Injuries - workers who are not employees but whose work and/or workplace is controlled by the organization
i. Number of fatalities as a result of work-related injury 0
ii. Number of high-consequence work-related injuries (excluding fatalities) 0
iii. Number of recordable work-related injuries 0
There was one work related incident for a sub
contractor working in an area controlled by
Falco using the wrong equipment which has not
been reported here.  This was reported by is
employer.
iv. Main types of work-related injury, e.g., confined space, trips, falls, etc. Reported only one injury for a worker who is
not employee but worked in workplaces
controlled by Falco.
In this case, a fall occurred due to the wrong
choice of equipment for work.
v. Number of hours worked 9,474
Work conducted by workers who are not
employees but whose work and/or workplaces
were controlled by Falco in 2022 included
drilling for environmental and engineering
studies as well as construction work supervised
by Falco, as part of a relocation project for the
development of the Horne 5 Project.
Lost Time Injuries (LTIs) 0
Lost Time Injuries Rate (LTIR) 0.000
Combined (Employees and non-employees, but controlled by the organization):
Total Hours Worked 34,770
Total number of all work-related injuries 0
Total Lost Time Injuries (LTIs) 0
Lost Time Injuries Rate (LTIR) 0.000
In 2022, Falco reported a 0.00 fatality rate, a
0.00 work-related injury rate, and a 0.00 lost
time injury rate (LTIR) for its employees by the
organization.

Also, Falco reported a 0.00 fatality rate, a 21.11
work-related injury rate, and a 21.11 lost time
injury rate (LTIR) for its non-employees
controlled by the organization.
Report the work-related hazards that pose a risk of high-consequence injury, including
i. How have these hazards been determined As per its Health and Safety Policy, Falco has,
among others :
-   Communicated its requirements to its
suppliers and subcontractors and made sure
they were respected; and
-   Identified emergency situations and potential
accidents which could have an impact on the
environment, on the health of employees and
neighboring communities, and  prepared to
handle those situations.

Work-related hazards that posed a high-
consequence injury risk in 2022 would have
been related to drilling and civil construction
activities. Risk analysis were conducted, by
Falco and/or its suppliers and subcontractors,
prior to field work activities, and incorporated
in Prevention and Safety Plans, along with
appropriate measures and controls to
implement in order to mitigate the identified
hazards.
Falco Health & Safety Policy
ii. Which of these hazards have caused or contributed to high-consequence injuries during the reporting period Civil construction and drilling activities can
cause injuries because they are risky works.
iii. Actions taken or underway to eliminate these hazards and minimize risks using the hierarchy of controls Prevention and Safety Plans are developed, by
Falco and/or its suppliers and subcontractors,
for each field work program.
These plans are reviewed with workers
involved prior to each job site and inductions
are provided to all field employees and
contractors before initiating work.

A Health and Safety Meeting is held and a Work
Card is filled in at the beginning of each shift.

Site Supervision is carried out during shifts, and
Health and Safety Inspections are conducted
regularly.
Falco Prevention and Safety Plan (in French) Falco Work Card (in French)
Report on actions taken or underway to eliminate other work-related hazards and minimize risks using the hierarchy of controls Prevention and Safety Plans include risk
assessment and associated mitigation
measures and controls for all work-related
hazards, high-consequence like minors ones.

The Prevention and Safety Plans is amended by
adding the elements present in the injury event
report.
Whether and, if so, why any workers have been excluded from this disclosure, including the types of worker excluded, e.g., short-term contractors No workers were excluded from this disclosure.
Disclose any contextual information necessary to understand how the data have been compiled, i.e., any standards, methodologies, and assumptions used Prevention and Safety Plans are developed and
implemented in compliance with the  regulation
applicable, namely  the "Loi sur la santé et la
sécurité du travail" and the "Commission des
normes de l'équité de la santé et de la sécurité
du travail (CNESST)".
Health and Safety data are compiled
accordingly on a monthly basis for both
employees and contractors (see attached).

Falco reports its Health and Safety data to the
Quebec Mining Association (AMQ), via the
Metrio plateform, annually.

Loi sur la santé et la sécurité du travail au
Québec

CNESST
Falco Health and Safety Data 2022 (in French)
Safety Training
Disclose the average number of training hours provided to its workforce for health, safety, and emergency management training
Average hours of health, safety, and emergency response training for (a) full-time/direct employees 1.45
2022 Health and Safety (H&S) Training
provided to Falco's employees consisted of
First Aid in the Workplace program by the
CNESST.
Security, Human Rights and Rights of Indigenous People
Identify the countries of operations within the World Bank's list of “Fragile and Conflict-Affected Situations” None
Describe the nature of any social risks, for all operating countries, that could have a material risk to operations At the present time, to the knowledge of Falco,
none of the properties in which Falco has an
interest, is the subject of a specific aboriginal
land claim. However, no assurance can be
provided that such will not be the case in the
future.
While Falco is committed to operating in a
socially responsible manner there is no
guarantee that its efforts will meet all of third
parties’ expectations, which could have a
material adverse effect on the company’s
business, financial position and operations.

