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

Farallon Resources Ltd.

April 21, 2008 12:11 ET

Farallon Announces Signing of Agreement to Increase Bridge Facility to US$30 Million

Societe Generale to Join Lending Group

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 21, 2008) - Dick Whittington, President and CEO of Farallon Resources Ltd. (TSX:FAN)(OTCBB:FRLLF) ("Farallon" or the "Company"), is pleased to announce that Societe Generale has committed US$10 million to the Bridge Facility for the G-9 project at the Campo Morado polymetallic (zinc, gold, silver, copper, lead) project in Guerrero State, Mexico.

Societe Generale joins NM Rothschild & Sons Limited and Paradigm Capital Inc. in the Bridge Facility, increasing funds available under the Bridge Facility by up to US$30 million, subject to execution of definitive documentation in the ordinary course. The transaction involves conventional financing terms and conditions and a 250,000 warrant equity component, which is subject to TSX approval.

The Bridge Facility is part of a previously announced debt arrangement package that also includes a US$70 million Refinance and Development Facility (see Farallon news releases of March 19, 2008, December 3, 2007 and March 21, 2007). The Bridge Facility will be used to finance a portion of the cost to acquire mining and processing equipment. Work is progressing for the Refinance and Development Facility which will be used to repay the Bridge Facility, and to finance the remaining construction activities for the mine and processing facilities of the Project.

Dick Whittington said: "We are very pleased to establish a banking relationship with Societe Generale and, in particular, to be able to put this additional funding in place at this time when there is uncertainty in global credit markets. This additional support will greatly assist us in our plans to advance the G-9 project."

Farallon is advancing the G-9 project through a parallel track program. Exploration drilling is expected to further confirm the high-grade mineralization within the G-9 deposit, and mine planning and design, equipment acquisition and site preparation activities are all taking place concurrently, with the goal of beginning production in July 2008.

For further details on Farallon Resources Ltd. and its Campo Morado property, please visit the Company's website at www.farallonresources.com.

ON BEHALF OF THE BOARD OF DIRECTORS

J.R.H. (Dick) Whittington, President and 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 form those in the 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 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 and the risk factors inherent in its business, investors should review the Company's annual Form 20-F filing with the United States Securities and Exchange Commission and its Annual Information Form at www.sedar.com

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 within North America: 1-800-667-2114
    (604) 684-8092 (FAX)
    Website: www.farallonresources.com