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

Farallon Resources Ltd.

March 11, 2008 08:31 ET

Farallon Provides Legal Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 11, 2008) - Dick Whittington, President and CEO of Farallon Resources Ltd. ("Farallon" or the "Company") (TSX:FAN)(OTCBB:FRLLF), announces two legal updates.

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"), made certain allegations and, as a consequence, demanded the rescission of the option agreement between Minera Summit and Farallon dated October 15, 1995 whereby Farallon purchased the Campo Morado property. On November 6, 2007 the Company was advised (see Farallon News Release November 8, 2007) that the Second District Court of the Fifth Circuit in Hermosillo had issued a ruling declaring that Wiltz had not proven its allegations under the civil action and that there was no justification to rescind the option agreement between Minera Summit and Farallon.

Wiltz appealed the ruling, which was then reviewed by the First Unitary Court for the Fifth Circuit in Hermosillo. On February 26, 2008, the Company was advised that the basis for the appeal was denied and there were no grounds whatsoever to re-open the case.

In a separate matter, on February 14, 2008 Farallon reported that an appeal of a civil case initiated by David L. Hermiston had been dismissed. This appeal was related to a ruling made by the Mexico City court in June 2007 regarding a civil case by Hermiston in September 2004. Hermiston has filed an Amparo in Mexico to have this ruling reviewed. The Company will take appropriate action to resolve this issue.

Dick Whittington says: "Although these legal issues have been ongoing for some time, it is important for investors to know that the Company has prevailed in every instance in all civil and criminal cases initiated by Wiltz or Hermiston. Mr. Hermiston, in particular, has lost every ruling, and every appeal, in four different jurisdictions since he commenced his actions against the Company. We consider all these action frivolous, and we will continue to defend against these, and any other, allegations that Hermiston or Wiltz might make in the future."

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 at 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 Toll Free: 1-800-667-2114
    (604) 684-8092 (FAX)
    Website: www.farallonresources.com