Falco's Corporate Social Responsibility Policy
includes commitments in terms of Social and
Economic Benefits, Stakeholder Engagement
and Crisis Management.

Social risks are addressed as part of the Risk
Factors discussed and published on a quarterly
basis in Falco's Management Discussion &
Analysis (MDAs) available on SEDAR Falco's
website.

Falco Management Discussion & Analysis and
other published reports

Falco Corporate Social Responsibility Policy
Falco Corporate Social Responsibility Policy 2022
Percentage of proved reserves that are located in or near areas of active conflict 0.0000%
Percentage of probable reserves that are located in or near areas of active conflict 0.0000%
Describe due diligence practices and procedures with respect to indigenous rights of communities in which it operates or intends to operate At the present time, to the knowledge of Falco,
none of the resources and reserves are located
in areas subject of a specific aboriginal land
claim.

Nonetheless,  Falco recognizes the importance
of Indigenous communities, in particular the
Abitibiwinni First Nation in Abitibi-
Témiscamingue. Falco seeks to collaborate and
participate in the community's socio-economic
development to help support more equitable
distribution of wealth within the territory and
to learn and apply the shared ancestral
ecological knowledge of the Abitibiwinni First
Nation in the development of the Horne 5
Project.
Abitibiwinni-Québec Agreement, 2017 (in
french)
Community Relations
Artisanal and Small-Scale Mining
Number of company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site (not controlled by company/unauthorized) 0
Programs
Report on community relations programs, objectives and achievements in the past 3 years In addition to listening to and developing a
project in collaboration with the Rouyn-
Noranda community, Falco seeks to become an
active and involved member of the community.

In 2022, Falco met with its Consultative
Committee 2 times and organized the following
activities:
 - Presentation of the engagement and
interaction plan for 2022-2023.
 - Technical presentations on the Air quality
modeling (atmospheric dispersion) of the
Horne 5 Project .    
 - Presentation of the social monitoring
preliminary program.
 - Presentation of the ESG action plan.
 - General presentation of the Horne 5 Project
and update.

Over 90 consultation meetings were conducted
between 2017 and 2022.
Falco organized activities focused on specific
themes, including:
  - Community consultation on the tailings
facility.
  - Community consultation on potable water
protection.
  - Discussions to maintain good neighborhood
relationships with the snowmobile and all-
terrain associations, as well as with the nearby
golf club to understand issues and challenges.
  - Community consultation on noise, dust, and
vibration controls measures.
Discuss the processes, procedures, and practices to manage risks and opportunities associated with the rights and interests of communities in areas where it conducts business Falco’s approach is measured through ESG
criteria. Falco has been proactive and made
progress in securing its social license to operate
in the community, and believes that ESG is
fundamental to creating a positive impact on
local and regional economies, better working
and living environment, health and employment
as well as creating value for shareholders.
Falco will continue to take a proactive approach
to its public consultation process and has been
working diligently to identify as many
stakeholders as possible in the Rouyn-Noranda
and Abitibi region. Based on the numerous
community meetings held throughout the
region, Falco observes strong community
support for the Horne 5 Project.

Since February 5, 2019, a consultation
committee (the “Committee”) composed of
representatives from the community was
created. Falco remains committed to working
with various stakeholders to finalize a plan for
the Horne 5 Project that will maximize benefits
for the entire community, our shareholders and
other stakeholder groups. The mandate of the
Committee is to propose enhancements to
optimize cohabitation with all stakeholders and
insure that the consultation and engagement
plan has been implemented and has fulfilled its
objective.

Falco's Corporate Social Responsibility Policy
includes commitments in terms of Social and
Economic Benefits, Stakeholder Engagement
and Crisis Management.

Falco has implemented a complaint (grievance)
management system modeled after the
Canadian Mining Association "Towards
Sustainable Mining" program.

Falco Corporate Social Responsibility Policy
Falco Corporate Social Responsibility Policy 2022
Risks and Opportunities
Disclose the total number of site shutdowns or project delays due to non-technical factors 0
Governance
Climate Change
Oversight
Is there board-level oversight of climate-related issues within your organization Yes
Responsibility
Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues Chief Executive Officer (CEO)
Reporting
Frequency of reporting to the board on climate-related issues As important matters arise
Incentives
Do you provide incentives for the management of climate-related issues, including the attainment of targets No, and we do not plan to introduce them in the
next two years
Given the current stage of the Horne 5 Project,
no water-related issues are expected within the
next two years.
Risk and Opportunity Management
Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities Yes
Falco will continue to identify the physical and
transition risks associated with climate change
and implement appropriate mitigation
measures to improve its resilience.
Risk Assessments
Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business Yes
Falco recognizes that climate change is an
international and community concern that may
affect the business and operations of Falco,
directly or indirectly.

