Falcon Closes $533,000 First Tranche of Private Placement

Vancouver, British Columbia--(Newsfile Corp. - August 26, 2016) - FALCON GOLD CORP. (TSXV: FG), ("Falcon" or the "Company") is pleased to announce that it has closed a first tranche of its previously announced non-brokered private placement and issued 9,697,273 Units priced at $0.055 for total gross proceeds of $533,350. Each Unit consists of one common share and one 2 year common share purchase warrant. Each warrant will be exercisable for one common share at $0.10 for a period of 24 months. The shares will be subject to a 4 month hold period expiring in December 2016. Finders' fees of $24,255 and 420,000 broker warrants (having the same terms as the placees) have been paid.

About Falcon Gold Corp.

Falcon is a Canadian mineral exploration company focused on generating, acquiring, and exploring opportunities in the Americas.

On Behalf of the Board,

"David G. Tafel"
Director

For additional information, please visit our website: www.falcongold.ca.

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.

This news release may contain forward looking statements concerning future operations of Falcon Gold Corp. (the "Company"). All forward looking statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.