Farallon Resources Ltd.
TSX : FAN

Farallon Resources Ltd.
Continuum Resources Ltd.
TSX VENTURE : CNU

Continuum Resources Ltd.

September 12, 2005 19:08 ET

Farallon Resources Ltd. and Continuum Resources Ltd. Mutually Agree to not Proceed with Merger

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 12, 2005) - Dick Whittington, P.Eng., President and CEO of Farallon Resources Ltd. (TSX:FAN) and Lawrence Dick, PhD, P.Geo., President and CEO of Continuum Resources Ltd. (TSX VENTURE:CNU) announce that the companies have agreed that it is in their mutual best interests to not proceed with the agreement in principle announced on August 23, 2005.

The proposed private placement of Continuum of 6,000,000 units at $0.15 per unit for proceeds of $900,000 will also not be proceeding.

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 companies expect are forward-looking statements. For more information on the companies and the risk factors inherent in their businesses, investors should review the companies' Annual Information Forms and other disclosure at www.sedar.com.


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