Mr. Karim Rayani reports

FALCON CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT

Falcon Gold Corp. has closed the final tranche of its previously announced non-brokered private placement by issuing 5,315,167 units at three cents per unit for gross proceeds of $159,455.01.

Each unit consists of one common share of the company and one share purchase warrant. Each warrant entitles the holder thereof to acquire an additional share at an exercise price of five cents per share for a period of five years.

In connection with the final tranche, the company paid finder's fees consisting of $2,100 cash and 70,000 finder's warrants to Raymond James Ltd. Each finder warrant entitles the holder thereof to acquire one share at an exercise price of five cents per share for a period of two years.

Pursuant to the private placement, the company issued an aggregate 7,481,834 units at three cents per unit for aggregate gross proceeds of $224,455.02.

The proceeds from the final tranche will be used for general working capital purposes, more specifically for general and administrative expenses (50 per cent) and for exploration on its Canadian projects (50 per cent). None of the proceeds from the final tranche will be used for payments to non-arm's-length parties or persons conducting investor relations activities.

All securities issued in connection with the final tranche will be subject to a statutory hold period expiring four months and one day after the issuance date. Final acceptance is subject to the TSX Venture Exchange.

We seek Safe Harbor.