Project Development and Permitting Delays: The Horne 5 project is in the development phase and requires significant permitting approvals, which can be lengthy, complex, and subject to public opposition or unforeseen regulatory hurdles, potentially delaying construction and production timelines.

Capital Raising and Financing Risk: Falco Resources is a development-stage company and relies heavily on its ability to raise substantial capital to fund the Horne 5 project's construction and ongoing operations, with market conditions, investor sentiment, and commodity prices impacting its ability to secure favorable financing.

Commodity Price Volatility: The economic viability of the Horne 5 project is highly dependent on the market prices of gold, copper, zinc, and silver, and significant declines in these commodity prices could negatively impact future revenues, project economics, and the company's profitability.