New Risk • May 25
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 15% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$6.9m free cash flow). Revenue is less than US$1m. Minor Risk Shareholders have been diluted in the past year (15% increase in shares outstanding). Announcement • Apr 22
Falco Resources Ltd Launches High-Resolution Heliborne Magnetic Survey in Western Noranda Camp Falco Resources Ltd. announced the expansion of its exploration initiatives through the launch of a high-resolution heliborne magnetic survey over the western portion of its substantial landholdings within the Noranda Mining Camp, located in the region of Abitibi, Québec. The initial survey, completed late last year, identified several underexplored areas with strong VMS potential. These targets have now been prioritized for further work. The Helimag Program is in progress and is carried out by Geo Data Solutions GDS Inc. of Laval, Québec. This program covers approximately 180 km². The parameters of this program include flight lines spaced 50 meters apart. Upon completion of the Helimag Program, the Corporation will undertake an integrated analysis incorporating geological, geochemical, and additional ground-based geophysical data. This work is expected to support the design of a potential drill program, which could be initiated in the second half of 2026. The Corporation launched an Airborne Gravity Gradiometry survey, a first for the region. The Airborne Gravity Gradiometry survey identified several felsic domes in the Western Camp, consistent with the geophysical signatures observed in the Central Camp, known for high-grade VMS deposits. The Helimag Program has been recommended as the next phase of exploration in the Western Camp. New Risk • Mar 19
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: CA$131.1m (US$95.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$6.6m free cash flow). Revenue is less than US$1m. Minor Risk Market cap is less than US$100m (CA$131.1m market cap, or US$95.5m). 
