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

Farallon Resources Ltd.

June 26, 2008 09:19 ET

Farallon Signs Off-Take Agreements for G-9

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2008) - Farallon Resources Ltd. ("Farallon" or the "Company") (TSX:FAN)(OTCBB:FRLLF) announces that the Company has agreed to terms for the treatment of zinc, copper and lead concentrates from its G-9 Project at the Campo Morado (zinc, copper, lead, silver, gold) property in Guerrero State, Mexico.

A Heads of Agreement (the "Agreement") has been signed with the international metals trading company Trafigura Beheer BV Amsterdam ("Trafigura"). Trafigura has offices in Lucerne Switzerland, Mexico City and elsewhere around the world. The Agreement covers treatment of 100% of the zinc, copper and lead concentrates produced from the G-9 Project. Terms are competitive with the current market. The zinc contract is for 18 months commencing July 2008, with provisions to extend it for a further 1 1/2 years. The copper and lead contracts are for three years, extending to June 30, 2011. The concentrates will be shipped by truck to the port of Manzanillo, Colima State, on the west coast of Mexico and will be shipped to smelters and end users, primarily in Asia, but may involve users elsewhere in the world. All arrangements for transport to and storage at the port have been made. The Agreement is subject to the execution of final contracts for each concentrate, and to Farallon's Board for approval.

President and CEO, Dick Whittington, said, "We are extremely pleased to have signed this agreement with Trafigura to handle and process concentrates from G-9. We are looking forward to a long term partnership with them. This is another significant step in the ongoing evolution of transforming Farallon from an exploration to a production company."

Farallon is advancing the G-9 polymetallic (zinc, copper, silver, gold, lead) project at its Campo Morado Property in Mexico through a 'Parallel Track' program. Exploration drilling is expanding and confirming the high-grade mineralization within the G-9 deposit, in parallel with mine planning, equipment acquisition and site preparation and construction activities with the goal of commencing production in July 2008.

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