The continuing rise in global average
temperatures has created varying changes to
regional climates across the globe, resulting in
risks to personnel, equipment, and commodity
supply. The mining industry as an emitter of
greenhouse gas emissions is particularly
exposed to these regulations.

Governments at all levels are moving towards
enacting legislation to address climate change
by regulating carbon emissions and energy
efficiency, among other things. Costs
associated with meeting these requirements
may be subject to some offset by increased
energy efficiency and technological innovation;
however, there is no assurance that compliance
with such legislation will not have an adverse
effect on Falco's business, results of operations,
financial condition, and share price.

Extreme weather events (such as prolonged
drought or freezing, increased flooding,
increased periods of precipitation, and
increased frequency and intensity of storms)
have the potential to disrupt operations and
transport routes. Extended disruptions could
result in interruption to production which may
adversely affect Falco's business results of
operations, financial condition, and its share
price.
Opportunity Assessments
Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business No
Strategy
Have climate-related risks and opportunities influenced your organization’s strategy and/or financial planning Yes, and we have developed a low-carbon
transition plan
Falco has already begun identifying and
integrating solutions to minimize the carbon
footprint in planning and design stages of the
Horne 5 Project. Falco will maintain this
approach and continue to look for best
practices and innovative technologies to
further reduce its GHG emissions at the
detailed engineering stage of the project.
Water Management
Quality and Quantity Dependency
Rate the importance (current and future) of freshwater quality and quantity to the success of your business
Direct use importance rating Important
Freshwater needs are currently limited and
provided by the city's water supply system.
Freshwater quality and quantity will be
important for the development of the Horne 5
Project, although it will only be a small
proportion of the water usage (~5%).
Rate the importance (current and future) of sufficient quantity of recycled, brackish and/or produced water for the success of your business
Direct use importance rating Important
Recycled water will be important for the Horne
5 Project development since the design targets
a water recirculation and reuse rate of 95%.
Risk Assessments
Does your organization undertake a water-related risk assessment Yes, water-related risks are assessed
Select the options that best describe your procedures for identifying and assessing water-related risks
i. Coverage Full
ii. Risk Assessment Procedure Water risks are assessed in an environmental
risk assessment
iii. Frequency of Risk Assessment Not defined
iv. How far into the future are risks considered More than 6 years
Have you identified any inherent water-related risks with the potential to have a substantive financial or strategic impact on operations Other, please specify
As part of the Horne 5 feasibility study and its
environmental impact assessment, Falco
identified measures to mitigate water-related
risks.

To ensure water protection, several measures
will be put in place, including:
-   Double-walled pipes to transport tailings and
recirculate water, preventing spillage in the
event of a rupture.
-   Installation of 16 state-of-the-art
instrumented leakage containment tanks along
the pipeline route to detect leaks and prevent
spillage.
-   Installation of modern and efficient water
treatment plans that enable high water quality
standards.
Opportunity Assessments
Have you identified any water-related opportunities with the potential to have a substantive financial or strategic impact on your business Yes, we have identified opportunities, and some
or all are being realized
As part of the Horne 5 Project development,
Falco will implement various strategies and
technologies to limit the use of freshwater and
maximize water recirculation and reuse:
-   Collecting ponds will be installed at the mine
site to capture the rainwater, which will be used
in the process.
-   Once the tailings facility is in place,
precipitation and tailings water will be
collected and recirculated into the process.

The design now targets a water recirculation
and reuse rate of over 95%, compared to 90%
in 2017.
Responsibility
Provide the highest management-level position(s) or committee(s) with responsibility for water-related issues Chief Executive Officer (CEO)
Policy
Does your organization have a documented water policy Other, please specify
Falco has an Environmental Policy which states
its commitment to manage efficiently surface
water and groundwater resources at all stages
of its projects life cycle (see attached).

The Horne 5 Project design includes multiple
Water Protection and Water Consumption
Reduction Measures and Commitments (see
excerpt from Falco's Sustainability Report
2021 attached).

Falco Environmental Policy
Falco Environmental Policy 2022 Falco Sustainability Report  - Water Protection and Reduction
Reporting
Frequency of reporting to the board on water-related issues As important matters arise
Incentives
Do you provide incentives to C-suite employees or board members for the management of water-related issues No, and we do not plan to introduce them in the
next two years
Given the current stage of the project, no
water-related issues are expected within the
next two years.
Strategy
Are water-related issues integrated into any aspects of your long-term strategic business plan Yes, water-related issues are integrated
If water-related issues are integrated into any aspects of your long-term strategic business plan, please describe further Falco’s Water Management Strategy aims at
minimizing water consumption, maximizing
water reuse and protecting drinking water.
The Horne 5 water management strategy is
designed to protect water coming from the
environment and to maximize water recovery
and reuse to minimize freshwater withdrawal.
Horne 5 Water Management Strategy (in
French)
If water-related issues are integrated into any aspects of your long-term strategic business plan, identify the associated long-term time horizon > 30 years
Falco's and the Horne 5 Project water
management strategies aim at efficiently
managing water at all stages of the project life
cycle, including closure and post-closure.
Governance structure and composition
Describe its governance structure, including committees of the highest governance body; e.g., the Board of Directors, the Executives, the Board Environment Committee, Board Safety Committee, the Advisory Committee, etc. Falco’s Board of Directors is composed of 6
persons, elected annually by the shareholders.

