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

Farallon Resources Ltd.

August 30, 2007 11:29 ET

Farallon's Cash Not Exposed to Liquidity Problems

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 30, 2007) - Dick Whittington, President and CEO of Farallon Resources Ltd. (TSX:FAN)(OTCBB:FRLLF) ("Farallon" or "the Company") reports that the Company's cash and equivalents, totaling C$52.4 million, is invested in US dollar and Canadian dollar business and current accounts with ScotiaBank. The total amount is available on demand for the Company's work programs, and is not invested in any commercial paper or asset back security programs.

Dick Whittington said: "Recent media headlines have reported disruptions in global credit markets and raised concerns that repayment of some short term investments may be delayed because of liquidity issues. We would like to let our investors know that Farallon's working capital and excess cash is not exposed to this problem, enabling us to continue with our exploration and development programs on the G-9 deposit at the Company's Campo Morado property in Mexico as planned."

Farallon is advancing the exploration and development of the G-9 deposit at its Campo Morado Property in Guerrero State, Mexico. The Company's 2007 parallel track program has been very successful to date. Exploration drilling is expanding the high-grade G-9 deposit, and mine planning and design, equipment acquisition and site preparation activities are also taking place 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

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 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 and its annual Form on 20F filing with the United States Securities and Exchange Commission.

No regulatory authority has approved or disapproved the information contained in this news release.

Contact Information

  • Farallon Resources Ltd.
    Shawn Wallace
    Investor Services
    (604) 684-6365 or 1-800-667-2114 (North America)
    (604) 684-8092 (FAX)
    Website: www.farallonresources.com