Falcon Ventures Incorporated

March 21, 2007 18:51 ET

Falcon Ventures Incorporated: Corporate Update

CALGARY, ALBERTA--(CCNMatthews - March 21, 2007) - Falcon Ventures is issuing this release to provide an update on the company and its present status.

The Company was the subject of a cease trade orders issued by the Alberta and British Columbia Securities Commissions in September and October of 2005 as a result of the Company's failure to file it April 30, 2005 year end financial statements and July 31, 2005 interim financial statements in a timely manner. Due to the cease trade orders trading in the Company's shares was suspended by the TSX Venture Exchange. The Company is now up to date with its financial statement filings, and has applied to have the cease trade orders revoked.

The Company

Falcon Ventures Incorporated (the "Company") is a British Columbia company engaged in the mineral exploration business. The head office of the Company is located at 2001, 9925 Jasper Avenue, Edmonton, Alberta, T5J 2X5.

The Company presently holds interests in four mineral properties, having dropped its interest in the Mines Point property in Manitoba and its claims in Newfoundland. The remaining interests are outlined as follows:

Rose Property

Pursuant to a mineral property option agreement dated January 20, 2005, the Company was granted an option to acquire a 100% undivided interest in 42 claims located in the Sudbury area of Ontario. To date the Company has paid a total of $60,000 and issued 40,000 common shares under this option agreement. In order to keep the option granted to the Company in good standing, the Company is obligated to:

i) issue 45,000 common shares and pay $30,000 by January 28, 2006;

ii) issue 45,000 common shares, pay $35,000 and incur exploration costs of not less than $80,000 by January 28, 2007;

iii) issue 45,000 common shares, pay $40,000 and incur exploration costs of not less than $100,000 by January 28, 2008; and

iv) issue 50,000 common shares and pay $40,000 by January 28, 2009

As the Company was halted from trading on the TSX Venture Exchange on September 23, 2005 it was unable to issue 45,000 common shares due on January 28, 2006 as per the option agreement. The Optioner has confirmed that they are aware of the breach of the terms of the option agreement and no action will be taken unless the Company does not issue the required shares when the applicable regulatory bodies advise the Company they are in a position to issue said shares.

Additionally, the Company has staked an additional 62 adjacent claims and incurred $6,000 in staking costs.

The Company is required to pay all taxes, levies and other expenditures as may be required in order to maintain the property in good standing with the applicable regulatory bodies.

Upon commencement of commercial production on the property, the Company shall be responsible to pay a royalty of $0.20 per pound of ore produced and sold from the property.

The Company has the option and right to purchase and cancel 100% of the royalty at any time after commencement of commercial production for $1,200,000.

Future Plans:

The Company is obligated to spend approximately $44,000 on required assessment work on the Rose Properties by January 2007. This work has been completed. During the third quarter of fiscal 2007, the Company performed 48.5 kilometres of line cutting and geophysical surveying work. This work identified potential targets for further work, and follow up geological mapping and prospecting have been recommended. No budget has been determined for such program. The Company will consider conducting such work subject to the availability of financing.

The Company has negotiated a payment deferral to the optioner. Upon removal of the Cease Trade Order, the Company intends to meet its property obligations to issue shares to the optioner.

Stetham Property

Pursuant to a letter of intent dated September 29, 2005, the Company is to enter into a option agreement to acquire a 100% interest in 4 units in the Stetham area of Ontario. If the option agreement is entered into, the Company will be obligated to:

i) issue 50,000 common shares and pay $2,500 by September 29, 2005;

ii) issue 50,000 common shares and pay $5,000 by September 29, 2006; and

iii) issue 50,000 common shares and pay $10,000 by September 29, 2007.

Pursuant to the letter of intent, during the year ended April 30, 2006, the Company paid $2,500.

As the Company was halted from trading on the TSX Venture Exchange on September 23, 2005 it was unable to issue 50,000 common shares due on September 29, 2005 as per the letter of intent. It was also unable to meet its requirements to issue 50,000 common shares by September 29, 2006. The Optioner has confirmed that they are aware of the breach of the terms of the option agreement and no action will be taken unless the Company does not issue the required shares when the applicable regulatory bodies advise the Company they are in a position to issue said shares.

On June 8, 2006 the Company made the $5,000 payment that was due by September 29, 2006.

Future Plans:

It is the Company's intention to enter into an option agreement and issue shares once the Cease Trade Order has been removed. The Company intends to do the required assessment work to keep the property in good standing. Future exploratory work will be subject to the availability of funds.

Turnbull Property

Pursuant to a mineral property option agreement dated May 4, 2005, the Company was granted an option to acquire a 100% undivided interest in 2 claims located in the Timmins area of Ontario. In order to keep the option granted to the Company in good standing, the Company is obligated to:

i) issue 50,000 common shares on regulatory approval of the agreement;

ii) issue 50,000 common shares by May 4, 2006; and

iii) issue 100,000 common shares by May 4, 2007

Upon completion of the above share issuances, the Company will have earned a 100% interest in the property, subject to retention by the vendor of a 1% net smelter royalty if the Company commences commercial production on the claims.

The Company has the option and right to purchase and cancel 100% of the net smelter royalty at any time thereafter for $1,000,000.