The Chair of the Board is independent, as are all
other Directors, with the exception of the
President and Chief Executive Officer (CEO)
and another Director who is  the representative
of Falco’s largest shareholder, Osisko
Development Corp.
The Board has established four standing
Committees:
-     the Audit Committee
-     the Compensation Committee
-     the Nomination and Corporate Governance
Committee, and
-     the Environment and Technical Committee.

The Chair of each Committee is independent.
The Compensation Committee and the
Environment and Technical Committee meet at
least twice a year and the other three
Committees meet quarterly.

Falco has also appointed 4 executives, the
Leadership Team,  consisting of 3 Vice
Presidents and the President and CEO.
Falco Board of Directors and Standing Committees 2022 Falco Leadership Team - 2022
List the committees of the highest governance body that are responsible for decision making on and overseeing the management of the organization’s impacts on the economy, environment, and people; e.g., the Board of Directors, the Executives, the Board Environment Committee, Board Safety Committee, the Advisory Committee, etc The Audit Committee is responsible for
providing an independent and objective
oversight of financial and risk matters.

The Compensation Committee is responsible
for the approval of policies, programs and
practices on matters of remuneration and
performance evaluation, succession planning,
human resources recruitment, health and
safety, development and retention.
The Nominating and Corporate Governance
Committee is responsible for monitoring
corporate governance and nomination matters.

The Environment and Technical Committee is
responsible for overseeing and reviewing
sustainability matters, including occupational
Health and Safety, Corporate Social
Responsibility and Environmental matters, as
well as Mining Operations and Production,
Strategic Planning, Business Development,
Capital Projects and Exploration Programs.

The roles and responsibilities of each of the
standing Committees are detailed in their
respective charter (see attached).
Falco Audit Committee Charter 2022 Falco Compensation Committee Charter  2022 Falco Nominating and Corporate Governance Committee Charter 2022
Falco Environment Technical Committee Charter
Delegation of responsibility for managing impacts
Describe whether the highest governance body has appointed any senior executives with responsibility for the management of organization’s impacts on the economy, environment, and people e.g., is it part of the Governance structure of the company, the CFO or internal audit reporting to the Board Yes
Economic responsibilities are shared between
the CEO and the CFO while the Environmental
and Social responsibilities are shared between
the VP Environment and the CEO.
Describe whether the highest governance body has delegated responsibility for the management of impacts to other employees; The CFO, as well as each of the VPs, report
directly to the President and CEO.
The President and CEO report directly to the
Board.
Consultation Process
Report the processes for consultations between stakeholders and the highest governance body on economic, environmental and social topics, e.g., for most mining companies it would be the executives and operations and not the Board, and if delegated, explain how Falco consults with stakeholders through
dedicated meetings and activities as well as
through its consultation committee (the
Committee), established in 2019 and composed
of representatives from the community. The
mandate of the Committee is to propose
enhancements to optimize cohabitation with all
stakeholders and insure that the consultation
and engagement plan has been implemented
and has fulfilled its objective.

The Board of Directors has delegated these
responsibilities to an executive (VP
Environment), who reports on stakeholder
engagement at the Environment and Technical
Committee meetings.
Governance structure and composition
Describe the composition of the highest governance body and its committees by
Number of executive members 1
Number of non-executive members 5
Number of independent members 4
Less than 3 years of tenure of members on the governance body 2
3-6 years of tenure of members on the governance body 1
6-9 years of tenure of members on the governance body 3
More than 10 years of tenure of members on the governance body 0
Number of other significant positions and commitments held by each member, and the nature of the commitments The Board members' other significant positions
and commitments are described in their
respective profiles (see attached).
Falco Board of Directors Member Profiles  2022
Number of Male governance body members 4
Number of Female governance body members 2
Number of members from under-represented social groups 0
Description of competencies relating to economic, environmental, and social topics The Nominating and Corporate Governance
Committee reviews annually the credentials of
the members of the Board.
The attached table (available in  Management
Information Circular published on SEDAR)
exemplifies the skills that each nominee
possessed, as of December 22, 2022.
Falco Board of Directors Nominees Credentials 2022
Description of stakeholder representation The prime stewardship responsibility of Falco's
Board of Directors is to ensure the viability of
the corporation and to ensure that it is
managed in the best interest of all its
stakeholders.
As per the the Board of Directors Charter (see
attached), the Board assumes responsibilities
for considering the means by which
stakeholders can communicate with the
members of the Board.

