Drilling Report

Falkland Gold and Minerals Ltd
03 March 2005

For immediate release                                              3 March 2005

                       FALKLAND GOLD AND MINERALS LIMITED

                                Drilling Report

Falkland Gold and Minerals Limited ('FGML' or 'the Company'), the exploration
company with exclusive rights to explore for gold and minerals in the Falkland
Islands, is pleased to provide the following update on activities since the
admission of its shares to trading on AIM on 9 December 2004.

FGML has started to commission its first surface drill rig on the Camilla Target
(target number five), north of Goose Green.  This target is thought to be an
epithermal gold anomaly, and appears to represent an intrusive dyke associated
with major North South- trending structures. It was identified by stream
sediment sampling and airborne geophysics.

A second surface drill rig has been purchased.  This will provide back-up for
the first drill rig and may also provide an opportunity to accelerate the rate
at which the targets are drilled.  It is expected to be delivered to the
Falklands by the end of this month.

To support the exploration programme, a sample treatment and project facility
has been established at Goose Green, and an administrative office at Port
Stanley.

Enquiries

FGML                                                              020 7253 7670
Richard Linnell, Executive Chairman

Grandfield                                                        020 7417 4170
Marc Popiolek / Samantha Robbins

WH Ireland                                                        020 7397 3225
Philip Haydn-Slater








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