As the Company was halted from trading on the TSX Venture Exchange on September 23, 2005 it was unable to issue the 50,000 common shares due upon regulatory approval and the 50,000 common shares due on May 4, 2006 as per the option agreement. The Optioner has confirmed that they are aware of the breach of the terms of the option agreement and no action will be taken unless the Company does not issue the required shares when the applicable regulatory bodies advise the Company they are in a position to issue said shares.

Future Plans:

It is the Company's intention to issue shares once the Cease Trade Order has been removed. The Company intends to do the required assessment work to keep the property in good standing. Future exploratory work will be subject to the availability of funds.

Island Lake

Pursuant to a mineral property option agreement dated July 5, 2002, the Company was granted an option to acquire a number of mineral properties in Manitoba and Saskatchewan. The Company has dropped its interest in all these properties except for an option to acquire a 100% interest in 4 claims in the Island Lake area of Manitoba. Under this agreement the Company has issued a total of 300,000 common shares.

Pursuant to the option agreement, the Company is obligated to pay the vendor a 1% net smelter royalty if the Company commences commercial production on the claims.

The Company conducted a drilling program on the property in 2006, and the claims are in good standing until March of 2010.

The Company has the option and right to purchase and cancel 100% of the net smelter royalty at any time thereafter for $1,000,000.

Future Plans:

The Company has at this time met all its required assessment work on this property. No additional work is planned on this property at this time.

Second Narrows (Parker Lake)

Pursuant to a mineral property option agreement dated May 27, 2004, the Company was granted an option to acquire a 100% interest in a claim located in the Parker Lake area of Manitoba (Second Narrows). In order to keep the option granted in good standing, the Company is obligated to issue 100,000 common shares by January 6, 2007.

Pursuant to the option agreement, during the year ended April 30, 2005, the Company issued 50,000 common shares for a deemed value of $10,000.

On January 14, 2005, the Company entered into an option agreement with Exploration Innovateurs (the "Optionee") whereby the Optionee can acquire up to a 50% undivided interest and a 1% net smelter royalty ("NSR") in the Second Narrows Property.

Pursuant to this option agreement, during the year ended April 30, 2006, the Optionee incurred exploration costs of $30,000 and as a result earned a 20% interest and 1% Net Smelter Royalty in the property. This exploration work consisted of both surface and subsurface soil sampling and shallow drilling. Samples were also taken from the bottom of the lake.

The Optionee can earn additional interests in the property by incurring exploration costs as outlined below:

i) an additional 10% interest in the property by incurring exploration costs of not less than $300,000 by March 30, 2007

ii) an additional 10% interest in the property by incurring exploration costs of not less than $1,000,000 by March 30, 2008; and

iii) an additional 10% interest in the property by incurring exploration costs of not less than $2,000,000 by March 30, 2010

If the total amount of exploration costs of $3,330,000 are not spent according to the above schedule, all of the Optionee's interest in the property will be returned to the Company, however, the Optionee will keep the 1% NSR.

The Company has the option and right to purchase 50% of the net smelter royalty for $500,000.

Future Plans:

The Company's option partner has completed the minimum required work to keep the properties in good standing.

Management

The following table sets out the directors and officers of the Company and their principal occupations:



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Name, Province and Principal Occupation
Country of residence,
and office held
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David Power Entrepreneur; 25 Years Experience Raising Venture
President and Director Capital For Various Projects Of Both Private And
Alberta, Canada Public Companies; President Of Davana Developments,
A Real Estate Development And Acquisition Company.
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E. Ross Peat Retired as Managing Director, Microsoft New
Chairman of the Board Zealand Limited June 2006; previously With IBM New
and Director Zealand for 9 Years; Currently Director of several
Auckland, New Zealand New Zealand technology start-up companies, Co-Chair
of industry group ICT-NZ, and providing board level
advisory services to non-profit organizations.
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Ron Sales Banking Executive - Retired, Advisory And Board
Director and Secretary Level Positions For Not-For-Profit Organizations.
Alberta, Canada
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John B. Hague Retired, Former Executive Vice-President Of The
Director Canada Development Corporation And President Of
British Columbia, Canterra Energy Limited; Held Numerous Directorships
Canada Including Canterra Energy Limited, Polysar Ltd.,
Kidd Creek Mines Ltd., Canwest Capital Corp. And
Ventures West Capital Corp.
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Kalervo Pesso After serving in the Finnish Air Force (1967 -
Director 1968), Mr. Pesso attended the School of Lausanne,
Espoo, Finland Switzerland. Mr. Pesso worked in various project
management roles with Nokia from 1976 to 183, and
in 1983 joined Honeywell Oy, where he is presently
a business manager. Mr. Pesso is also a member of
the board of directors of Honeywell Oy and of
Meratek Oy.
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Outstanding Share Data

As at December 22, 2006, the Company had 11,954,260 Common Shares outstanding, and has reserved 1,055,000 Common Shares pursuant to outstanding stock options under its Stock Option Plan. In addition, the Company received share subscription funds but was unable to issue the shares prior to the Cease Trade Order being issued. The total amount of common shares due to be issued under these subscriptions is 606,080.

Contact Information

  • Falcon Ventures Incorporated
    David Power
    President
    (780) 454-4950 or Toll-Free: 1-877-454-4950
    Website: www.falconventures.ca