Falco's major shareholder Osisko Development
Corp. (OD), has one representative on the
Board of Directors, in accordance with the
Investor Right Agreement dated November 27,
2020 between Falco and OD.
Falco Board of Directors Charter 2022
Board Diversity
Do you have a diversity policy and if so, provide details, link to the policy or attach the file Falco adopted a policy regarding the Diversity
of the Board of Directors (see attached).
The policy states that Falco aspires to have and
maintain at least thirty percent (30%) of women
representation on the Board. The Board has not
adopted formal targets for each of the other
“designated groups” as defined in the
Employment Equity Act, as the Board considers
the representation of the “designated groups”
in the process of selecting individual
candidates.
Falco Policy regarding Diversity of the Board of Directors 2022
Chair of the highest governance body
Is the chair of the highest governance body is also a senior executive in the organization No
Conflicts of Interest
Describe the processes for the highest governance body to ensure that conflicts of interest are prevented and mitigated The Board has adopted a Code of Ethics
applicable to all of its directors, officers, and
employees, including the Chair of the Board,
the Lead Director, the President and Chief
Executive Officer, the Chief Financial Officer,
and other persons performing financial
reporting functions.
Details:  The Code of Ethics is distributed to and signed by each of the Corporation’s employees when they are
hired. Directors, officers, and designated employees are required, on an annual basis, to declare their commitment
to abide by the Corporation’s Code of Ethics. Management of the Corporation reports annually to the Nominating
and Corporate Governance Committee all non-compliance statements so disclosed by directors, officers, and
designated employees.

In the event any transactions or agreements are contemplated in respect of which a director or executive officer
has a material interest, the matter must be initially reviewed by the Audit Committee and is then submitted to the
Board of Directors.

Falco also follows the requirements of the Canadian Business Corporations Act (“CBCA”), the Corporation’s
governing law which contains specific requirements regarding conflict of interests. The CBCA further attempts to
minimize conflicts of interest between directors and corporations on which boards they serve by requiring
directors to disclose such conflicts to the corporation. Under the CBCA, a director who discloses a conflict of
interest must refrain from voting on any resolution to approve the contract or transaction giving rise to such
conflict of interest, subject to certain exceptions.

In addition, the Board has established under the Corporation’s Internal Whistleblowing Policy, a process for the
receipt and treatment of all complaints concerning accounting, internal accounting controls, auditing, or any other
wrongdoing, including in connection with the Corporation’s Code of Ethics submitted by any employee, including
procedures for the confidential anonymous submissions by employees of concerns regarding said matters.

The Code of Ethics communicates standards for business conduct in the use of Falco time, resources, and assets,
and identifies and clarifies proper conduct in areas of potential conflict of interest. Each director, officer, and
employee is provided with a copy of the Code of Ethics and is asked to sign an acknowledgment that the standards
and principles of the Code of Ethics will be maintained at all times on Falco business.

Falco Code of Ethics

Falco Internal Whistleblowing Policy
Falco Code of Ethics 2022 Falco Internal Whistleblowing Policy 2022
Report whether conflicts of interest are disclosed to stakeholders, including, as a minimum, conflicts of interest relating to Yes
There have been no reports filed that pertain to
any conduct of a director or executive officer
that constitutes a departure from the Code of
Ethics, as disclosed in the Notice of Annual
Meeting of Shareholders and Management
Information Circular available on the SEDAR
website.
Cross-board membership Yes
Cross-shareholding with suppliers and other stakeholders Yes
Existence of controlling shareholder Yes
Related parties, their relationships, transactions, and outstanding balances Yes
Collective knowledge of highest governance body
Report measures taken to advance the collective knowledge, skills, and experience of the highest governance body on sustainable development., e.g., board training The Board also assumes responsibility for,
among others, appointing, training, evaluating
and monitoring officers as well as planning for
their succession with the recommendations of
the Nominating and Corporate Governance
Committee.
Details:  As per the Nominating and Corporate Governance Committee Charter (see attached),  the duties and
responsibilities of the committee include reviewing annually the competencies and skills the Board, as a whole
should possess and the skills, areas of expertise, background, independence, and qualifications of Board members.

In May 2017, the Corporation implemented a formal program for the orientation of new directors and to provide
easy access to documentation for current directors. The orientation program includes a new director’s handbook
and the opportunity to visit an operating mine and the Horne 5 site. This reference guide provides information
related to:
i. Board and Committee Charters;
ii. Corporate Policies and Procedures;
iii. Description of Role and Responsibilities of the Chair of the Board, the Lead Director, Committee Chair and
President and Chief Executive Officer;
iv. Information on the Board and Committees Composition;
v. Compensation structure;
vi. Board assessment results;
vii. Budget and financing information; and
viii. Various publications on governance matters, risk management, compensation issues, capital markets, and gold
and precious metals market information are also provided on an ongoing basis.

