Falcon Commences Drilling With Naftna Industrij...

FOR:  FALCON OIL & GAS LTD.

TSX VENTURE SYMBOL:  FO
AIM SYMBOL:  FOG

June 13, 2013

Falcon Commences Drilling With Naftna Industrija Srbije JSC ("NIS") in the Mako Trough, Hungary

DUBLIN, IRELAND--(Marketwired - June 13, 2013) - Falcon Oil & Gas Ltd. (TSX VENTURE:FO)(AIM:FOG)(ESM:FAC)
("Falcon" or the "Company"), is pleased to announce that further to its announcement on 23 May 2013, the first
of three exploration wells "Kutvolgy-1", to evaluate the gas potential of the Algyo Formation at a depth of
approximately 3,000m in the Mako Trough, was spudded on the 11th June, 2013.

Drilling of this first well is expected to take approximately 40 days. It is planned to drill into the Algyo
Formation, log and suspend the well for further evaluation prior to carrying out an appropriate testing
program.

In accordance with the agreement with NIS, announced on 14 January 2013, Falcon is fully carried as all costs
associated with this three well drilling program are funded by NIS. Any hydrocarbon sales revenue resulting
from this program will be shared equally between Falcon and NIS.

Philip O'Quigley, CEO of Falcon commented:

"We are pleased to confirm that the drilling of the first of a three well program with NIS in Hungary has
commenced. We are fortunate to have a strong partner in NIS funding this drilling campaign. I look forward to
sharing the result of the drilling campaign with the market in due course."

About the Algyo

The Algyo is a relatively shallow play between 2,300m and 3,500m. A number of Falcon wells have been drilled
through the Algyo in recent years, some of which encountered gas shows, but to date no well has ever tested the
play concept at an optimal location as previous wells targeted deeper intervals of up to 6,000m.

Multiple Algyo prospects have subsequently been identified by Falcon through extensive AVO analysis and the
upcoming exploration drilling program with NIS will be targeting three separate high-graded prospects.

A recent independent study by RPS Energy (January 2013) included for the first time Prospective Resource
recoverable volumes attributable to the shallow "Algyo Play". According to the RPS CPR report, eight of the ten
prospects identified by Falcon contain 568 BCF of prospective recoverable gas resources, each with a 10%
Geological Probability of Success ("GPoS").

About Falcon Oil & Gas Ltd.

Falcon is an international oil & gas company engaged in the acquisition, exploration and development of
conventional and unconventional oil and gas assets, with the current portfolio spread between Australia, South
Africa and Hungary. Falcon is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland
with a technical team based in Budapest, Hungary.

For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com.

About NAFTNA INDUSTRIJA SRBIJE JSC (NIS)

NIS is one of the largest, vertically integrated oil and gas companies in Southeast Europe, focusing on
exploration and production of hydrocarbons, refining of crude oil and sales of a broad range of petroleum
products.

For further information on NIS please visit www.nis.rs.

Certain information in this press release may constitute forward-looking information. This information is based
on current expectations that are subject to significant risks and uncertainties that are difficult to predict.
Actual results might differ materially from results suggested in any forward-looking statements. Falcon assumes
no obligation to update the forward-looking statements, or to update the reasons why actual results could
differ from those reflected in the forward looking-statements unless and until required by securities laws
applicable to Falcon. Additional information identifying risks and uncertainties is contained in Falcon's
filings with the Canadian securities regulators, which filings are available at www.sedar.com.

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FOR FURTHER INFORMATION PLEASE CONTACT:

Falcon Oil and Gas Ltd.
Philip O'Quigley
CEO
[phone] or [phone]
www.falconoilandgas.com

OR

FTI Consulting
Billy Clegg
[phone]

OR

FTI Consulting
Edward Westropp
[phone]

OR

FTI Consulting
Natalia Erikssen
[phone]

OR

Davy (NOMAD & Joint Broker)
John Frain / Anthony Farrell
[phone]

OR

GMP Securities Europe LLP (Joint Broker)
James Pope / Alexandra Carse
[phone]

OR

Cantor Fitzgerald Europe (Joint Broker)
Stewart Dickson / Richard Redmayne / Julian Erleigh
[phone]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Falcon Oil & Gas Ltd.