Mr. Karim Rayani reports

FALCON OVERSUBSCRIBES PRIVATE PLACEMENT, CLOSES FINAL TRANCHE TOTAL PROCEEDS EXCEED $975,000

Falcon Gold Corp. has closed the third tranche of its previously announced non-brokered private placement by issuing 6,666,660 Quebec flow-through units at 4.5 cents per FT unit for gross proceeds of $299,999.70 and 2,286,442 non-flow-through units at 3.5 cents per NFT unit for gross proceeds of $80,025.50 for aggregate gross proceeds of $380,025.20.

In the three tranches, the company has raised a total of $975,025.17, and issued 14 million FT units, 6,666,660 QFT units and 3,286,442 NFT units.

Each FT unit consists of one common share of the company issued as a flow-through share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of eight cents per warrant share for a period of two years.

Each QFT unit consists of one common share of the company issued as a flow-through share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of eight cents per warrant share for a period of two years.

Each NFT unit consists of one non-flow-through share of the company and one share purchase warrant. Each NFT unit warrant entitles the holder thereof to acquire one warrant share at an exercise price of five cents per warrant share for a period of four years.

The gross proceeds from the sale of the FT units will be used to incur Canadian exploration expenses within the meaning of the Income Tax Act (Canada) on the company's properties in the province of Newfoundland, Ontario and Quebec. The gross proceeds from the sale of the NFT units will be used for general working capital and corporate purposes. None of the proceeds from the private placement will be used for payments to non-arm's-length parties or persons conducting investor relations activities.

In connection with the third tranche, the company paid finders' fees consisting of $20,999.98 in cash and 465,666 finders' warrants. Each finder's warrant entitles the holder thereof to acquire one warrant share at an exercise price of eight cents per warrant share for a period of two years.

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

We seek Safe Harbor.