Throughout the year, Management provides the Board of Directors with monthly progress reports on the Horne 5
project. The Board and Committee members also receive formal presentations by Management and external
advisors and are provided documentation from various advisors and consultants on various topics in relation to
the mining industry. In addition, new directors are briefed on the Corporation’s current property holdings and
assets, ongoing exploration programs, overall strategic plans, short-, medium-, and long-term corporate
objectives, financial status, general business risks and mitigation strategies, site visits, and existing company
policies.

The skills and knowledge of the Board as a whole are such that no formal continuing education process is currently
deemed necessary. The Board is comprised of individuals with varying backgrounds, who have, both collectively
and individually, extensive experience in running and managing public companies, particularly in the natural
resource sector. Board members are encouraged to communicate with Management, auditors, and technical
consultants to keep themselves current with industry trends, developments, and changes in legislation, with
Management’s assistance.

Falco Nominating and Corporate Governance Charter 2022
Falco Nominating and Corporate Governance Committee Charter
Evaluation of Highest Governance Body
Describe actions taken in response to the evaluations, including changes to the composition of the highest governance body and organizational practices The Board also assumes responsibility for,
among others, conducting annually, through
the Nominating and Corporate Governance
Committee, a review of Board practices and the
Board’s and committees’ performance
(including director’s individual contributions),
to ascertain that the Board, its committees and
the directors are capable of carrying out and do
carry out their roles effectively.

The Nominating and Corporate Governance
Committee is responsible for, among others :
- review annually and make recommendations
to the Board on the composition of each
committee and, as needed, on appointment of
directors to fill any committee vacancy;
- make recommendations in connection with
the orientation and education of new Board
members;
- review annually and make recommendations
to the Board on the description of the
responsibilities of the President and Chief
Executive Officer, as applicable, those of the
Senior Officers.
Transparency
Describe the role of the highest governance body and of senior executives in developing, approving, and updating the organization’s purpose, value or mission statements, strategies, policies, and goals related to sustainable development The Board of Directors, through its
Committees and executives' recommendations,
meets on an annual basis to determine the
Corporation’s objectives and goals for the
ensuing year, including governance review,
competitive analysis, update on the
Corporation’s strategies in light of current
phase as well as environmental, social and
economic review and forecast.
Among the Board of Directors responsibilities
(see attached), the Board assumes
responsibility for :
- reviewing and approving key policy
statements developed by management on
various issues such as ethics, regulatory
compliance, and communications with
shareholders, other stakeholders, and the
general public;
- adopting a strategic planning process and
thereafter reviewing and, where appropriate,
approving, annually, a strategic plan and a
budget that takes into account, among other
things, the opportunities and risks of the
business (all of which are developed at first by
management), and monitoring the Corporation’
s performance with reference to the adopted
budget and strategic plan.
Falco Board of Directors Responsibilities – 2022
Describe the role of the highest governance body in overseeing the organization’s due diligence and other processes to identify and manage the organization’s impacts on the economy, environment, and people The Board monitors the manner in which the
Corporation conducts its business as well as the
senior management responsible for the day-to-
day operations.

In addition to statutory responsibilities, the
Board, either directly or through one of its
committees, assumes multiple responsibilities
noted above. The role of the four standing
committees established by the Board are
summarized in the attached document while
their respective responsibilities are described
in details in the committee charters noted
above.
The Board oversees an enterprise-wide
approach to risk management designed to
support the achievement of organizational
objectives, including strategic objectives, to
improve long-term organizational performance
and enhance socio-economic benefits for all
stakeholders. A fundamental part of risk
management is not only understanding the
risks a company faces and what steps
Management is taking to manage those risks
but also understanding what level of risk is
appropriate for the Corporation. The
involvement of the full Board in setting the
Corporation’s business strategy is a key part of
its assessment of the Board’s tolerance to risk
and also a determination of what constitutes an
appropriate level of risk for the Corporation.
Falco Board Committees Roles 2022
Describe whether and how the highest governance body engages with stakeholders to support these processes Yes
Since February 5, 2019, a consultation
committee (the “Committee”) composed of
representatives from the community was
created. The mandate of the Committee is to
propose enhancements to optimize
cohabitation with all stakeholders and ensure
that the consultation and engagement plan has
been implemented and has fulfilled its objective
(see Governance of Material Topics, ii).

The Committee, as well as other stakeholders,
are invited to contribute to specific meetings
and activities. The outcomes are shared with
the Board, through the VP Environment at the
Environment and Technical Committee
meetings.

