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Falco Pacific Initiates Diamond Drill Program on Quebec Flavrian Central Gold Prospect

Falco Pacific Resource Group Inc. ("Falco Pacific" or the "Company") is pleased to announce that it has commenced a 2,000 metre diamond drill program on its Flavrian Central gold prospect located 15 km northwest of the city of Rouyn-Noranda, Quebec within the West Rouyn-Noranda Camp's ("Western Camp") Flavrian gold district. Drilling recently began with one rig and is expected to be completed in the early first quarter of 2013. The 6 drill-hole program will test multiple shallow gold targets recently generated from Falco Pacific's extensive proprietary regional database.

Flavrian Central

The Flavrian Central prospect lies 500 meters south of the St. Jude Breccia intrusion and 1 km northwest of Falco Pacific's historic Quesabe gold mine (see NR 12-14 dated December 19, 2012). The area hosts a number of historic gold showings delineated by overburden trenching and channel sampling, grab samples and a small amount of diamond drilling. High-grade gold mineralization is typically associated with shear related quartz veins and pervasive alteration of the surrounding country rocks. Historic channel sample results from a 1938 St. Jude Gold Mines exploration program highlight the region's prospectivity (highlights include: 17.91 g/t gold over 0.61 m, 79.89 g/t gold over 0.61 m, 25.48 g/t gold over 0.61 m and a grab sample of 393.23 g/t gold1).

The area's geological setting is similar to the setting around the Upper Beaver gold-copper deposit located 40 km to the SW. This, in association with the presence of former gold producers within the Western Camp, the abundance of surface gold showings, and the area's overall underexplored nature, support the significant opportunity present.

Beauchastel Property Acquisition

As previously reported (see NR 12-14 dated December 19, 2012) the Company has entered into an LOI to acquire the Beauchastel property (the "Property") from Vior Inc. which is just west of Falco Pacific's historic Quesabe gold mine. As a correction, the Property is made up 34-claims opposed to 22 as previously reported for a total of 1,331 hectares. The Company expects to close the transaction in January 2013.

Dr. Michael Byron, Vice President Exploration, is the qualified person as defined by NI 43-101 and has reviewed and verified the technical information contained in this news release.

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