A functior $\mathcal F$ is called exact if the exactness of #
$$0\to A\to B\to C\to 0$$
implies exactness of
$$0\to \mathcal FA\to \mathcal FB\to \mathcal FC\to 0.$$
If we (merely) get
$$0\to \mathcal FA\to \mathcal FB\to \mathcal FC,$$
the functor is called left-exact.
You assume about $\mathcal F=\operatorname{Hom}(M,\cdot)$ that exactness of
$$A\to B\to C$$
always implies exactness of
$$\mathcal FA\to \mathcal FB\to \mathcal FC.$$
Note that this would imply exactness of $\mathcal F$ as you can apply this to the parts $0\to A\to B$, $A\to B\to C$ and $B\to C\to 0$ and combine.
The Hom-functor really is merely left-exact as can be seen from
$$0\to 2\mathbb Z\to \mathbb Z\to\mathbb Z/2\mathbb Z\to 0$$
and $M=\mathbb Z/2\mathbb Z$:
$$0\to0\to0\to\mathbb Z/2\mathbb Z\to 0$$
is not exact at the right end.
(Actually, this is the same example as given by WillO, only extended to the full sequence).