For instance, a key step of the Materiality
Assessment initiated in 2021 included in
workshop held with citizens and
representatives from  the Committee, the city
and organizations. Stakeholders participated
very actively in the workshop, and their input
was essential in developing the materiality
matrix and action plan.
Describe how the highest governance body considers the outcomes of these processes As mentioned above, the outcomes of such
processes are shared with the Board of
Directors as often as required, through the
relevant Committee of the Board (Environment
and Technical Committee) or directly to the
Board as the case may be, so that the
Committee and/or Board may assess and
discuss any additional processes and related
matters that should be taken into
consideration, as the case may be.
Ethics
Describe the management system and due diligence procedures for assessing and managing corruption and bribery risks internally and associated with business partners in its value chain As per its Code of Ethics (attached above),
which is annually reviewed and signed by all
directors, executives, and employees, the
Corporation promotes zero-tolerance against
bribery and corruption and entrenches such
fundamental principles in its corporate values.
Details:  The Corporation is determined to ensure compliance with anti-bribery and anti-corruption laws,
principles, and rules. All employees shall refrain from offering, giving, or receiving, directly or indirectly, anything
of value (ex.: money, gifts, entertainment, employment, contracts, or advantages of any kind) or any other form of
improper payments to a public or government official in order to influence a government action or obtain an
improper advantage and shall not knowingly participate in any form of corrupt activity.

A total of 8 employees (including contractors) received Anti-Corruption training in 2022.

Employees who have questions regarding the requirements or application of these laws must seek guidance from
the Chief Financial Officer or the Vice-President, Legal Affairs, and Corporate Secretary of the Corporation. In
some instances, the Corporation may be subject to government investigations. While the Corporation has a policy
to cooperate fully with such investigations, no employee should readily respond on behalf of the Corporation to
any regulatory authority or governmental agency unless he has had an opportunity to consult with the Chief
Financial Officer or the Vice-President, Legal Affairs, and Corporate Secretary and his supervisor, and has
received appropriate guidance in that respect.

In addition, Falco has established an Internal Whistleblowing Policy (also attached above), structured as a formal
tool to allow the receipt, retention, and treatment of complaints, denunciations, warnings, and any form of notice
by any employee of the Corporation regarding a questionable event.

Any employee who finds his concerns about a questionable event not satisfactorily addressed by his immediate
supervisor (or higher-ranking persons) or who feels that the seriousness and sensitivity of the issues or people
involved require that the reporting of such questionable event should neither be addressed to the attention of his
immediate supervisor nor follow the hierarchical ladder, should contact Falco’s Vice-President, Legal Affairs, and
Corporate Secretary (the “Whistleblowing Officer"). All communications are also forwarded directly to the Audit
Committee Chair.
Report net production from activities located in the countries with the 20 lowest rankings in Transparency International’s Corruption Perception Index (CPI) (Saleable tonne) 0
Anti-Corruption
Communication and Training
i) Total number of governance body members that have received training on anti-corruption, broken down by region 3
ii.) Total percentage of governance body members that have received training on anti-corruption, broken down by region 50.0000%
Three governance body members have
received training on anti-corruption during
2022.
Total number and percentage of employees that have received training on anti-corruption, broken down by employee category and region 8
Including contractors, as described above.
1a. Total number of employees that received training on anti-corruption 8
Total number of employees 13
Including contractors, as described above.
1b. Total percentage of employees that received training on anti-corruption 61.5385%
61,5% of employees by Falco received anti-
corruption training in 2022. Two employees
were on maternity leave in 2022.
Remuneration
Describe how the remuneration policies for members of the highest governance body and senior executives relate to their objectives and performance in relation to the management of the organization’s impacts on the economy, environment, and people The Corporation’s executive officer’s total
compensation is composed of three major
components: base salary, short-term
incentives, and long-term incentives.
Details:  The long-term incentives, equity compensation, is a portion of variable compensation that is designed to
align executive and Shareholder interests, focus executives on long-term value creation, and also support the
retention of key executives.

The short-term incentive program is a variable element of compensation and consists of an annual cash bonus.
Annual bonuses may be awarded at the sole discretion of the Board, based on recommendations of the
Compensation Committee, for team achievements, contributions, and efforts that the Compensation Committee
has determined can reasonably be expected to have a positive impact on Shareholder value.

The short-term incentive program for the senior executives is based on their performance as a team against
corporate objectives approved by the Board of Directors, and bonuses are paid in full following award approval by
the Board of Directors, at its full discretion, based on the recommendation of the Compensation Committee.

The 2022 Corporate Objectives were related to health and safety, environmental responsibility, community
relations, etc. (see attached). They were approved by the Board of Directors, upon recommendation of the
Compensation Committee. Furthermore, the Compensation Committee monitored the progress made in reaching
such objectives. As part of its duties and responsibilities and in conjunction with the year-end assessment, the
Compensation Committee reviewed the realization of the Corporation’s objectives and thereafter met with
Management for discussion and consideration of each element contained in the 2022 Corporate Objectives.
Based on its review, the Compensation Committee provided a recommendation to the Board and, accordingly, the
Board approved the following assessment of the 2022 Corporate Objectives set forth in the table attached.
Falco Corporate Objectives 2022
How the views of stakeholders (including shareholders) regarding remuneration are sought and taken into consideration The Corporate Objectives and the performance
assessment as well as the Director's
compensation are submitted to the annual
meeting of shareholders and published in the
Notice of Annual Meeting of Shareholders and
Management Information Circular, published
on SEDAR.

