Farallon Resources Ltd.

Farallon Resources Ltd.

January 05, 2005 12:28 ET

Farallon Completes Cdn $20 Million Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FARALLON RESOURCES LTD.

TSX SYMBOL: FAN

JANUARY 5, 2005 - 12:28 ET

Farallon Completes Cdn $20 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 5, 2005) - Farallon
Resources Ltd. (TSX:FAN)

Dick Whittington, President and CEO of Farallon Resources Ltd. (TSX:FAN)
is pleased to announce that Farallon has completed the recently
announced financing by selling 28,571,877 units in its capital at a
price of Cdn.$0.70 per unit to a number of accredited and institutional
investors in North America and overseas. Each unit consists of one
common share and a share purchase warrant exercisable to purchase an
additional common share at a price of $0.80 until December 17, 2005 and
thereafter until December 17, 2006 at a price of $1.02. The common
shares included in the units and the shares issuable on exercise of the
warrants are subject to a four month resale restricted period until
April 18, 2005.

Net proceeds, after commissions of approximately 6%, from the placement
will be used for ongoing exploration, mine engineering studies and
metallurgical test work at Farallon's Campo Morado polymetallic massive
sulphide project in Guerrero State, Mexico.

Mr. Whittington said, "The response to Farallon's development potential
has been remarkable. The support we have received will enable us to keep
our focus on advancing the Campo Morado Project to mine development
status as quickly as possible. We remain on track to open a mine by
January 1, 2009."

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, exploration drilling, exploitation activities and events or
developments that the Company expects are forward-looking statements.
The likelihood of future mining at Campo Morado is subject to a large
number of risks and will require achievement of a number of technical,
economic and legal objectives, including obtaining necessary mining and
construction permits, completion of pre-feasibility and final
feasibility studies, preparation of all necessary engineering for pits
and processing facilities as well as receipt of significant additional
financing to fund these objectives as well as funding 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.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Farallon Resources Ltd.
    Shawn Wallace
    Investor Relations
    (604) 684-6365 or 1-800-667-2114 (North America)
    (604) 684-8092 (FAX)
    Website: www.farallonresources.com
    No regulatory authority has either approved or disapproved of the
    contents of the news release.