Farallon Resources Ltd.
TSX : FAN
OTC Bulletin Board : FRLLF

Farallon Resources Ltd.

November 08, 2007 09:00 ET

Farallon Announces Favourable Legal Ruling in Mexico

Court Dismisses Wiltz Civil Case

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2007) - Dick Whittington, President and CEO of Farallon Resources Ltd. ("Farallon" or the "Company") (TSX:FAN)(OTCBB:FRLLF) is pleased to announce that the Federal court in Hermosillo, Sonora, Mexico, has dismissed the civil case initiated by Wiltz Investments S.A. ("Wiltz") in January 2004. The ruling is conclusive and clearly states that Farallon's position has been upheld entirely.

As reported in Farallon's Annual and Quarterly Financial Statements and the associated Management's Discussion and Analysis ("MDA"), on January 22, 2004 in a writ filed in the Second District Court for the Fifth Circuit in Hermosillo, Sonora, Mexico, Wiltz Investment S.A. ("Wiltz") alleged that it was owed 750,000 common shares of Farallon related to Farallon's purchase of the Campo Morado rights from Minera Summit de Mexico S.A. de C.V. in 1998 and was, consequently, demanding the rescission of the option agreement between Minera Summit and Farallon dated October 15, 1995 whereby Farallon purchased the Campo Morado property.

The Company received legal notification of this writ on November 24, 2004 and, subsequently, filed a response with the Second District Court for the Fifth Circuit in Hermosillo, Sonora, to have these proceedings dismissed. On November 6, 2007, the Company was advised by its legal representative in Mexico that the Second District Court of Hermosillo issued a ruling declaring that Wiltz had not proven its allegations and that there was no justification to rescind the Agreement, thereby dismissing the case.

President and CEO Dick Whittington said: "We are pleased to see that the courts have found that there is no merit to the case filed by Wiltz and that the Company's ownership position to the Campo Morado property is upheld. Farallon will continue to fulfil all its legal obligations under the agreement and looks forward to the ongoing development of the G-9 property."

Farallon is advancing the exploration and development of the G-9 deposit. The Company's 2007 parallel track program has been successful to date. Exploration drilling is expanding the high-grade G-9 deposit, and mine planning and design, equipment acquisition and site preparation activities are also taking place with the goal of beginning production in July 2008. The Company's cash position is Cdn$34.9 million held in interest earning current accounts with Scotiabank.

For further details on Farallon Resources Ltd. and its Campo Morado property, please visit the Company's website at www.farallonresources.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

ON BEHALF OF THE BOARD OF DIRECTORS

J.R.H. (Dick) Whittington, President & CEO

Forward Looking Information

This release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, continuity of mineralization, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes that the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. The likelihood of future mining at Campo Morado is subject to a large number of risks and may require achievement of a number of technical, economic and legal objectives, including obtaining lower than expected grades and quantities of mineralization and resources, recovery rates and mining rates, changes in and the effect of government policies with respect to mineral exploration and exploitation, the possibility of adverse developments in the financial markets generally, delays in exploration, development and construction projects, fluctuations in the prices of zinc, gold, silver, copper, lead and other commodities, obtaining additional mining and construction permits, completion of pre-feasibility and final feasibility studies, preparation of all necessary engineering for underground and processing facilities as well as receipt of additional financing to fund mine construction. Such funding may not be available to the Company on acceptable terms or on any terms at all. There is no known ore at Campo Morado and there is no assurance that the mineralization at Campo Morado will ever be classified as ore. For more information on the Company and the risk factors inherent in its business, investors should review the Company's Annual Information Form at www.sedar.com and the Company's annual report on Form 20-F www.sec.gov.

No regulatory authority has approved or disapproved the information contained in this news release.

Contact Information

  • Farallon Resources Ltd.
    Michael Curlook
    Investor Services
    (604) 684-6365 or 1-800-667-2114
    (604) 684-8092 (FAX)
    Website: www.farallonresources.com