As part of the Annual Meeting, shareholders
are asked to approve the renewal of the long-
term incentive for employees and directors via
proxy voting.
Falco Form of Proxy 2022
Report the results of votes of stakeholders (including shareholders) on remuneration policies and proposals, if applicable At the 2022 Annual Meeting of Shareholders
(January 23, 2023), the shareholders we asked
to approve the long-term incentive plan for
employees and directors.

Based on the proxies received, shareholders
approved the ordinary resolution approving the
Corporation’s existing long-term incentive plan
(“LTIP”). The results are as follows:

Ordinary resolution to approve the
Corporation’s existing LTIP:
- Votes cast FOR: 111,117,112;
- Percentage (%) of Votes Cast FOR: 86.532
- Votes AGAINST: 17,294,289;
- Percentage (%) of Votes AGAINST: 13.468
Stakeholder Engagement
Report the purpose of the stakeholder engagement Falco wants to generate actual benefits for our
host communities while maintaining a
continuous dialogue with our
stakeholders.

Falco will continue to involve stakeholders
throughout the life cycle of the project in order
to foster their participation.

Falco will recognize and respect our
stakeholders’ social, economic, environmental,
and cultural interests.
Tax
Describe the approach to stakeholder engagement and management of stakeholder concerns related to tax, including:
i. The approach to engagement with tax authorities Falco’s management (“Management”) is
responsible for the preparation of the
consolidated financial statements and other
financial information. Management periodically
evaluates positions taken in tax returns with
respect to situations in which applicable tax
regulation is subject to interpretation. It
establishes provisions where appropriate on
the basis of amounts expected to be paid to the
tax authorities. Tax on income in interim
periods is accrued using the tax rate that would
be applicable to expected total annual earnings.

The Board oversees the Corporation’s systems
of corporate governance and financial
reporting and controls to ensure that the
Corporation reports adequate and reliable
financial and other information to Shareholders
and engages in ethical and legal conduct. The
external auditors are ultimately accountable to
the Board of Directors and the Audit
Committee as representatives of shareholders.

Falco compiled the taxation calculations for the
Horne 5 Project with assistance from third-
party taxation experts.
The function of the Audit Committee is to
provide independent and objective oversight.
The Corporation’s management team is
responsible for the preparation, presentation
and integrity of the Corporation’s financial
statements. Management is responsible for
maintaining appropriate accounting and
financial reporting principles and policies and
internal controls and procedures that provide
for compliance with accounting standards and
applicable laws and regulations. The external
auditors are responsible for planning and
carrying out a proper audit of the Corporation’s
annual financial statements and other
procedures.
ii. The approach to public policy advocacy on tax Falco financial statements are reported in the
Condensed Consolidated Interim Financial
Statements on a quarterly basis, and in the
Annual Consolidated Financial Statements,
after being audited by external auditors,
annually.

Extractive Sector Transparency Measures Act
(ESTMA) Annual Reports are published on
Falco's website.

Falco Management Discussion and Analysis
(the “MD&A”), should be read in conjunction
with Falco’s audited consolidated financial
statements and is intended to supplement and
complement the Company’s unaudited
condensed interim financial statements and
related notes.

Falco is a member of the Québec Mining
Association (QMA), who, among
others,  represents Québec’s mining industry in
meetings with government officials on policies
regarding mining.
Falco Quarterly Financial Statements

Falco Extractive Sector Transparency
Measures Act (ESTMA) Annual Report 2022

Quebec Mining Association (QMA)
iii. The processes for collecting and considering the views and concerns of stakeholders, including external stakeholders Audited financial statements and MD&A were
sent to all Shareholders who requested them in
conjunction with this Notice of Annual Meeting
of Shareholders and Circular. The Corporation’
s audited financial statements and related
MD&A for the year ended June 30, 2022, are
available on SEDAR (www.sedar.com) as well as
on the Corporation’s website (www.falcores.
com).
2022 Annual meeting for shareholders was
held in order to, among others:
- Receive the audited financial statements of
the Corporation for the year ended June 30,
2022, together with the report of the auditor
thereon; and
- Appoint PricewaterhouseCoopers LLP/s.r.l./s.
e.n.c.r.l. (“PricewaterhouseCoopers”), a
partnership of Chartered Professional
Accountants, as the auditor of the Corporation
for the fiscal year 2022.

Based on the proxies received,
PricewaterhouseCoopers was appointed to
serve as independent auditor of the
Corporation for the ensuing year at a
remuneration to be fixed by the Board of
Directors (99.557% votes cast for).

Falco Annual Meeting Documents 2022
Falco Notice of Annual Meeting and Management Circular Information 2022
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