Mr. Karim Rayani reports

FALCON CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT

Falcon Gold Corp. has closed the first tranche of its non-brokered private placement by issuing nine million flow-through (FT) shares of the company at five cents per FT share for gross proceeds of $450,000.

In connection with the first tranche, the company paid finders' fees consisting of $31,500 cash and 630,000 finders' warrants to GloRes Securities Inc. Each finder's warrant entitles the holder thereof to acquire one common share at an exercise price of 10 cents per warrant share for a period of two years.

The gross proceeds from the first tranche will be used for exploration and development of the company's British Columbia, Ontario, Newfoundland and Quebec projects. The gross proceeds from the issuance of all flow-through shares will be used to incur Canadian exploration expenses (CEE) and will qualify as flow- through mining expenditures under the Income Tax Act (Canada).

All securities issued pursuant to the first tranche will be subject to a statutory hold period in accordance with applicable Canadian securities laws. The private placement is subject to final acceptance of the TSX Venture Exchange.

We seek Safe Harbor.