Mr. Robert Macaulay reports

FALCON OIL & GAS LTD. ANNOUNCES COMPLETION OF PRIVATE PLACEMENT

Falcon Oil & Gas Ltd. has completed its private placement, the details of which were previously announced in Stockwatch on Nov. 24, 2010. The company issued a total of 87,049,999 units at an issuance price of 15 cents per unit (each unit consisting of one common share in the capital of Falcon and three-quarters of one common share purchase warrant) for total gross proceeds of $13,057,500.

Each whole common share purchase warrant entitles the holder to acquire one common share of Falcon at an additional purchase price of 18 cents per share for a period of 36 months from the date of issuance. Subject to applicable securities legislation, a total of 44,533,333 common shares and 33.4 million common share purchase warrants are subject to a hold period until June 11, 2011, and a total of 42,516,666 common shares and 31,887,500 common share purchase warrants are subject to a hold period until Aug. 9, 2011. The private placement remains subject to final approval from the TSX Venture Exchange.

Existing major shareholders of Falcon participated in the private placement. They were joined by members of management and the board of directors of Falcon, which together accounted for approximately 46.5 per cent of the total proceeds raised.

Delays were experienced in fulfilling certain TSX-V filing requirements, mainly as a result of the diverse corporate jurisdictions of a number of the investors. The proposed new investors described in the press release in Stockwatch dated Nov. 24, 2010, were unable to fulfill their requirements under the terms of the private placement, including obtaining the requisite foreign exchange approval of the People's Republic of China. Robert Macaulay, chief executive officer of Falcon, commented: "The efforts on the part of the China-based investors who intended to invest are appreciated and our relationships with them remain cordial and open to future business opportunities.

"I am gratified that our existing major shareholders continue to demonstrate their support of the company's tremendous potential and with the substantial participation on the part of our management and directors. This funding secures our plans to fully test the Shenandoah well in Australia while continuing to evaluate our properties in Hungary and South Africa."

Mueller & Co. LLC acted as financial adviser to Falcon in connection with the private placement transaction and received a finder's fee in the amount of $149,100.

We seek Safe Harbor.