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

Farallon Resources Ltd.

March 19, 2008 12:31 ET

Farallon Provides Update on Banking Arrangements

First Drawdown on US$20 million Bridge Facility Made Refinance and Development Facility Work Ongoing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 19, 2008) - Dick Whittington, President and CEO of Farallon Resources Ltd. (TSX:FAN)(OTCBB:FRLLF) ("Farallon" or the "Company"), is pleased to provide an update on the banking arrangements for the G-9 project at the Campo Morado polymetallic (zinc, gold, silver, copper, lead) project in Guerrero State, Mexico.

As announced previously, NM Rothschild & Sons Limited ("Rothschild") of London has been mandated as the Lead Arranger for a US$20 million Bridge Facility and a US$70 million Refinance and Development Facility (see Farallon news releases of December 3rd, 2007 and March 21st, 2007). The Bridge Facility will be used to finance a portion of the cost to acquire mining and processing equipment. The Refinance and Development Facility will be used to repay the Bridge Facility, and to finance the remaining construction activities for the mine and processing facilities of the Project. Rothschild and Paradigm Capital Inc. ("Paradigm") will each provide half of the US$20 million Bridge Facility.

The first draw of the Bridge Facility totaling US$5 million has recently been made and further drawdowns on this facility are anticipated over the coming weeks and months. Work continues on the arrangement of the Refinance and Development Facility.

Dick Whittington said: "I am very pleased to initiate the Bridge Facility and to commence our relationship with Rothschild. It is particularly gratifying to be able to put this funding in place at a time when there is uncertainty in global credit markets as a whole. G-9 is an exciting project, and we appreciate the support of Rothschild and Paradigm in our development plans going forward."

Farallon is advancing the G-9 project through a parallel track program. Exploration drilling is expanding and confirming 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. The Company's current cash position, prior to the US$5 million drawdown mentioned above, is US$10 million, held in interest earning current accounts with Scotiabank. Total available funding, including the Bridge Facility, is US$30 million.

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