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News

Oct 10, 2017

Falcon Announces $300,000 Financing; Corrects ERSA Agreement Terms

Vancouver, B.C., October 10, 2017. FALCON GOLD CORP. (FG: TSX-V) ("Falcon" or the "Company") is pleased to announce it has arranged a non-brokered private placement for up to $300,000 priced at $.05/Unit. Each Unit consists of one common share and one 2-year common share purchase warrant exercisable at $.08. The Company contemplates that various exemptions will be utilized pursuant to this financing and it may rely upon the suitability advice exemption (B.C. Instrument 45-536) for a portion thereof. There is no material fact or material change that has not been generally disclosed.

Closing will be subject to TSX Venture Exchange approval and any shares issued will be subject to a four-month hold period. Proceeds from this financing shall be used by the Company for exploration, project due diligence and for general corporate purposes.

ERSA Property Agreement

As reported October 3, 2017, Falcon has signed a Letter Agreement for the right to acquire an initial 80% interest in the Esperanza Resources S.A. ("ERSA") mineral concessions located in La Rioja Province and in San Luis Province of Argentina. The Property is comprised of 11 mineral concessions covering an aggregate area of 36,034 hectares and is located within the Sierra de Las Minas District.

Falcon wishes to clarify the cash and shares option terms that were reported incorrectly in its news release of October 3, 2017. The Company has agreed to make escalating annual payments over a six-year option period to ERSA totalling US$815,000 and to issue a total of 5 million Falcon common shares. The initial payments through to the completion of due diligence and regulatory approval will consist of cash of US$40,000 and 500,000 Falcon shares. During the six-year option period, Falcon is to make exploration expenditures on the Property amounting to US$5,645,000. After acquiring its 80% interest, Falcon will have the right for a period of 24 months, to purchase ERSA's residual 20% interest (for a total Falcon ownership of 100% of the Property) for a further payment of US$4.0 million and a 1% Net Smelter Return royalty. The agreement is subject to due diligence and TSX Venture Exchange approval.

About Falcon Gold Corp.

Falcon is a Canadian mineral exploration company focused on generating, acquiring, and exploring opportunities in the Americas. The Company has 21,846,184 common shares outstanding and is listed on the TSX Venture exchange with the trading symbol: "FG". For information on the Company, please visit our website: www.falcongold.ca.


CONTACT INFORMATION:

Falcon Gold Corp.

David Tafel
Chairman

Stephen Wilkinson
CEO & Director

Telephone: 604-683-1991
Email: info@falcongold.ca

Cautionary Language and Forward-Looking Statements

This news release may contain forward looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, etc. Forward looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.