Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. ANNOUNCES THE FILING OF ITS 2013 FINANCIAL STATEMENTS, MD&A, AIF AND RESERVES DATA

Falcon Oil & Gas Ltd. has filed its audited financial statements for the year ended Dec. 31, 2013, the accompanying management's discussion and analysis (MD&A) for year ended Dec. 31, 2013, dated April 29, 2014, its annual information form (AIF) dated April 29, 2014, and the statement of reserves data and other oil and gas information (National Instrument 51-101, forms 51-101F1, 51-101F2 and 51-101F3) with the relevant provincial securities regulators. These filings are available for review at SEDAR. The audited financial statements and MD&A are also available on Falcon's website.

The following should be read in conjunction with the complete audited financial statements for the year ended Dec. 31, 2013, and the accompanying MD&A for the year ended Dec. 31, 2013.

2013/2014 highlights

• Farm-out discussions advancing in Australia;
• Consolidation of interest in Australian subsidiary completed;
• The overriding royalty, Beetaloo basin, Australia reduced;
• Drilling and testing of first well in Hungary, fully carried by Naftna Industrija Srbije JSC (NIS);
• Admission to trading on AIM and ESM -- successfully raising $25.7-million (U.S.) of new capital;
• Focus on strict cost management and efficient operation of the portfolio;
• Healthy financial position, debt free with cash and cash equivalents at $8.4-million (U.S.).

Philip O'Quigley, chief executive officer of Falcon, commented: "We have had an extremely busy 2013 and first quarter 2014. Our immediate attention is now focused on securing a new farm-out partner for our acreage in Australia and the completion of testing of Kutvolgy-1. Progress to date on all of these fronts is in line with our expectations, we will make further announcements in due course."

Australia

Farm-out discussions in Australia advancing

Further to previous press releases, Falcon was approached by several oil and gas companies interested in farming into the Beetaloo basin. Falcon is well advanced in its discussions with a number of those companies.

Consolidation of interest in Australian subsidiary

In July, 2013, Falcon completed the acquisition of a 25.4-per-cent minority interest in Falcon Australia consolidating the group's interest at 98 per cent of the company.

Reducing the overriding royalty, Beetaloo basin, Australia

On Nov. 1, 2013, Falcon announced that Falcon Australia, had entered into an agreement with CR Innovations AG (CRIAG) to acquire its 4-per-cent overriding royalty interest (ORRI) relating to its exploration permits in the Beetaloo basin. On Dec. 17, 2013, Falcon announced that Falcon Australia, had entered into an agreement with Malcolm John Gerrard, Territory Oil & Gas LLC and Tom Dugan Family Partnership LLC to acquire up to 7 per cent (seven-eighths) of the remaining 8-per-cent private ORRI over Falcon Australia's exploration permits in the Beetaloo basin. The completing of the two agreements to acquire 8 per cent of the privately held ORRI at a total cost of $7-million (U.S.), of which $6-million (U.S.) is payable only upon completion of a farm-out in Australia. In addition, the group has secured agreement to acquire a further 3 per cent based on two five-year call options granted to Falcon at a future combined cost of $20-million (U.S.) leaving only a 1-per-cent royalty in private hands.

Hungary drilling

The well testing operations on the Kutvolgy-1 well in Hungary have started. Kutvolgy-1 is the first of a three-well drilling and testing program fully financed by NIS, to evaluate the gas potential of the Algyo formation in Falcon's Mako trough permit. The testing objectives are to determine reservoir quality and gas productivity from the target Algyo formation encountered in Kutvolgy-1.

Admission to trading on AIM and ESM

In March, 2013, Falcon was admitted to trading on the AIM market of the London Stock Exchange and the ESM market of the Irish Stock Exchange of the company's existing share capital and the additional 120,381,973 new common shares in the capital of the company issued pursuant to the concurrent conditional brokered private placing, at a price of 0.14 British pound (21.5 cents) per share, raising gross proceeds of $25.7-million.

Debt repayment

In June, 2013, Falcon repaid the full amount outstanding on its convertible loan note of $10.7-million. This repayment means that the group is now completely debt free.

Results for operating activities

Falcon incurred a loss of $3.6-million (U.S.) in the year ended Dec. 31, 2013, decreasing from a loss of $17.7-million (U.S.) in the year ended Dec. 31, 2012.

Falcon's cash and cash equivalent balance at Dec. 31, 2013, was $8.4-million (U.S.) (Dec. 31, 2012: $2.9-million (U.S.)).

      CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS
                (In thousands of United States dollars)

                                                 Year ended      Year ended
                                                   Dec. 31,        Dec. 31,
                                                       2013            2012
Revenue
Oil and natural gas revenue                             $17             $21
                                                         17              21
(Expenses)
Exploration and evaluation (expenses)                  (899)         (1,654)
Production and operating (expenses)                     (27)            (37)
Depreciation (loss)                                    (307)           (342)
General and administrative (expenses)                (4,656)         (6,206)
Share-based compensation (loss)                        (693)         (2,380)
Restructuring (expense)                                   -            (792)
Writedown of inventory (loss)                             -            (552)
Foreign exchange gain                                   326               -
Other income (loss)                                     683             276
                                                     (5,573)        (11,687)
Results from operating activities (loss)             (5,556)        (11,666)
Fair value gain/(loss) -- outstanding
warrants                                              3,895          (2,019)
Finance income                                          601              81
Finance (expense)                                    (2,510)         (4,111)
Net finance (expense)                                (1,909)         (4,030)
(Loss) and comprehensive (loss) for the year         (3,570)        (17,715)
(Loss) and comprehensive (loss) attributable to
equity holders of the company                        (3,411)        (17,441)
Non-controlling interest (loss)                        (159)           (274)
(Loss) and comprehensive (loss) for the year         (3,570)        (17,715)
(Loss) per share attributable to equity
holders of the company
Basic and diluted (loss)                             (0.004)          (0.03)

We seek Safe Harbor.