Farallon Resources Ltd.
TSX : FAN

Farallon Resources Ltd.

January 24, 2007 09:00 ET

Farallon Resources Ltd.-Mexican Prosecutor Ruling: No Grounds for Criminal Prosecution

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 24, 2007) - Farallon Resources Ltd. ("Farallon" or the "Company") (TSX:FAN) announces that its legal representatives have advised the Company about the results of a thorough investigation by the Financial Crimes section of the Prosecutor General's Office in Mexico City. The Mexican authorities have issued a ruling stating that there are no grounds whatsoever for criminal prosecution against Farallon or any of its Directors in regards to a complaint filed by Wiltz Investment, S.A. on June 16, 2004. This ruling was properly confirmed by the Auxiliaries of the Public Prosecutor for the Federal District in December 2006 and is definitive.

This now concludes the criminal action by Wiltz Investment, S.A. The Public Prosecutor has ruled on it three times and, in each instance, has found that there is no basis for the allegations included in the Wiltz action. On two previous occasions - August 2005 and March 2006 - the Public Prosecutor similarly found that there was no basis for the allegations made by Wiltz. This latest ruling has been fully ratified and is definitive.

Dick Whittington said: "This ruling is welcome news. The Board and Executives of Farallon have, over the years, conducted themselves professionally and with full respect for the law in Mexico. We will continue to do so and look forward to many years of future operation at the Campo Morado Project. We will continue to develop the Project in a socially responsible, environmentally sustainable manner with stakeholder interests - local communities, the State of Guerrero and Mexico - in mind."

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, including changes in government policies regarding mining and natural resource exploration and exploitation, and will also 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 underground workings 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, Investors should review the Company's annual Form 20-F filing with the United States Securities and Exchange Commission and its home jurisdiction filings that are available at www.sedar.com.

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

Contact Information

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