AGM Statement

Falkland Gold and Minerals Ltd
27 February 2006



27 Feburary 2006

Falkland Gold & Minerals Limited


                                 AGM Statement


At today's Annual General Meeting of Falkland Gold & Minerals Limited, Richard
Linnell, Chairman, will tell shareholders:

'On 13 December 2005 we reported that good  progress had been made on drilling
and that 5,950 metres had been drilled by our financial year end, 30 September
2005. By 31 December we had drilled a total of 8,400 metres of core with seven
of the priority aerial magnetic targets and two of the secondary magnetic
targets tested by the drill. Four of the targets are now confirmed as magnetic
intrusive rocks - doleritic, one as a structural feature and four unexplained
magnetic anomalies.

This comprehensive drilling programme has been underpinned by exploration work
to refine the secondary aerial magnetic targets and to develop new targets. The
work has comprised 3,176 line-km of ground magnetic surveys and 3,664 sub-peat
soil geochemical samples.

Drilling to date has predominately been in Area 6 - the area from which
significant particle gold has been recovered from streams that drain this large
area. To date the drilling has yet to resolve the main source of the particle
gold. Magnetic targets associated with the area have been found to be anomalous
but cannot yet be assigned as the main source.

Your Board's target for the year ahead is to complete drilling on the following
targets:

• Glorious Hill Prospect (Target 11)
• Malo East Prospect (Target 15E)
• Black Rock Prospect (T9S) - dependent on soil geochemical results
• Target 12 / 22 / 23 / 24 (which are all in the vicinity of Area 6)
• Albemarle Prospect (Target 18) - dependent on soil geochemical results
• Leicester Prospect (Target 20) - dependent on soil geochemical results
• Area 6 - as defined by the soil geochemical results
• Warrah Prospect - as defined by the soil geochemical results

and to continue to undertake methodical exploration activities to identity
prospective targets for sub-surface drilling on known prospects:

• Malo West - Target 16,

and in new areas:

• Lafonia - which is similar to Target 11

The financial standing of the company remains strong with cash balances, as at
31 December 2005, of £7.1m.

I remain confident that the potential that was reported in the prospectus
remains valid and that the work we will conduct in the coming year will generate
the solutions to the various anomalies. We remain hopeful that this will lead on
to some discoveries of economic value.'

Enquiries:

Falkland Gold and Minerals Limited
Richard Linnell (Chairman)           [phone]

Bell Pottinger Corporate & Financial
Nick Lambert                         [phone]







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